Financial Performance - For the six months ending June 30, 2025, the group recorded unaudited revenue of approximately RMB 37.8 million, a decrease of about 4.8% compared to RMB 39.7 million for the same period in 2024[4] - The unaudited loss for the six months ending June 30, 2025, was approximately RMB 5.2 million, an improvement from a loss of RMB 6.5 million for the same period in 2024[4] - Basic loss per share for the six months ending June 30, 2025, was RMB 0.5 cents, compared to RMB 0.7 cents for the same period in 2024[4] - The group reported a net loss attributable to owners of the company of RMB 5.3 million for the six months ending June 30, 2025, compared to RMB 6.5 million for the same period in 2024[5] - The group’s unaudited loss for the period was approximately RMB 5.2 million, a decrease from RMB 6.5 million for the six months ended June 30, 2024[39] - The company reported a net loss of RMB 5,302,000 for the six months ended June 30, 2025, compared to a net loss of RMB 6,485,000 for the same period in 2024, representing a 17% improvement in loss[23] Revenue and Sales - Total revenue for the six months ended June 30, 2025, was RMB 37,841 thousand, a decrease of 4.7% from RMB 39,709 thousand in 2024[13] - Sales of printed products increased to RMB 14,012 thousand in 2025 from RMB 13,910 thousand in 2024, while sales of woven labels decreased to RMB 6,423 thousand from RMB 7,174 thousand[13] - Major customer A contributed RMB 10,539 thousand to revenue, down from RMB 11,660 thousand in the previous year, while customer B and C reported revenues of RMB 4,948 thousand and RMB 3,780 thousand respectively[17] Assets and Equity - Non-current assets as of June 30, 2025, amounted to RMB 3.0 million, an increase from RMB 2.3 million as of December 31, 2024[6] - Current assets as of June 30, 2025, totaled RMB 64.7 million, up from RMB 49.5 million as of December 31, 2024[6] - Total equity as of June 30, 2025, was RMB 48.0 million, an increase from RMB 34.8 million as of December 31, 2024[7] - The company issued new shares resulting in an increase in share capital to RMB 10.7 million as of June 30, 2025, from RMB 8.9 million as of December 31, 2024[8] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2025, was RMB (9,961) thousand, an improvement from RMB (16,424) thousand in the same period of 2024[9] - The net cash generated from financing activities was RMB 18,040 thousand for the six months ended June 30, 2025, compared to RMB 13,394 thousand in 2024, reflecting an increase of 34.5%[9] - Cash and cash equivalents increased by RMB 7,191 thousand in the first half of 2025, compared to a decrease of RMB (3,714) thousand in the same period of 2024[9] Expenses - Distribution and selling expenses decreased by approximately RMB 0.4 million to approximately RMB 2.1 million due to a reduction in the number of sales and marketing staff[37] - Administrative expenses decreased by approximately RMB 1.0 million to approximately RMB 14.0 million as a result of cost control measures[38] - Total employee benefit expenses, including director remuneration, amounted to approximately RMB 13.6 million for the period, compared to approximately RMB 13.8 million for the same period in 2024[51] Business Expansion and Strategy - The company has expanded its operations to include functional textile products and re-entered the information technology sector to diversify its business[10] - The group plans to diversify its business and increase revenue sources by expanding into functional textile products and exploring potential customers in China and overseas[35] - The group aims to explore other garment and textile business opportunities to maximize long-term returns for shareholders[56] Corporate Governance - The company has adopted a code of conduct for directors' securities transactions, compliant with GEM listing rules[71] - The company has maintained high standards of corporate governance, adhering to all applicable codes during the reporting period[72] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report and financial data[76] Market Challenges - The group faces significant impacts from public health events, potentially leading to lockdowns and work suspensions in China and Hong Kong[60] - Rising raw material prices may adversely affect the group's business and financial performance[60] - The group is facing intense competition in the garment accessories industry in China[60] - Future expansion plans, including manufacturing functional textile products, carry uncertainties and risks[60] Shareholder Information - As of June 30, 2025, the company has significant shareholdings, with Ms. Sha Xuanyi owning 132,400,000 shares, representing 10.80% of the company[67] - Mr. Li Rongsheng holds 90,000,000 shares, accounting for 7.34% of the company's equity[68] - Major shareholder Ms. Xiao Fengmei possesses 150,020,000 shares, which is 12.24% of the company[69] Dividends - The board of directors decided not to declare an interim dividend for the six months ending June 30, 2025, consistent with the previous year[4] - The company did not declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[22] - The group has not declared an interim dividend for the period[55] Acquisitions - The group acquired 90% of Shenzhen Guansheng Technology Co., Ltd. for RMB 90,000, focusing on blockchain technology and IT security services[46] - The group completed the acquisition of 90% of the shares in Guan Sheng Tong, an IT company focused on blockchain technology and security, which is expected to diversify the group's business scope and future revenue sources[56]
新达控股(08471) - 2025 - 中期财报