Market Challenges and Opportunities - In the first half of 2025, China's apparel industry faced challenges due to diversified consumer demands and intensified market competition, but also presented structural opportunities[15]. - The national policy aimed at expanding domestic demand and boosting consumption continues to support the long-term positive development of the apparel industry[15]. - Mulsanne Group maintains confidence in the long-term prospects of China's fashion industry consumer market and adopts a cautiously optimistic approach to capture structural opportunities[15]. Business Strategy and Operations - The Group is enhancing its omni-channel strategy and organizational efficiency to strengthen its business foundation for future growth[15]. - The introduction of new retail business models has positioned Mulsanne Group as a leader in integrating innovative initiatives within the fashion apparel sector in China[4]. - Mulsanne Group utilizes big data analytics from both online and offline channels to optimize inventory control and supply chain management[4]. - The Group's integrated omni-channel business model aims to deliver a seamless customer experience and improve efficiency in inventory and logistics[4]. - The group aims to enhance brand awareness and influence by deepening product design positioning and improving brand promotion accuracy[16]. - The group plans to strengthen supply chain management and effectively control logistics costs to achieve cost reduction and efficiency enhancement[16]. - The Group is committed to implementing strategies that leverage its strengths in the evolving apparel market[15]. Financial Performance - Total sales revenue for the six months ended June 30, 2025, was RMB 969.1 million, representing a decrease of 11.0% from RMB 1,088.4 million for the same period in 2024[18]. - Sales revenue from the main brand GXG decreased by 8.3%, or RMB 81.2 million, primarily due to a decline in online channel sales influenced by macro-environmental shifts[21]. - Sales revenue from gxg jeans decreased by 38.2%, or RMB 30.2 million, due to the strategic adjustment to close underperforming stores[22]. - Sales from online channels decreased by 17.5%, or RMB 76.0 million, to RMB 358.0 million, impacted by the macro-environment on the e-commerce industry[27]. - The total number of offline stores decreased from 996 as of December 31, 2024, to 946 as of June 30, 2025, due to brand positioning adjustments and store closures[30]. - Sales from self-owned stores decreased by 1.7%, or RMB 7.8 million, to RMB 448.7 million, mainly due to minor brand strategy adjustments[25]. - Sales from partnership stores decreased by 35.7%, or RMB 17.1 million, to RMB 30.8 million, primarily due to a decline in the number of partnership stores[26]. - The Group recorded a gross profit of RMB 517.7 million for the Period, representing a decrease of 11.2% from RMB 583.3 million for the same period in 2024[33]. - Gross profit margin remained relatively stable at 53.4% during the Period, compared to 53.6% for the same period in 2024[33]. - Gross profit of GXG decreased by RMB 47.2 million, or approximately 8.8%, primarily due to a decrease in revenue[35]. - Gross profit of gxg jeans decreased by RMB 17.4 million, or approximately 46.8%, with a gross profit margin decrease of 6.3 percentage points[36]. - Gross profit of online channels decreased by RMB 32.0 million, or approximately 20.2%, with a gross profit margin decrease of 1.2 percentage points to 35.3%[47]. - Other income and gains for the Period were RMB 13.5 million, representing a decrease of 32.2% from RMB 19.9 million for the same period in 2024[48]. - Total selling and distribution expenses decreased by 8.0% to RMB 415.3 million, with selling and distribution expenses as a percentage of total revenue increasing to 42.9%[49]. - Total administrative expenses decreased by 25.6% to RMB 83.3 million, with administrative expenses as a percentage of total revenue decreasing to 8.6%[53]. - The gross profit margin of self-owned stores decreased by 0.7 percentage points to 71.4% due to elevated costs from quality upgrades[43]. - Finance costs decreased by 46.0%, or RMB 13.7 million, to RMB 16.1 million compared to RMB 29.8 million for the same period in 2024[56][63]. - Profit before tax increased by RMB 5.6 million to RMB 13.2 million, up from RMB 7.6 million for the same period in 2024[57][64]. - Income tax expense rose to RMB 4.3 million, an increase of RMB 3.5 million from RMB 0.8 million for the same period in 2024[58][65]. - Net operating cash outflow was RMB 61.6 million, remaining stable compared to RMB 60.4 million for the same period in 2024[67][72]. - Capital expenditures amounted to RMB 54.5 million, a decrease of 21.7%, or RMB 15.1 million, from RMB 69.6 million for the same period in 2024[68][73]. - The Group's gearing ratio increased to 40.4% as of June 30, 2025, up from 34.6% as of December 31, 2024[75][80]. - Cash and cash equivalents and pledged deposits totaled RMB 522.9 million, a decrease of 11.7%, or RMB 69.0 million, from RMB 591.9 million at the end of 2024[70]. Shareholder Information - As of June 30, 2025, the company had 950 million shares issued[100]. - Mr. Yu Yong held a beneficial interest in 2,000,000 shares, representing 0.21% of the total shareholding[96]. - Mr. Yang Herong also held a beneficial interest in 213,750,000 shares, representing 22.50% of the total shareholding[96]. - Great World Glory Pte. Ltd. holds 363,579,785 shares, representing 38.27% of the total shareholding[103]. - Crescent Glory Singapore Pte. Ltd. owns 134,474,715 shares, accounting for 14.15% of the total shareholding[105]. - GXG Trading Limited has a beneficial ownership of 213,750,000 shares, which is 22.50% of the total shareholding[105]. - The RSU Scheme was approved on April 26, 2019, to incentivize executives and retain skilled personnel[110]. - The RSU Scheme is valid for ten years, with approximately three years and nine months remaining[112]. - The maximum number of RSUs granted under the RSU Scheme is based on the shares held by the Trustee[113]. - The company may issue new shares or procure existing shares to satisfy RSUs upon exercise[113]. - The total number of Shares in respect of the RSUs that may be granted under the RSU Scheme in any 12-month period shall not exceed 1% of the Company's issued share capital[116]. - As of January 1, 2025, and June 30, 2025, an aggregate of 27,000,000 Shares were held by the Trustee, representing approximately 2.84% of the Shares in issue[118]. - As of June 30, 2025, RSUs for an aggregate of 10,500,000 Shares had been granted, representing approximately 1.1% of the Shares in issue[120]. - No RSUs were granted or exercised during the Period, resulting in a weighted average number of Shares in issue for RSUs of nil[121]. - The RSUs granted on December 29, 2020, shall vest immediately upon grant[124]. - The Company does not recommend the payment of any interim dividend for the Period[125]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the Period[126]. - All Directors confirmed compliance with the Model Code regarding securities transactions throughout the Period[127]. Assets and Liabilities - Total non-current assets decreased to RMB 862,027,000 as of June 30, 2025, from RMB 892,793,000 as of December 31, 2024, representing a decline of approximately 3.4%[143]. - Total current assets decreased to RMB 1,473,756,000 as of June 30, 2025, down from RMB 1,717,749,000 as of December 31, 2024, a decrease of about 14.2%[143]. - Total current liabilities decreased to RMB 1,470,212,000 as of June 30, 2025, compared to RMB 1,745,959,000 as of December 31, 2024, reflecting a reduction of approximately 15.7%[143]. - Net assets increased to RMB 745,445,000 as of June 30, 2025, from RMB 735,486,000 as of December 31, 2024, indicating a growth of about 1.3%[145]. - Total equity attributable to owners of the parent remained stable at RMB 745,445,000 as of June 30, 2025, compared to RMB 735,486,000 as of December 31, 2024[145]. - The fair value reserve for financial assets at fair value through other comprehensive income increased by RMB 8,872,000 during the period, contributing to total comprehensive income of RMB 9,959,000 for the six months ended June 30, 2025[146]. - The company's cash and cash equivalents decreased to RMB 156,285,000 as of June 30, 2025, from RMB 186,891,000 as of December 31, 2024, a decline of approximately 16.3%[143]. - Lease liabilities increased slightly to RMB 110,344,000 as of June 30, 2025, from RMB 109,582,000 as of December 31, 2024, reflecting a marginal increase of about 0.7%[145]. - Deferred tax liabilities decreased to RMB 9,782,000 as of June 30, 2025, down from RMB 19,515,000 as of December 31, 2024, a reduction of approximately 50%[145]. - The company's total assets less current liabilities increased to RMB 865,571,000 as of June 30, 2025, compared to RMB 864,583,000 as of December 31, 2024, showing a slight increase of about 0.1%[145]. Cash Flow and Investments - Cash flows from operating activities resulted in a net outflow of RMB 61,611 for the six months ended June 30, 2025, compared to RMB 60,375 in the prior year[151]. - Cash flows from investing activities showed a net outflow of RMB 54,114 in 2025, compared to RMB 42,373 in 2024, indicating increased investment activity[153]. - Cash flows from financing activities generated a net inflow of RMB 85,520 in 2025, down from RMB 109,924 in 2024, reflecting changes in borrowing and repayment activities[153]. - The company did not conduct any material investments or acquisitions during the Period and continues to seek new business development opportunities[78][83]. Compliance and Governance - The audit committee confirmed compliance with applicable accounting principles and adequate disclosures for the interim results[135]. - The company maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[131]. - The company has not disclosed an analysis of assets and liabilities by operating segment, as this information is not regularly reviewed by the chief operating decision maker[165]. - The company adopted amendments to IAS 21 for the first time, but these amendments did not impact the interim condensed consolidated financial information as the currencies used were exchangeable[162][163].
慕尚集团控股(01817) - 2025 - 中期财报