Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 101.8 million, a decrease of RMB 80.6 million or 44.2% compared to RMB 182.4 million for the same period in 2024[8]. - Gross profit for the same period was RMB 65.7 million, down RMB 53.3 million or 44.7% from RMB 119.0 million year-on-year[11]. - The net loss attributable to the company's owners was approximately RMB 18.3 million, a reduction of RMB 11.1 million compared to the net loss of RMB 29.4 million in the previous year[11]. - The group reported a net loss of RMB 18.3 million for the six months ended June 30, 2025, down from a loss of RMB 29.4 million in the previous year, with a net loss margin increasing from 16.1% to 17.9%[27]. - The company reported a loss before tax of RMB 18.2 million, an improvement from a loss of RMB 28.4 million in the prior year[41]. - The company reported a loss of RMB 18,253,000 for the six months ended June 30, 2025, compared to a loss of RMB 29,438,000 in the same period of 2024, indicating an improvement in performance[49]. - The company experienced a decrease in pre-tax loss from RMB 28,388,000 in 2024 to RMB 18,209,000 in 2025, reflecting a reduction in operational losses[46]. - The company reported a loss of RMB 18,248,000 for the six months ended June 30, 2025, compared to a loss of RMB 29,438,000 for the same period in 2024, indicating a 38.5% improvement in losses year-over-year[69]. Revenue and Sales - Comparable restaurant sales decreased by RMB 23.8 million for the six months ended June 30, 2025, compared to the same period in 2024[20]. - The group reported revenue from restaurant operations of RMB 101,784 thousand for the six months ended June 30, 2025, a decrease of 43.3% compared to RMB 179,637 thousand for the same period in 2024[56]. - Total revenue for the group was RMB 101,801 thousand for the six months ended June 30, 2025, down from RMB 182,379 thousand in the previous year, reflecting a decline of 44.2%[56]. Cost and Expenses - The cost of sales decreased by RMB 27.3 million to RMB 36.1 million, a reduction of 43.1% compared to RMB 63.4 million in the same period last year[16]. - Sales and distribution expenses decreased from RMB 125.8 million for the six months ended June 30, 2024, to RMB 74.9 million for the six months ended June 30, 2025, a reduction of 40.5%[21]. - Labor costs decreased from RMB 65.1 million to RMB 39.5 million, with the percentage of labor costs to revenue increasing from 35.7% to 38.8%[21]. - Depreciation expenses decreased from RMB 32.2 million to RMB 17.4 million, a reduction of 46.0%, with depreciation as a percentage of revenue decreasing from 17.7% to 17.1%[22]. - Administrative expenses decreased from RMB 17.0 million to RMB 9.4 million, a reduction of 44.7%[23]. - The percentage of sales cost to revenue slightly increased from 34.8% to 35.4% year-on-year[17]. Cash Flow and Liquidity - The net cash inflow from operating activities decreased from RMB 22.6 million to RMB 17.3 million[30]. - The net cash inflow from investment activities was RMB 7.3 million, compared to an outflow of RMB 7.9 million in the previous year[31]. - Financing activities resulted in a net cash outflow of RMB 27.4 million, an increase from RMB 26.1 million in the previous year[32]. - The company’s cash and cash equivalents decreased to RMB 1.06 million from RMB 3.69 million at the end of 2024[42]. - The group is actively negotiating with several banks for new borrowing sources and refinancing existing loans to ensure sufficient liquidity for at least the next twelve months[50][51]. Assets and Liabilities - Non-current assets decreased to RMB 83.96 million from RMB 98.65 million as of December 31, 2024[42]. - Current liabilities totaled RMB 246.8 million, slightly down from RMB 248.4 million at the end of 2024[43]. - Total liabilities exceeded total assets by approximately RMB 169,604,000 as of June 30, 2025, indicating a challenging financial position[49]. - Trade receivables decreased to RMB 2,329,000 as of June 30, 2025, from RMB 3,453,000 as of December 31, 2024, reflecting a 32.6% reduction[73]. - Trade payables increased to RMB 76,333,000 as of June 30, 2025, compared to RMB 65,100,000 as of December 31, 2024, representing a 17.0% increase[76]. Strategic Initiatives - The company plans to focus on expanding its restaurant operations in affluent and rapidly growing cities in mainland China[11]. - The company plans to modernize existing stores and develop new dishes to enhance customer experience and attract more clientele[40]. - The company aims to transform into a lifestyle brand centered around classic local cuisine, indicating a strategic shift in its business model[40]. - The company aims to be a leader in the restaurant chain industry in mainland China and Hong Kong, focusing on ethical and responsible business practices[110]. Corporate Governance - The company has committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[110]. - The company has adhered to the applicable provisions of the Corporate Governance Code as of June 30, 2025[111]. - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance until June 30, 2025[112]. - The audit committee, established on August 30, 2011, is responsible for reviewing and supervising the group's internal controls and financial reporting procedures[116]. - The audit committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ending June 30, 2025, ensuring compliance with applicable accounting policies and listing rules[117]. Shareholder Information - Major shareholders include Alpadis Group Holding AG, holding 655,087,500 shares, representing 24.67% of total shares[105]. - The total number of shares issued as of June 30, 2025, is 2,655,637,000[105]. - The average number of ordinary shares for calculating basic and diluted loss per share increased to 2,271,719,000 shares from 2,183,355,000 shares year-over-year[69]. - The company’s directors and senior management hold 221,257,550 shares, representing approximately 8.33% of the total issued shares as of June 30, 2025[102]. Other Information - The company did not declare or recommend any dividends during the interim period[68]. - The company reported no significant events after June 30, 2025[97]. - The company has no significant credit concentration risk due to a diversified customer base for trade receivables[73].
上海小南国(03666) - 2025 - 中期财报