米格国际控股(01247) - 2025 - 中期财报

Company Information This section provides essential corporate details including the board of directors, registered offices, share registrars, auditor, and investor relations contact information Board of Directors and Committees This section lists the company's board members and their roles in the audit, remuneration, and nomination committees, along with authorized representatives and the company secretary - The Board of Directors comprises four executive directors (Ding Peiji, Ding Peiyuan, Liu Min, Yu Jianjun) and three independent non-executive directors (Wu Chengjian, Chen Jun, Guo Zheng)[6] - Mr. Wu Chengjian serves as the Chairman of the Audit Committee, Mr. Guo Zheng as the Chairman of the Remuneration Committee, and Mr. Chen Jun as the Chairman of the Nomination Committee[6] Registered Office and Principal Places of Business The company is registered in the Cayman Islands, with its principal place of business in Quanzhou, Fujian, China, and a main place of business in Hong Kong - The registered office is located at Cricket Square, Cayman Islands[6] - The head office and principal place of business in China are located at No. 168 Chongrong Street, Economic and Technological Development Zone, Quanzhou, Fujian Province[6] - The principal place of business in Hong Kong is located at Room 1601, Ho King Commercial Centre, 2–16 Fa Yuen Street, Mongkok, Kowloon[6] Cayman Islands Share Registrar and Hong Kong Share Registrar This section provides contact details for the company's share registrars in the Cayman Islands and Hong Kong - The Cayman Islands share registrar is Suntera (Cayman) Limited[7] - The Hong Kong share registrar is Hong Kong Central Share Registrar Limited[7] Auditor and Investor Relations The company's auditor is BDO Limited, and investor relations contact information and the company website are provided - The auditor is BDO Limited[7] - Investor relations contact number is (86) 595 2469 7156, email is ir@redkids.com, and the company website is www.redkids.com[7](index=7&type=chunk) Management Discussion and Analysis This section reviews the company's business performance, financial results, working capital, liquidity, capital structure, and risk management for the period Business Review and Outlook In the first half of 2025, the Group achieved significant revenue growth of 179.0% by expanding into new supply chain management businesses, despite a challenging Chinese economy and cautious consumer spending 2025 H1 vs 2024 H1 Performance Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Net Loss | 4.5 | 1.1 | +309.1% | - The mainland Chinese economy faced challenges in H1 2025, with weak demand in wholesale and retail markets due to changes in consumer spending patterns, decreased confidence, and reduced income[11] - The Group has commenced new supply chain management business for bulk commodity trading products and expects to expand its business scope to include apparel, industrial, chemical products, and food import/export in 2025[11][12] - Gross profit margin declined due to market conditions and changes in product mix; the Group took actions to preserve cash and strengthen liquidity, strictly managing operating, marketing, and financing costs[12] Financial Review The Group's revenue surged by 179.0% to RMB 289.9 million in H1 2025, primarily driven by new supply chain management business contributing 82.5% of revenue, but gross profit declined due to higher cost of sales, resulting in an expanded loss after tax 2025 H1 Key Financial Indicators Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 289.9 | 103.9 | +179.0% | | Cost of Sales | 279.1 | 91.5 | +205.0% | | Gross Profit | 10.8 | 12.4 | -12.9% | | Gross Profit Margin | 3.7% | 11.9% | -8.2 percentage points | | Other Income | 0.8 | 1.9 | -57.9% | | Selling and Distribution Expenses | 8.1 | 8.6 | -5.9% | | Administrative and Other Operating Expenses | 7.7 | 6.6 | +17.3% | | Finance Costs | 0.3 | 0.3 | - | | Income Tax Expense | 0.1 | 0 | - | | Loss After Tax | 4.5 | 1.1 | +309.1% | - In H1 2025, revenue from wholesale business of children's wear and other apparel-related products was approximately RMB 50.8 million, accounting for approximately 17.5% of the Group's revenue[13] - In H1 2025, revenue from supply chain management business for bulk commodity trading products was approximately RMB 239.1 million, accounting for 82.5% of the Group's revenue[13] - The decrease in selling and distribution expenses was primarily due to lower advertising and marketing-related expenses given the business environment[19] Working Capital Management As of June 30, 2025, the Group's net current assets increased to RMB 125.9 million, and the current ratio improved to 2.6 times, with significant reductions in turnover days for trade receivables, inventories, and trade payables Working Capital Indicators Comparison | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Current Assets (RMB million) | 125.9 | 87.1 | | Current Ratio | 2.6 times | 2.2 times | Turnover Days Comparison | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Trade Receivables | 65 days | 219 days | | Inventories | 20 days | 64 days | | Trade Payables | 8 days | 26 days | Liquidity and Capital Resources As of June 30, 2025, the Group's cash and cash equivalents significantly increased to RMB 121.7 million, with no bank borrowings, and a net increase in cash from financing activities due to new share placements Liquidity and Capital Resources Comparison | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 121.7 | 39.7 | | Bank Borrowings | 0 | 17.0 | | Gearing Ratio | Not applicable | 12.8% (December 31, 2024) | Cash Flow Comparison | Cash Flow Source | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 49.3 | 67.8 | | Net Cash from Investing Activities | 0.2 | 0.3 (primarily interest received) | | Net Cash from Financing Activities | 30.9 | 18.3 | | Net Increase in Cash and Cash Equivalents | 80.4 | 86.3 | - The increase in net cash from financing activities primarily resulted from proceeds from the placement of new shares and the issuance of shares under the share option scheme[26] Capital Structure and Fundraising Activities In May 2025, the company completed a share placement, raising approximately HK$41.9 million net, intended for establishing a cross-border B2B platform, smart customs system, channel expansion, marketing, staff expansion, and general working capital - On May 26, 2025, the company entered into a placing agreement with a placing agent to place up to 31,635,200 placing shares at HK$1.35 per share[30] - The placing price represented a discount of approximately 15.09% to the closing price on May 26, 2025, and approximately 14.77% to the average closing price for the five trading days immediately preceding the announcement date[30] Use of Proceeds from Share Placement (as of June 30, 2025) | Purpose | Planned Amount (HK$ million) | Percentage of Total Net Proceeds | Actual Usage (HK$ million) | | :--- | :--- | :--- | :--- | | Establishment of a multi-language cross-border B2B platform and smart customs clearance system | 7.0 | 16.7% | – | | Channel development and marketing | 10.0 | 23.9% | – | | Expansion of the Group's workforce to broaden business scope | 6.0 | 14.3% | – | | General working capital | 18.9 | 45.1% | – | | Total | 41.9 | 100.0% | – | Financial Risk Management The company implements treasury policies to control operations and reduce borrowing costs, ensuring sufficient cash and bank financing, with management deeming currency and exchange rate risks to be insignificant due to RMB-denominated primary business - Treasury policies aim to maintain sufficient cash and bank financing to fund daily operations and short-term funding requirements[34] - The Group's majority of monetary assets and liabilities are denominated in RMB, and management considers the currency risk exposure to be insignificant[34] - Interest rate risk primarily arises from bank borrowings, but as the Group mainly operates in mainland China, the Directors believe there is no significant exchange rate risk[34] Capital Commitments and Contingent Liabilities As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[35] Pledge of Assets As of June 30, 2025, the Group had no properties or prepaid lease payments pledged for bank loans, a change from December 31, 2024, when approximately RMB 9.7 million of such assets were pledged - As of June 30, 2025, no properties and prepaid lease payments were pledged for bank loans[36] - As of December 31, 2024, properties and prepaid lease payments with a net book value of approximately RMB 9.7 million were pledged[36] Material Investments and Significant Acquisitions and Disposals of Subsidiaries For the six months ended June 30, 2025, the Group made no other material investments, significant acquisitions, or disposals - For the six months ended June 30, 2025, the Group made no other material investments, significant acquisitions, or disposals[37] Investments Held in Foreign Currencies and Hedging For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies, and its working capital or liquidity was not significantly affected by exchange rate fluctuations - For the six months ended June 30, 2025, the Group held no investments denominated in foreign currencies[38] - The Group's working capital or liquidity was not subject to any significant difficulties or impacts due to exchange rate fluctuations[38] Employees and Remuneration Policy The Group's remuneration policy aims to attract, retain, and motivate talent, with compensation determined by job nature, position, and market levels, employing approximately 310 full-time staff with total employee costs of RMB 11.7 million in H1 2025 - The remuneration policy aims to attract, retain, and motivate talent, with performance-based compensation reflecting market levels[39] - As of June 30, 2025, the Group employed approximately 310 full-time employees[39] Total Employee Costs Comparison | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 11.7 | 11.6 | Corporate Governance and Other Information This section details the company's adherence to corporate governance codes, directors' securities transactions, audit committee review, dividend policy, public float, and directors' and substantial shareholders' interests Corporate Governance Code The company is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, with minor deviations regarding the Chairman/CEO role and management reporting frequency, which the Board believes do not impair power balance - The company has adopted the Corporate Governance Code as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[41] - Deviation from Code Provision A.2.1: The Chairman (Mr. Ding Peiji) also serves as the Chief Executive Officer, an arrangement the Board believes ensures consistent leadership direction[41] - Deviation from Code Provision C.1.2: Management does not provide monthly updates to the Board, but will do so when appropriate[42] Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance during H1 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[43] - All Directors confirmed full compliance with the required standards of dealing as set out in the Model Code during H1 2025[43] Update on Directors' Information under Rule 13.51B(1) of the Listing Rules No other information required disclosure under Listing Rule 13.51B(1) during the reporting period and up to the date of this interim report, beyond what has already been disclosed - During the reporting period and up to the date of this interim report, no other information was required to be disclosed under Listing Rule 13.51B(1)[44] Audit Committee and Review of Unaudited Interim Results The Audit Committee, established under Listing Rule 3.21, is responsible for reviewing financial reporting, internal controls, and risk management, and has reviewed the unaudited interim results for H1 2025, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee comprises Mr. Wu Chengjian (Chairman), Mr. Chen Jun, and Mr. Guo Zheng[45] - The Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards and the Listing Rules[45] Interim Dividend The Board resolved not to declare any interim dividend for the first half of 2025, consistent with the first half of 2024 - The Board resolved not to declare any interim dividend for H1 2025 (H1 2024: nil)[46] Sufficiency of Public Float The directors confirm that, as of the date of this announcement, the company has maintained a sufficient public float of over 25% of its issued share capital as required by the Listing Rules - The Directors confirm that the company has maintained a sufficient public float of over 25% of its issued share capital as required by the Listing Rules as of the date of this announcement[47] Directors' and Chief Executive's Interests in Securities As of June 30, 2025, Mr. Ding Peiji and Mr. Ding Peiyuan held interests in company shares and share options, with Mr. Ding Peiji holding approximately 11.5% through a controlled corporation and as beneficial owner, and Mr. Ding Peiyuan holding approximately 2.36% Directors' Long Positions in the Company (as of June 30, 2025) | Director Name | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Ding Peiji | Long Position | Interest in controlled corporation | 24,817,669 | 11.29% | | | | Beneficial owner | 373,200 | 0.17% | | | | Beneficial owner (Share Options) | 90,000 | 0.04% | | Mr. Ding Peiyuan | Long Position | Interest in controlled corporation | 4,231,200 | 1.92% | | | | Beneficial owner (Share Options) | 960,000 | 0.44% | - Mr. Ding Peiji wholly owns and controls Huazhi Holdings Investment Limited and is therefore deemed to be interested in all shares held by Huazhi[51] - Mr. Ding Peiyuan wholly owns and controls Rightful Style Limited and is therefore deemed to be interested in all shares held by Rightful Style[51] Substantial Shareholders' Interests and Short Positions As of June 30, 2025, substantial shareholders included Huazhi Holdings Investment Limited (controlled by Mr. Ding Peiji), Rightful Style Limited (controlled by Mr. Ding Peiyuan), and Goldrun Limited (controlled by Mr. Chen Xinfu), holding approximately 11.29%, 1.92%, and 9.42% of the company's shares, respectively Substantial Shareholders' Long Positions in the Company (as of June 30, 2025) | Name/Designation | Nature of Interest | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Huazhi Holdings Investment Limited | Long Position | Beneficial owner | 24,817,669 | 11.29% | | Mr. Ding Peiji | Long Position | Interest in controlled corporation | 24,817,669 | 11.29% | | | | Beneficial owner | 373,200 | 0.17% | | | | Beneficial owner (Share Options) | 90,000 | 0.04% | | Rightful Style Limited | Long Position | Beneficial owner | 4,231,200 | 1.92% | | Mr. Ding Peiyuan | Long Position | Interest in controlled corporation | 4,231,200 | 1.92% | | | | Beneficial owner (Share Options) | 960,000 | 0.44% | | Goldrun Limited | Long Position | Beneficial owner | 20,704,000 | 9.42% | | Mr. Chen Xinfu | Long Position | Interest in controlled corporation | 20,704,000 | 9.42% | - Huazhi Holdings Investment Limited is wholly owned and controlled by Mr. Ding Peiji[52] - Rightful Style Limited is wholly owned and controlled by Mr. Ding Peiyuan, an executive Director[53] - Goldrun Limited is wholly owned by Mr. Chen Xinfu[61] Directors' Interests in Contracts No director had a significant interest in any material contract entered into by the company or its holding company, subsidiaries, or fellow subsidiaries at June 30, 2025, or at any time during the period - No director had a significant interest in any material contract entered into by the company or its holding company, subsidiaries, or fellow subsidiaries at June 30, 2025, or at any time during the period[57] Contracts with Controlling Shareholders Neither the company nor any of its subsidiaries entered into any material contracts with the company's controlling shareholders or their subsidiaries during the period - Neither the company nor any of its subsidiaries entered into any material contracts with the company's controlling shareholders or their subsidiaries during the period[58] Equity-Settled Share-Based Payments The company adopted a share option scheme in 2013 to reward and retain eligible participants, which expired in 2023, with 6,300,000 share options remaining unexercised at HK$1.07 per share as of June 30, 2025 - The share option scheme was adopted on December 27, 2013, to reward and retain eligible participants[60] - The share option scheme expired on December 27, 2023, and no further share options can be granted thereafter[60] - The maximum number of shares that may be issued upon exercise of all options shall not exceed 10% of the shares in issue on the Listing Date (i.e., 8,000,000 shares)[62] Details of Share Option Movements (as of June 30, 2025) | Name/Category | Unexercised as of Jan 1, 2025 | Granted during Period | Exercised during Period | Cancelled during Period | Unexercised as of June 30, 2025 | Exercise Price (HK$) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,220,000 | – | (900,000) | – | 1,230,000 | 1.07 | | Employees | 2,580,000 | – | – | – | 2,580,000 | 1.07 | | Others | 3,200,000 | – | (800,000) | – | 2,400,000 | 1.07 | | Total | 8,000,000 | – | (1,700,000) | – | 6,300,000 | 1.07 | Acknowledgement The Board expresses sincere gratitude to the management team and employees for their contributions and dedication, and thanks shareholders and business partners for their strong support - The Board extends its sincere gratitude to the management team and employees for their contributions and dedication[68] - Appreciation is also extended to shareholders and business partners for their strong support to the Group[68] Events After Reporting Period As of the date of this report, the Group had no significant events after the reporting period requiring disclosure - As of the date of this report, the Group had no significant events after the reporting period requiring disclosure[69] Unaudited Condensed Consolidated Interim Financial Statements This section presents the unaudited condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows for the period Unaudited Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 289,908 thousand, gross profit of RMB 10,780 thousand, a loss for the period of RMB 4,522 thousand, and basic and diluted loss per share of RMB 2.37 cents Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 289,908 | 103,903 | | Cost of Sales | (279,128) | (91,492) | | Gross Profit | 10,780 | 12,411 | | Other Income | 786 | 1,896 | | Selling and Distribution Expenses | (8,066) | (8,571) | | Administrative and Other Operating Expenses | (7,722) | (6,583) | | Operating Loss | (4,134) | (780) | | Loss Before Tax | (4,407) | (1,054) | | Income Tax Expense | (115) | – | | Loss for the Period Attributable to Owners of the Company | (4,522) | (1,054) | | Total Comprehensive Loss for the Period | (6,244) | (2,812) | | Loss Per Share (RMB cents) | (2.37) | (0.64) | Unaudited Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 250,565 thousand, net current assets were RMB 125,850 thousand, and total equity was RMB 169,853 thousand Condensed Consolidated Interim Statement of Financial Position (as of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 45,339 | 46,810 | | Current Assets | 205,226 | 159,248 | | Current Liabilities | 79,376 | 72,191 | | Net Current Assets | 125,850 | 87,057 | | Total Assets Less Current Liabilities | 171,189 | 133,867 | | Non-current Liabilities | 1,336 | 1,391 | | Net Assets | 169,853 | 132,476 | | Total Equity | 169,853 | 132,476 | Unaudited Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2025, the loss for the period attributable to owners of the company was RMB 4,522 thousand, with total comprehensive loss of RMB 2,800 thousand, and total equity increased to RMB 169,853 thousand due to share placements and share option exercises Condensed Consolidated Interim Statement of Changes in Equity (for the six months ended June 30) | Equity Item | Balance as of Jan 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | Other Comprehensive Loss (RMB thousand) | Shares Issued under Share Option Scheme (RMB thousand) | Shares Issued from Placement (RMB thousand) | Balance as of June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 15,654 | – | – | 157 | 2,902 | 18,713 | | Share Premium | 319,573 | – | – | 2,501 | 35,588 | 357,662 | | Accumulated Losses | (423,376) | (4,522) | – | – | – | (427,898) | | Total Equity | 132,476 | (4,522) | 1,722 | 1,687 | 38,490 | 169,853 | - In H1 2025, loss for the period was RMB 4,522 thousand, and other comprehensive loss was RMB 1,722 thousand[77] - Share capital increased by RMB 157 thousand and share premium increased by RMB 2,501 thousand due to shares issued under the share option scheme[77] - Share capital increased by RMB 2,902 thousand and share premium increased by RMB 35,588 thousand due to shares issued from placement[77] Unaudited Condensed Consolidated Interim Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was RMB 49,285 thousand, from investing activities was RMB 154 thousand, and from financing activities was RMB 30,910 thousand, resulting in a net increase in cash and cash equivalents of RMB 80,349 thousand, with an ending balance of RMB 121,731 thousand Condensed Consolidated Interim Statement of Cash Flows (for the six months ended June 30) | Cash Flow Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 49,285 | 67,806 | | Net Cash from Investing Activities | 154 | 347 | | Net Cash from Financing Activities | 30,910 | 18,269 | | Net Increase in Cash and Cash Equivalents | 80,349 | 86,422 | | Cash and Cash Equivalents at January 1 | 39,655 | 39,721 | | Effect of Exchange Rate Changes on Foreign Currencies | 1,727 | (1,758) | | Cash and Cash Equivalents at June 30 | 121,731 | 124,385 | - Net cash from financing activities primarily resulted from net proceeds of RMB 38,490 thousand from the issuance of new placing shares[78] - Repayment of bank loans of RMB 17,000 thousand resulted in a zero bank loan balance[78] Notes to the Unaudited Condensed Consolidated Interim Financial Statements This section provides detailed notes to the unaudited condensed consolidated interim financial statements, covering general information, basis of preparation, accounting policy changes, segment information, and specific financial items General Information The company, a limited liability entity registered in the Cayman Islands, primarily engages in children's apparel design, manufacturing, and wholesale, and has expanded into supply chain management, with Huazhi Holdings Investment Limited and Mr. Ding Peiji as its direct and ultimate controlling parties - The company is a limited liability company incorporated in the Cayman Islands[80] - The Group is principally engaged in the design, manufacture, and wholesale of children's wear and has commenced supply chain management business, including bulk commodity trading products in mainland China[80] - The direct and ultimate controlling parties are Huazhi Holdings Investment Limited and Mr. Ding Peiji, respectively[80] Basis of Preparation of Consolidated Financial Statements The unaudited condensed consolidated interim financial statements are prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and IAS 34, reviewed by the Audit Committee, and involve management judgments, estimates, and assumptions - The unaudited condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard 34 "Interim Financial Reporting"[83] - The unaudited interim results have been reviewed by the company's Audit Committee[84] - Management is required to make judgments, estimates, and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income, and expenses[83] Changes in Accounting Policies The condensed consolidated interim financial statements are prepared using the historical cost convention and incorporate IFRS amendments effective January 1, 2025, which had no significant impact on the Group's financial position or performance - The condensed consolidated interim financial statements are prepared on the historical cost basis, except for certain properties and financial instruments measured at fair value[85] - The Group has first applied the amendments to International Financial Reporting Standards issued by the International Accounting Standards Board that are mandatorily effective for annual periods beginning on or after January 1, 2025[86] - The application of the amendments to IFRS accounting standards had no significant impact on the Group's financial position and performance for the current and prior periods[86] Revenue and Segment Information The Group operates in wholesale (children's apparel) and supply chain management (commodity trading) segments, with the latter contributing most revenue in H1 2025, all from mainland China customers and recognized at a point in time - The Group's operating businesses and reportable segments include: (i) wholesale business: design, manufacture, and wholesale of children's wear and other apparel-related products; and (ii) supply chain management business: bulk commodity trading products[88][92] Segment Revenue and Results (for the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Segment Results (RMB thousand) | 2024 Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Wholesale Business | 50,824 | 103,903 | (4,538) | (1,313) | | Supply Chain Management Business | 239,084 | – | 1,668 | – | | Total | 289,908 | 103,903 | (2,870) | (1,313) | - All the Group's revenue from external customers and substantially all non-current assets are based in mainland China[96] Disaggregation of Revenue from Contracts with Customers (for the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of children's wear and other apparel-related products | 50,824 | 103,903 | | Sales of bulk trading commodities | 239,084 | – | | Total | 289,908 | 103,903 | - The original expected duration of all revenue contracts is one year or less, and revenue is recognized at a point in time[99][100] Seasonality of Operations The Group's children's apparel sales are seasonal, with spring/summer products sold in the first half and higher-priced autumn/winter products in the second half, typically resulting in lower first-half revenue and performance - The Group typically sells spring/summer children's wear products in the first half of the year and autumn/winter children's wear products in the second half of the year[101] - The selling prices of autumn/winter children's wear products are generally higher than those of spring/summer children's wear products, thus the revenue and results reported in the first half of the year are usually lower[101] Other Income For the six months ended June 30, 2025, other income, primarily interest and rental income, totaled RMB 786 thousand, a decrease from RMB 1,896 thousand in the prior year Other Income (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 156 | 486 | | Rental income | 580 | 580 | | Others | 50 | 830 | | Total | 786 | 1,896 | Loss Before Tax For the six months ended June 30, 2025, the loss before tax was RMB 4,407 thousand, influenced by finance costs, employee costs, and cost of inventories sold, with employee costs remaining stable and depreciation decreasing Components of Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance costs | 273 | 274 | | Total employee costs | 11,662 | 11,627 | | Depreciation of property, plant and equipment | 1,418 | 2,678 | | Amortisation of right-of-use assets | 50 | 44 | | Cost of inventories sold | 279,128 | 91,492 | - Employee costs include contributions to defined contribution retirement plans, salaries, wages, and other benefits[104] - Cost of inventories sold includes approximately RMB 5,937 thousand (H1 2024: RMB 6,786 thousand) related to employee costs[104] Taxation Income tax expense of RMB 115 thousand was recorded in H1 2025, mainly for China corporate income tax at 25%, with no income tax payable in the Cayman Islands, British Virgin Islands, or on taxable profits in Hong Kong Taxation (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – China corporate income tax | 115 | – | | Deferred tax – origination of temporary differences | – | – | | Total | 115 | – | - The Group's principal subsidiaries in mainland China are subject to corporate income tax at a rate of 25%[109] - The Group is not subject to any income tax in the Cayman Islands or the British Virgin Islands and did not earn any assessable profits subject to profits tax in Hong Kong[109] Loss Per Share For the six months ended June 30, 2025, basic loss per share expanded to RMB 2.37 cents from RMB 0.64 cents in the prior year, with diluted loss per share being the same due to the anti-dilutive effect of share options Loss Per Share (for the six months ended June 30) | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (2.37) | (0.64) | | Diluted Loss Per Share | (2.37) | (0.64) | - Basic loss per share is calculated based on the loss for the period attributable to owners of the company of approximately RMB 4,522,000 and the weighted average number of ordinary shares of approximately 190,460,000 shares[107] - The company's share options for the six months ended June 30, 2024 and 2025 had an anti-dilutive effect, thus the diluted loss per share is the same as the basic loss per share[108] Property, Plant and Equipment and Right-of-Use Assets For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of RMB 2 thousand, and as of June 30, 2025, no buildings or right-of-use assets were pledged, unlike December 31, 2024 - For the six months ended June 30, 2025, the Group acquired plant and machinery at a cost of RMB 2,000[112] - As of June 30, 2025, no buildings (December 31, 2024: net book value of RMB 7,466,000) were pledged as collateral for the Group's bank loans[112] - As of June 30, 2025, no right-of-use assets (December 31, 2024: net book value of RMB 2,061,000) were pledged as collateral for the Group's bank loans[112] Trade Receivables As of June 30, 2025, the Group's total trade receivables significantly decreased to RMB 51,787 thousand from RMB 88,515 thousand at December 31, 2024, with the majority aged within 90 days Ageing Analysis of Trade Receivables (as of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 34,318 | 53,428 | | 90–120 days | 7,069 | 6,830 | | 120 days to 180 days | 3,887 | 19,748 | | 180 days to 1 year | 6,513 | 8,509 | | Total | 51,787 | 88,515 | Prepayments, Deposits and Other Receivables As of June 30, 2025, total prepayments, deposits, and other receivables amounted to RMB 15,611 thousand, primarily comprising prepayments to suppliers of RMB 13,937 thousand Prepayments, Deposits and Other Receivables (as of reporting period end) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other receivables | 1,678 | 227 | | Deposits paid | – | 34 | | Less: Provision for expected credit losses | (4) | (1) | | Prepayments to suppliers | 13,937 | 13,327 | | Total | 15,611 | 13,587 | Trade and Other Payables As of June 30, 2025, trade payables due within 3 months were RMB 6,361 thousand. Other payables included approximately RMB 48,948 thousand owed to directors, which is unsecured, interest-free, and repayable on demand Ageing Analysis of Trade Payables (as of reporting period end) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 6,361 | 2,694 | - Other payables include the carrying amount of approximately RMB 48,948,000 (December 31, 2024: RMB 47,951,000) due to directors, which is unsecured, interest-free, and repayable on demand[115] Bank Borrowings As of June 30, 2025, the Group had no bank borrowings, a change from December 31, 2024, when RMB 17,000 thousand in secured fixed-rate bank loans were outstanding, collateralized by buildings and right-of-use assets and guaranteed by directors and an independent third party Bank Borrowings (as of reporting period end) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank borrowings – secured | – | 17,000 | | Fixed-rate bank borrowings | – | 17,000 | Pledged Assets (as of reporting period end) | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | – | 7,466 | | Right-of-use assets | – | 2,061 | | Total | – | 9,527 | - The bank borrowings as of December 31, 2024, were guaranteed by the company's directors and an independent third party[116] - The effective annual interest rate for fixed-rate bank borrowings as of December 31, 2024, was 3.7%[118] Capital, Reserves and Dividends As of June 30, 2025, issued share capital comprised 219,846,000 shares totaling RMB 18,713 thousand, increasing due to share placements and share option exercises, with no dividends paid or proposed during the period Authorized and Issued Share Capital (as of June 30/December 31) | Item | 2025 Number of Shares | 2025 RMB thousand | 2024 Number of Shares | 2024 RMB thousand | | :--- | :--- | :--- | :--- | :--- | | Issued and fully paid at January 1 | 186,514,000 | 15,654 | 158,176,000 | 13,026 | | Shares issued under share option scheme | 1,700,000 | 157 | – | – | | Shares issued from placement | 31,632,000 | 2,902 | 28,338,000 | 2,628 | | As of June 30/December 31 | 219,846,000 | 18,713 | 186,514,000 | 15,654 | - On June 13, 2025, the company placed 31,632,000 placing shares at a placing price of HK$1.35 per share, raising net proceeds of approximately RMB 38,490,000[119] - Under the Companies Law of the Cayman Islands, funds in the company's share premium account may be distributed to shareholders, subject to certain conditions immediately following the proposed dividend distribution date[120] - No dividends were paid or proposed for the six months ended June 30, 2025 and 2024[121] Fair Value of Financial Assets and Liabilities Not Measured at Fair Value As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial instruments measured at cost or amortized cost did not materially differ from their fair values - As of June 30, 2025, and December 31, 2024, the carrying amounts of the Group's financial instruments measured at cost or amortized cost did not materially differ from their fair values[123] Capital Commitments Contracted But Not Provided For in the Unaudited Interim Financial Report As of June 30, 2025, the Group had no capital commitments contracted or provided for - As of June 30, 2025, no capital commitments were contracted or provided for (December 31, 2024: nil)[124] Significant Related Party Transactions Apart from other disclosures in the financial statements, the Group engaged in significant related party transactions for the six months ended June 30, 2025, including a bank loan guarantee provided by Mr. Ding Peiji, which was no longer outstanding as of June 30, 2025 - Apart from other disclosures in the unaudited financial statements, the Group entered into significant related party transactions for the six months ended June 30, 2025 and 2024[125] - As of June 30, 2025, no secured bank borrowings (December 31, 2024: RMB 17,000,000) were guaranteed by Mr. Ding Peiji[126]