Financial Performance - The total revenue for the six months ended June 30, 2025, was approximately RMB120.1 million, representing an increase of approximately 9.3% from RMB109.8 million for the same period last year [21]. - The Group reported an operating loss of approximately RMB2.3 million for the six months ended June 30, 2025, compared to an operating profit of approximately RMB1.7 million for the same period last year [21]. - The net loss for the Group was approximately RMB2.8 million for the six months ended June 30, 2025, compared to a net profit of approximately RMB1.2 million for the same period last year [22]. - For the six months ended June 30, 2025, the Group's revenue from operations was approximately RMB120.1 million, reflecting a 9.3% increase from RMB109.8 million in the same period last year [42]. - Online sales revenue reached approximately RMB67.6 million, marking a significant increase of 21.5% from RMB55.6 million year-over-year [42]. - The core brand, Bawang, generated approximately RMB110.7 million in revenue, accounting for about 92.2% of the Group's total revenue, with a year-over-year increase of 6.1% [43]. - The natural-based shampoo series, Litao, achieved revenue of approximately RMB 7.7 million, a significant increase of approximately 136.9% compared to the previous year [48]. - Gross profit amounted to approximately RMB 52.8 million, reflecting a 2.7% increase from RMB 51.4 million, while the gross profit margin decreased from approximately 46.8% to 44.0% [54][58]. - Selling and distribution costs rose to approximately RMB 41.2 million, an increase of about 10.3% from RMB 37.4 million, with the percentage of revenue slightly increasing from approximately 34.0% to 34.3% [55][59]. - Administrative expenses increased to approximately RMB 14.7 million, up by about 12.6% from RMB 13.0 million, primarily due to higher salaries and vehicle expenses [56][60]. - The loss attributable to owners of the Company for the period was RMB 2,770,000, compared to a profit of RMB 1,210,000 in the prior year [200]. - Basic and diluted loss per share for the period was RMB (0.09) cents, compared to earnings of RMB 0.04 cents per share in the same period of 2024 [200]. Marketing and Sales Strategies - The Group promoted its Bawang branded products through high-quality offerings and a multi-channel new media communication strategy, enhancing brand awareness and sales [23]. - The introduction of new hi-tech equipment and self-developed patented technology aimed to strengthen the Group's competitive market positioning through technological innovation [25]. - The Group launched innovative anti-hair loss shampoo with aesthetically appealing packaging targeting young consumers, effectively stimulating their purchasing interest [25]. - The "Thousand Townships for Ten Thousand Points-of-Sales" market development project commenced in March 2024, enhancing sales revenue by expediting product distribution across Hainan Island and expanding nationwide coverage [28]. - New products launched in the first half of 2025 include the Bawang toothpaste series, Litao fragrance body wash series, and multi-effect nourishing series, which are being actively promoted in both traditional and exclusive channels [28]. - Collaborations with top influencers on the Douyin platform have driven significant period-on-period growth in live streaming sales and enhanced brand recognition [30]. - Increased investment in marketing anti-hair loss and nourishing shampoos at the official Tmall flagship store has resulted in same-store sales growth across multiple online channels [30]. - The Royal Wind brand focuses on integrating traditional retail and e-commerce operations to attract young consumer groups and drive sales growth [27]. - A multi-brand matrix has been established with innovative product series launched under the Litao and Royal Wind brands, addressing diverse consumer needs [27]. - The Group aims to enhance revenue through strategies such as strengthening patent advantages and focusing on core anti-hair loss efficacy in new product development [87]. - The Group plans to upgrade product packaging creatively to attract young consumers and stimulate purchase intent [87]. - Active cross-sector collaborations will be pursued to promote co-branded products and broaden brand communication [87]. - The Group intends to explore overseas markets, particularly in Southeast Asia, by conducting regional market research and leveraging local KOLs for marketing [92]. Operational Developments - The Group continued to operate under a value-chain-oriented business model, effectively controlling sales and operating costs at sustainable levels [23]. - From May 2025, high-quality physical stores are being established nationwide, enhancing brand exposure and boosting retail sales through premium visual displays [30]. - The Group has developed cross-sector live broadcast platforms to increase brand exposure and consumer engagement, establishing a multi-channel consumer feedback mechanism for product optimization [27]. - Participation in the Shanghai Beauty Expo in May 2025 included new product launches and promotional activities, effectively increasing brand exposure and attracting distributors and retailers [27]. - The Group plans to accelerate the distribution of new products nationwide, including the Bawang nourishing series and oral care series, as part of the "Thousand Townships for Tens Thousand Points-of-Sales" initiative [93]. - The Group aims to enhance sales through promotional activities in shopping malls and increase the frequency of weekend promotions during key sales periods [93]. - The Group will strengthen sales support services for key distributors and optimize product displays to stabilize sales revenue [93]. - The Group intends to increase investment in research and development to ensure product quality and maintain competitive advantage [94]. - The Group will focus on innovation in new anti-hair fall hair care products and expand product development in other categories to drive sales growth [96]. - The Group plans to deepen existing retail channel operations and optimize promotion efficiency to improve return on investment [96]. - The Group will implement a flexible supply chain approach to optimize production processes and reduce operating costs [99]. - The Group has commenced operations of rooftop solar power panels to reduce traditional electricity consumption and lower production costs [99]. - The Group achieved a record of "zero-rate" industrial accidents during the review period through enhanced safety training and awareness [98]. Financial Position and Management - As of June 30, 2025, the Group's bank balances and cash were approximately RMB 49.9 million, down from RMB 120.3 million as of December 31, 2024 [110]. - The total assets of the Group as of June 30, 2025, were approximately RMB 207.2 million, compared to RMB 235.4 million as of December 31, 2024 [112]. - The Group maintained a gearing ratio of 0% as of June 30, 2025, indicating no outstanding loans [112]. - The Group has maintained a conservative financial management policy, ensuring a solid financial position amidst market fluctuations [110]. - As of June 30, 2025, the Group's trade and other payables were approximately RMB 47.9 million, a decrease of 27.2% from RMB 65.8 million as of December 31, 2024 [125][129]. - The Group had no bank borrowings as of June 30, 2025, consistent with the previous period ending December 31, 2024 [127][131]. - The total personnel expenses for the six months ended June 30, 2025, amounted to approximately RMB 24.0 million, compared to approximately RMB 23.3 million for the same period in 2024 [138][141]. - The Group employed 436 employees as of June 30, 2025, an increase from 427 employees as of June 30, 2024 [138][143]. - The Group's human resources policies are aimed at maintaining a stable workforce through good remuneration and a pleasant working environment [145][146]. Shareholding and Corporate Governance - As of June 30, 2025, CHEN Qiyuan and CHEN Zheng He each hold a long position of 1,900,840,000 ordinary shares, representing approximately 60.12% of the issued share capital of the Company [151]. - CHEN Qiyuan is the beneficial owner of approximately 50.43% of the issued share capital of Fortune Station, which holds 1,900,840,000 shares of the Company [164]. - The beneficial interests of CHEN Qiyuan's five children under the age of 18 in Heroic Hour represent 65.00% of the issued share capital of Heroic Hour, which holds approximately 49.57% of the issued share capital of Fortune Station [164]. - WONG Sin Yung holds a long position of 2,100,000 ordinary shares, representing approximately 0.07% of the issued share capital of the Company [151]. - The total number of shares held by substantial shareholders is significant, with CHEN Qiyuan and CHEN Zheng He collectively holding a majority stake [161]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests and positions [160]. - The Company has complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2025 [189].
霸王集团(01338) - 2025 - 中期财报