Financial Performance - Revenue decreased by approximately 44.2% to approximately RMB 41.9 million for the six months ended 30 June 2025, compared to approximately RMB 75.1 million for the same period in 2024[13]. - Gross profit for the six months ended 30 June 2025 was approximately RMB 11.2 million, down from approximately RMB 20.3 million for the same period in 2024[13]. - Loss for the period decreased by approximately 67.1% to approximately RMB 30.4 million for the six months ended 30 June 2025, compared to approximately RMB 92.3 million for the same period in 2024[13]. - Basic loss per share was approximately RMB 0.97 cents for the six months ended 30 June 2025, down from approximately RMB 3.45 cents for the same period in 2024[13]. - Total comprehensive loss for the period was approximately RMB 30.0 million for the six months ended 30 June 2025, compared to approximately RMB 91.6 million for the same period in 2024[14]. - Total comprehensive loss attributable to owners of the Company decreased to RMB 28,571,000 for the six months ended June 30, 2025, compared to RMB 91,595,000 in 2024, indicating a reduction of about 68.8%[15]. - The total comprehensive income for the period was reported as a loss of RMB 28,571,000[18]. - The Group's total revenue decreased by approximately 44.2% to approximately RMB 41.9 million for the six months ended June 30, 2025, compared to approximately RMB 75.1 million in the same period in 2024[156]. - The net loss for the Group was approximately RMB 30.4 million, a reduction of 67.1% from a net loss of approximately RMB 92.3 million in 2024[161]. Expenses and Costs - Selling and distribution expenses decreased to approximately RMB 8.4 million for the six months ended 30 June 2025, compared to approximately RMB 21.0 million for the same period in 2024[14]. - Administrative expenses remained relatively stable at approximately RMB 22.1 million for the six months ended 30 June 2025, compared to approximately RMB 22.3 million for the same period in 2024[14]. - Finance costs increased to approximately RMB 11.0 million for the six months ended 30 June 2025, compared to approximately RMB 8.0 million for the same period in 2024[14]. - The cost of sales decreased by approximately 44.0%, from approximately RMB 54.8 million for the six months ended 30 June 2024 to approximately RMB 30.7 million for the corresponding period in 2025, aligning with the decrease in revenue[167][171]. - Gross profit declined by approximately 44.8%, from approximately RMB 20.3 million in the first half of 2024 to approximately RMB 11.2 million in the first half of 2025, with a slight decrease in gross profit margin from 27.0% to 26.7%[168][172]. Assets and Liabilities - Total non-current assets decreased to RMB 21,648,000 as of June 30, 2025, down from RMB 24,390,000 as of December 31, 2024, reflecting a decline of approximately 11.3%[16]. - Total current assets decreased to RMB 158,722,000 as of June 30, 2025, compared to RMB 172,960,000 as of December 31, 2024, representing a decrease of about 8.2%[16]. - Total current liabilities decreased to RMB 349,981,000 as of June 30, 2025, down from RMB 359,235,000 as of December 31, 2024, indicating a reduction of approximately 2.9%[16]. - Net current liabilities increased to RMB (191,259,000) as of June 30, 2025, compared to RMB (186,275,000) as of December 31, 2024, reflecting a deterioration of about 2.6%[16]. - Total non-current liabilities decreased to RMB 68,905,000 as of June 30, 2025, from RMB 72,839,000 as of December 31, 2024, indicating a decline of approximately 5.4%[17]. - The deficit in equity attributable to owners of the Company was RMB (236,134,000) as of June 30, 2025, compared to RMB (233,794,000) as of December 31, 2024, showing a slight increase in deficit[17]. - Consolidated assets decreased to RMB 180,370,000 as of June 30, 2025, down from RMB 197,350,000 as of December 31, 2024, representing a decline of approximately 8.6%[64]. Cash Flow and Financing - For the six months ended June 30, 2025, net cash generated from operating activities was RMB 6,021,000, compared to a cash used of RMB 20,372,000 in the same period of 2024[31]. - Cash flow from investing activities resulted in a net cash used of RMB 1,017,000, an increase from RMB 62,000 used in the previous year[31]. - The company reported a net cash used in financing activities of RMB 3,938,000, contrasting with a net cash generated of RMB 23,653,000 in the same period last year[31]. - The total cash and cash equivalents at the beginning of the period were RMB 3,999,000, down from RMB 4,753,000 in the previous year[31]. - The company’s cash and bank balances at the end of the period were RMB 4,778,000, compared to RMB 7,487,000 in the previous year[31]. - The Group's interest-bearing bank and other borrowings amounted to approximately RMB 121.9 million, with loan from shareholders at approximately RMB 108.5 million[177][181]. - The Group plans to obtain external funding to improve working capital and liquidity[47]. - The Group aims to improve its working capital and liquidity through external funding and cost control measures[195][197]. Market and Operational Strategy - The Group strategically shifted focus to its export business, ceasing all retail operations in China and Hong Kong as of June 2025[154]. - The Group adopted a more agile production strategy by diversifying its manufacturing footprint beyond China, including a new facility in Southeast Asia[148]. - The Group's operational strategy included a shift from traditional offline furniture retail to online sales platforms, enhancing supply chain and logistics efficiency[148]. - The Group participated in prominent offline furniture exhibitions in the U.S. to maintain market presence and capture emerging opportunities[150]. - The decrease in revenue was attributed to macroeconomic factors such as inflation and rising interest rates, impacting consumer disposable income and demand for furniture[156]. Shareholder and Management Support - The controlling shareholder, Mr. Tse Kam Pang, provided an unsecured loan facility of up to HK$ 200,000,000, with an unutilized portion of approximately HK$ 61,424,000 as of 30 June 2025[40]. - Mr. Tse Kam Pang will not demand repayment of loans amounting to approximately RMB 108,497,000 for the next twelve months[40]. - The financial capacity of Mr. Tse Kam Pang to provide continuous support is critical for the Group's operations in the next twelve months[51]. Uncertainties and Risks - There are material uncertainties regarding the Group's ability to continue as a going concern due to ongoing execution of plans and measures[48]. - The Group's ability to continue as a going concern is uncertain and depends on successful implementation of financial support and funding strategies[194][199]. - There are material uncertainties regarding the Group's ability to realize its assets and discharge its liabilities in the normal course of business[194].
皇庭智家(01575) - 2025 - 中期财报