Financial Performance - For the six months ended June 30, 2022, the Group reported revenue of RMB 90,122,000, a decrease of 22.4% compared to RMB 115,951,000 for the same period in 2021[13]. - The operating loss for the first half of 2022 was RMB 97,927,000, compared to an operating loss of RMB 180,335,000 in the same period of 2021, indicating an improvement in operational efficiency[19]. - Loss before income tax decreased to RMB 137,566,000 in 2022 from RMB 213,683,000 in 2021, reflecting a reduction in overall losses[19]. - Loss attributable to the owners of the Company amounted to RMB 129.4 million for the six months ended June 30, 2022, an improvement from a loss of RMB 215.7 million in the same period of 2021[31][45]. - The basic and diluted loss per share for the period was RMB 0.05, an improvement from RMB 0.09 in the same period of 2021[148]. - The company reported a loss for the period of RMB 129,662,000, a significant improvement from a loss of RMB 215,739,000 in the previous year, representing a reduction of approximately 40%[152]. - Total comprehensive loss for the period was RMB 132,073,000, compared to RMB 215,355,000 in 2021, indicating a decrease of about 38.7%[152]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,723,456,000, down from RMB 4,032,067,000 as of June 30, 2021, indicating a decline of 7.6% year-on-year[15]. - Total liabilities decreased to RMB 2,177,442,000 as of June 30, 2022, from RMB 2,293,414,000 at the end of 2021, showing a reduction of 5.1%[15]. - The Group's total equity as of June 30, 2022, was RMB 1,546,014,000, down from RMB 1,902,921,000 a year earlier, representing a decline of 18.8%[15]. - Non-current assets decreased from RMB 3,193,438,000 as of December 31, 2021, to RMB 2,992,174,000 as of June 30, 2022, reflecting a decline of approximately 6.3%[154]. - Current assets also saw a decrease from RMB 777,850,000 to RMB 731,282,000, a reduction of about 6%[154]. - Total liabilities decreased from RMB 2,293,414,000 to RMB 2,177,442,000, indicating a reduction of about 5.1%[155]. - The equity attributable to owners of the company decreased from RMB 1,669,346,000 to RMB 1,537,716,000, a decline of approximately 7.9%[155]. Economic Environment - The Chinese economy faced significant downward pressure, with GDP growth slowing to 2.5% in the first half of 2022 compared to 12.7% in the same period of 2021[26]. - The total retail sales of consumer goods in China decreased by 0.7% year-on-year in the first half of 2022, contrasting with a 23.0% increase in the same period of 2021[26]. - The economic outlook for the remainder of 2022 remains challenging due to the downturn in the real estate industry and slow recovery of consumption[39][41]. Operational Changes - The Group operates 15 department stores with a total gross floor area of 278,447 sq.m as of June 30, 2022, maintaining its presence in the mid-market segment[6]. - The Group upgraded its department store premises into "Shirble Plaza" to cater to the middle-class demand for high-quality food and services[34]. - The Group's online sales and marketing efforts have been enhanced, utilizing platforms like WeChat to stimulate consumer enthusiasm[34]. - The Group plans to consolidate resources and adopt prudent business strategies to mitigate the pressures from the economic slowdown[40][42]. Cash Flow and Financing - Cash and cash equivalents and bank deposits amounted to RMB 81.9 million as at June 30, 2022, representing a decrease of 10.1% from RMB 91.1 million as at December 31, 2021[86]. - The Group's long-term and short-term borrowings were RMB 551.2 million and RMB 59.1 million, respectively, as of June 30, 2022, compared to RMB 561.5 million and RMB 95.4 million as of December 31, 2021[88]. - The gearing ratio was 39.5% as of June 30, 2022, slightly up from 39.1% as of December 31, 2021[88]. - The Group maintains sufficient cash and cash equivalents to meet business demands and continuously monitors cash flow[195]. - Net cash generated from operating activities for the six months ended June 30, 2022, was RMB 115,827, compared to RMB 51,449 for the same period in 2021, representing an increase of 125.0%[162]. Governance and Compliance - The Group has complied with the Corporate Governance Code during the six months ended June 30, 2022[99]. - The Directors confirmed that all applicable accounting standards have been followed in preparing the interim financial information[111]. - The Audit Committee held one meeting during the six months ended June 30, 2022, to review auditing, internal controls, and financial reporting matters[118]. - The internal audit department will continue to conduct periodic reviews on the internal controls of the Group[117]. Financial Risks - The Group faces various financial risks, including market risk, credit risk, and liquidity risk[191]. - The Group's financial risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[189]. - There have been no significant changes to the Group's risk management policies since the end of the previous year[192].
岁宝百货(00312) - 2022 - 中期财报