Financial Performance - The company's revenue for the first half of 2022 was RMB 460.1 million, a decrease of 31.4% compared to RMB 670.7 million in the same period of 2021[9]. - Gross profit for the first half of 2022 was RMB 274.5 million, down 39.8% from RMB 455.9 million in the first half of 2021, with a gross margin of 59.7%, a decline of 8.3 percentage points from 68.0%[9]. - The company recorded a total comprehensive loss of RMB 9.1 million in the first half of 2022, compared to a total comprehensive income of RMB 56.3 million in the same period of 2021[9]. - The loss attributable to owners of the company was RMB 6.6 million, with basic and diluted loss per share of RMB 0.1625, compared to a profit of RMB 26.4 million and earnings per share of RMB 0.6626 in the first half of 2021[9]. - Operating profit fell to RMB 12.2 million, a significant drop of 77.7% from RMB 53.6 million in the previous year[59]. - The company reported a net loss of RMB 9.1 million for the period, compared to a profit of RMB 56.3 million in the same period of 2021[59]. - The company reported a net cash inflow from operating activities of RMB 9,505 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB 67,558 thousand for the same period in 2021[65]. - The company incurred total expenses of RMB 458,042,000 for the six months ended June 30, 2022, down from RMB 618,857,000 in the previous year, reflecting a reduction of approximately 26%[94]. Revenue Breakdown - Revenue from the "Three Teas" (Changrun Tea, Changqing Tea, and Xianxian Tea) was RMB 161.0 million, down 21.6% year-on-year[14]. - Weight loss product revenue was RMB 134.4 million, representing a significant decline of 52.9% compared to the same period last year[14]. - Revenue for the six months ended June 30, 2022, was RMB 460.1 million, a decline of 31.3% compared to RMB 670.7 million for the same period in 2021[59]. - Revenue from the e-commerce platform (Customer A) was approximately RMB 85,846,000, accounting for 18.7% of total revenue, down from 19.3% in the previous year[93]. Operational Challenges - The company faced a 53-day production halt at its Fangshan production base due to local pandemic control measures, impacting the shipment of core products[11]. - The domestic economy faced increased downward pressure due to the rapid spread of the Omicron variant and complex international conditions, with GDP growth slowing to 2.5% year-on-year in the first half of 2022[10]. - Retail sales of consumer goods in China decreased by 0.7% year-on-year in the first half of 2022, indicating weakened consumer confidence and suppressed consumption willingness[10]. Cost Management - Operating expenses totaled RMB 271.7 million in the first half of 2022, a reduction of 31.8% compared to RMB 398.5 million in the same period of 2021[9]. - Advertising expenses significantly decreased by RMB 50.7 million in the first half of 2022, attributed to reduced advertising activities[30]. - Total sales and marketing expenses fell to RMB 165.8 million, down from RMB 269.8 million in the previous year, representing a decrease of 38.5%[29]. - The company has optimized its organizational structure and reduced advertising expenses to manage operational costs effectively[14]. Research and Development - Research and development costs for the first half of 2022 were RMB 27.7 million, accounting for 6.0% of revenue, a decrease from RMB 54.2 million and 8.1% in the same period of 2021[32]. - The company is focusing on new product development in the areas of weight management and gastrointestinal health, with multiple new products in the pipeline[19]. Financial Position - As of June 30, 2022, the group’s cash and cash equivalents totaled RMB 382.2 million, down from RMB 425.0 million as of December 31, 2021[40]. - The group’s bank borrowings amounted to RMB 231.7 million as of June 30, 2022, with interest rates ranging from 3.70% to 6.80%[41]. - The group’s debt-to-asset ratio was 33.7% as of June 30, 2022, compared to 35.7% as of December 31, 2021[48]. - Non-current assets totaled RMB 925.4 million as of June 30, 2022, down from RMB 1,017.6 million at the end of 2021[61]. - Total assets decreased to RMB 1,540.6 million from RMB 1,642.1 million at the end of 2021[61]. Shareholder Information - The company proposed a rights issue to raise up to approximately HKD 142.6 million (approximately RMB 118.7 million) by issuing up to 81,510,390 shares at HKD 1.75 per share[157]. - The company has a total of 40,755,195 shares issued as of June 30, 2022[168]. - Mr. Zhao Yihong holds 21,050,219 shares, representing approximately 51.65% of the total issued shares[166]. - Ms. Gao Yan also holds 21,050,219 shares, equating to approximately 51.65% of the total issued shares[166]. Corporate Governance - The company has complied with the corporate governance code principles, except for the separation of roles between the Chairman and CEO as per code provision C.2.1[184][185]. - The audit committee consists of three independent non-executive directors and has reviewed the unaudited interim financial information for the six months ended June 30, 2022[186]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[189].
碧生源(00926) - 2022 - 中期财报