Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 323,177 thousand, an increase of 3.4% compared to RMB 313,064 thousand for the same period in 2022[16] - Gross profit for the same period was RMB 46,064 thousand, down 7.3% from RMB 49,706 thousand in 2022[16] - The company reported a loss before tax of RMB 12,747 thousand, an improvement from a loss of RMB 14,276 thousand in the previous year[16] - The total comprehensive income for the period was RMB 164,310,000, compared to RMB 200,848,000 for the same period in 2022, representing a decline of 18.1%[32] - The company reported a total revenue of RMB 175,506,000 for the period, down from RMB 199,751,000 in the previous year, marking a 12.1% decrease[32] - The group reported a pre-tax loss of RMB (12,747) thousand for the period[40] - The net loss attributable to the owners of the group was approximately RMB 12.6 million, a decrease of about RMB 1.7 million compared to the same period last year, primarily due to reduced sales and distribution costs, administrative expenses, and financing costs[119] - The group reported a net loss attributable to owners of approximately RMB 12.6 million, a reduction in loss of RMB 1.7 million or 11.7% compared to the same period in 2022[168] Assets and Liabilities - Total assets decreased to RMB 216,873 thousand as of June 30, 2023, compared to RMB 257,233 thousand at the end of 2022[17] - Current liabilities decreased to RMB 148,120 thousand from RMB 172,976 thousand in the previous year[17] - The net asset value as of June 30, 2023, was RMB 164,310 thousand, down from RMB 176,760 thousand at the end of 2022[18] - The company’s cash and cash equivalents were RMB 31,438 thousand, a decrease from RMB 48,972 thousand at the end of 2022[17] - The carrying value of investment properties pledged to banks was RMB 8,861,000 as of June 30, 2023, down from RMB 9,024,000 as of December 31, 2022[97] - The group had current assets of approximately RMB 68.8 million, down from RMB 84.3 million as of December 31, 2022[173] - The group's bank borrowings amounted to RMB 8.0 million as of June 30, 2023, with a collateral value of approximately RMB 8.9 million for certain investment properties[191] Cash Flow - For the six months ended June 30, 2023, the net cash flow from operating activities was RMB 6,526,000, a decrease of 76.7% compared to RMB 27,981,000 for the same period in 2022[32] - The net cash used in investing activities was RMB 1,415,000, compared to RMB 1,994,000 in the previous year, indicating a reduction of 29.1%[32] - The net cash used in financing activities was RMB 22,996,000, significantly lower than RMB 79,784,000 in the prior year, reflecting a decrease of 71.2%[32] - As of June 30, 2023, cash and cash equivalents decreased to RMB 31,438,000 from RMB 50,401,000 at the end of June 2022, a reduction of 37.6%[32] Operational Efficiency and Strategy - The company plans to enhance its product offerings and expand its market presence in the coming quarters[1] - The management is focused on improving operational efficiency and reducing costs to mitigate losses[1] - The company plans to continue its market expansion strategy, focusing on enhancing its service offerings and operational efficiency[21] - The company is actively pursuing new product development initiatives to drive future growth and innovation[21] - The group plans to expand its franchise store numbers through brand and product output, and management output, leveraging supply chain and brand advantages[120] - The group aims to continue upgrading stores and optimizing the shopping experience, as well as simplifying and upgrading the ordering system to enhance operational efficiency[120] - The group will actively develop its own e-commerce platform "Shun Ke Long You Xuan" and expand its online presence through live streaming on platforms like Douyin[120] Employee and Operational Metrics - Employee benefits expenses totaled RMB 31,947,000 for the six months ended June 30, 2023, compared to RMB 35,570,000 in 2022, reflecting a reduction of 10.5%[67] - The number of retail stores decreased from 67 as of December 31, 2022, to 63 as of June 30, 2023, representing a decline of approximately 6.0%[115] - The group had a total of 1,020 employees as of June 30, 2023, with 1,010 located in mainland China and 10 in Hong Kong and Macau[194] Revenue Segmentation - Total revenue for the retail segment reached RMB 255,292 thousand, while wholesale distribution generated RMB 67,885 thousand, leading to a total of RMB 323,177 thousand[40] - Revenue from external customers for the retail segment was RMB 265,676 thousand, and wholesale distribution contributed RMB 47,388 thousand, totaling RMB 313,064 thousand[41] - Revenue from general retail sales under the retail segment was RMB 158,856 thousand, while bulk sales generated RMB 94,088 thousand[45] - The retail store business generated revenue of approximately RMB 255.3 million, a decrease of about RMB 10.4 million or 3.9% compared to the same period last year, mainly due to the closure of one store and the conversion of five long-term loss-making stores to franchise operations[141] - The group's wholesale distribution revenue for the period was approximately RMB 67.9 million, an increase of RMB 20.5 million or 43.3% compared to the same period in 2022[161] Other Financial Metrics - Interest expenses for bank loans were RMB 223 thousand, and for lease liabilities, they were RMB 2,255 thousand, totaling RMB 2,478 thousand[49] - The gross profit margin for the period was approximately 14.3%, a decrease of about 1.6% from 15.9% in the same period last year[162] - Other operating income for the period was approximately RMB 13.4 million, a decrease of RMB 2.3 million or 14.4% compared to the same period in 2022[163] - Sales and distribution costs were approximately RMB 60.3 million, a decrease of RMB 6.7 million or 10% compared to the same period in 2022[164] - Administrative expenses for the period were approximately RMB 9.4 million, a decrease of RMB 0.4 million or 4.3% compared to the same period in 2022[165] Shareholder Information - Major shareholders hold a total of 204,558,317 shares, representing 70.42% equity interest[198] - The company has full ownership of Hainan Supply and Marketing Group Holdings Co., Ltd., which in turn fully owns Hainan Supply and Marketing Chain Network Technology Co., Ltd.[199] - Hainan Supply and Marketing Chain Network Technology Co., Ltd. fully owns Green Industry (Hong Kong) Co., Ltd.[199] - Green Industry (Hong Kong) Co., Ltd. fully owns Supply and Marketing International Holdings Limited[199] - The special service trust holds all shares of Hainan HNA No. 2 Trust Management Co., Ltd.[198]
中国顺客隆(00974) - 2023 - 中期财报