Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by approximately RMB 26.1 million or 48.9% to RMB 27.3 million compared to RMB 53.4 million for the same period in 2022[6]. - The company's gross profit decreased by approximately RMB 1.2 million or 21.8% to RMB 4.3 million, with a gross margin increase from approximately 10.2% to 15.9%[9]. - The net loss for the six months ended June 30, 2023, was approximately RMB 18.1 million, an increase from a net loss of approximately RMB 16.7 million for the same period in 2022[17]. - Other income and losses recorded a loss of approximately RMB 9.8 million, compared to a loss of approximately RMB 7.3 million for the same period in 2022[10]. - Revenue for the six months ended June 30, 2023, was RMB 27,289,000, a decrease of 48.9% compared to RMB 53,413,000 for the same period in 2022[49]. - Gross profit for the same period was RMB 4,342,000, down 20.5% from RMB 5,468,000 in 2022[49]. - The company reported a loss before tax of RMB 18,074,000, compared to a loss of RMB 16,729,000 in the previous year, indicating a 8.1% increase in losses[49]. - Total comprehensive loss for the period was RMB 17,640,000, compared to RMB 13,385,000 in 2022, reflecting a 31.6% increase in total losses[49]. Cash and Assets - The company's cash and bank balances as of June 30, 2023, totaled approximately RMB 1.3 million, down from approximately RMB 9.6 million as of December 31, 2022[20]. - Cash and cash equivalents decreased to RMB 1,280,000 from RMB 9,559,000 at the end of 2022, representing an 86.6% decline[51]. - The company's net assets decreased to RMB 100,735,000 from RMB 118,375,000, a decline of 15.0%[51]. - Trade receivables increased to RMB 62,803,000 from RMB 51,710,000, marking a 21.5% increase[51]. - Inventory decreased significantly to RMB 25,148,000 from RMB 37,960,000, a reduction of 33.8%[51]. - Trade receivables increased to RMB 101,819,000 as of June 30, 2023, compared to RMB 87,941,000 as of December 31, 2022[80]. - As of June 30, 2023, the deposits and prepayments amounted to RMB 13,985,000, a decrease of 23.5% from RMB 18,186,000 as of December 31, 2022[82]. - The total amount of deposits and prepayments, after deducting non-current assets, was RMB 12,313,000, down 25.7% from RMB 16,520,000[82]. Employee and Operational Costs - The total compensation cost for employees for the six months ended June 30, 2023, was approximately RMB 3.8 million, a decrease from RMB 5.7 million for the same period in 2022[33]. - The total employee expenses, including directors' remuneration, amounted to RMB 3,873,000, down 31.6% from RMB 5,672,000 in the previous year[74]. - The cost of inventories recognized as an expense was RMB 22,947,000, a decrease of 52.0% from RMB 47,945,000 in the same period of 2022[74]. - Operating cash outflow for the period was RMB 8,325,000, compared to RMB 201,000 in the previous year, indicating a significant increase in cash used[55]. - The company did not report any cash inflow from financing activities during the period[55]. Corporate Governance and Compliance - The group has adopted and complied with the corporate governance code as per the listing rules for the six months ended June 30, 2023[43]. - The audit committee, composed of three independent non-executive directors, reviewed the accounting principles and financial reporting matters for the six months ended June 30, 2023[46]. - The group did not engage in any purchases, redemptions, or sales of its listed securities during the six months ended June 30, 2023[35]. - There were no rights granted to directors or their associates to benefit from acquiring shares or debt securities of the company during the reporting period[37]. - The company has no stock options granted under the stock option plan during the six months ended June 30, 2023, compared to none in the previous year[85]. - The total number of unexercised stock options as of June 30, 2023, was 65,296,000, after accounting for 27,648,000 options that were forfeited[86]. - The issued and fully paid ordinary shares remained at 539,136,000 shares with a par value of HKD 0.10 per share as of June 30, 2023[83]. - The company reported no significant events affecting the group since the end of the reporting period[87]. Investment and Fair Value - As of June 30, 2023, the total fair value loss for significant investments amounted to RMB 7,004,000, representing 9.1% of the group's total assets[31]. - The group holds a 1.58% stake in Financial Media Group Limited, with a fair value loss of RMB 2,703,000 as of June 30, 2023[31]. - The group recognized an unrealized fair value loss on financial assets of RMB 7,004,000 for the six months ended June 30, 2023, compared to a loss of RMB 5,343,000 in the previous year[68]. - The group has not held any investments exceeding 1% of its total asset value as of June 30, 2023[32]. - No investments contributed to more than 10% of the group's realized or unrealized losses for the six months ended June 30, 2023[32]. Revenue Breakdown - For the six months ended June 30, 2023, the revenue from branded watches was RMB 27,289,000, a decrease of 46.8% compared to RMB 51,290,000 in the same period of 2022[64]. - Revenue from customers in China was RMB 18,823,000, a decline of 27.7% from RMB 26,041,000 in the same period of 2022[65]. - Revenue from customers in Asia (excluding China) was RMB 8,466,000, a decrease of 69.0% compared to RMB 27,372,000 in the previous year[65].
励时集团(01327) - 2023 - 中期财报