Financial Performance - The Group's revenue decreased by 79.1% to approximately RMB30.4 million for the six months ended June 30, 2022, compared to approximately RMB145.7 million for the same period in 2021[9]. - Loss attributable to the owners of the Company increased from approximately RMB40.3 million for the six months ended June 30, 2021, to approximately RMB50.3 million for the six months ended June 30, 2022[10]. - Revenue from fabric products decreased from approximately RMB15.9 million to RMB13.1 million, with sales quantities dropping to approximately 2.56 million meters from 2.7 million meters[13]. - Revenue from sales of shoes and clothing decreased significantly from approximately RMB129.8 million to approximately RMB17.4 million due to reduced demand from Korean customers[13]. - The overall decrease in revenue was mainly attributed to decreased sales demand from customers in Korea, affected by the new wave of the COVID-19 pandemic[9]. - The loss per share decreased from RMB1.03 to RMB0.91 for the respective periods[10]. - The Group's financial performance reflects the ongoing challenges posed by the pandemic, particularly in the Korean market[9]. - Future outlook remains cautious as the Company navigates through the ongoing effects of the pandemic on consumer demand and market conditions[9]. - The Group's total revenue for the six months ended 30 June 2022 was approximately RMB30.4 million, a decrease from RMB145.7 million for the same period in 2021[16]. - Gross profit for the same period was RMB 2,315,000, down from RMB 6,959,000 in 2021, indicating a gross margin drop[92]. - Loss from operations increased to RMB 14,571,000 compared to a loss of RMB 3,025,000 in the previous year, reflecting a worsening operational performance[92]. - Loss before tax for the period was RMB 49,658,000, compared to RMB 40,260,000 in 2021, showing an increase in pre-tax losses[92]. - The total comprehensive loss attributable to the owners of the Company for the period was RMB 50,279,000, up from RMB 40,260,000 in the prior year[92]. Cost and Expenses - Cost of sales decreased by 79.7% from approximately RMB138.7 million in the first half of 2021 to approximately RMB28.1 million in the first half of 2022[17]. - Selling and distribution expenses decreased by 25.9% from approximately RMB1.0 million in the first half of 2021 to approximately RMB0.8 million in the first half of 2022[27]. - General and administrative expenses decreased by 1.4% from approximately RMB15.0 million in the first half of 2021 to approximately RMB14.8 million in the first half of 2022[29]. - Finance costs decreased from approximately RMB37.2 million in the first half of 2021 to approximately RMB35.1 million in the first half of 2022[29]. - Other income changed from approximately RMB6.0 million in the first half of 2021 to an expense of approximately RMB1.3 million in the first half of 2022, mainly due to exchange losses[23]. Assets and Liabilities - As of 30 June 2022, the Group's bank and cash balances amounted to approximately RMB0.7 million, down from approximately RMB2.2 million as of 31 December 2021[31]. - The Group's borrowings increased to approximately RMB1,025.5 million as of 30 June 2022, up from RMB970.9 million as of 31 December 2021[32]. - Non-current assets as of June 30, 2022, were valued at RMB 195,739,000, a decrease from RMB 206,213,000 at the end of 2021[94]. - Current liabilities totaled RMB 1,128,309,000, compared to RMB 1,093,130,000 at the end of 2021, indicating an increase in short-term obligations[94]. - The Group's net current liabilities were RMB (1,101,742,000), slightly worsening from RMB (1,071,621,000) at the end of 2021[94]. - Total assets less current liabilities stood at RMB (906,003,000), compared to RMB (865,414,000) at the end of 2021, reflecting a decline in overall asset position[94]. - As of June 30, 2022, non-current liabilities increased to RMB 190,020, up from RMB 182,383 as of December 31, 2021, representing a growth of approximately 4.5%[96]. - The total deficit as of June 30, 2022, was RMB (1,096,023), compared to RMB (1,047,797) at the end of 2021, indicating an increase in deficit of about 4.6%[96]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB (3,560), a decline from RMB 1,082 in the same period of 2021[100]. - Cash and cash equivalents at the end of the period were RMB 692, a decrease from RMB 1,027 at the end of June 30, 2021, representing a decline of approximately 32.6%[100]. - The company reported a net cash used in financing activities of RMB 2,015 for the six months ended June 30, 2022, compared to RMB (3,211) in the same period of 2021, indicating improved cash flow management[100]. Corporate Governance and Compliance - The Board has resolved not to declare any dividend for the six months ended June 30, 2022 (2021: Nil)[49]. - The company has complied with the Corporate Governance Code, except for code provision A.1.8 regarding insurance cover for directors against legal actions[72][73]. - The company is committed to enhancing its corporate governance practices to meet the requirements of the Corporate Governance Code[74]. - The company has not reported any related party transactions or connected transactions during the reporting period[68]. Strategic Initiatives - The Company is exploring new strategies to mitigate the impact of market fluctuations and enhance revenue streams moving forward[9]. - The management is actively exploring opportunities to engage in different businesses through acquisitions in Hong Kong and the PRC to improve the Group's financial position and cash flow[52]. - The Directors plan to expand the sales scale of the Group's shoes and clothing business and restructure the loss-making fabrics business through reinvestment or divestment[53]. - The Scheme to address the Company's existing indebtedness has been sanctioned by the Hong Kong Court, with conditions precedent being satisfied[60]. - The company completed the subscription of 12,546,128 shares at a price of HK$0.375 per share, resulting in net proceeds of approximately HK$4.59 million for general working capital and debt restructuring[65]. Market Conditions - The textile industry in China saw a 5.7% year-on-year increase in revenue, totaling RMB2.52 trillion in the first half of 2022, despite a 17% decline in total profits for textile companies[13]. - The Group's revenue from external customers in the PRC was RMB 13,074,000 for the six months ended June 30, 2022, down from RMB 15,850,000 in 2021, representing a decline of 17.7%[119]. - The Group's revenue from Korea was RMB 15,356,000 for the six months ended June 30, 2022, significantly down from RMB 119,434,000 in 2021, indicating a decline of 87.2%[119].
满地科技股份(01400) - 2022 - 中期财报