Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 80,386,000, a decrease of 3.9% compared to RMB 83,059,000 for the same period in 2021[9]. - Gross profit for the interim period was RMB 4,306,000, significantly down from RMB 27,050,000 in the previous year, reflecting a gross margin decline[9]. - Profit before income tax for the six months ended June 30, 2022, was RMB 5,253,000, compared to RMB 22,945,000 for the same period in 2021, indicating a substantial decrease[9]. - Profit attributable to owners of the Company for the interim period was RMB 4,897,000, down from RMB 19,892,000 in the previous year, marking a decline of approximately 75.5%[9]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were RMB 0.39, a decrease from RMB 1.61 in the same period of 2021[9]. - Operating profit decreased to RMB 3,970,000 from RMB 22,658,000 year-on-year, indicating a drop of approximately 82.5%[55]. - Total comprehensive income for the period attributable to owners of the Company was RMB 5,020,000, compared to RMB 19,892,000 in the previous year[57]. - Net profit for the Interim Period decreased by approximately 75.4% to approximately RMB4.9 million from approximately RMB19.9 million for the six months ended June 30, 2021[10]. Revenue Breakdown - Dyeing revenue decreased by approximately 42.5% from approximately RMB52.9 million for the six months ended June 30, 2021, to approximately RMB30.4 million for the Interim Period[17]. - Lace revenue decreased by approximately 56.1% from approximately RMB30.1 million for the six months ended June 30, 2021, to approximately RMB13.2 million for the Interim Period[17]. - Sales of shoes generated approximately RMB36.9 million in revenue for the Interim Period, compared to nil for the six months ended June 30, 2021[17]. - Revenue from the manufacturing of lace segment was RMB 13,167,000, down 56.3% from RMB 30,121,000 in 2021[85]. - The revenue from the provision of dyeing services was RMB 30,355,000, a decrease of 42.0% from RMB 52,938,000 in 2021[85]. - Revenue from the PRC was RMB 43,031,000, a decrease of 47.5% from RMB 82,096,000 in 2021[89]. - Revenue from Hong Kong was RMB 36,953,000, significantly up from RMB 484,000 in 2021[89]. Cost and Expenses - Total expenses included in cost of sales, selling and distribution expenses, and administrative expenses for the six months ended June 30, 2022, amounted to RMB 44,733,000, an increase from RMB 22,532,000 in 2021, representing a growth of approximately 98.2%[93]. - The cost of sales and selling and distribution expenses for the six months ended June 30, 2022, amounted to RMB 8,166,000, compared to RMB 7,547,000 in 2021, representing an increase of approximately 8.2%[114]. - The cost of inventories recognized as an expense during the six months ended June 30, 2022, was approximately RMB 44,733,000, compared to RMB 22,532,000 for the same period in 2021, representing a 98.1% increase[120]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 381,631,000, slightly up from RMB 380,215,000 at the end of 2021[59]. - Total liabilities decreased from RMB 45,509,000 as of December 31, 2021, to RMB 41,905,000 as of June 30, 2022, representing a reduction of approximately 8.8%[61]. - The Group had net current assets of approximately RMB189.9 million as at 30 June 2022, up from approximately RMB177.3 million as at 31 December 2021[20]. - The current ratio increased from approximately 5.1 times as at 31 December 2021 to approximately 5.8 times as at 30 June 2022[20]. - The Group's issued share capital was HKD 12.6 million with 1,260,000,000 ordinary shares as of June 30, 2022[21]. Cash Flow - Net cash generated from operating activities increased to RMB 15,117,000 for the six months ended June 30, 2022, compared to RMB 11,522,000 for the same period in 2021, reflecting an increase of approximately 31.5%[70]. - Cash flows used in investing activities decreased significantly from RMB 17,991,000 in the first half of 2021 to RMB 2,017,000 in the first half of 2022, indicating a reduction of approximately 88.8%[70]. - The cash and cash equivalents at the end of the period increased to RMB 195,512,000, up from RMB 186,464,000 in the previous year, representing a growth of 0.56%[72]. - The net increase in cash and cash equivalents for the period was RMB 13,095,000, compared to RMB 77,329,000 in the same period of 2021, indicating a significant decrease in cash generation[72]. Corporate Governance and Management - The Company is committed to maintaining strong corporate governance and transparency in its operations[8]. - The Group plans to use HKD 20.5 million of the unused balance from the IPO proceeds to expand dyeing service capacity by the end of 2022[31]. - The company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests by directors[41]. - The report indicates that there are no new strategies or significant changes in corporate governance disclosed during the reporting period[44]. Shareholder Information - The controlling shareholder of the company changed on June 17, 2022, with Deyong Investment Co., Ltd selling 724,500,000 shares, representing 57.50% of the issued shares[33]. - Following the completion of the sale and purchase agreement, the Offeror and parties acting in concert held a total of 884,905,000 shares, approximately 70.23% of the total issued shares[33]. - As of June 30, 2022, Mr. Lin Minqiang and other directors collectively held 126,000,000 shares, representing 10.0% of the total issued shares[37]. - The company announced a mandatory unconditional cash offer to acquire all issued shares not already owned by the Offeror on June 27, 2022[33]. Employee and Compensation - The Group had 434 employees as of June 30, 2022, down from 495 employees as of December 31, 2021, with total employee benefit expenses of approximately RMB 16.1 million[23]. - Key management compensation for the six months ended June 30, 2022, totaled RMB 314,000, slightly up from RMB 305,000 in the same period of 2021, representing a growth of 2.9%[146].
应星控股(01440) - 2022 - 中期财报