Financial Performance - For the six months ended June 30, 2023, the Group's revenue decreased by approximately 41.5% to approximately RMB 47.1 million from approximately RMB 80.4 million for the same period in 2022[8]. - The Group recorded a net loss of RMB 5.6 million for the Interim Period, compared to a net profit of approximately RMB 4.9 million for the six months ended June 30, 2022[8]. - Gross profit for the Interim Period was RMB (1.4) million, a decline from RMB 80.4 million in the previous year[7]. - Loss before income tax for the Interim Period was RMB 5.6 million, compared to a profit of RMB 4.3 million for the same period in 2022[7]. - Basic and diluted loss per share for the Interim Period was RMB (0.44), compared to earnings of RMB 0.39 per share in the previous year[7]. - The Group recorded a gross loss of approximately RMB 1.4 million for the Interim Period, compared to a gross profit of approximately RMB 4.3 million for the same period in 2022[22]. - The Group recorded a net loss of approximately RMB 5.6 million for the Interim Period, compared to a net profit of approximately RMB 4.9 million for the six months ended 30 June 2022[25]. - The Company reported a basic and diluted loss per share of RMB 0.44 for the six months ended June 30, 2023, compared to earnings per share of RMB 0.39 in the previous year[68]. - The net loss for the period was RMB 5,552,000, compared to a profit of RMB 4,897,000 for the same period in 2022, indicating a significant shift in performance[79]. Revenue Breakdown - The Group's revenue for the six months ended June 30, 2023, was approximately RMB 47.1 million, a decrease of about 41.3% from RMB 80.4 million for the same period in 2022[13]. - Dyeing revenue decreased by approximately 28.2% from RMB 30.4 million in the first half of 2022 to RMB 21.8 million in the Interim Period[16]. - Lace revenue fell by approximately 9.8% from RMB 13.2 million in the first half of 2022 to RMB 11.9 million in the Interim Period[17]. - Footwear trading revenue decreased significantly from RMB 36.9 million in the first half of 2022 to RMB 13.4 million in the Interim Period, reflecting a challenging market environment[21]. - Revenue from the manufacturing of lace segment was RMB 11,876,000, down 10% from RMB 13,167,000 in 2022[99]. - Revenue from the provision of dyeing services was RMB 21,803,000, a decline of 28.3% from RMB 30,355,000 in 2022[99]. - Sales of shoes generated revenue of RMB 13,386,000, a significant drop of 63.7% compared to RMB 36,864,000 in 2022[99]. - Revenue recognized over time from the provision of services was RMB 33,679,000, down 22.7% from RMB 43,522,000 in 2022[102]. - Revenue from sales of goods at a point in time was RMB 13,386,000, a decrease of 63.7% from RMB 36,864,000 in 2022[102]. - The Group's revenue from the PRC was RMB 33,384,000, down 22.4% from RMB 43,031,000 in 2022[106]. - Revenue from Hong Kong customers was RMB 13,387,000, a decrease of 63.7% from RMB 36,953,000 in 2022[106]. - Major customer A contributed RMB 13,386,000, representing a significant decline from RMB 36,864,000 in 2022[109]. Expenses and Costs - Other income dropped from approximately RMB 4.6 million in the first half of 2022 to approximately RMB 0.3 million in the Interim Period, primarily due to one-off government grants received in the previous period[22]. - Selling and distribution expenses decreased by approximately 24.7% from RMB 0.9 million in the first half of 2022 to RMB 0.7 million in the Interim Period[22]. - Administrative expenses increased from approximately RMB 6.5 million in the first half of 2022 to approximately RMB 6.8 million in the Interim Period due to increased headcount for the footwear business[22]. - The total cost of sales, selling and distribution expenses, administrative expenses, and net impairment losses on financial assets and contract assets amounted to RMB 56,375,000, down 32.5% from RMB 83,489,000 in the previous year[112]. - Employee benefit expenses decreased to RMB 13,482,000, down 16.5% from RMB 16,108,000 in the prior year[112]. - The cost of sales for the six months ended June 30, 2023, was RMB 7,560, compared to RMB 8,166 for the same period in 2022, representing a decrease of approximately 7.4%[131]. Cash Flow and Assets - Cash and cash equivalents increased to approximately RMB 193.4 million as of June 30, 2023, up from approximately RMB 187.9 million as of December 31, 2022[27]. - The Company reported a net increase in cash and cash equivalents of RMB 5,377,000 for the six months ended June 30, 2023, compared to RMB 13,095,000 in the previous year, reflecting a decrease of 59%[86]. - Cash generated from operating activities for the six months ended June 30, 2023, was RMB 3,531,000, a decrease of 75.6% from RMB 14,411,000 in the prior year[84]. - Net cash used in investing activities was RMB 1,741,000, compared to RMB 2,017,000 in the same period of 2022, showing a slight reduction in cash outflow[86]. - The total assets as of June 30, 2023, were RMB 355,158, slightly up from RMB 354,943 as of December 31, 2022[73]. - The Company’s total equity decreased to RMB 320,468 as of June 30, 2023, from RMB 325,898 at the end of 2022[75]. - The statutory reserve as of June 30, 2023, was RMB 19,022,000, which is consistent with the previous year, indicating stable compliance with regulatory requirements[79]. - Other reserves totaled RMB 104,466,000 as of June 30, 2023, unchanged from the previous year, reflecting no new appropriations or distributions[79]. Employee and Management Information - As of June 30, 2023, the group had a total of 344 employees, a decrease from 362 employees as of December 31, 2022[32]. - Key management compensation for the six months ended June 30, 2023, totaled RMB 877,000, which is an increase of 179.3% compared to RMB 314,000 for the same period in 2022[170]. - The total employee benefit expenses for the Interim Period were approximately RMB 13.5 million, down from approximately RMB 16.1 million for the six months ended June 30, 2022[30]. Corporate Governance and Compliance - The Company has adopted corporate governance practices in line with the Corporate Governance Code and complied with its provisions during the Interim Period[62]. - The Company’s directors confirmed compliance with the Model Code for securities transactions during the Interim Period[62]. - The interim financial information has not been audited[89]. - The Company did not allot or issue any equity securities during the Interim Period[60]. - No purchases, sales, or redemptions of the Company's listed securities occurred during the Interim Period[60]. Shareholder Information - Mr. Tsoi Wing Sing holds 65.0% of the shares in the company, while Mr. Lin Minqiang holds 10.0%[43]. - As of June 30, 2023, Glorious Way Investments Limited holds 794,000,000 shares, representing approximately 63.02% of the company's issued shares[50]. - Ms. Wu Chou Har, spouse of Mr. Tsoi Wing Sing, has an interest in 819,000,000 shares, equating to approximately 65.0% of the company's issued shares[50]. - Deyong Investment holds 126,000,000 shares, which is approximately 10.0% of the company's issued shares[50]. - The total issued share capital was RMB 12,600,000, with 1,260,000,000 shares issued, reflecting a nominal value of RMB 10,511,000[149]. Risks and Financial Instruments - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse effects on financial performance[95]. - There have been no significant changes in the risk management policies since the year-end[95]. - The Group did not have any financial assets or liabilities measured at fair value as of June 30, 2023[95]. - The carrying amounts of the Group's financial assets and liabilities approximate their fair values as of June 30, 2023, and December 31, 2022[95].
应星控股(01440) - 2023 - 中期财报