Revenue and Profitability - For the six months ended June 30, 2022, total revenue increased by 58.3% to approximately RMB161.3 million compared to RMB101.9 million for the same period in 2021[8]. - Revenue from the CMS business rose by approximately 28.2% from RMB92.7 million to RMB118.8 million, accounting for 73.6% of total revenue[12]. - Revenue from the OBM business surged by approximately 360.0% from RMB9.2 million to RMB42.5 million[13]. - Sales to the U.S. market increased by approximately 82%, contributing about 88% of total revenue for the six months ended June 30, 2022[14]. - The Group's revenue from wigs was RMB 11.6 million, representing 7.2% of total revenue, while clothing and others accounted for RMB 149.7 million, or 92.8%[75]. - For the six months ended June 30, 2022, the company reported revenue of RMB 161,315,000, an increase from RMB 101,928,000 in the same period of 2021, representing a growth of approximately 58.4%[88]. - The gross profit for the same period was RMB 36,675,000, compared to RMB 27,533,000 in 2021, indicating a gross profit margin improvement[88]. - The increase in revenue and gross profit during the period was the primary reason for the reduction in loss attributable to equity holders[76]. - Revenue from contract manufacturing services for the six months ended June 30, 2022, was RMB 118,768,000, compared to RMB 92,680,000 in the same period of 2021, marking an increase of approximately 28.2%[139]. - The original brand manufacturing business generated revenue of RMB 42,547,000 for the six months ended June 30, 2022, compared to RMB 9,248,000 in the same period of 2021, indicating a substantial increase[139]. Financial Position - Total assets grew by 13.6% to RMB553.6 million from RMB487.2 million[8]. - Total liabilities increased by 47.9% to RMB181.3 million from RMB122.6 million[8]. - The gearing ratio increased to 34.9%, up from 27.8%, indicating a rise in financial leverage[8]. - As of June 30, 2022, total cash and cash equivalents were approximately RMB 90.0 million, a decrease of approximately RMB 9.7 million from December 31, 2021[42][47]. - Current assets as of June 30, 2022, totaled RMB 258,080,000, an increase from RMB 170,077,000 at the end of 2021[90]. - The net current assets increased to RMB 83,117,000 as of June 30, 2022, compared to RMB 53,626,000 at the end of 2021[90]. - As of June 30, 2022, total equity increased to RMB 372,315,000 from RMB 364,540,000 as of December 31, 2021, representing a growth of approximately 2.1%[92]. - Net assets rose to RMB 372,315,000, up from RMB 364,540,000, indicating a growth of about 2.1%[92]. - The company's reserves increased to RMB 359,909,000 as of June 30, 2022, compared to RMB 352,328,000 at the end of 2021, reflecting a growth of approximately 2.3%[96]. Expenses and Losses - Gross profit margin decreased to 22.7% from 27.0%, reflecting a decline of 4.3 percentage points[8]. - Administrative and other operating expenses increased by approximately RMB 12.1 million, from approximately RMB 33.4 million to approximately RMB 45.4 million[24][29]. - The loss attributable to equity holders for the six months ended June 30, 2022, was approximately RMB 0.5 million, a significant decrease from a loss of RMB 5.2 million for the same period in 2021[75]. - The company incurred a loss of RMB 327,000 for the period, a significant reduction from a loss of RMB 5,154,000 in the previous year, reflecting an improvement in financial performance[88]. - The total comprehensive income attributable to owners of the company for the period was RMB 2,176,000, compared to a loss of RMB 3,044,000 in 2021[88]. - The company reported a basic loss per share of RMB 0.000484 for the six months ended June 30, 2022, compared to a loss of RMB 0.00567 for the same period in 2021, showing an improvement in loss per share[153]. Acquisitions and Investments - The Group entered into a sales and purchase agreement to acquire High Kelee Investment Holdings Limited for a total consideration of HK$42.8 million, with HK$8.8 million paid in cash and the remainder settled through the issuance of 170 million shares[52]. - Following the acquisition, High Kelee became a wholly-owned subsidiary, and the financial results will be consolidated into the Group's financial statements[54]. - The company completed the acquisition of High Kelee in July 2022, which is expected to enhance its business in fabric care, personal hygiene, and home care products[82]. - The company is actively seeking opportunities to diversify its business and broaden revenue streams through acquisitions and collaborations[83]. Cash Flow and Financing - For the six months ended June 30, 2022, cash flows from operating activities resulted in a net cash outflow of RMB 39,250,000, compared to a net inflow of RMB 130,000 in the same period of 2021[102]. - The company generated RMB 107,602,000 from borrowings during the financing activities for the six months ended June 30, 2022[102]. - The total current tax expense for the six months ended June 30, 2022, was RMB 906,000, compared to RMB 794,000 in 2021, reflecting an increase of approximately 14.1%[150]. - The company’s total income tax expenses for the six months ended June 30, 2022, were RMB 807,000, a decrease from RMB 1,247,000 in 2021, indicating a reduction of approximately 35.4%[150]. Operational Efficiency and Strategy - The company aims to improve operational efficiency and increase revenue as top priorities for 2022[82]. - The company aims to better utilize its assets by sub-leasing parts of its production plants to local enterprises[15]. - The board believes that ongoing litigation has no material impact on the company's business and finances[81]. Accounting and Reporting - The interim financial information for the six months ended June 30, 2022, is presented in thousands of Renminbi (RMB'000) and is unaudited[109][111]. - The Group's revenue and results are analyzed by operating and reportable segments, with strategic decisions made based on adjusted segment operating results[122][124]. - The Group adopted new and amended Hong Kong Financial Reporting Standards effective from January 1, 2022, but these had no material impact on the financial results[114][117]. - Management made significant accounting judgments and estimates that may affect the reported amounts of assets and liabilities, income, and expenses[120][123]. - The financial report does not include all information required in annual consolidated financial statements and should be read in conjunction with the annual report for the year ended December 31, 2021[108][110]. Assets and Liabilities - The total reportable segment assets as of June 30, 2022, amounted to RMB 553,608,000, compared to RMB 487,152,000 as of December 31, 2021, indicating an increase of approximately 13.6%[132]. - The reportable segment liabilities as of June 30, 2022, were RMB 181,293,000, up from RMB 122,612,000 as of December 31, 2021, reflecting an increase of approximately 47.5%[133]. - The fair value of the Group's investment properties as of June 30, 2022, was RMB101,177,000, down from RMB102,184,000 as of December 31, 2021[168]. - The carrying value of investment properties pledged as collateral for bank loans was RMB30,316,000 as of June 30, 2022, compared to RMB31,164,000 as of December 31, 2021[174]. - The net book amount of property, plant, and equipment as of June 30, 2022, was RMB164,661,000, compared to RMB184,261,000 as of December 31, 2021[193]. - The accumulated depreciation for property, plant, and equipment as of June 30, 2022, was RMB235,817,000, reflecting a charge of RMB16,062,000 for the period[190]. Market and Risk Factors - The Group's exposure to currency risk arises from sales to overseas customers primarily denominated in USD, with no current foreign currency hedging policy in place[62]. - The Group's investment properties experienced a decrease in fair value, indicating potential market challenges affecting rental income streams[171]. - The cash flow projections used for impairment testing were based on a five-year approved business plan[199]. - The estimated cost of capital was a key factor in determining the discount rates used in the cash flow projections[197].
中国派对文化(01532) - 2022 - 中期财报