Financial Performance - Revenue decreased by approximately 80.4% to approximately RMB53.9 million for the six months ended 30 June 2022 (2021: approximately RMB274.9 million) [9] - Gross loss recorded in the amount of approximately RMB4.3 million for the six months ended 30 June 2022 (2021: gross profit approximately RMB82.6 million) [9] - The Group recorded a loss of approximately RMB125.9 million for the six months ended 30 June 2022 (2021: approximately RMB42.8 million) [9] - Basic loss per share was approximately RMB12.00 cents for the six months ended 30 June 2022 (2021: approximately RMB4.52 cents) [9] - Total comprehensive loss for the period was RMB 121,233,000, compared to RMB 50,149,000 in the prior year [19] - The Group reported a loss before tax of RMB 123,990,000 for the six months ended June 30, 2022, compared to a loss of RMB 41,780,000 for the same period in 2021, indicating an increase in losses of approximately 196% [156] Dividend and Shareholder Returns - The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2022 (2021: Nil) [9] - The Board proposed not to declare an interim dividend for the six months ended 30 June 2022, compared to nil for the same period in 2021 [159] Revenue Breakdown - Revenue for the six months ended 30 June 2022 was RMB 53,949,000, a decrease of 80.4% compared to RMB 274,881,000 for the same period in 2021 [17] - Revenue from external customers in the People's Republic of China (including Hong Kong) was RMB 24,573,000, down 17.9% from RMB 29,944,000 in 2021 [127] - Revenue from the United Kingdom decreased by 78.7% to RMB 16,424,000 from RMB 76,894,000 in 2021 [127] - Revenue from the U.S. market fell 93.2% to RMB 10,867,000 compared to RMB 159,609,000 in 2021 [127] Expenses and Cost Management - Selling and distribution expenses decreased to RMB 14,134,000 from RMB 37,573,000, a reduction of 62.4% [17] - Administrative expenses rose to RMB 112,027,000, up from RMB 64,903,000, indicating a 72.5% increase [17] - Cost of inventories sold decreased significantly to RMB 46,001,000, down 80.4% from RMB 234,897,000 in the previous year [143] - Salaries, wages, and benefits increased to RMB 81,780,000, up 17.3% from RMB 69,357,000 in the prior year [143] Assets and Liabilities - Total non-current assets increased to RMB 10,112,000 as of June 30, 2022, up from RMB 8,709,000 as of December 31, 2021, representing a growth of 16.0% [21] - Current assets totaled RMB 361,285,000, slightly down from RMB 366,173,000 at the end of 2021, indicating a decrease of 1.2% [21] - Net current liabilities increased significantly to RMB (156,390,000) from RMB (47,876,000), reflecting a deterioration in liquidity position [24] - Total equity attributable to owners of the company decreased to RMB (149,656,000) from RMB (49,541,000), indicating a decline of 402.5% [24] - Total consolidated assets amounted to RMB 371,397,000, a decrease from RMB 374,882,000 as of December 31, 2021 [117] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2022, was RMB (10,284,000), a significant improvement compared to RMB (177,152,000) in the same period of 2021 [35] - Cash flow from investing activities resulted in a net cash outflow of RMB (5,567,000) for the first half of 2022, compared to a net inflow of RMB 56,089,000 in the prior year [35] - Financing activities generated a net cash inflow of RMB 22,824,000 in the first half of 2022, down from RMB 139,088,000 in the same period of 2021 [35] - The company reported a net increase in cash and cash equivalents of RMB 6,973,000 for the six months ended June 30, 2022, compared to an increase of RMB 18,025,000 in the previous year [35] Debt and Restructuring - The company continues to work on its debt restructuring and fund-raising efforts [12] - The company defaulted on the Convertible Loan in 2020 due to failure to repay installments according to the repayment schedule [196] - The outstanding amount of the non-converted portion of the Convertible Loan is to be repaid on the fifth anniversary of the loan date [196] - The company has not repaid the overdue amounts as of June 30, 2022, which were approximately RMB 73,974,000 [196] Operational Strategy and Future Outlook - The company anticipates facing more challenges and opportunities in the second half of 2022, with plans to refine management systems and adjust operational strategies [15] - The company remains focused on product quality and R&D to enhance product value for consumers [15] Segment Performance - For the six months ended June 30, 2022, the retail segment generated external sales of RMB 36,219,000, while the manufacturing segment reported external sales of RMB 109,007,000, totaling RMB 274,881,000 in external sales [100] - The total segment loss for the six months ended June 30, 2022, was RMB 118,659,000, with the retail segment loss at RMB 11,683,000 and the manufacturing segment loss at RMB 15,429,000 [102] Compliance and Reporting - The financial statements are prepared in accordance with Hong Kong Accounting Standards and are unaudited, ensuring compliance with local regulations [43] - The company has not reported any material impact from the adoption of amendments to HKFRSs on its financial positions and performance for the current and prior periods [6]
慕容家居(01575) - 2022 - 中期财报