Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 499.5 million, an increase of 19.1% compared to the previous year[9]. - The company's profit for the same period was RMB 11.3 million, up from RMB 0.2 million in the previous year, marking a significant increase[15]. - The group's total revenue increased by approximately 19.1% from RMB 419.3 million in the six months ended June 30, 2022, to RMB 499.5 million in the same period of 2023[29]. - Revenue for the six months ended June 30, 2023, was RMB 499,457,556, an increase of 19.1% compared to RMB 419,280,331 for the same period in 2022[189]. - Standard apparel products generated revenue of RMB 456,067,663, up 17.8% from RMB 387,088,397 in the previous year[189]. - Trademark licensing income rose to RMB 43,389,893, representing a 34.7% increase from RMB 32,191,934 in the prior period[189]. - Gross profit for the same period was RMB 202,843,031, slightly down from RMB 203,425,685, indicating a marginal decrease of 0.3%[90]. - The net profit attributable to the company's owners for the period was RMB 11,299,408, a significant increase from RMB 224,564, reflecting a growth of approximately 5000%[90]. - Basic and diluted earnings per share rose to RMB 8.47 from RMB 0.17, marking a substantial increase[90]. Sales and Distribution - Sales to distributors amounted to RMB 52.6 million, representing 10.5% of total revenue, while e-commerce platform sales reached RMB 144.3 million, accounting for 28.9%[11]. - Revenue from e-commerce platforms for the FIRS and SHANSHAN brands surged approximately 113.1%, rising from RMB 67.7 million to RMB 144.3 million[29]. - The company's sales and distribution expenses decreased by approximately 9.9% to RMB 164.7 million, primarily due to the focus on high-quality store openings and cost reduction measures[13]. - Sales and distribution expenses decreased by 9.9% year-on-year, reflecting effective cost control measures[27]. Inventory and Management - The average inventory turnover days improved to 176 days from 259 days year-on-year, indicating better inventory management[16]. - Inventory balance decreased by about 13.6% compared to December 31, 2022, effectively improving inventory turnover[27]. - The average inventory turnover days significantly reduced from 259 days to 176 days, indicating improved inventory management[38]. - The average accounts payable turnover days decreased from 116 days to 80 days, attributed to a more flexible supply chain[39]. - The company's inventory decreased to RMB 269,555,270, down 13.6% from RMB 311,939,143 as of June 30, 2022[129]. Financial Position - The group maintained a solid financial position, with cash and cash equivalents decreasing from approximately RMB 114.7 million to RMB 90.0 million[40]. - As of June 30, 2023, the total bank borrowings amounted to approximately RMB 120.0 million, down from RMB 157.5 million as of December 31, 2022[61]. - The group's debt-to-asset ratio was approximately 17.2% as of June 30, 2023, compared to 20.8% as of December 31, 2022[61]. - The company's total assets amounted to RMB 610,466,481, a decrease of 10.4% from RMB 681,745,087 as of December 31, 2022[130]. - The company's total equity increased to RMB 233,468,951 as of June 30, 2023, compared to RMB 227,505,543 as of June 30, 2022, reflecting a growth of 2.6%[116]. - The company's total liabilities decreased to RMB 439,596,114 from RMB 511,194,583, indicating a reduction of 14.0%[129]. Strategic Initiatives - The company continues to focus on high-quality development and optimizing its distribution network to enhance brand performance[6]. - The company is committed to strategic initiatives aimed at addressing external pressures of high costs and low demand, ensuring sustainable growth[6]. - The group plans to focus on product innovation and digital economy strategies, enhancing online and offline sales channels[47]. - The group aims to accelerate "high-quality development" in the second half of 2023, focusing on new consumption opportunities and leveraging the intangible value built over 30 years[74]. - The company plans to continue innovating in product development and enhance brand image through strategic store openings and cultural initiatives[93]. - The company is considering the construction of a comprehensive building, including a product R&D center and a digital smart warehouse, to further develop its clothing brand[70]. Governance and Shareholder Structure - The company has maintained a balanced board structure with independent non-executive directors providing oversight[85]. - As of June 30, 2023, major shareholders include Mr. Luo and Ms. Zhou, each holding approximately 24.674% of the company's shares[95]. - The company reported a significant ownership structure, with major shareholders including Ningbo Shanshan Group holding approximately 34.55% of the shares[100]. - The company has established a governance structure with a board of directors committed to high standards of corporate governance, ensuring compliance with relevant regulations[108]. - The company has a diverse shareholder base, with public shareholders holding approximately 49.72% of the equity[100]. Cash Flow and Expenses - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 26,892,619, down 30.8% from RMB 38,890,988 in the same period of 2022[135]. - The company reported a net cash decrease of RMB 24,659,312 in cash and cash equivalents for the six months ended June 30, 2023[135]. - The group reported a decrease in other payables and accrued expenses from RMB 158,617,606 as of December 31, 2022, to RMB 145,276,496 as of June 30, 2023[151]. - The company reported a financial cost of RMB 3,695,429, which is comparable to RMB 3,693,718 in the previous period[90]. - The group’s financial expenses for the six months ended June 30, 2023, were RMB 3.7 million, remaining stable compared to the previous period[139]. Taxation - The group's income tax expense for the period was RMB 1.4 million, compared to a tax credit of RMB 2.1 million for the six months ended June 30, 2022[57]. - Deferred tax expenses for the six months ended June 30, 2023, amounted to RMB 1,417,276, compared to a credit of RMB 2,093,941 for the same period in 2022[140]. - The effective corporate income tax rate applicable to the company is 25% in mainland China[199].
杉杉品牌(01749) - 2023 - 中期财报