Financial Performance - The company reported a net loss of approximately RMB 63.6 million for the six months ended June 30, 2022, compared to a net profit of RMB 12.0 million for the same period in 2021[5]. - The company's revenue decreased by 19.9% to approximately RMB 603.8 million from RMB 754.0 million in the previous period[21]. - Revenue for the six months ended June 30, 2022, was RMB 603,793 thousand, a decrease of 20% compared to RMB 754,040 thousand in the same period of 2021[82]. - Gross profit decreased from approximately RMB 317.4 million to RMB 237.4 million, with the gross margin falling from 42.1% to 39.3%[27]. - Operating loss for the six months was RMB 56,984 thousand, compared to an operating profit of RMB 18,543 thousand in the prior year[82]. - The company recorded a loss of approximately RMB 63.6 million for the period, compared to a profit of RMB 12.0 million in the previous period[35]. - The company reported a basic and diluted loss per share of RMB 7.75 for the six months ended June 30, 2022, compared to earnings of RMB 1.54 per share in the same period of 2021[82]. - Cash generated from operating activities was RMB 53,728 thousand, down 49.5% from RMB 106,246 thousand in the same period of 2021[88]. Foreign Exchange and Financial Risks - The company experienced a foreign exchange loss of approximately RMB 15.4 million during the reporting period, leading to an adjusted loss of approximately RMB 48.2 million when excluding this loss[5]. - The group has no foreign exchange hedging policy and is exposed to foreign exchange risks from USD, EUR, and HKD against RMB[44]. - The company had a bank loan of RMB 21,380,000 as of June 30, 2022, which was in breach of financial covenants, potentially leading to immediate repayment[133]. Retail and Distribution Network - The company plans to open 3 to 5 LEGO certified stores in mainland China in the second half of 2022, marking a significant milestone[6]. - As of June 30, 2022, the company operated 614 self-operated retail points, a decrease from 642 points as of June 30, 2021[9]. - The number of distributors decreased to 515 as of June 30, 2022, down from 578 as of June 30, 2021[15]. - The company had 181 retail stores at the end of the reporting period, down from 189 stores at the end of the previous year[11]. - The company maintained 12 wholesale arrangements with chain hypermarkets and supermarkets, with a total of 682 retail points as of June 30, 2022, unchanged from the previous year[17]. - The company is focusing on optimizing its retail network and negotiating rent reductions to improve cash flow and profitability[6]. Employee and Compensation - The group has approximately 1,600 employees as of June 30, 2022, a decrease from about 1,700 employees as of June 30, 2021[47]. - Total employee compensation for the reporting period was approximately RMB 51.3 million for internal employees and RMB 48.8 million for outsourced employees, compared to RMB 47.6 million and RMB 49.8 million in the previous period[47]. Capital Expenditure and Investments - Capital expenditure for the period was approximately RMB 10.7 million, primarily for renovating existing stores[38]. - The company has no significant investments or plans for major acquisitions or disposals during the reporting period[45]. Share Capital and Options - As of June 30, 2022, the company has issued 800,000,000 ordinary shares with a par value of HKD 0.01 per share, with no changes in share capital during the reporting period[46]. - The company has adopted a post-IPO share option plan to encourage and reward eligible participants, including employees and directors[65]. - The total number of options granted under the post-IPO plan cannot exceed 10% of the total shares issued at the time of listing[146]. - The company authorized the grant of 47,500,000 shares under the pre-IPO share option plan to 78 eligible participants[138]. Compliance and Governance - The board of directors has confirmed compliance with the standard code for securities trading throughout the reporting period[52]. - The audit committee has reviewed the unaudited condensed consolidated financial statements and believes they fairly present the financial position and performance of the group for the reporting period[55]. - The company’s chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines[51]. Market Conditions and Future Outlook - Due to COVID-19, the group's business faced negative impacts, particularly in major cities like Beijing and Shanghai, affecting consumer sentiment and causing short-term disruptions[91]. - The board believes that sales performance and operating cash flow will improve over the next twelve months as the negative impacts of COVID-19 diminish[96]. - The group is actively seeking alternative financing and bank loans to meet existing financial obligations and future operational and capital expenditures[96].
凯知乐国际(02122) - 2022 - 中期财报