Financial Performance - Revenue decreased by approximately 0.7% to approximately RMB 122.8 million compared to RMB 123.7 million in the first half of 2021[8] - Gross profit decreased by approximately 0.7% to approximately RMB 71.7 million compared to RMB 72.2 million in the first half of 2021[8] - Loss for the period decreased by approximately 24.6% to approximately RMB 5.2 million compared to a loss of approximately RMB 6.9 million in the first half of 2021[8] - Basic loss per share was approximately RMB 0.55 cent compared to RMB 0.73 cent in the first half of 2021[8] - The Group's revenue for the first half of 2022 was approximately RMB122.8 million, remaining stable compared to RMB123.7 million in the first half of 2021[30] - The Group recorded a loss of approximately RMB5.2 million, a decrease of approximately RMB1.7 million compared to a loss of RMB6.9 million in the first half of 2021[30] - The gross profit for the first half of 2022 was approximately RMB71.7 million, down from RMB72.2 million in the first half of 2021, with a stable gross profit margin of approximately 58.4%[36] - Revenue for the six months ended June 30, 2022, was RMB 122,760,000, a decrease of 0.77% compared to RMB 123,711,000 for the same period in 2021[97] - Gross profit for the same period was RMB 71,683,000, down from RMB 72,163,000, reflecting a slight decline in profitability[97] - Loss before tax improved to RMB 4,328,000, compared to a loss of RMB 6,834,000 in the prior year, indicating a reduction in losses by approximately 36.7%[97] - Total comprehensive loss for the period was RMB 1,716,000, significantly improved from RMB 5,774,000 in the previous year[97] - The net loss for the period was RMB 5,184,000, compared to a loss of RMB 6,867,000 in the same period of the previous year[101] Expenses and Cost Management - Selling and distribution expenses decreased by approximately RMB4.3 million to RMB46.2 million, representing a decrease of approximately 8.5% from RMB50.5 million in the first half of 2021[30] - Administrative expenses decreased by approximately RMB4.3 million to RMB29.6 million, a decrease of approximately 12.7% from RMB33.9 million in the first half of 2021[30] - Selling and distribution expenses decreased to RMB 46,208,000 from RMB 50,496,000, contributing to the reduction in overall losses[97] - The company reported a decrease in administrative expenses to RMB 29,571,000 from RMB 33,916,000, reflecting cost control measures[97] Cash Flow and Assets - Cash and cash equivalents decreased by approximately RMB10.3 million as of June 30, 2022, primarily due to a net cash outflow from operating activities of approximately RMB6.2 million[50] - Cash and cash equivalents as of June 30, 2022, were RMB 61,731,000, down from RMB 72,057,000 at the end of 2021[99] - Total assets decreased to RMB 384,942,000 from RMB 390,112,000 at the end of 2021, indicating a reduction of approximately 1.7%[99] - Net current assets were RMB 126,754,000, slightly down from RMB 127,879,000 at the end of 2021[99] - The company reported a net decrease in cash and cash equivalents of RMB 9,778,000 for the period[106] Inventory and Receivables - Inventories increased by approximately RMB11.9 million, amounting to RMB71.9 million as of June 30, 2022, compared to RMB60.0 million as of December 31, 2021[50] - Trade receivables slightly decreased to approximately RMB25.8 million as of June 30, 2022, from approximately RMB26.2 million as of December 31, 2021[53] - Trade payables increased by approximately RMB3.9 million to RMB19.6 million as of June 30, 2022, due to increased procurement of raw materials[54] - Total inventories as of 30 June 2022 amounted to RMB71,938,000, an increase from RMB59,983,000 as of 31 December 2021[174] - Trade receivables as of 30 June 2022 were RMB28,263,000, slightly down from RMB28,587,000 as of 31 December 2021, with an impairment allowance of RMB2,438,000[177] Share Capital and Dividends - The Board has resolved not to declare any interim dividend for the six months ended 30 June 2022, consistent with the first half of 2021[8] - As of June 30, 2022, the total issued shares of the Company were 946,298,370, with domestic shares at 673,828,770 and H shares at 272,469,600[74] - The issued and fully paid ordinary shares remained unchanged at 946,298,370 shares, with a total share capital of RMB 94,630,000 as of June 30, 2022[198] Market and Strategic Focus - The Group launched a total of 11 new products in the first half of 2022, including 1 Zhongsheng series product, 3 Good Health series products, and 7 Living Nature series products[32] - The Group continued to enhance its domestic distribution network and e-commerce platforms, collaborating with major platforms like Tmall International and JD.com[36] - Investments in marketing and promotion for the cross-border e-commerce business were increased to boost brand recognition[31] - The Group plans to focus on two business segments in the second half of 2022: cross-border e-commerce of nutritional supplements and offline distribution channels for maternity and child products[61] - The Group's strategy includes precise positioning of customer demands in segmented markets during new product development to improve performance[63] Economic and Industry Outlook - The global economic outlook for the second half of 2022 is challenged by factors such as the Ukraine crisis and COVID-19 resurgence, leading to risks of stagflation and recession[59] - The PRC market remains crucial for the industry, with factors like an aging population and increasing health awareness expected to drive long-term positive development[60] Compliance and Governance - The company complied with all code provisions as set out in the Corporate Governance Code for the six months ended June 30, 2022[85] - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2022[91] - The company adopted the Model Code for securities transactions and confirmed compliance by all Directors and Supervisors throughout the reporting period[85]
中生联合(03332) - 2022 - 中期财报