Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 9,864,815 thousand, a decrease of 24.5% compared to RMB 13,073,865 thousand in the same period of 2021[9]. - Gross profit for the same period was RMB 3,495,946 thousand, down 26.0% from RMB 4,722,074 thousand year-on-year[9]. - Operating profit decreased significantly by 77.7% to RMB 208,329 thousand from RMB 933,383 thousand in the previous year[9]. - Profit attributable to owners of the company plummeted by 97.3% to RMB 17,413 thousand, compared to RMB 635,852 thousand in the prior year[9]. - The gross profit margin was 35.4%, a decline of 0.7 percentage points from 36.1% in the previous year[9]. - The operating profit margin fell to 2.1%, down 5.0 percentage points from 7.1% in the same period last year[9]. - The net profit attributable to the company's owners for the first half of 2022 was RMB 24,187 thousand, a decrease of 96.3% from RMB 650,268 thousand in the same period of 2021[18]. - Total comprehensive income for the first half of 2022 was RMB 22,305 thousand, compared to RMB 649,727 thousand in the same period of 2021, reflecting a decline of 96.6%[18]. - The company reported a significant reduction in financing costs, with a cost of RMB (91,451) thousand in the first half of 2022 compared to RMB (109,509) thousand in the same period of 2021[17]. Assets and Liabilities - Inventory as of June 30, 2022, was RMB 6,649,444 thousand, a decrease of 12.3% from RMB 7,578,037 thousand at the end of 2021[10]. - Accounts receivable and other receivables increased by 10.7% to RMB 3,108,387 thousand from RMB 2,807,379 thousand at the end of 2021[10]. - Bank balances and cash remained relatively stable at RMB 1,236,716 thousand, a slight increase of 0.2% from RMB 1,233,783 thousand[10]. - The company's total liabilities decreased to RMB 5,700,648 thousand as of June 30, 2022, from RMB 6,587,713 thousand at the end of 2021[20]. - The net asset value of the company as of June 30, 2022, was RMB 8,156,306 thousand, slightly down from RMB 8,202,196 thousand at the end of 2021[20]. - Current assets as of June 30, 2022, amounted to RMB 11,038,182 thousand, a decrease from RMB 11,692,962 thousand at the end of 2021[19]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 324,083 thousand, a decrease of 67.2% compared to RMB 989,350 thousand in the same period of 2021[26]. - The net cash used in investing activities was RMB (110,075) thousand, down from RMB (195,493) thousand year-over-year, indicating a 43.7% improvement[27]. - The net cash used in financing activities totaled RMB (202,127) thousand, a significant reduction from RMB (746,029) thousand in the previous year, reflecting a 72.9% decrease[27]. - Cash and cash equivalents increased by RMB 11,881 thousand, compared to an increase of RMB 47,828 thousand in the prior year[27]. - The cash balance at the end of the period was RMB 1,236,716 thousand, down from RMB 1,789,880 thousand at the end of the previous year[27]. Market and Strategic Initiatives - The company has plans to expand its market presence in overseas regions, focusing on enhancing its product offerings and customer engagement strategies[22]. - The company is investing in new product development, with a focus on innovative technologies to improve operational efficiency and customer satisfaction[22]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[22]. - The company plans to continue focusing on expanding its retail space and enhancing its product offerings in the sports apparel sector[36]. - The company reported a significant increase in user data, with a total of 8,503,858 active users as of June 30, 2022, up from 7,770,201 in the previous period[21]. - The company plans to enhance its online and offline channel integration to improve sales conversion rates and operational efficiency[60]. - The company is focusing on enhancing its private traffic channels, including the WeChat mini-program and Douyin live shopping, to improve profitability and customer loyalty[66]. Store Operations - As of June 30, 2022, the total number of retail stores in Greater China was 7,961, comprising 4,455 directly operated stores and 3,506 franchised stores[61]. - The number of directly operated stores decreased by 176 from 4,631 at the beginning of the period to 4,455 at the end of the period[62]. - The retail sales area of stores measuring 300 square meters or less accounted for 83.1% of the total directly operated stores as of June 30, 2022[63]. - The company continues to close or upgrade underperforming stores while strategically planning new store openings[61]. Shareholder Information - The total number of issued shares as of June 30, 2022, was 5,326,179,615 shares[88]. - Major Focus Management Limited holds 3,331,551,560 shares, representing 62.55% of the issued shares as of June 30, 2022[102]. - The company decided not to declare an interim dividend for the period, compared to a dividend of RMB 70,805,000 declared for the same period in 2021[41]. - The company has not participated in any arrangements to allow directors to benefit from purchasing shares or debt securities[99]. Corporate Governance - The company has adhered to the principles of the Corporate Governance Code as per the Listing Rules Appendix 14 for the six months ending June 30, 2022[110]. - The independent auditor has reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2022, in accordance with the relevant standards[111]. - The board of directors includes three executive directors, two non-executive directors, and three independent non-executive directors as of the report date[113].
宝胜国际(03813) - 2022 - 中期财报