Revenue Performance - The Group's total revenue decreased by approximately 48.6% from approximately RMB103.4 million for the six months ended June 30, 2022, to approximately RMB53.1 million for the six months ended June 30, 2023[14]. - Revenue from sales of smart toy vehicles dropped by approximately 48.6% from approximately RMB103.4 million for the six months ended June 30, 2022, to approximately RMB53.1 million for the six months ended June 30, 2023[16]. - The Group did not record any revenue from smart interactive toys during the first half of 2023, compared to nil for the same period in 2022[17]. - The Group did not record any revenue from traditional toys during the period, down from RMB5.3 million for the six months ended June 30, 2022, due to a quiet domestic retail market[24]. - Revenue for the six months ended June 30, 2023, was RMB 53,148,000, a decrease of 48.6% from RMB 103,415,000 in the same period of 2022[111]. - Sales of toy cars accounted for the entire revenue in 2023, while sales of raw materials and electronic parts were nil, compared to RMB 30,806,000 in 2022[111]. - Revenue from sales to PRC customers dropped from approximately RMB 73.5 million in 2022 to zero in 2023 due to outsourcing manufacturing to suppliers outside of the PRC[119]. Profitability and Loss - The Group's gross profit decreased by approximately 32.3% from approximately RMB13.0 million for the six months ended June 30, 2022, to approximately RMB8.8 million for the six months ended June 30, 2023[27]. - Gross profit for the same period was RMB 8,805, down 32.5% from RMB 13,010 in 2022[93]. - The Group recorded a net loss of approximately RMB14.2 million for the six months ended 30 June 2023, a decrease of 67.4% compared to a net loss of approximately RMB43.5 million for the same period in 2022[31]. - The Group's loss for the period attributable to owners is approximately RMB 14,232,000, a decrease from a loss of RMB 43,542,000 in the same period last year, representing a 67.3% improvement[134]. - Loss from operations improved to RMB 8,650, compared to a loss of RMB 39,618 in the prior year, indicating a reduction of 78.1%[93]. - Total comprehensive income for the period attributable to the owners of the Company was a loss of RMB 11,503, an improvement from a loss of RMB 35,778 in the same period last year[95]. Expenses and Cost Management - The Group's gross profit margin rebounded to approximately 16.6% for the six months ended June 30, 2023, from approximately 12.6% for the six months ended June 30, 2022, mainly due to effective cost control[27]. - Selling expenses decreased by approximately 80% from approximately RMB1.3 million for the six months ended June 30, 2022, to approximately RMB0.27 million for the six months ended June 30, 2023[32]. - Administrative expenses decreased by approximately 71.1% from approximately RMB52.3 million for the six months ended June 30, 2022, to approximately RMB15.1 million for the six months ended June 30, 2023[33]. - Staff costs decreased dramatically to RMB 948,000 in the first half of 2023 from RMB 35,255,000 in the same period last year, a reduction of 97.3%[133]. - The depreciation of property, plant, and equipment decreased to RMB 6,886,000 in 2023 from RMB 8,538,000 in 2022, a decline of 19.4%[133]. - The amortization of intangible assets significantly decreased to RMB 108,000 in 2023 from RMB 2,407,000 in 2022, a reduction of 95.5%[133]. Financial Position and Liquidity - The Group's cash and cash equivalents amounted to approximately RMB30.6 million as at 30 June 2023, an increase from approximately RMB6.2 million as at 31 December 2022[49]. - The current ratio was approximately 1.5 as at 30 June 2023, slightly down from approximately 1.6 as at 31 December 2022[44]. - The gearing ratio was approximately 34.8% as at 30 June 2023, stable compared to approximately 35.1% as at 31 December 2022[43]. - The Group's trade receivables increased by approximately RMB62.4 million or approximately 19.1% from RMB327.5 million as at 31 December 2022 to approximately RMB389.9 million as at 30 June 2023[46]. - Trade receivables increased to RMB 389,895 as of June 30, 2023, up 19.0% from RMB 327,541 at the end of 2022[94]. - The Group's trade payables increased significantly to RMB 106,890,000 as of June 30, 2023, compared to RMB 60,974,000 as of December 31, 2022, representing a rise of 75.4%[149]. - Trade and other payables increased by approximately RMB56.5 million or approximately 38.4% from approximately RMB168.8 million as at 31 December 2022 to approximately RMB225.3 million as at 30 June 2023[51]. Strategic Initiatives and Future Plans - The Group plans to continue seeking opportunities for co-branding with renowned brands to enhance product marketability[26]. - The Group's smart toys and traditional toy products are branded under "kidztech" and co-branded with renowned automobile manufacturers and popular entertainment characters[25]. - The Group has suspended the production and sales of traditional toys until market conditions improve due to low profit margins[24]. - The company aims to prioritize overseas markets while expanding its customer base, focusing on PRC export-oriented wholesalers and retailers[90][91]. - The company plans to diversify its product offerings through continuous development of new products and a global licensing strategy[91]. - The company intends to expand its production capacity by outsourcing part of the production process to suppliers and subcontractors to improve efficiency[91]. - The Group did not have any significant investments, material acquisitions, or disposals of subsidiaries during the six months ended June 30, 2023[53][58]. Share Capital and Financing - On July 26, 2023, the Company entered into a placing agreement to issue up to 104,177,200 new ordinary shares at a placing price of HK$0.35 per share, representing a discount of approximately 1.4% to the closing price on the date of the agreement[73]. - The completion of the placing agreement on August 23, 2023, resulted in the successful placement of 103,678,000 shares, raising gross proceeds of HK$36,287,300[74][75]. - The net proceeds from the placing, after related expenses, were approximately HK$35,765,000, which will strengthen the Group's financial position[75][76]. - The newly issued shares accounted for approximately 19.9% of the company's issued share capital before the placement and about 16.6% after the placement[79]. - The total number of issued ordinary shares was 520,886,000, unchanged from December 31, 2022[55][60]. - The Group's capital commitments remained stable at approximately RMB17.4 million as of June 30, 2023[65][70]. - The Group's bank and other borrowings were secured by property, plant, and equipment, as well as personal guarantees from certain shareholders[14]. - The total borrowings as of June 30, 2023, were repayable on demand or within one year, amounting to RMB 134,478,000, a decrease from RMB 139,834,000 as of December 31, 2022[14]. Employee and Management Information - As of June 30, 2023, the company had approximately 27 full-time employees, a significant decrease from 95 employees as of December 31, 2022, due to outsourcing part of the production process[83][88]. - The total remuneration packages for employees include salaries, insurance, and discretionary bonuses based on performance[84][85]. - The company has implemented training programs to enhance employee productivity and has adopted a share option scheme to reward contributions[84][88]. Share Option Scheme - The total number of shares that may be allotted and issued under the Share Option Scheme is capped at 10% of the total shares in issue on the listing date, which is 52,000,000 shares[183]. - The Company granted 52,000,000 share options at an exercise price of HK$1.17 per share, with the closing price before the grant date being HK$1.15 per share[184][187]. - As of June 30, 2023, there were 52,000,000 effective share options outstanding, representing approximately 9.98% of the issued shares[185][187]. - The options granted are exercisable for 10 years from the date of grant, which is from June 21, 2022, to June 20, 2032[192][193]. - The options granted were not subject to any performance targets[192].
奇士达(06918) - 2023 - 中期财报