Financial Performance - For the six months ended June 30, 2023, the group recorded unaudited revenue of approximately RMB 34.1 million, a decrease of about 7.3% compared to RMB 36.8 million for the same period in 2022[4]. - The unaudited loss for the six months ended June 30, 2023, was approximately RMB 1.3 million, an improvement from a loss of RMB 3.4 million for the same period in 2022[4]. - Basic loss per share for the six months ended June 30, 2023, was RMB 0.1 cents, compared to RMB 0.4 cents for the same period in 2022[4]. - The group reported a gross profit of RMB 10.0 million for the six months ended June 30, 2023, down from RMB 10.5 million for the same period in 2022[5]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 10.0 million, a decrease of about 4.8% from RMB 10.5 million for the same period in 2022, resulting in a gross margin increase of 0.8 percentage points to 29.3%[46]. - The company reported a loss attributable to owners of the company of RMB (1,249,000) for the six months ended June 30, 2023, compared to a loss of RMB (3,420,000) for the same period in 2022, indicating an improvement of approximately 63.5%[29]. - Administrative expenses decreased from approximately RMB 12.4 million for the six months ended June 30, 2022, to RMB 9.4 million for the same period in 2023, a reduction of about RMB 3.0 million[48]. Assets and Liabilities - As of June 30, 2023, total non-current assets amounted to RMB 8.9 million, down from RMB 10.2 million as of December 31, 2022[6]. - Current assets as of June 30, 2023, totaled RMB 50.1 million, a decrease from RMB 53.7 million as of December 31, 2022[6]. - The net asset value as of June 30, 2023, was RMB 48.9 million, compared to RMB 50.1 million as of December 31, 2022[8]. - Total liabilities decreased to RMB 10.1 million as of June 30, 2023, from RMB 13.7 million as of December 31, 2022[6]. - The group’s cash and cash equivalents were RMB 27.0 million as of June 30, 2023, down from RMB 34.8 million as of December 31, 2022[6]. - The company’s trade payables totaled RMB 4,233,000 as of June 30, 2023, down from RMB 6,538,000 as of December 31, 2022, indicating a reduction of 35.3%[36]. - The company’s provision for trade receivables impairment was RMB 1,263,000 as of June 30, 2023, compared to RMB 1,158,000 as of December 31, 2022, showing an increase of 9.1%[32]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (8,052) thousand, compared to RMB (1,973) thousand for the same period in 2022, indicating a significant increase in cash outflow[12]. - The net cash generated from investing activities was RMB 146 thousand, a significant decline from RMB 3,887 thousand in the same period of 2022[12]. - The cash and cash equivalents at the end of the period were RMB 26,995 thousand, down from RMB 29,936 thousand at the end of June 2022[12]. Dividends - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[4]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[28]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[65]. Employee Costs - The company incurred a total employee cost of RMB 9,375,000 for the six months ended June 30, 2023, down from RMB 11,686,000 in the same period of 2022, reflecting a decrease of 19.9%[27]. - The total employee benefits expenses for the six months ended June 30, 2023, amounted to approximately RMB 9.4 million, down from RMB 11.7 million for the same period in 2022[61]. Business Strategy and Market Outlook - The company is focused on restructuring its investment holding entities and operational subsidiaries as part of its ongoing business strategy[11]. - The group plans to invest more resources in identifying potential clients in China and exploring opportunities with both domestic and overseas apparel brands to increase sales and profitability[44]. - The company anticipates stable growth in the apparel accessories market despite challenges such as intense price competition and rising labor and material costs[66]. - The company is considering diversifying its business into other apparel and textile sectors, particularly focusing on health and lifestyle products[66]. - The company has identified several key risks, including reliance on customer demand and potential labor shortages, which could significantly impact revenue[68]. Corporate Governance - The company has adopted a code of conduct for directors' securities trading, compliant with GEM listing rules[82]. - The company has maintained compliance with all applicable corporate governance code provisions during the reporting period[83]. - The audit committee was established on June 24, 2017, to oversee financial reporting and risk management[88]. - The audit committee now consists of three members, all of whom are independent non-executive directors[90]. - The interim report has been reviewed by the audit committee and complies with applicable accounting standards and GEM listing rules[90]. Use of Proceeds - The net proceeds from the listing amounted to approximately HKD 37.6 million (equivalent to approximately RMB 32.7 million) after deducting listing-related expenses[69]. - As of June 30, 2023, the company has utilized HKD 26.5 million of the net proceeds, leaving a balance of HKD 11.1 million for future use[70]. - The company plans to enhance its production facilities and digital printing technology, with HKD 7.9 million allocated for this purpose[70]. - The company aims to develop its capabilities in applying RFID technology, with HKD 3.0 million earmarked, of which HKD 0.7 million has been utilized[70]. - The company is focusing on expanding its sales and marketing department, with HKD 3.0 million allocated, of which HKD 2.4 million has been utilized[70]. - The company has postponed the application of net proceeds for developing RFID technology and upgrading IT systems due to the impact of the pandemic on the apparel industry[71]. - As of June 30, 2023, the company utilized HKD 0.3 million for operational funding related to the IT industry expansion[74]. - The company has allocated HKD 5.11 million for investment in IT companies or projects, with the expected timeline for use by December 2023[74]. Shareholding Structure - Mr. Lin holds 433,400,000 shares, representing 50.99% of the company's equity[75]. - Neo Concept, a company fully owned by Mr. Lin, also holds 433,400,000 shares, accounting for 50.99% of the company's equity[79]. Other Information - No purchases, sales, or redemptions of the company's listed securities occurred during the six-month period ending June 30, 2023[81]. - No significant post-reporting events occurred after June 30, 2023[87].
新达控股(08471) - 2023 - 中期财报