Financial Performance - The company's unaudited consolidated revenue for the six months ended June 30, 2022, was approximately $62.9 million, a decrease of about $25.5 million or 28.8% compared to $88.4 million for the same period in 2021[23]. - The company reported a loss of $2.3 million for the period, compared to a profit of $0.5 million in the previous year[15]. - The group achieved a reduction in sales costs to about $41.1 million, down 28.6% from $57.6 million in the prior period[43]. - The group reported a gross profit of $20.6 million from entertainment products, with a gross profit margin of 35.4% for the six months ended June 30, 2022, compared to $30.1 million and 35.6% in 2021, representing a decrease of 31.5%[46]. - The company reported a total comprehensive loss of $(2,367,000) for the six months ended June 30, 2022, compared to a total comprehensive income of $465,000 for the same period in 2021[136]. Revenue Breakdown - Revenue from fashion and lifestyle products was $26.8 million, down from $42.0 million, a decrease of approximately 36.2%[16]. - Revenue from beauty products decreased to $31.5 million from $42.6 million, a decline of about 26%[16]. - Revenue from merchandise sales recognized at a point in time was $55,566 thousand, down from $80,689 thousand year-on-year, representing a decline of approximately 31%[155]. - Revenue from the United States decreased to $31,465,000, down 18% from $38,443,000 in the previous year[161]. - Revenue from European countries totaled $11,693,000, a decline of 56% from $26,839,000 in the prior year[161]. Customer Metrics - The total number of active customers across all e-commerce platforms decreased to 0.6 million from 1.0 million year-over-year[16]. - The average order value dropped to $63.4 from $74.4, reflecting a decline of approximately 14%[16]. - The number of downloads for the YesStyle mobile app decreased to 488,000 from 816,000, a drop of approximately 40%[18]. - YesStyle Elite Club membership grew to approximately 7.2 million, a historical high, reflecting a 42.3% increase[29]. Cost and Expenses - The cost to acquire each new customer increased to $12.0 from $10.7, representing a rise of about 12.1%[16]. - Sales expenses decreased to approximately $9.1 million for the six months ended June 30, 2022, down about 31.9% from $13.3 million in the same period of 2021[49]. - Administrative expenses were approximately $15.1 million for the six months ended June 30, 2022, a decrease of about 9.0% compared to $16.6 million for the same period in 2021[55]. - Marketing and promotional expenses decreased by approximately $1.5 million or 30.8% to about $3.3 million for the six months ended June 30, 2022[49]. Assets and Liabilities - Total non-current assets increased to $27,268,000 as of June 30, 2022, compared to $17,682,000 as of December 31, 2021, representing a growth of 54.5%[132]. - Current assets decreased to $46,793,000 as of June 30, 2022, down from $52,205,000 as of December 31, 2021, a decline of 10.7%[132]. - Total liabilities increased to $42,174,000 as of June 30, 2022, from $33,200,000 as of December 31, 2021, marking a rise of 27.0%[132]. - The company's total equity decreased to $31,887,000 as of June 30, 2022, down from $36,287,000 as of December 31, 2021, reflecting a decline of 12.1%[132]. Cash Flow and Financing - Net cash used in operating activities was $(6,521,000) for the six months ended June 30, 2022, compared to $(3,988,000) for the same period in 2021, indicating a worsening cash flow situation[139]. - The company has no outstanding bank borrowings as of June 30, 2022, and expects to meet its liquidity needs through operating cash and proceeds from global offerings[65]. - The company utilized $66.7 million of the net proceeds from its global offering, with $48.2 million remaining as of June 30, 2022[124]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022, compared to a dividend of 5.0 HK cents per share for the same period in 2021[76]. - As of June 30, 2022, Mr. Liu holds 123,047,980 shares, representing approximately 31.08% of the company's issued share capital[83]. - Ms. Zhu directly holds 29,235,550 shares and has options to subscribe for 600,000 shares, contributing to a combined ownership of 152,883,530 shares, or about 38.61% of the issued share capital[84]. Stock Options and Employee Incentives - The 2005 Share Option Plan allows options to be exercised for up to 10 years from the grant date, with all unexercised options remaining valid after the scheme's expiration[92]. - The company aims to provide employees with investment opportunities in the company through the stock option plan[95]. - The total number of shares that can be issued upon the exercise of all options granted under the post-IPO share option plan is 39,539,079 shares, which represents a 10% cap of the shares issued on the date trading commenced on the stock exchange[106]. Government Support and Subsidies - The group received a one-time government subsidy of approximately $0.4 million under the 2022 Employment Support Scheme during the reporting period[48]. - Government subsidy income increased significantly to $421 thousand from $5 thousand year-on-year, reflecting a substantial growth[156].
喆丽控股(02209) - 2022 - 中期财报