Financial Performance - In the first half of fiscal year 2023/24, total revenue decreased by 2.5% year-on-year to RMB 205.8 million (2022/23: RMB 211.1 million) [17]. - Consolidated gross profit decreased by 1.5% to RMB 134.9 million (2022/23: RMB 137.0 million), with a gross profit margin of 65.5%, an increase of 0.6 percentage points compared to the previous year [17][21]. - Consolidated loss attributable to owners of the Company was RMB 13.9 million, an improvement from a loss of RMB 23.4 million in the same period last year [17][19]. - The overall financial performance reflects the ongoing challenges in consumer sentiment despite the lifting of COVID-19 restrictions [21]. - Revenue for the six months ended August 31, 2023, was RMB 205,820,000, a decrease of 2.0% from RMB 211,081,000 in the same period of 2022 [98]. - The loss for the period ended August 31, 2023, was RMB 14,248,000, compared to a loss of RMB 23,756,000 for the same period in 2022, indicating a reduction of 40.2% [153][155]. Expenses and Cost Management - Selling and distribution expenses decreased by 6.7% year-on-year to RMB 108.1 million, with the ratio to total revenue decreasing by 2.4 percentage points to 52.5% [22]. - General and administrative expenses decreased by 0.9% to RMB 41.5 million, with the ratio to total revenue increasing by 0.3 percentage points to 20.2% [23]. - Other income decreased by 78.4% year-on-year to RMB 800,000, primarily due to a reduction in government incentives [24]. - Total expenses for the six months were RMB 70,910,000 for cost of sales, down from RMB 74,073,000, a decrease of 4.4% [174]. Cash Flow and Liquidity - Cash and bank balances as of August 31, 2023, amounted to RMB 399,800,000, up from RMB 371,600,000 as of February 28, 2023, with a quick ratio of 3.7 times [43]. - The Group did not borrow any bank loans during the period and had no outstanding bank loans at the end of the financial period [43]. - For the six months ended August 31, 2023, net cash inflows from operating activities were RMB 30,376,000, an increase from RMB 16,904,000 in the same period of 2022, representing an increase of 79% [118]. - Net cash outflows from investing activities were RMB 42,704,000, compared to RMB 6,440,000 in the previous year, indicating a significant increase in investment spending [118]. - The cash and bank balances at August 31, 2023, were RMB 399,816,000, down from RMB 421,653,000 in the previous year [118]. Inventory and Sales Performance - As of August 31, 2023, inventory balance was RMB 192,300,000, a slight increase of 0.2% from RMB 191,900,000 the previous year [37]. - The proportion of inventory aged less than one year decreased by 15 percentage points to 55%, while inventory turnover days increased by 109 days to 498 days [40]. - The Group's total retail revenue decreased by 2.5% to RMB 205,800,000 compared to RMB 211,100,000 in the previous year, while same-store sales increased by 13.5% [49]. - In the first half of 2023, the Group's sales in Mainland China dropped by 4.7% year-on-year to RMB 200,500,000, while same-store sales increased by 12.1% [61]. Dividends and Shareholder Returns - The Company did not declare an interim dividend for this period, but announced a special interim dividend of 5.0 HK cents [19]. - An interim special dividend of HK5.0 cents per ordinary share has been declared for the six months ended August 31, 2023, compared to no interim special dividend in the previous year [90]. Employee and Operational Metrics - The total employee benefit expenses for the six months ended August 31, 2023, amounted to RMB 63,200,000, a decrease from RMB 67,900,000 in the previous year [91]. - The Group's workforce as of August 31, 2023, consisted of 1,017 employees, a reduction from 1,120 employees as of February 28, 2023 [91]. - The Group closed one physical cosmetic store during the review period while maintaining another to continue offering cosmetic and skin-care products [70]. Market and Strategic Initiatives - The retail market in China is expected to grow significantly in the third and fourth quarters of 2023 due to increased government stimulus measures [49]. - The Group has implemented a decentralized strategy for key specialty stores, department stores, and outlet malls to enhance market position and improve sales ranking [61]. - The Group aims to enhance brand value and expand market share despite the economic downturn, focusing on high-quality products and customer satisfaction [85]. - Additional resources will be invested in platform promotion by opening flagship stores on Tmall, Xiaohongshu, and Douyin to target emerging consumer groups [74]. Financial Position and Assets - Total assets as of August 31, 2023, increased to RMB 815,761,000 from RMB 802,450,000 as of February 28, 2023 [106]. - The total liabilities increased to RMB 149,419,000 as of August 31, 2023, from RMB 138,814,000 as of February 28, 2023, reflecting an increase of 7.5% [110]. - The Group's financial position remains robust, with no bank loans outstanding as of the end of the reporting period [45].
莱尔斯丹(00738) - 2024 - 中期财报