Financial Performance - Revenue for the six months ended December 31, 2023, was RMB 591.3 million, a decrease of 25.8% compared to RMB 797.0 million in the same period of 2022[3]. - Gross profit for the same period was RMB 96.2 million, down 28.0% from RMB 133.6 million year-on-year[3]. - Operating loss improved to RMB 21.0 million from RMB 41.8 million, reflecting a reduction of RMB 20.8 million[3]. - Net loss for the period was RMB 20.9 million, an improvement of RMB 23.4 million compared to a net loss of RMB 44.3 million in the previous year[3]. - Basic loss per share was RMB 3.14, an improvement of RMB 4.81 from RMB 7.95 in the same period last year[3]. - The gross margin slightly decreased to 16.3%, down 0.5 percentage points from 16.8%[3]. - The total revenue from external customers for the six months ended December 31, 2023, was RMB 591.339 million, compared to RMB 796.976 million for the same period in 2022, indicating a decline of approximately 26%[25][26]. - The company recorded a loss attributable to owners of RMB 20.9 million, an improvement from a loss of RMB 44.3 million in the same period last year[59]. Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 752.1 million, an increase from RMB 738.9 million as of June 30, 2023[8]. - Current assets totaled RMB 345.0 million, compared to RMB 352.8 million as of June 30, 2023[8]. - The total liabilities as of December 31, 2023, were RMB 430.2 million, slightly up from RMB 424.1 million[10]. - The company reported a total equity of RMB 321.9 million, an increase from RMB 314.7 million as of June 30, 2023[10]. - The total assets as of December 31, 2023, amounted to RMB 752.116 million, compared to RMB 738.864 million as of June 30, 2023, showing a slight increase[25][26]. - The total liabilities as of December 31, 2023, were RMB 430.242 million, a decrease from RMB 424.136 million as of June 30, 2023[25][26]. Cash Flow and Financing - The group has available and undrawn bank financing of RMB 50,000,000 as of December 31, 2023, and has successfully obtained an additional loan of RMB 40,000,000 from a joint venture after this date[16]. - The group recorded a loss of approximately RMB 22,501,000 for the six months ended December 31, 2023, compared to a loss of RMB 44,300,000 for the same period in 2022, primarily due to challenges in the retail market in Northeast China and a decrease in the number of distributors in the distribution network[13]. - The group’s operating cash outflow for the six months ended December 31, 2023, was RMB 9,488,000, and current liabilities increased by RMB 31,053,000 to RMB 85,232,000, mainly due to the reclassification of a loan from a joint venture from non-current to current liabilities[13]. Revenue Breakdown - The revenue breakdown for major products includes RMB 112,025,000 from prescription drugs, RMB 429,913,000 from over-the-counter drugs, and RMB 90,138,000 from health products for the six months ended December 31, 2023[19]. - Distribution segment revenue for the six months ended December 31, 2023, was RMB 488.638 million, a decrease from RMB 658.462 million in the same period of 2022, representing a decline of approximately 26%[25][26]. - Retail segment revenue for the six months ended December 31, 2023, was RMB 171.987 million, down from RMB 235.169 million in the same period of 2022, reflecting a decrease of about 27%[25][26]. - Retail sales revenue was RMB 172.0 million, down 26.9% from RMB 235.2 million year-on-year, accounting for 29.1% of total revenue[48][62]. - Distribution sales revenue was RMB 419.4 million, a decrease of 25.3% from RMB 561.8 million in the previous year, representing 70.9% of total revenue[49][62]. Operational Changes - The company closed multiple loss-making retail stores to minimize cash outflow and is actively exploring opportunities to sell assets to generate additional cash inflow, including the sale of its subsidiary Shenyang Weishi Pharmaceutical Co., Ltd. for RMB 40,000,000[16]. - The company has decided not to declare an interim dividend for the period[88]. - The company has reduced the number of brand products by 26, maintaining a total of 538 brand products[51]. - The company provided follow-up services and promotional offers to approximately 1.2 million offline members, down from 1.46 million in the previous year[56]. - As of December 31, 2023, the total number of retail pharmacies operated by the company reached 222, a decrease from 273 in 2022[63]. - The company has 1,244 distributors and four large-scale distribution logistics centers as of December 31, 2023[49]. - The company operates a total of 222 retail chain stores at the end of the period[48]. Strategic Focus - The company is focusing on optimizing its layout in the pharmaceutical distribution sector, which is experiencing increased competition and a shift towards digital marketing[41]. - The company is adapting to the aging population and increasing chronic disease prevalence by enhancing health management services and integrating online and offline operations[41]. - The company will continue to focus on the healthcare sector and strategically divest non-core businesses to optimize operations[84]. - The "Professional+" strategy aims to enhance service quality and operational standards, with a focus on training new employees and improving pharmacy services[84]. - The "Platform+" strategy will expand value-added services in stores to meet increasing consumer health demands, especially post-pandemic[85]. - The "Internet+" strategy will strengthen the integration of online and offline operations, utilizing new technologies for marketing and customer engagement[85]. Governance and Compliance - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim results for the period[93]. - The company has adhered to the corporate governance code and will continue to enhance governance practices[89]. - The interim results announcement will be published on the stock exchange and the company's website, complying with all regulatory requirements[94]. - No purchases, sales, or redemptions of the company's listed securities were made during the period[92]. Employee and Operational Metrics - Employee benefit expenses for the six months ended December 31, 2023, were RMB 73.126 million, a decrease from RMB 103.370 million in the same period of 2022, indicating a reduction of about 29%[27]. - The total number of full-time employees decreased to 1,617 from 3,007 in 2022, with total employee benefits expenses amounting to RMB 73.1 million[81]. - Sales and marketing expenses were RMB 95.3 million, down RMB 41.9 million or 30.5% from RMB 137.2 million in 2022, representing 16.1% of total revenue[68]. - Administrative expenses decreased to RMB 24.6 million, down RMB 4.1 million or 14.3% from RMB 28.7 million in 2022, accounting for 4.2% of total revenue[69].
大健康国际(02211) - 2024 - 中期业绩