Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 47.1 million, a decrease of about 41.5% compared to RMB 80.4 million for the same period in 2022[2] - The group reported a gross loss of approximately RMB 1.4 million for the six months ended June 30, 2023, compared to a gross profit of approximately RMB 4.3 million for the same period in 2022[2] - The company recorded a loss attributable to owners of the company of approximately RMB 5.6 million for the six months ended June 30, 2023, compared to a profit of approximately RMB 4.9 million for the same period in 2022[2] - The basic and diluted loss per share attributable to owners of the company was approximately RMB 0.44 for the six months ended June 30, 2023, compared to earnings of RMB 0.39 for the same period in 2022[3] - The company reported a net loss attributable to shareholders of RMB (5,552) thousand for the six months ended June 30, 2023, compared to a profit of RMB 4,897 thousand in the same period of 2022[29] - The company recorded a net loss of approximately RMB 5.6 million for the period, compared to a net profit of approximately RMB 4.9 million for the six months ended June 30, 2022[55] Revenue Breakdown - Revenue from the manufacturing of lace was RMB 11,876 thousand, down 10% from RMB 13,167 thousand in the previous year[16] - Revenue from dyeing services was RMB 21,803 thousand, a decline of 28.4% from RMB 30,355 thousand in the prior year[16] - Revenue from footwear sales was RMB 13,386 thousand, a significant drop of 63.7% compared to RMB 36,864 thousand in the same period last year[16] - Revenue recognized over time from services was RMB 33,679 thousand, down 22.6% from RMB 43,522 thousand in the previous year[17] - Revenue from product sales at a point in time was RMB 13,386 thousand, a decrease of 63.7% from RMB 36,864 thousand in the prior year[17] - Revenue from customers located in China was RMB 33,384 thousand, down 22.4% from RMB 43,031 thousand in the previous year[18] - Revenue from customers in Hong Kong was RMB 13,387 thousand, a decline of 63.7% compared to RMB 36,953 thousand in the same period last year[18] - Customer A contributed RMB 13,386 thousand to total revenue, representing a significant decrease from RMB 36,864 thousand in the previous year[19] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 355.2 million, slightly up from RMB 354.9 million as of December 31, 2022[5] - The total equity attributable to owners of the company decreased to RMB 320.5 million as of June 30, 2023, from RMB 325.9 million as of December 31, 2022[6] - The group’s non-current assets were valued at RMB 138.1 million as of June 30, 2023, down from RMB 146.2 million as of December 31, 2022[5] - Current assets increased to RMB 217.0 million as of June 30, 2023, compared to RMB 208.8 million as of December 31, 2022[5] - The group’s total liabilities increased to RMB 34.7 million as of June 30, 2023, from RMB 29.0 million as of December 31, 2022[8] Expenses - For the six months ended June 30, 2023, the cost of sales, selling and distribution expenses, administrative expenses, and impairment losses totaled RMB 56,375 thousand, a decrease of 32.4% from RMB 83,489 thousand in the same period of 2022[22] - Employee benefits expenses, including directors' remuneration, were RMB 13,482 thousand, down 16.5% from RMB 16,108 thousand in the previous year[22] - The total sales cost for the six months ended June 30, 2023, was RMB 7,560 thousand, a decrease of 7.4% compared to RMB 8,166 thousand for the same period in 2022[33] - Administrative expenses increased to approximately RMB 6.8 million from RMB 6.5 million for the six months ended June 30, 2022, attributed to an increase in personnel for the footwear business[52] Government Grants and Other Income - The company received government grants totaling RMB 204 thousand, significantly lower than RMB 4,265 thousand in the same period last year[22] - Other income decreased from approximately RMB 46 million to about RMB 3 million, mainly due to a one-time government subsidy related to the company's listing received in the previous period[49] - Other income for the period was approximately RMB 2.4 million, a slight decrease from RMB 2.5 million for the six months ended June 30, 2022[50] Future Plans and Investments - The company plans to invest more resources in the footwear business and strengthen its team for design, development, manufacturing, and sales to domestic and international customers[41] - The company aims to expand its customer base and product variety to mitigate business risks and enhance shareholder benefits[41] - The company plans to upgrade and purchase machinery and facilities to enhance dyeing service capacity, with an allocation of HKD 49.9 million, of which HKD 36.5 million has been utilized[65] - Research and development capabilities for dyeing services have been allocated HKD 3.4 million, fully utilized as of June 30, 2023[65] - The company has replaced coal boilers with natural gas boilers, allocating HKD 13.6 million, with HKD 7.9 million utilized[65] Corporate Governance and Compliance - The company has complied with the corporate governance code during the interim period[71] - The audit committee has reviewed the interim financial information and internal controls during the interim period[69] - The company has entered into a framework agreement for ongoing related party transactions, which requires independent shareholder approval[67] Miscellaneous - The company did not declare or pay any dividends for the six months ended June 30, 2023, and 2022[25] - The company has not disclosed any new product developments, market expansions, or strategic acquisitions in the current report[9] - The company had no significant contingent liabilities as of June 30, 2023, consistent with the situation as of December 31, 2022[61] - The company has not purchased, sold, or redeemed any of its listed securities during the interim period[68] - As of June 30, 2023, no stock options have been granted under the stock option plan, which allows for a total of 126 million shares, representing 10% of the issued shares[66]
应星控股(01440) - 2023 - 中期业绩