Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 182.4 million, a decrease of RMB 59.9 million or 24.7% compared to RMB 242.3 million in the same period last year[4]. - Gross profit for the same period was RMB 119.0 million, down approximately RMB 43.4 million or 26.7% from RMB 162.4 million year-on-year[6]. - The net loss attributable to the company's owners was approximately RMB 29.4 million, an increase of RMB 26.3 million compared to the previous year's loss[6]. - The gross margin for the period was 65.2%, a decrease of 1.8% from 67.0% in the prior year[4]. - The net loss margin for the period was (16.1%), compared to (1.4%) in the same period last year, indicating a significant increase in losses[4]. - Total revenue for the six months ended June 30, 2024, decreased by 24.7% to RMB 182.4 million from RMB 242.3 million for the same period in 2023[10]. - Restaurant business revenue fell by 24.1% to RMB 179.6 million, down from RMB 236.6 million in the previous year, with comparable restaurant sales decreasing by RMB 23.5 million[11]. - The company reported a net loss of RMB 29.4 million for the six months ended June 30, 2024, compared to a loss of RMB 3.4 million in the same period in 2023, with a net loss margin increasing to 16.1%[21]. - The company reported a pre-tax loss of RMB 28,388,000 for the six months ended June 30, 2024, compared to a loss of RMB 1,584,000 for the same period in 2023[36]. Operational Changes - As of June 30, 2024, the company operated 21 restaurants, down from 31 restaurants in the previous year[4]. - The restaurant business generated revenue of RMB 179.6 million, while other income, including packaged food sales, contributed RMB 2.7 million[6]. - The company is focusing on expanding its presence in affluent and rapidly growing cities in mainland China and Hong Kong[6]. - Future strategies may include exploring new product offerings and enhancing operational efficiencies to improve financial performance[6]. - New restaurant openings contributed an increase of RMB 4.0 million to revenue during the six months ended June 30, 2024[11]. Cash Flow and Liquidity - For the six months ended June 30, 2024, the net cash inflow from operating activities was RMB 22.6 million, a decrease of RMB 20.6 million from RMB 43.2 million for the same period in 2023[23]. - Cash and cash equivalents decreased to RMB 8.4 million as of June 30, 2024, from RMB 66.4 million as of June 30, 2023[22]. - The net cash used in investing activities was RMB 7.9 million for the six months ended June 30, 2024, compared to a net cash inflow of RMB 3.2 million in the same period of 2023[24]. - The net cash used in financing activities decreased to RMB 26.1 million for the six months ended June 30, 2024, from RMB 33.1 million in the prior year[25]. - The company plans to continue measures to improve working capital and cash flow, including monitoring administrative expenses and operational costs closely[40]. Assets and Liabilities - The company’s debt as of June 30, 2024, was RMB 19.0 million, with a capital debt ratio of 247.9%[21]. - Non-current assets decreased from RMB 191,097 thousand to RMB 147,271 thousand, a decline of approximately 23%[33]. - Current assets decreased from RMB 64,913 thousand to RMB 46,046 thousand, a decline of approximately 29%[33]. - Total liabilities increased from RMB 234,809 thousand to RMB 237,904 thousand, an increase of approximately 1%[34]. - The company reported a net debt of RMB 104,981 thousand, compared to RMB 73,752 thousand in the previous period, indicating a worsening financial position[34]. - Total liabilities exceeded total assets by approximately RMB 104,981,000 as of June 30, 2024[40]. Shareholder Information - As of June 30, 2024, the company has a total issued share capital of 2,213,031,000 shares[89]. - Major shareholder Alpadis Group Holding AG holds 655,087,500 shares, representing approximately 29.60% of the total shares[90]. - Executive director Wang Huili holds 12,260,625 shares through a controlled company, representing approximately 0.55%[88]. - Non-executive director Wu Wen holds 62,592,681 shares through a controlled company, representing approximately 2.83%[88]. - Gu Tongshan, a major shareholder, holds 221,257,550 shares, representing approximately 10.00%[90]. Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with applicable provisions during the six months ending June 30, 2024[100]. - The board of directors has confirmed compliance with the Standard Code for Securities Transactions by Directors during the six months ending June 30, 2024[101]. - The Audit Committee was established on August 30, 2011, in accordance with listing rules and corporate governance codes[105]. - The Audit Committee is responsible for reviewing and supervising the group's internal controls and financial reporting procedures[105]. Employee Compensation - Total employee costs for the six months ended June 30, 2024, were RMB 72.1 million, accounting for 39.5% of revenue, compared to RMB 81.6 million in the same period of 2023[30]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2024, was RMB 1,267,000, down from RMB 4,190,000 in the same period of 2023[81]. - Employee benefits expenses, including directors' remuneration, totaled RMB 72,057 thousand, a decrease of 11.7% from RMB 81,569 thousand in the previous year[54]. Stock Options and Awards - The company has a total of 4,499,000 stock options that remain unexercised as of June 30, 2024[71]. - The stock reward plan was approved on December 20, 2019, and allows selected employees to receive shares without any cost[73]. - The company has not recognized any stock option expenses for the six months ended June 30, 2024[70]. - The 2019 Share Award Scheme allows for a total of 221,303,100 shares to be granted, representing 10% of the issued shares as of the interim report date[97]. - The maximum number of shares that can be granted to any selected employee under the 2019 Share Award Scheme is capped at 1% of the company's issued share capital, equating to 22,130,310 shares[97].
上海小南国(03666) - 2024 - 中期财报