Cash Flow and Financial Position - Net cash generated from operating activities decreased to RMB 219,620 thousand in 2024 from RMB 598,648 thousand in 2023, a decline of 63.3%[72] - Net cash used in investing activities was RMB 124,822 thousand in 2024, significantly lower than RMB 1,045,842 thousand in 2023, a reduction of 88.1%[72] - Net cash used in financing activities was RMB 265,813 thousand in 2024, compared to net cash generated of RMB 422,935 thousand in 2023[72] - Cash and cash equivalents decreased by RMB 171,015 thousand in 2024, compared to a decrease of RMB 24,259 thousand in 2023[72] - Cash and cash equivalents decreased to RMB 3,075,489,000 as of 30 June 2024 from RMB 3,139,279,000 as of 31 December 2023[110] Revenue and Taxation - The company's revenue is recognized when control of goods is transferred to customers, with no geographical breakdown provided as operations are predominantly in mainland China[77] - Current tax expenses for PRC Corporate Income Tax increased to RMB 61,365,000 in 2024 from RMB 43,524,000 in 2023, reflecting higher taxable profits[84] - One subsidiary was granted Advanced and New Technology Enterprise status, entitling it to a reduced income tax rate of 15% in 2024[84] - Three subsidiaries in the Tibet Autonomous Region are eligible for a reduced income tax rate of 15% in 2024[84] Financial Reporting and Compliance - The interim financial report was prepared in accordance with IAS 34 and reviewed by KPMG, with no material impact from amended IFRSs[74] - The financial report includes condensed consolidated financial statements and selected explanatory notes, but not all information required by IFRSs[74] - The company complied with all Corporate Governance Code provisions during the six months ended 30 June 2024[151] - The interim results for the six months ended 30 June 2024 were reviewed by KPMG and the Audit Committee but were not audited[151] Research and Development and Subcontracting - Research and development costs rose to RMB 52,934,000 in 2024, up from RMB 51,298,000 in 2023, reflecting continued investment in innovation[81] - Subcontracting charges surged to RMB 192,044,000 in 2024, a significant increase from RMB 132,811,000 in 2023, indicating higher outsourcing activities[81] Earnings and Dividends - Basic earnings per share for 2024 were RMB 0.234, based on a profit of RMB 280,142,000 and 1,197,485,000 weighted average ordinary shares[86] - Interim dividend declared at HK13 cents per ordinary share, totaling RMB 145,516,000, and special interim dividend at HK5 cents per ordinary share, totaling RMB 55,968,000[125] - Final dividend for the previous financial year increased to HK13 cents per ordinary share from HK9 cents in 2023, with a special final dividend maintained at HK5 cents per ordinary share[127] - Total dividends for the period amounted to RMB196,712 thousand, compared to RMB148,630 thousand in 2023[127] Assets and Liabilities - Net book value of property, plant, and equipment decreased to RMB 1,163,549,000 in 2024 from RMB 1,193,679,000 at the start of the year, due to depreciation charges of RMB 66,056,000[89] - Investment properties' net book value slightly declined to RMB 257,307,000 in 2024 from RMB 259,989,000 at the start of the year, with depreciation charges of RMB 3,485,000[90] - The net book value of right-of-use assets as of 30 June 2024 was RMB 252,200 thousand, compared to RMB 241,473 thousand as of 30 June 2023[94] - Additions to right-of-use assets in 2024 amounted to RMB 54,617 thousand, an increase from RMB 44,820 thousand in 2023[94] - Depreciation charges for right-of-use assets in 2024 were RMB 50,574 thousand, up from RMB 47,427 thousand in 2023[94] - The total inventory value as of 30 June 2024 was RMB 831,132 thousand, slightly higher than RMB 825,670 thousand as of 31 December 2023[98] - Finished goods inventory increased to RMB 650,077 thousand as of 30 June 2024, up from RMB 647,677 thousand as of 31 December 2023[98] - Trade receivables, net of loss allowance, stood at RMB 386,747 thousand as of 30 June 2024, down from RMB 392,854 thousand as of 31 December 2023[101] - The loss allowance for trade receivables decreased to RMB 15,254 thousand as of 30 June 2024, from RMB 29,171 thousand as of 31 December 2023[101] - Prepayments to suppliers increased significantly to RMB 30,396 thousand as of 30 June 2024, compared to RMB 1,760 thousand as of 31 December 2023[101] - The carrying amount of inventories sold in the first half of 2024 was RMB 784,640 thousand, up from RMB 702,078 thousand in the same period of 2023[99] - Write-down of inventories in the first half of 2024 amounted to RMB 14,875 thousand, a decrease from RMB 16,430 thousand in the same period of 2023[99] - Bank loans totaled RMB 1,137,439,000 as of 30 June 2024, with RMB 470,570,000 due within 1 year and RMB 666,869,000 due after 1 year but within 2 years[112] - Secured bank loans amounted to RMB 834,500,000 as of 30 June 2024, backed by pledged bank deposits of RMB 900,000,000[114] - Trade and bills payables decreased to RMB 694,001,000 as of 30 June 2024 from RMB 729,945,000 as of 31 December 2023[116] - Lease liabilities' present value increased to RMB 127,340,000 as of 30 June 2024 from RMB 124,058,000 as of 31 December 2023[122] Shareholder and Management Information - Xiao Sheng International holds a 57.82% stake in the company with 692,345,000 shares (L)[145] - Ming Lang Investments Limited holds a 6.26% stake in the company with 74,905,000 shares (L)[145] - Mr. Wang Liang Xing holds a 1.917% stake in the company with 22,950,000 shares (L)[140] - Mr. Wang Cong Xing holds a 1.917% stake in the company with 22,950,000 shares (L)[140] - Mr. Cai Rong Hua holds a 0.151% stake in the company with 1,810,000 shares (L) and an additional 0.601% stake through a discretionary trust with 7,200,000 shares (L)[140] - Mr. Hu Cheng Chu holds a 0.376% stake in the company with 4,500,000 shares (L)[141] - Mr. Pan Rong Bin holds a 0.264% stake in the company with 3,171,000 shares (L)[141] - Mr. Wang Zhi Yong holds a 0.24% stake in the company with 2,517,000 shares (L)[141] - Mr. Wang Jun Hong holds a 0.007% stake in the company with 522,000 shares (L)[141] - Xiao Sheng International is owned 26.289% by each of Mr. Wang Dong Xing, Mr. Wang Liang Xing, and Mr. Wang Cong Xing as of June 30, 2024[142] - Xiao Sheng International holds 26.289% of shares owned by Mr. Wang Dong Xing, Mr. Wang Liang Xing, and Mr. Wang Cong Xing each, with JFIL holding 8.247%, Mr. Hu Cheng Chu holding 5.155%, and others holding smaller percentages as of 30 June 2024[146] - Ming Lang Investments holds 26.289% of shares owned by Mr. Wang Dong Xing, Mr. Wang Liang Xing, and Mr. Wang Cong Xing each, with JFIL holding 8.247%, Mr. Hu Cheng Chu holding 5.155%, and others holding smaller percentages as of 30 June 2024[146] - JFIL's entire issued share capital is held by Vistra Trust (Singapore) Pte. Limited as the trustee of an irrevocable discretionary trust set up by Mr. Cai Rong Hua, with beneficiaries being Mr. Cai and his family members[146] - Key management personnel remuneration increased to RMB6,537 thousand for the six months ended 30 June 2024, compared to RMB4,044 thousand in the same period in 2023[135] Share Options and Incentives - The Company's share option scheme, adopted on 23 April 2019, provides incentives and rewards to eligible participants contributing to the Group[147] - As of 30 June 2024, Mr. Chen Wei Jin holds 433,000 share options with an exercise price of HK4.31, granted on 3 July 2020[149] - As of 30 June 2024, Mr. Wang Zhi Yong holds 350,000 share options with an exercise price of HK4.31, granted on 3 July 2020[149] - As of 30 June 2024, employees hold 9,523,000 share options with an exercise price of HK$4.31, granted on 3 July 2020, after 51,000 options lapsed[149] - The company granted options to associates, including Mr. Chen Wei Jin, Mr. Wang Jun Hong, Mr. Wang Zhi Yong, and Ms. Chen Zhi Mei, who are related to the company's directors and controlling shareholders[150] - The options are exercisable starting two years after the grant date, with specific limits: up to 129,000 options can be exercised by the end of the third year, and up to 130,000 by the end of the fourth year[150] - Up to 30% of the granted options can be exercised by the end of the third year, and up to 60% by the end of the fourth year[150] - The company granted up to 2,830,000 options exercisable by the end of the third year and up to 2,871,000 by the end of the fourth year[151] Corporate Governance and Shareholder Information - The company did not purchase, sell, or redeem any of its listed securities during the six months ended 30 June 2024[151] - The register of members will be closed from 5 September 2024 to 6 September 2024 to determine entitlements to the proposed interim and special interim dividends[152] - Shareholders must submit transfer documents by 4 September 2024 to qualify for the proposed interim and special interim dividends[153] - The company expressed appreciation to its directors, management, staff, shareholders, customers, suppliers, and business associates for their support[155] - Number of shares issued as of 30 June 2024 is 1,197,484,919 shares[156] - Board lot size is 1,000 shares[156] - Listing date of the company is 25 September 2009[156] - New executive directors appointed on 5 February 2024: Mr. Wang Cong Xing, Mr. Pan Rong Bin, Mr. Wang Jun Hong, and Mr. Wang Zhi Yong[156] - New independent non-executive directors appointed on 5 February 2024: Prof. Liao Jianwen and Prof. Jiang Zhan[156] - Chairman of the board is Mr. Wang Dong Xing[156] - Chief Executive Officer is Mr. Wang Liang Xing[156] - Investor relations contact email: ir@lilanz.com.hk[156] - Investor relations contact phone number: (852) 2526-6968[156] - Investor relations contact fax number: (852) 2526-6655[156]
中国利郎(01234) - 2024 - 中期财报