Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 750,975,000, a decrease of 6.7% compared to RMB 805,245,000 for the same period in 2023[5]. - The gross profit for the same period was RMB 305,631,000, reflecting a gross margin of approximately 40.7%, down from RMB 328,105,000 in 2023[5]. - Operating profit decreased to RMB 109,237,000, compared to RMB 139,670,000 in the previous year, indicating a decline of 21.8%[5]. - The net profit attributable to the owners of the company for the period was RMB 44,332,000, down 32.2% from RMB 65,355,000 in 2023[5]. - The total comprehensive income for the period was RMB 59,390,000, down from RMB 99,231,000 in 2023, reflecting a decline of 40.2%[6]. - Basic earnings per share for the period were RMB 0.04, compared to RMB 0.06 for the same period in 2023, reflecting a decrease in profit attributable to owners of the company to RMB 44,332,000 from RMB 65,355,000[35]. - The company reported a fair value loss of RMB 400,000 on investment properties, compared to a gain of RMB 6,200,000 in the same period of 2023[29]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 5,869,289,000, a decrease from RMB 6,006,867,000 at the end of 2023[3]. - Total liabilities decreased to RMB 2,458,964,000 from RMB 2,630,640,000, representing a reduction of 6.5%[3]. - Cash and cash equivalents amounted to RMB 319,895,000, down from RMB 349,794,000, indicating a decrease of 8.6%[2]. - The net accounts receivable as of June 30, 2024, is 396,950, a decrease from 486,662 as of December 31, 2023[19]. - Total borrowings as of June 30, 2024, amount to 1,522,939, a slight decrease from 1,555,257 as of December 31, 2023[26]. - The company's total borrowings were approximately RMB 1.52 billion as of June 30, 2024, with a debt-to-equity ratio of 44.7%, down from 46.1% as of December 31, 2023[58]. Revenue Segmentation - Total revenue for the six months ended June 30, 2024, was 807.925 million from five divisions[15]. - Revenue from the electronic cigarette segment was approximately RMB 256.1 million, a significant decline of 21.6% from RMB 326.5 million in the previous year due to intense market competition[47]. - Revenue from the flavor enhancer segment was approximately RMB 308.1 million, slightly increasing by 0.7% from RMB 306 million year-on-year[44]. - Revenue from the food flavor segment was approximately RMB 90.3 million, an increase of 3.4% from RMB 87.3 million in the previous year[45]. - Revenue from the daily flavor segment was approximately RMB 69.6 million, up 12.3% from RMB 62 million year-on-year[46]. - Revenue from investment properties increased by 15.0% to approximately RMB 26.9 million from RMB 23.4 million in the previous year[48]. Operational Highlights - The company continues to focus on the production and sales of flavors, fragrances, and electronic cigarette products in China and Asia[7]. - The operating profit for the electronic cigarette segment was a loss of 109.237 million[15]. - The company plans to launch new electronic cigarette products in the second half of 2024 to restore growth momentum in this segment[47]. - New strategies will be implemented in the second half of 2024, including corporate restructuring and the establishment of new product branding teams to adapt to the evolving electronic cigarette market[56]. - The company has made a significant investment in a construction project on land in Huizhou, Guangdong, with a total fixed asset investment planned at approximately RMB 400 million[67]. Financial Management and Risks - The company faced financial risks including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[11]. - The net financial costs for the period were $28.007 million, indicating a need for ongoing financial management[15]. - The net financial cost for the six months ended June 30, 2024, was RMB 28,007,000, a reduction from RMB 34,373,000 in the previous year[32]. - The company recorded a foreign exchange net gain of approximately RMB 700,000 for the six months ended June 30, 2024, compared to a foreign exchange loss of RMB 1.4 million in the same period of 2023[61]. Corporate Governance - The company adheres to high corporate governance standards, complying with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[75]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six-month period ending June 30, 2024[76]. - The Audit Committee, consisting of four independent non-executive directors, reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2024[72]. - The Remuneration Committee is responsible for considering and approving the compensation arrangements for senior employees, including salary and bonus plans[73]. - The Nomination Committee reviews the board's structure and diversity, making recommendations for director appointments and succession planning[74]. Legal and Regulatory Matters - The company is involved in two legal lawsuits related to the acquisition of Kimree, Inc. and its subsidiaries, with ongoing proceedings against the sellers for breaching non-competition clauses[70]. - The company is in discussions regarding compensation for land acquisition by the Shenzhen government, which is intended for public interest projects[69]. - The company has no significant contingent liabilities other than those disclosed in the management discussion and analysis section[68]. Employee and Operational Changes - The company has a total of 1,080,512 shares issued and fully paid as of June 30, 2024[21]. - The company has a total of 1,259 employees as of June 30, 2024, down from 1,981 employees as of December 31, 2023[66].
中国波顿(03318) - 2024 - 中期业绩