Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 768,711,000, a decrease of 2.5% compared to RMB 790,603,000 for the same period in 2023[1]. - Gross profit for the same period was RMB 21,084,000, down 55.7% from RMB 47,447,000 in 2023[1]. - Operating loss for the six months was RMB 17,105,000, compared to a profit of RMB 384,000 in the previous year[2]. - The net loss for the period was RMB 20,031,000, significantly higher than the net loss of RMB 6,257,000 in 2023[2]. - The company reported a basic and diluted loss per share of RMB 4.6 for the six months ended June 30, 2024, compared to RMB 1.5 in the same period of 2023[2]. - The reported segment profit for the six months ended June 30, 2024, was a loss of RMB 4,435,000, compared to a profit of RMB 24,432,000 for the same period in 2023[13]. - Other income for the six months ended June 30, 2024, was RMB 3,964,000, significantly lower than RMB 16,952,000 for the same period in 2023[16]. - The company reported a loss attributable to owners of approximately RMB 20.3 million for the six months ended June 30, 2024, compared to a loss of RMB 6.5 million for the same period in 2023, representing a 215% increase in loss[29]. - Revenue decreased by 2.8% from approximately RMB 790.6 million in the first half of 2023 to approximately RMB 768.8 million in the first half of 2024[29]. - Gross margin declined from 6.0% in the first half of 2023 to 2.7% in the first half of 2024 due to a decrease in product selling prices[29]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,631,566,000, an increase from RMB 1,582,127,000 as of December 31, 2023[3]. - Current liabilities increased to RMB 961,108,000 from RMB 907,115,000 at the end of 2023[3]. - The company's equity decreased to RMB 533,569,000 from RMB 553,600,000 at the end of 2023[4]. - The company’s non-current assets totaled RMB 689,032,000, up from RMB 675,241,000 at the end of 2023[3]. - Trade receivables increased to RMB 146.5 million as of June 30, 2024, from RMB 98.3 million as of December 31, 2023, reflecting a significant rise[23]. - Trade payables increased to RMB 469.1 million as of June 30, 2024, compared to RMB 414.0 million as of December 31, 2023[26]. - The company's interest-bearing bank borrowings amounted to RMB 257.3 million as of June 30, 2024, up from RMB 188 million as of December 31, 2023[27]. - The asset-liability ratio as of June 30, 2024, was 87.6%, up from 77.6% as of December 31, 2023[52]. - As of June 30, 2024, the net asset value of the group was approximately RMB 533.6 million, down from RMB 553.6 million as of December 31, 2023[51]. Operational Highlights - The company continues to focus on food production and sales, as well as livestock farming and sales, primarily operating in China[5]. - The company plans to increase investment in new product development, focusing on high-value-added processed foods to enhance competitiveness and market risk resilience[30]. - The company aims to optimize its product mix, strengthen cost management, and expand new sales channels to improve overall performance[30]. - The company is facing challenges from low growth rates and intensified competition in the food industry, influenced by economic growth and consumer preferences[30]. - The company will continue to maintain strict quality control and food safety systems to provide high-quality products to customers[30]. Revenue Breakdown - Revenue from processed food decreased by 8.6% to approximately RMB 354.6 million due to a decline in export sales driven by reduced international trade demand[32]. - Revenue from chilled and frozen chicken increased by 10.2% to approximately RMB 320.0 million, attributed to increased market demand and higher production and slaughter volumes[33]. - Revenue from chilled and frozen rabbit meat decreased by 20.9% to approximately RMB 79.6 million, primarily due to falling prices in both international and domestic markets[34]. - Revenue from other products rose by 24.6% to RMB 14.5 million, driven by higher prices in the first half of 2024[35]. - Revenue from exports decreased by 14.2% to RMB 197.3 million, while revenue from the Chinese market increased by 1.9% to RMB 571.4 million, indicating a shift in focus towards domestic demand[36]. Cost Management - The cost of goods sold for the six months ended June 30, 2024, was RMB 606,654,000, down from RMB 647,819,000 in the previous year[17]. - The total administrative expenses for the six months ended June 30, 2024, were RMB 15,572,000, a decrease from RMB 34,388,000 in the same period of 2023[13]. - Financing costs for the six months ended June 30, 2024, were RMB 2,951,000, compared to RMB 6,940,000 for the same period in 2023[18]. - Financing costs decreased by 57.5% to approximately RMB 3.0 million, mainly due to a reduction in the average balance of bank borrowings[45]. - The total employee cost for the review period was approximately RMB 76.2 million, compared to RMB 81.4 million for the six months ended June 30, 2023[57]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions, except for a deviation regarding the roles of the chairman and CEO, which were held by the same person for a period[62][63]. - The audit committee reviewed the accounting principles and discussed financial reporting matters for the six months ending June 30, 2024[61]. - The company has not arranged liability insurance for directors against potential legal actions related to its business, citing effective risk management and internal controls[63]. - The interim results announcement for the six months ending June 30, 2024, was published on the Hong Kong Stock Exchange and the company's website[67]. - The company expressed gratitude to management, employees, business partners, and shareholders for their support and dedication[68]. - The current executive directors include Ms. Lang Ying, Mr. Gao Yanxu, and Mr. An Fengjun, along with independent non-executive directors[69]. Investments and Financing - No significant investments, acquisitions, or disposals were made by the company during the six months ending June 30, 2024[59]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2024, and held no treasury shares as of that date[60]. - The company successfully placed 20,000,000 shares at a price of HKD 0.25 per share, raising a gross amount of HKD 5.0 million, with a net amount of approximately HKD 4.9 million for general working capital[65]. - A framework agreement was established with Qingdao Kangda Holdings Group for product supply, including chilled and frozen rabbit and chicken products, effective from August 1, 2024, to December 31, 2026[66].
康大食品(00834) - 2024 - 中期业绩