Financial Performance - The company reported a loss attributable to owners of approximately RMB 20.3 million for the first half of 2024, compared to a loss of RMB 6.5 million in the same period of 2023, representing an increase of 215%[7]. - Revenue decreased by 2.8% to approximately RMB 768.8 million in the first half of 2024, down from RMB 790.6 million in the first half of 2023[7]. - The gross profit margin fell from 6.0% in the first half of 2023 to 2.7% in the first half of 2024 due to a decline in product selling prices[7]. - The overall gross profit margin decreased from 6.0% in the first half of 2023 to 2.7% in the first half of 2024, a decline of 3.3 percentage points[17]. - The gross profit margin for chilled and frozen chicken turned negative at -4.9% in the first half of 2024 due to price reductions to maintain market competitiveness[19]. - The company recorded a tax credit of RMB 0.3 million for the first half of 2024, benefiting from deferred tax credits due to certain subsidiaries engaging in qualifying agricultural activities[25]. - The company reported a total comprehensive loss of RMB 6,352 for the six months ended June 30, 2024, compared to a total comprehensive loss of RMB 6,623 for the same period in 2023[56]. - The reported loss before tax for the six months ended June 30, 2024, was RMB 20,056, compared to a loss of RMB 6,556 for the same period in 2023, indicating a significant increase in losses[62]. - Basic and diluted loss per share for the period was RMB (4.6), compared to RMB (1.5) in the same period last year[50]. Revenue Breakdown - Revenue from processed foods decreased by 8.6% to approximately RMB 354.6 million, primarily due to a decrease in export sales driven by lower international trade demand[10]. - Revenue from chilled and frozen chicken products increased by 10.2% to RMB 320.0 million, contributing 41.6% of total revenue[10]. - Revenue from chilled and frozen rabbit meat products decreased by 20.9% to RMB 79.6 million, contributing 10.4% of total revenue[10]. - Revenue from other products, including pet food and feed products, increased by RMB 2.9 million to RMB 14.5 million, representing a growth of 24.6% due to higher unit prices[15]. - The company’s revenue from the processed food segment for the six months ended June 30, 2024, was RMB 354,598, while the cold and frozen chicken segment generated RMB 320,010[61]. - The company's revenue from product sales for the six months ended June 30, 2024, was RMB 768,771,000, a decrease of 2.1% compared to RMB 790,603,000 for the same period in 2023[19]. Cost and Expenses - Selling and distribution expenses increased by RMB 2.5 million to approximately RMB 25.5 million, mainly due to higher advertising and promotional costs[23]. - Other income decreased by RMB 13.0 million to RMB 4.0 million in the first half of 2024, primarily due to a decline in chicken prices affecting fair value changes of biological assets[22]. - The total employee cost for the review period was approximately RMB 76.2 million, a decrease from RMB 81.4 million for the six months ended June 30, 2023[33]. - The company's administrative expenses decreased to RMB 15,572 for the six months ended June 30, 2024, from RMB 34,388 for the same period in 2023, a reduction of 54.7%[62]. - Total employee costs decreased to RMB 76,196,000 from RMB 81,448,000, reflecting a reduction of 6.5% year-over-year[64]. - Financing costs decreased to RMB 2,951,000 from RMB 6,940,000, a significant reduction of 57.5% compared to the previous year[65]. Assets and Liabilities - As of June 30, 2024, the company's net asset value was approximately RMB 533.6 million, a decrease from RMB 553.6 million as of December 31, 2023[27]. - Total current assets increased to approximately RMB 942.5 million from RMB 906.9 million as of December 31, 2023, with cash and bank balances at RMB 302.5 million[27]. - Trade receivables increased by RMB 48.0 million to approximately RMB 140.0 million, primarily due to higher sales in Q2 2024 compared to Q4 2023[26]. - Trade payables and notes increased by RMB 55.1 million to approximately RMB 469.1 million, primarily due to the issuance of more notes to settle payments with suppliers[26]. - The company's equity attributable to owners decreased to RMB 533,569 thousand from RMB 553,600 thousand, indicating a decline in shareholder value[53]. - Current liabilities increased to RMB 961,108 thousand from RMB 907,115 thousand, reflecting a rise in trade payables and bank borrowings[52]. - Non-current liabilities totaled RMB 136,889 thousand, up from RMB 121,412 thousand at the end of the previous year[53]. Strategic Initiatives - The company plans to increase investment in new product development, focusing on high-value-added processed foods to enhance competitiveness and market resilience[8]. - The company aims to optimize its product mix, strengthen cost management, and expand new sales channels to improve overall performance[8]. - The external environment for the consumer industry remains complex, with challenges from trade protectionism and global economic downturns impacting business operations[9]. Shareholder and Corporate Actions - The group did not declare any interim dividend for the first half of 2024, consistent with the previous year[34]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, nor for the six months ended June 30, 2023[43]. - The group had no significant investments, acquisitions, or disposals during the six months ended June 30, 2024[35]. - On June 25, 2024, the company entered into a placement agreement to issue up to 86,589,600 shares at a placement price of HKD 0.25 per share, with gross proceeds of HKD 5.0 million expected[49]. - The net proceeds from the placement, after deducting related fees, are approximately HKD 4.9 million, intended for general working capital to strengthen the company's financial position[49]. - A framework agreement was established on July 31, 2024, with Qingdao Kangda Holding Group for product mutual supply, effective from August 1, 2024, to December 31, 2026[49]. - A lease agreement was signed on July 31, 2024, for property located in Qingdao, effective from August 1, 2024, to December 31, 2026[49]. Related Party Transactions - Sales to related parties for the six months ended June 30, 2024, were RMB 2.594 million, down from RMB 9.704 million in the same period of 2023, indicating a decline of 73%[78]. - Purchases from related parties for the same period were RMB 1.537 million, a decrease from RMB 12.405 million in 2023, reflecting a decline of 88%[78]. - Rental income from related parties was RMB 1.625 million for the six months ended June 30, 2024, compared to RMB 1.176 million in 2023, showing an increase of 38%[78]. - The company received guarantees for bank loans from related parties amounting to RMB 768.335 million, up from RMB 557 million in the previous year, representing an increase of 38%[78]. - The total remuneration for key management personnel was RMB 556 thousand, a significant decrease from RMB 6.306 million in the previous year, indicating a decline of 91%[78]. - The company continues to engage in transactions with related parties as part of its regular business operations, adhering to the terms negotiated with those parties[79].
康大食品(00834) - 2024 - 中期财报