Revenue and Profit Performance - Revenue for the period decreased by RMB 6,529,000 (21.3%) to RMB 24,137,000 compared to the same period last year[6] - Profit attributable to owners of the company decreased by RMB 6,675,000 (47.8%) to RMB 7,277,000 compared to the same period last year[6] - Revenue for the six months ended 30 June 2024 was RMB 24,137 thousand, a decrease from RMB 30,666 thousand in the same period in 2023[15] - Gross profit for the six months ended 30 June 2024 was RMB 20,570 thousand, down from RMB 26,430 thousand in 2023[15] - Profit before tax for the six months ended 30 June 2024 was RMB 10,727 thousand, compared to RMB 19,084 thousand in 2023[15] - Net profit attributable to owners of the Company for the six months ended 30 June 2024 was RMB 7,277 thousand, down from RMB 13,952 thousand in 2023[15] - Basic earnings per share for the six months ended 30 June 2024 were RMB 0.7 cents, compared to RMB 1.4 cents in 2023[15] - Net profit and total comprehensive income for the six months ended 30 June 2024 was RMB 7,277 thousand, compared to RMB 13,952 thousand in the same period last year[18] - Revenue decreased by 21.3% from RMB30.7 million in H1 2023 to RMB24.1 million in H1 2024, primarily due to a RMB6.8 million decrease in burial plot sales[87][89] - Gross profit decreased by 22.2% from RMB26.4 million in H1 2023 to RMB20.6 million in H1 2024[88] - The Group's profit and total comprehensive income decreased by 47.8% from RMB14.0 million in H1 2023 to RMB7.3 million in H1 2024, with net profit margin dropping from 45.5% to 30.1%[90] Segment Performance - Revenue from sales of burial plots and provision of other burial-related services reached RMB 17.777 million, accounting for 73.6% of total revenue[27][36] - Revenue from provision of cemetery maintenance services was RMB 2.826 million, representing 11.7% of total revenue[27][36] - Revenue from provision of funeral services amounted to RMB 3.534 million, contributing 14.6% of total revenue[27][36] - Total revenue for the six months ended 30 June 2024 was RMB 24.137 million[27][36] - Segment results (gross profit) for burial plots and related services were RMB 15.263 million, with a gross margin of 85.9%[36] - Segment results for cemetery maintenance services were RMB 2.356 million, with a gross margin of 83.4%[36] - Segment results for funeral services were RMB 2.951 million, with a gross margin of 83.5%[36] - Total segment results (gross profit) reached RMB 20.570 million, representing a gross margin of 85.2%[36] - Sales of burial plots and provision of other burial-related services generated RMB 25,009,000 in revenue, contributing 81.5% of the total segment revenue of RMB 30,666,000[39] - Segment results for burial plots and related services reached RMB 21,627,000, accounting for 81.8% of the total segment results of RMB 26,430,000[39] - Burial service revenue accounted for 73.7% of total revenue in H1 2024, down from 81.6% in H1 2023[86] - Funeral services revenue increased to RMB3.534 million in H1 2024, up from RMB2.96 million in H1 2023[86] - Cemetery maintenance revenue rose to RMB2.826 million in H1 2024 from RMB2.697 million in H1 2023[86] - Burial service gross profit decreased by 29.4% to RMB15.3 million in H1 2024, with gross margin falling from 86.5% to 85.9%[88] - Funeral services gross profit increased to RMB2.9 million in H1 2024, with gross margin rising from 81.3% to 83.5%[88] - Cemetery maintenance gross profit remained flat at RMB2.4 million, but gross margin declined from 88.8% to 83.4%[88] Financial Position and Assets - Total assets as of 30 June 2024 were RMB 336,776 thousand, slightly up from RMB 329,607 thousand as of 31 December 2023[16][17] - Net current assets as of 30 June 2024 were RMB 267,466 thousand, compared to RMB 265,280 thousand as of 31 December 2023[16] - Total equity attributable to owners of the Company as of 30 June 2024 was RMB 225,948 thousand, down from RMB 227,794 thousand as of 31 December 2023[17] - Retained earnings as of 30 June 2024 were RMB 142,019 thousand, a decrease from RMB 143,865 thousand at the beginning of the year due to dividends of RMB 9,123 thousand[18] - The fair value of financial assets at FVTPL as of 30 June 2024 was RMB 5,122,000, compared to RMB 5,322,000 as of 31 December 2023, reflecting a decrease of RMB 200,000[60][62] - The loss on fair value changes of financial assets at FVTPL for the six months ended 30 June 2024 was RMB 200,000, a significant reduction from RMB 829,000 in the same period in 2023[61][62] - The company holds a 10% equity interest in Huimin Town Bank Co., Ltd., classified as financial assets at FVTPL, with a fair value of RMB 5,122,000 as of 30 June 2024[60][62] - The fair value of financial assets at FVTPL was determined using a market approach, with key inputs including a P/B ratio of 0.46 and a DLOM of 35%[64] - A 5% increase in the P/B ratio would increase the carrying amount of the investment by RMB 256,091, while a 5% increase in the DLOM would decrease it by RMB 137,895[64] - Non-current prepayments and other receivables as of 30 June 2024 amounted to RMB 12,511,000, including a guarantee deposit of RMB 9,511,000 for a cemetery project[67][68] - Current prepayments and other receivables as of 30 June 2024 totaled RMB 29,596,000, including an advanced payment of RMB 29,133,000 for land demolition[67][71] - The company made an interest-bearing advanced payment of RMB 3,000,000 to Langfang Funeral Parlour, which bears interest based on prevailing bank loan rates[70][73] - An interest-free advanced payment of RMB 30,000,000 was made to Baijiawu Office for land demolition related to a new cemetery project, with the land use right acquisition expected to be completed within one year[71][73] - Trade payables decreased to RMB 6,138 thousand as of 30 June 2024, compared to RMB 7,312 thousand as of 31 December 2023, a decrease of 16.1%[74] - Other payables and accrued expenses decreased to RMB 3,686 thousand as of 30 June 2024, compared to RMB 5,484 thousand as of 31 December 2023, a decrease of 32.8%[74] - Dividend payables were RMB 9,127 thousand as of 30 June 2024, compared to none as of 31 December 2023[74] - Total trade and other payables increased to RMB 18,951 thousand as of 30 June 2024, compared to RMB 12,796 thousand as of 31 December 2023, an increase of 48.1%[74] - Contract liabilities for burial plots and cemetery maintenance services were RMB 86,585 thousand as of 30 June 2024, compared to RMB 84,521 thousand as of 31 December 2023, an increase of 2.4%[77] - Current portion of contract liabilities was RMB 7,180 thousand as of 30 June 2024, compared to RMB 7,357 thousand as of 31 December 2023, a decrease of 2.4%[77] - Non-current portion of contract liabilities was RMB 79,405 thousand as of 30 June 2024, compared to RMB 77,164 thousand as of 31 December 2023, an increase of 2.9%[77] - Total equity stood at RMB225.9 million as of 30 June 2024, compared to RMB227.8 million as of 31 December 2023[90] - The Group's gearing ratio increased to 32.9% as of 30 June 2024 from 30.9% as of 31 December 2023[93] - The company has bank balances and cash of RMB245.2 million as of 30 June 2024, indicating a strong liquidity position[108] Cash Flow and Operating Activities - Net cash generated from operating activities for the six months ended 30 June 2024 was RMB 9,683 thousand, a significant decrease from RMB 18,978 thousand in the same period last year[19] - Net cash used in investing activities for the six months ended 30 June 2024 was RMB 29,444 thousand, primarily due to the placement of term deposits of RMB 30,000 thousand[19] - Cash and cash equivalents decreased by RMB 20,036 thousand during the six months ended 30 June 2024, compared to an increase of RMB 47,114 thousand in the same period last year[19] Dividends and Shareholder Returns - The company did not recommend the payment of an interim dividend for the period[6] - A final dividend of HK1 cent per share (approximately RMB 0.9 cents) was declared for the year ended 31 December 2023, totaling HK$10,000,000[55] Costs and Expenses - Cost of sales and services decreased by 15.8% to RMB3.6 million in H1 2024 due to lower burial plot sales[88] - Distribution and selling expenses decreased by 2.4% from RMB5.3 million in H1 2023 to RMB5.1 million in H1 2024[90] - Administrative expenses increased by 29.3% from RMB4.4 million in H1 2023 to RMB5.7 million in H1 2024 due to expansion in funeral services[90] - Income tax expenses decreased by 32.8% from RMB5.1 million in H1 2023 to RMB3.5 million in H1 2024[90] - Total depreciation and amortization increased to RMB 1,662,000 in 2024 from RMB 1,085,000 in 2023, primarily due to higher depreciation of property, plant, and equipment[46] - Staff costs, including salaries and retirement benefits, rose to RMB 5,378,000 in 2024 from RMB 5,330,000 in 2023[46] - Current enterprise income tax expense decreased to RMB 3,147,000 in 2024 from RMB 4,788,000 in 2023[49] - Salaries and other benefits for key management personnel increased to RMB 1,193 thousand for the six months ended 30 June 2024, compared to RMB 972 thousand for the same period in 2023, an increase of 22.7%[83] - Discretionary performance-related bonus for key management personnel decreased to RMB 193 thousand for the six months ended 30 June 2024, compared to RMB 614 thousand for the same period in 2023, a decrease of 68.6%[83] - Total remuneration for key management personnel decreased to RMB 1,454 thousand for the six months ended 30 June 2024, compared to RMB 1,653 thousand for the same period in 2023, a decrease of 12.0%[83] Business Operations and Strategy - The company's principal activity is investment holding, with subsidiaries engaged in the sale of burial plots, provision of burial-related services, cemetery maintenance, and funeral services in China[20] - The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of the Hong Kong Stock Exchange[20] - The company has applied amendments to IFRSs issued by the IASB, which are mandatorily effective for the annual period beginning on 1 January 2024, but these amendments had no material impact on the financial position or performance[24] - All revenue is generated from contracts with customers in the PRC, with substantially all assets and liabilities located in the PRC[32][33] - The Group plans to build operating burial plots in the New Airport (Langfang area) in 2024 and 2025, subject to government approvals[103] - The Group expects to incur a capital commitment of approximately RMB85 million for the Cemetery JV Project[105] - The Group is obligated to provide a shareholder's loan to the JV Company at an annual interest rate of 6.9% for the Cemetery JV Project[105] - The joint venture cemetery project is expected to involve a total development cost of approximately RMB50 million, with additional administrative, labor, and sundry costs estimated at RMB4 million[107] - The company plans to allocate funds for the development of the cemetery joint venture project, with an estimated capital commitment of approximately RMB85 million[106] - The company expects to complete the land acquisition for the cemetery joint venture project by 2024, with the land use rights pre-announcement already completed[106] - The company aims to strengthen its market position in Langfang and expand its business in the Jing-Jin-Ji megalopolis by diversifying services, including funeral services and columbarium collective storage services[109][111] - The company is exposed to foreign exchange risk due to certain bank deposits denominated in Hong Kong dollars, but no currency hedging arrangements have been made as of the reporting period[114] - The company has no material contingent liabilities or capital commitments related to cemetery assets as of 30 June 2024[115][118] - The company plans to upgrade its "Cloud Tomb-sweeping" online services and enhance marketing efforts to further solidify its market position in Langfang[111] - The company believes the period from the second half of 2024 to 2026 will be crucial for achieving its corporate goals and creating shareholder value[107][108] - The company is prepared to pursue strategic alliances and acquisition opportunities to support the development of the cemetery joint venture project[109][113] Shareholding and Corporate Governance - Ms. Zhao Ying holds 700,000,000 shares, representing 70% of the company's total issued shares of 1,000,000,000 as of 30 June 2024[120][121][122] - Tai Shing International Investment Company Limited directly holds 700,000,000 shares, representing 70% of the company's total issued shares[125][126][127] - Lily Charm Holding Limited is deemed to be interested in 700,000,000 shares due to its ownership of Tai Shing International Investment Company Limited[125][126][127] - TMF (Cayman) Ltd., as the trustee of The Hope Trust, is deemed to be interested in 700,000,000 shares[128][130] - The Hope Trust, established by Ms. Zhao Ying, holds 700,000,000 shares through TMF (Cayman) Ltd.[128][130] - No other directors or chief executives have disclosed any additional interests or short positions in the company's shares as of 30 June 2024[123][124] - The company has a total of 1,000,000,000 shares issued as of 30 June 2024[122][128] - No substantial shareholders, other than those disclosed, hold 10% or more of the company's shares[124][129] - The company's shareholding structure is primarily controlled by entities related to Ms. Zhao Ying[120][125][128] - The company's shareholding percentages are calculated based on the total issued shares of 1,000,000,000[122][128] - Fairich Trading Limited holds 87,650,000 shares, representing 8.8% of the total issued shares of 1,000,000,000 as of June 30, 2024[132] - Ms. Xing Junying, through Fairich Trading Limited, directly owns 87,650,000 shares, also representing 8.8% of the total issued shares[132] - The company has not purchased, sold, or redeemed any of its listed securities during the period up to the report date[133] - The controlling shareholders have complied with the Deed of Non-competition, ensuring no direct or indirect competition with the company's core business[133][135] - The company has no share schemes or outstanding share options/awards as of January 1, 2024, and June 30, 2024[136] - The Audit Committee consists of three independent non-executive directors, with Dr. Wong Wing Kuen Albert serving as the chairman[138] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements and confirmed compliance with applicable accounting standards, Listing Rules, and legal requirements, with adequate disclosures made[139] - The Audit Committee consists of three independent non-executive directors: Dr. Wang Yongquan, Mr. Zhang Yingkun, and Mr. Cai Hanqiang, with Dr. Wang Yongquan serving as the Chairman[139] - The unaudited condensed consolidated financial statements for the period have been reviewed and deemed compliant by the Audit Committee[139] Other Income and Expenses - Other income, including interest income and imputed interest, totaled RMB 1,920,000 for the six months ended 30 June 2024, slightly down from RMB 1,929,000 in the same period in 2023[43] - Foreign exchange gains decreased significantly to RMB 263,000 in 2024 from RMB 1,257,000 in 2023[45] Employee and Management Information - The Group had 73 employees as of 30 June 2024, down from 75 as of 31 December 2023[95]
中国万桐园(06966) - 2024 - 中期财报