Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately RMB 449.6 million, a decrease of about 11.8% from RMB 509.5 million for the same period in 2022[43]. - Gross profit for the same period decreased by approximately 32.1% to RMB 47.9 million, down from RMB 70.5 million, resulting in a gross margin decline from 13.8% to 10.7%[43][47]. - Net profit fell approximately 73.5% to RMB 8.0 million, compared to RMB 30.2 million for the same period in 2022[43]. - Profit before tax decreased to RMB 10,635 thousand, a decline of 73.4% from RMB 39,995 thousand in the previous year[83]. - Basic and diluted earnings per share were RMB 1.34, down from RMB 4.77 in the previous year[83]. - For the six months ended June 30, 2023, the company reported a net profit of RMB 8,018,000, a decrease of 72% compared to RMB 28,631,000 for the same period in 2022[102]. Revenue Breakdown - Revenue for the six months ended June 30, 2023, was RMB 449,603 thousand, a decrease of 11.8% compared to RMB 509,516 thousand for the same period in 2022[93]. - Sales of plain fabric amounted to RMB 321,566 thousand, down from RMB 340,534 thousand, while sales of corduroy fabric decreased to RMB 107,782 thousand from RMB 148,097 thousand[93]. - Revenue from external customers in China increased to RMB 428,865 thousand, up 3.9% from RMB 413,223 thousand in the previous year[95]. - The company continues to focus on the sale of fabric products and the provision of dyeing and processing services as its main business activities[94]. Cost and Expenses - Administrative expenses increased from approximately RMB 17.3 million to RMB 21.1 million, mainly due to higher depreciation of right-of-use assets[50]. - Sales and distribution expenses decreased from approximately RMB 12.4 million to RMB 11.3 million, attributed to lower transportation costs[49]. - Financial costs increased from approximately RMB 3.7 million for the six months ended June 30, 2022, to approximately RMB 7.1 million for the six months ended June 30, 2023, primarily due to increased borrowings and interest[51]. - Total employee costs for the six months ended June 30, 2023, amounted to RMB 29,651,000, an increase of 22% from RMB 24,240,000 in the previous year[100]. Cash Flow and Assets - Cash and bank balances as of June 30, 2023, were approximately RMB 33.1 million, down from approximately RMB 61.4 million as of December 31, 2022[58]. - Net cash used in operating activities was RMB (11,414) thousand, an improvement from RMB (53,699) thousand in the same period last year[87]. - Total assets as of June 30, 2023, were RMB 547,242 thousand, slightly up from RMB 539,643 thousand at the end of 2022[84]. - Trade receivables as of June 30, 2023, were RMB 209,477,000, up 45% from RMB 144,553,000 as of December 31, 2022[106]. Debt and Liabilities - As of June 30, 2023, the debt-to-asset ratio was approximately 66.0%, slightly down from approximately 66.3% as of December 31, 2022[58]. - Total interest-bearing bank borrowings amounted to approximately RMB 299.2 million as of June 30, 2023, compared to approximately RMB 288.3 million as of December 31, 2022[61]. - Current liabilities amounted to RMB 496,895 thousand, an increase from RMB 491,753 thousand at the end of 2022[84]. - Trade payables decreased to RMB 131,394,000 as of June 30, 2023, from RMB 139,295,000 as of December 31, 2022, representing a decline of approximately 5.1%[115]. Future Outlook and Investments - The company remains cautiously optimistic about the second half of 2023, noting an increase in customer orders recently[44]. - Investments in new machinery and equipment were made to enhance production efficiency and reduce costs, which are expected to improve product quality and expand capacity[44]. - The company plans to continue investing in product design and development to diversify revenue sources and promote long-term sustainable growth[44]. - The expected timeline for utilizing the unutilized net proceeds for acquiring a company with an existing production facility in Jiangsu, China, has been extended to December 31, 2024, due to challenges posed by the COVID-19 pandemic and the US-China trade war[68]. Corporate Governance and Compliance - The company has maintained compliance with all applicable provisions of the corporate governance code during the six months ending June 30, 2023, except for a deviation regarding the separation of the roles of Chairman and CEO[70]. - The board believes that the current management structure is effective for strategic planning, despite not having a CEO[71]. - The company has not yet utilized the net proceeds from its fundraising, which are currently held as interest-bearing deposits in licensed banks in Hong Kong[68]. Shareholder Information - As of June 30, 2023, major shareholder Dongyong Holdings Limited holds 450,000,000 shares, representing 75% of the company's equity[79]. - The board has decided not to recommend an interim dividend for the six months ending June 30, 2023[69]. - The company did not declare any interim dividends for the six months ended June 30, 2023, and 2022[101].
亚东集团(01795) - 2023 - 中期财报