Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 10.5 billion for the interim period, representing a 15% year-over-year growth[2]. - The Group achieved a sales volume increase of 16.3% to 10.0 million tonnes during the period, marking a record high[41]. - Revenue for the six months ended December 31, 2023, was RMB 30,611,229, a decrease of 1.9% compared to RMB 31,198,020 in the same period of 2022[95]. - Gross profit for the period was approximately RMB 2,705.6 million, an increase of approximately RMB 2,019.5 million or 294.4% compared to RMB 686.1 million in the corresponding period last year[51]. - Operating profit for the Period was approximately RMB 1,243.5 million, a significant increase from an operating loss of RMB 861.6 million in the corresponding period last year[52]. - Profit attributable to the equity holders of the Company amounted to approximately RMB 292.4 million, compared to a loss of RMB 1,388.8 million in the same period last year, mainly due to an increase in gross profit margin[55]. - The gross profit margin improved to 25%, up from 22% in the previous year, reflecting better cost management and pricing strategies[2]. Market Expansion and Product Development - User data indicates a growing customer base, with an increase of 12% in the number of active clients compared to the previous year[2]. - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12% based on current market trends and demand[2]. - New product development includes the introduction of eco-friendly kraftlinerboard made from 100% recycled paper, catering to environmentally conscious customers[6]. - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in market share within the next fiscal year[2]. - A strategic acquisition of a local competitor is planned, which is expected to enhance production capacity by 15%[2]. - The company is investing in new technology to improve production efficiency, aiming for a 10% reduction in operational costs by the end of the fiscal year[2]. - The company aims to enhance product differentiation and tap into high-end markets to increase market share[41]. Sustainability and Environmental Commitment - The management emphasized a commitment to sustainability, with plans to increase the use of recycled materials in production to 50% by 2025[2]. - The Group's greyboard products, made from recycled waste paper, are classified into Land Dragon and Sea Dragon to cater to different customer needs[20]. - Uncoated woodfree paper and office paper are offered in weights of 40 to 80g/m2, with the latter being made from 100% recycled fiber for environmental sustainability[24][25]. - The Group's sales of recycled products qualified for an incentive tax arrangement, allowing a deduction of 10% from taxable income starting January 1, 2021[192]. Financial Position and Cash Flow - As of December 31, 2023, total assets amounted to RMB 128,912,302, an increase from RMB 120,651,004 as of June 30, 2023[91]. - Total liabilities rose to RMB 83,702,803 from RMB 75,514,582 as of June 30, 2023[92]. - The company had bank and cash balances, short-term bank deposits, and restricted cash amounting to approximately RMB 7,435.5 million as of December 31, 2023, with total undrawn bank facilities of approximately RMB 42,323.8 million[57]. - The net decrease in cash and cash equivalents for the period was RMB (3,032,656) thousand, compared to RMB (1,354,546) thousand in the same period of 2022[106]. - The company reported a significant decrease in cash flows from investing activities, primarily due to payments for property, plant, and equipment totaling RMB (6,602,715) thousand[104]. Governance and Risk Management - The company continued to comply fully with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[58]. - The company has established a Risk Management Committee to oversee risk management and internal control processes[63]. - The Group's financial activities are exposed to various risks, including foreign exchange risk, interest rate risk, credit risk, and liquidity risk[115]. - The Group aims to maintain sufficient cash and cash equivalents and committed credit facilities to manage liquidity risk effectively[119]. - The Group has not made any changes to its risk management policies during the six months ended December 31, 2023[115]. Shareholder Information - As of December 31, 2023, the total number of ordinary shares issued by the company is 4,692,220,811[75]. - Ms. Cheung Yan and Mr. Liu Ming Chung each hold a total of 3,113,811,942 shares, representing approximately 66.36% of the company's total shareholdings[74]. - The Board has resolved not to declare an interim dividend for the six months ended 31 December 2023, consistent with the previous year where no dividend was declared[69].
玖龙纸业(02689) - 2024 - 中期财报