Revenue Performance - The Group's revenue decreased significantly by 40.4% to RMB179.4 million during the six months ended 30 June 2023, compared to RMB300.9 million in the corresponding period of the previous year[9]. - Revenue from the manufacturing and sales of wooden products decreased by 40.3% to RMB177.9 million, while the segment recorded a profit of RMB472,000, reversing a loss of RMB396,000 in the previous year[15]. - Revenue from the renewable energy business was RMB1.5 million, down 45.3% from RMB2.8 million, maintaining a profit of approximately RMB0.5 million[16]. - Revenue from timber houses and related parts decreased by 50.9% to RMB123.4 million, representing 68.8% of total sales for the period[25]. - Revenue from leisure household products decreased by 17.5% to RMB26.4 million, primarily due to a drop in sales in European markets[28]. - Revenue from the Australasian market was approximately RMB123.4 million, a decrease of 44.1% from RMB220.7 million in the same period last year[23]. - Revenue from the PRC market decreased to approximately RMB29.7 million, down from RMB46.6 million, reflecting weak domestic demand[21]. - Revenue from renewable energy products was RMB1.5 million, down from RMB2.8 million in the previous year[28]. - Sales of outdoor wooden products accounted for RMB 177,877,000, down 40.4% from RMB 298,046,000 in the previous year[151]. - The primary geographical market for revenue was the PRC, contributing RMB 29,657,000, which is 16.5% of total revenue for the first half of 2023[154]. Profitability and Financial Performance - The gross profit margin improved to 12.1% during the Period, up from 9.5% in the previous year, with a gross profit of RMB21.7 million compared to RMB28.5 million[9]. - The Group recorded a profit of approximately RMB2.7 million for the period, compared to a loss of RMB2.1 million in the first half of 2022[45]. - Profit for the period was RMB 2,733,000, which is an increase of approximately 27.7% from RMB 2,140,000 in the previous year[123]. - The profit before taxation for the period was RMB 3,196,000, compared to RMB 1,505,000 in the same period of 2022, indicating a growth of about 112.0%[123]. - The basic and diluted earnings per share increased to RMB 0.0030 from RMB 0.0025, reflecting a growth of 20.0%[123]. - Total comprehensive income for the period decreased to RMB 1,769,000, down 69.7% from RMB 5,827,000 in the previous year[126]. - The Group's consolidated profit after taxation for the six months ended June 30, 2023, was RMB 2,733,000, an increase from RMB 2,140,000 in the same period of 2022[169]. Cost Management - Administrative expenses decreased to RMB12.8 million from RMB22.3 million, attributed to tighter cost control[36]. - The company experienced a finance cost of RMB 3,052,000, which increased from RMB 673,000 in the previous year[123]. - Cost of inventories decreased to RMB 157,681,000 in H1 2023 from RMB 272,357,000 in H1 2022, representing a reduction of approximately 42.0%[179]. - Research and development costs were reduced to RMB 4,421,000 in H1 2023 from RMB 9,269,000 in H1 2022, a decrease of about 52.3%[179]. Market Conditions and Strategy - The decline in demand for wooden products was attributed to a cooling market following a year of global construction material shortages[15]. - The overall performance reflects the impact of external market conditions on the Group's operations and revenue generation[9]. - Future strategies may involve exploring new markets and enhancing product offerings to adapt to changing demand[9]. - The Group focused on higher margin products to improve profitability despite the revenue decline[9]. Assets and Liabilities - As of June 30, 2023, the Group's current assets amounted to RMB 404.8 million, a decrease from RMB 433.1 million as of December 31, 2022[46]. - Non-current assets totaled RMB 483,665,000, an increase of 6.5% from RMB 453,998,000 at the end of 2022[128]. - Current assets increased to RMB 577,971,000, up 2.5% from RMB 562,593,000 at the end of 2022[129]. - Net current assets decreased to RMB 404,781,000, down 6.5% from RMB 433,073,000 at the end of 2022[129]. - Total equity increased to RMB 882,146,000, up from RMB 880,377,000 at the end of 2022[129]. - Interest-bearing bank borrowings increased to RMB 88,200,000, up 63.7% from RMB 53,950,000 at the end of 2022[129]. - Cash and cash equivalents decreased to RMB 36,567,000, down 67.8% from RMB 113,765,000 at the end of 2022[129]. Shareholder Information - As of June 30, 2023, Mr. Wu Zheyan holds 89,929,482 shares, representing a 9.76% interest in the company[72]. - Mr. Wu Zheyan is also a beneficial owner of 17,024,596 shares, accounting for 1.85% of the total shareholding[72]. - Ms. Xie Qingmei owns 16,750,684 shares, which is approximately 1.82% of the company's shares[72]. - The maximum number of shares for the Share Option Scheme is capped at 10% of the total shares in issue, which is 100,000,000 shares[83]. - The Share Option Scheme was adopted to recognize contributions from eligible participants, including directors and employees[83]. - The Share Award Scheme aims to align the interests of eligible persons with those of the Group through ownership of ordinary shares[93]. Compliance and Governance - The company has complied with the Corporate Governance Code, except for code provision C.1.2 regarding monthly updates to all Board members[109]. - The interim financial report was authorized for issue by the Board of Directors on August 31, 2023, ensuring compliance with relevant financial reporting standards[138].
中科生物(01237) - 2023 - 中期财报