Financial Performance - The revenue for Zhejiang Tengy Environmental Technology Co., Ltd for the six months ended 30 June 2023 was approximately RMB 288.71 million, representing a decrease of approximately 7.59% compared to the same period last year [2]. - The profit attributable to owners of the parent for the Reporting Period was approximately RMB 6.87 million, a decrease of approximately 23.84% year-on-year [2]. - The gross profit for the Reporting Period was RMB 61.81 million, down from RMB 67.36 million in the previous year, indicating a decline of approximately 8.67% [3]. - Revenue from external customers decreased to RMB 288,706,000 in 2023 from RMB 312,428,000 in 2022, a decline of approximately 7.6% [36]. - The basic earnings per share for the Reporting Period was RMB 0.05, down from RMB 0.07 in the previous year [3]. - The unaudited profit attributable to the owners of the parent was approximately RMB 6.87 million, a decrease of approximately 23.84% from approximately RMB 9.02 million in the corresponding period of 2022 [149]. - The cost of sales for the Group was approximately RMB 226.89 million, a decrease of approximately 7.42% from approximately RMB 245.07 million in the corresponding period of 2022 [147]. - The unaudited gross profit margin for the Reporting Period was approximately 21.41%, down from approximately 21.56% in the same period of 2022 [148]. Expenses and Income - Other income increased to RMB 5.90 million from RMB 3.40 million, reflecting an increase of approximately 73.83% [3]. - Distribution and selling expenses rose to RMB 7.27 million, up from RMB 3.90 million, marking an increase of approximately 86.41% [3]. - Net cash generated from operating activities decreased to RMB 23,715,000 in 2023 from RMB 67,606,000 in 2022, representing a decline of approximately 65.0% [8]. - The Group's income tax expense for the period was RMB 5,250,000, down from RMB 9,460,000 in 2022, a decrease of approximately 44% [42]. - Interest on bank loans increased to RMB 3,779,000 in 2023 from RMB 2,829,000 in 2022, representing an increase of about 33.5% [39]. Assets and Liabilities - The total assets less current liabilities as of 30 June 2023 were RMB 841.09 million, compared to RMB 834.22 million at the end of 2022, showing a slight increase of approximately 0.10% [5]. - The net current assets as of 30 June 2023 were RMB 650.21 million, an increase from RMB 637.92 million at the end of 2022, representing a growth of approximately 1.99% [5]. - The Group's trade receivables as of June 30, 2023, were RMB 731,314,000, slightly down from RMB 740,524,000 as of December 31, 2022, a decrease of approximately 1.4% [55]. - The impairment provision for trade receivables increased to RMB 154,884,000 in 2023 from RMB 139,408,000 in 2022, reflecting a rise of about 11.1% [55]. - Trade payables as of June 30, 2023, were RMB 160,857,000, down 12.3% from RMB 183,498,000 as of December 31, 2022 [67]. - The total bank loans increased to RMB 85,000,000 as of June 30, 2023, compared to RMB 55,000,000 as of December 31, 2022 [73]. Market and Sales - Revenue from sales of environmental protection equipment was RMB 284,470,000 in 2023, down from RMB 306,237,000 in 2022, indicating a decrease of about 7.1% [24]. - The geographical market of Mainland China accounted for RMB 280,633,000 in sales in 2023, down from RMB 305,389,000 in 2022, a decrease of about 8.1% [27]. - The major product, electrostatic precipitators, generated sales of RMB 225,235,000 in 2023, down from RMB 256,820,000 in 2022, a decrease of about 12.3% [27]. - Revenue from the sale of materials decreased to RMB 4,236,000 in 2023 from RMB 5,988,000 in 2022, reflecting a decline of approximately 29.3% [24]. - Revenue from environmental protection equipment products accounted for approximately 98.53% of total revenue [141]. Research and Development - Research and development expenditure rose to RMB 6,766,000 in 2023, up from RMB 3,530,000 in 2022, indicating an increase of approximately 92% [46]. - The Group plans to enhance its R&D capabilities and expand its portfolio of environmental protection equipment to address atmospheric pollution and achieve carbon neutrality [174]. Strategic Initiatives - The Company conditionally agreed to acquire 95% equity interest in Zhejiang Tianjie New Energy Co., Ltd. from Tengy Group Limited for RMB 51.2 million, subject to downward adjustment [173]. - The Company successfully acquired land use rights for approximately 52,571.90 sq. m. at a total consideration of approximately RMB 47 million, intended for the development of a plant for environmental pollution prevention equipment [92]. - The Group aims to actively seek acquisition projects in various environmental protection and emission reduction industries, as well as new materials and new energy fields [175]. - The Group intends to leverage opportunities from the 14th Five-Year Work Plan in China to consolidate its existing business and promote diversification, thereby expanding its market share [176]. Corporate Governance - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors [185]. - The board's responsibilities include determining the business and investment plans of the Group and formulating annual budgets [185]. Future Outlook - Future outlook indicates a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies [200]. - The company plans to enter two new international markets by the end of 2024, aiming to increase global market share [200]. - A strategic acquisition of a local competitor is expected to be finalized in Q1 2024, which will enhance operational capabilities [200]. - New product lines are anticipated to contribute an additional 10% to overall revenue in the upcoming year [200]. - The company has set a target to reduce operational costs by 15% through efficiency improvements in the next 12 months [200].
天洁环境(01527) - 2023 - 中期财报