Financial Performance - The company recorded a revenue of approximately RMB 35.1 million for the period, a decrease of about 43.0% compared to RMB 61.6 million in the same period of 2022[10]. - The group's revenue from the smart manufacturing and industrial automation segment was approximately RMB 27.2 million, a decrease of about 28.3% compared to RMB 37.9 million in the same period of 2022, accounting for approximately 77.4% of total revenue[11]. - Gross profit decreased from approximately RMB 16.1 million in 2022 to approximately RMB 8.2 million, representing a decline of about 48.9%[18]. - Gross margin fell from approximately 26.1% in 2022 to about 23.4% in the current period, a decrease of approximately 2.7%[19]. - The group recorded a loss attributable to the owners of the company of approximately RMB 32.9 million, a slight decrease from approximately RMB 34.7 million in the same period of 2022[29]. - Total comprehensive loss for the period was RMB 36,955 thousand, down from RMB 41,952 thousand in the previous year, indicating a reduction of about 12%[104]. - The company reported a net loss of RMB 32,928,000 for the six months ended June 30, 2023, compared to a net loss of RMB 34,651,000 in the same period of 2022[164]. Revenue Breakdown - The automatic meter reading and other business segment generated a revenue of approximately RMB 7.9 million, down approximately 66.6% from RMB 23.7 million in the same period of 2022, accounting for about 22.6% of the total revenue[10]. - Revenue from automatic meter reading and other businesses totaled RMB 7,929,000, down 66% from RMB 23,710,000 in the previous year[152]. - Revenue from smart manufacturing and industrial automation business was RMB 21,123,000, a decline of 38% from RMB 34,197,000 in 2022[152]. Cash Flow and Financing - The company faced cash shortages that increased the difficulty of undertaking new projects, primarily due to the repayment of a large loan during the period[10]. - The company's cash and cash equivalents totaled approximately RMB 51.3 million as of June 30, 2023, compared to RMB 86.7 million as of December 31, 2022[30]. - The net cash used in operating activities was RMB 39,570 thousand for the six months ended June 30, 2023, compared to RMB 23,661 thousand in the same period of 2022, indicating an increase in cash outflow of about 67%[112]. - Financing costs surged by approximately 2391.2% to about RMB 9.6 million, mainly due to increased interest expenses from other borrowings[27]. - The company raised approximately HKD 17.5 million through a share subscription in May 2023, which was fully utilized to repay certain outstanding debts[95]. Research and Development - Research and development expenses increased by approximately 3.9% to about RMB 9.5 million, mainly due to higher employee costs and testing expenses related to new broadband dual-mode products[26]. - The R&D team consisted of 48 employees, accounting for approximately 32% of the total workforce, focusing on power line carrier communication products and applications[14]. - The company is developing new broadband dual-mode products and expanding its broadband power line communication products into more provincial markets in China[62]. Market Conditions and Strategic Initiatives - The company is exploring the industrial automation system field, particularly in maintenance and safety integrity systems for the oil and petrochemical industry[6]. - The market potential for smart manufacturing is expected to expand significantly, driven by government support and the digital transformation of the manufacturing sector[7]. - The company is experiencing various uncertainties in the market due to U.S. sanctions affecting domestic chip supply and delivery delays[6]. - The company plans to form strategic alliances with international system integrators to enhance its smart manufacturing and industrial automation business segments[63]. Share Capital and Corporate Governance - The company completed a share subscription on May 22, 2023, issuing 274 million shares at a subscription price of HKD 0.064 per share, raising approximately HKD 17.5 million net[34]. - A second share subscription was completed on July 19, 2023, issuing 42.62 million shares at a subscription price of HKD 0.56 per share, raising approximately HKD 23.8 million net[40]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[81]. - The company has adopted a corporate governance code and has complied with its provisions during the review period[83]. Assets and Liabilities - As of June 30, 2023, the group's current assets were approximately RMB 193.2 million, down from RMB 233.3 million as of December 31, 2022[30]. - Total interest-bearing liabilities amounted to approximately RMB 133.9 million as of June 30, 2023, slightly up from RMB 132.8 million as of December 31, 2022[32]. - The net debt-to-equity ratio was approximately 156.1% as of June 30, 2023, significantly increased from 62.0% as of December 31, 2022[32]. - The company's total assets amounted to RMB 294,691 thousand, down from RMB 341,340 thousand, indicating a decrease of approximately 14%[107]. Employee and Management Information - As of June 30, 2023, the company had 150 employees, a slight decrease from 151 employees at the end of 2022, with total employee costs around RMB 171 million[96]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2023, was RMB 4,350,000, an increase from RMB 3,945,000 in the same period of 2022[190]. - The company has implemented training and development programs for employees to enhance their skills and capabilities[98].
瑞斯康集团(01679) - 2023 - 中期财报