Share Option Plan - The company has adopted a share option plan effective from September 16, 2013, which will remain valid until September 15, 2023, with a total of 40,000,000 shares available for issuance under this plan, representing 10% of the total shares issued as of the adoption date [3][11]. - As of June 30, 2023, the company had no outstanding share options available for issuance under the share option plan [3]. - The share option plan aims to encourage eligible participants to improve performance and efficiency, and to attract and retain business relationships [11][14]. - The maximum number of share options granted to any participant in a 12-month period cannot exceed 1% of the total issued shares, unless otherwise approved by shareholders [2]. - The share option plan is designed to recognize and encourage contributions made by eligible participants to the company [11][14]. - The share option plan allows for options to be exercised within a period of up to 10 years from the date of grant [2]. Shareholder Information - Major shareholders include Green Island Investment holding 249,084,000 shares, representing 50.65% of the company's equity, and Perfect Century Group Limited holding 35,400,000 shares, representing 7.20% [5][6]. - The total number of issued shares as of June 30, 2023, is 491,800,000 [6][10]. - The company's equity attributable to shareholders as of June 30, 2023, was approximately RMB 451,400,000, up from RMB 372,600,000 on December 31, 2022, resulting in a decrease in the capital-to-debt ratio from 171% to 151% [46]. - The company's total issued and paid-up shares as of June 30, 2023, were 491,800,000 shares [193]. Financial Performance - For the six months ended June 30, 2023, the group's revenue and net profit were approximately RMB 406,400,000 and RMB 30,300,000, representing an increase of about 83.4% and 38.6% compared to the same period in 2022 [57]. - Revenue for the six months ended June 30, 2023, reached RMB 406,358,000, a 83.3% increase from RMB 221,566,000 in the same period of 2022 [121]. - Gross profit for the same period was RMB 65,674,000, representing a 89.9% increase compared to RMB 34,603,000 in 2022 [132]. - Operating profit increased to RMB 41,413,000, up 36.1% from RMB 30,430,000 in the previous year [132]. - Net profit for the period was RMB 30,253,000, a 38.5% increase from RMB 21,823,000 in 2022 [132]. - The group's gross profit for the same period was approximately RMB 65,700,000, with a gross margin of 16.2%, up from 15.6% in 2022, mainly due to a decrease in raw material prices [61]. Revenue Growth - For the six months ended June 30, 2023, the CMS business revenue was approximately RMB 286,900,000, an increase of about 50.1% compared to RMB 191,200,000 for the same period in 2022 [37]. - The OBM business experienced a growth of approximately 53.6% during the reporting period, driven by improved domestic consumption enthusiasm [38]. - Revenue from the domestic market in China was RMB 281,849,000, a significant increase from RMB 157,255,000 in the previous year [121]. - The company's CMS and OBM businesses saw increases of approximately 50.1% and 53.6%, respectively, compared to the first half of 2022 [56]. Expenses and Costs - Administrative expenses for the six months ended June 30, 2023, were approximately RMB 27,300,000, an increase of about 7.0% from RMB 25,500,000 in the same period of 2022 [41]. - The sales cost for the six months ended June 30, 2023, was approximately RMB 340,700,000, an increase of about 82.2% compared to RMB 187,000,000 in the same period of 2022, consistent with the increase in sales volume [60]. - Employee benefits expenses (excluding R&D costs) rose to RMB 24,194,000, up 57.8% from RMB 15,318,000 in the previous year [160]. - The cost of raw materials used increased significantly to RMB 310,711,000, compared to RMB 178,281,000, reflecting a growth of 74.2% [160]. - The total expenses for the period amounted to RMB 380,160,000, which is an increase of 73.5% from RMB 218,843,000 in the same period last year [160]. Assets and Liabilities - The total assets of the group as of June 30, 2023, amounted to approximately RMB 1,234,900,000, an increase from RMB 1,150,200,000 as of December 31, 2022, reflecting a growth of about 7.4% [doc->96]. - As of June 30, 2023, total liabilities amounted to RMB 781,710 thousand, a slight increase from RMB 775,841 thousand as of December 31, 2022, representing a growth of 0.11% [134]. - Non-current liabilities increased to RMB 560,845 thousand from RMB 508,634 thousand, reflecting a rise of 10.25% [134]. - Current liabilities decreased to RMB 220,865 thousand from RMB 267,207 thousand, showing a decline of 17.30% [134]. - The group's cash and bank deposits totaled approximately RMB 50,800,000 as of June 30, 2023, down from RMB 79,900,000 as of December 31, 2022, indicating a decrease of approximately 36.5% [doc->96]. Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was RMB (39,300,000), a significant decrease from RMB 61,531,000 in the same period of 2022, representing a decline of approximately 164% [doc->87]. - The net cash used in investing activities was RMB (39,449,000) for the six months ended June 30, 2023, compared to RMB (93,498,000) in the same period of 2022, showing an improvement of approximately 57.8% [doc->87]. - The net cash generated from financing activities was RMB 26,310,000 for the six months ended June 30, 2023, a decrease from RMB 86,780,000 in the same period of 2022, reflecting a decline of approximately 69.7% [doc->87]. Market Strategy - The group plans to continue developing high value-added products and expanding market share to strengthen its CMS, OBM, and wholesale businesses [36]. - The group aims to accelerate the completion of new factories to enhance production capacity while closely monitoring international market changes [36]. - The group has initiated wholesale sales of personal care products in China since the second half of last year [34]. - The group will continue to explore different sales channels and e-commerce to expand sales [36]. - The company continues to focus on the production and sale of aerosol products and related services, with a strategic emphasis on expanding its market presence in China and overseas [146]. Compliance and Governance - The controlling shareholders have confirmed compliance with the non-competition agreement, ensuring no conflicts with the group's business [17]. - The group has not conducted any other fundraising activities in the twelve months leading up to June 30, 2023 [79]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period [doc->103]. Other Financial Information - The company is currently evaluating the impact of the OECD's Pillar Two tax legislation on its financial statements [124]. - The company has adopted new accounting standards effective from January 1, 2023, which may affect its financial reporting [124]. - The company has adopted new and revised standards effective January 1, 2023, which are expected to impact the accounting policy disclosures in the annual financial statements [142]. - The company has not incurred any taxable income subject to Hong Kong profits tax for the six months ended June 30, 2023 [181].
中国绿岛科技(02023) - 2023 - 中期财报