Financial Performance - The company reported revenue of RMB 54,923,000 for the six months ended June 30, 2024, representing a 63.5% increase from RMB 33,573,000 in the same period of 2023[2]. - Gross profit for the same period was RMB 21,094,000, with a gross margin of 38.4%, compared to RMB 7,875,000 and a gross margin of 23.5% in 2023[2]. - The company achieved a profit before tax of RMB 6,364,000, a significant turnaround from a loss of RMB 4,118,000 in the previous year[3]. - Net profit for the period was RMB 5,965,000, compared to a loss of RMB 2,958,000 in the same period last year[2]. - Basic and diluted earnings per share were RMB 0.013, compared to a loss per share of RMB 0.006 in 2023[3]. - The company reported a profit attributable to equity holders of RMB 6.7 million for the six months ended June 30, 2024, compared to a loss of RMB 3.0 million for the same period in 2023[16]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 171,976,000, a decrease from RMB 183,287,000 as of December 31, 2023[4]. - Current liabilities increased to RMB 88,946,000 from RMB 65,979,000 at the end of 2023, primarily due to an increase in short-term borrowings[4]. - The company reported a significant increase in inventory, rising to RMB 25,556,000 from RMB 15,697,000 in the previous year[4]. - Trade receivables at the end of the reporting period amounted to RMB 70.5 million, a decrease from RMB 82.2 million at the end of December 2023[13]. - Trade payables at the end of the reporting period totaled RMB 35.0 million, an increase from RMB 28.9 million at the end of December 2023[14]. - As of June 30, 2024, the company had outstanding bank loans of approximately RMB 40.4 million, with future liquidity needs expected to be met through operational cash flow and bank borrowings[23]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue was RMB 54.9 million, an increase of RMB 21.3 million or 63.4% compared to RMB 33.6 million for the same period in 2023, primarily driven by increased sales of smart dimming products[18]. - Sales revenue from smart dimming products reached RMB 40.0 million, a significant increase of RMB 24.1 million or 150% compared to RMB 15.9 million in the same period last year[15]. - Sales revenue from ITO conductive film was RMB 9.1 million, a decrease of RMB 4.4 million or 32.6% from RMB 13.5 million in the same period last year[15]. Expenses - The cost of sales for the six months ended June 30, 2024, was RMB 33.8 million, an increase of RMB 8.1 million or 31.5% compared to RMB 25.7 million for the same period in 2023, reflecting increased sales volume[19]. - Sales and distribution expenses decreased by RMB 0.4 million or 16.7% to RMB 2.0 million, representing 3.6% of revenue compared to 7.1% in the same period of 2023[21]. - Administrative expenses increased by approximately RMB 0.9 million or 9.7% to RMB 10.2 million, accounting for 18.6% of revenue, down from 27.6% in the same period of 2023[22]. Strategic Focus and Investments - The company continues to focus on its core business segments, including sales of ITO conductive films and smart dimming products, without reporting separate segments[8]. - The company plans to continue expanding the application areas of dimming films and will closely monitor economic changes to maintain a prudent strategy[17]. - The company aims to enhance its competitiveness by investing significant resources into R&D, including identifying new materials and applications[17]. - Capital expenditures for the six months ending June 30, 2024, were RMB 1.687 million, down from RMB 2.614 million in the same period of 2023[24]. Shareholder Information - The major shareholder, China Water Industry Group, holds a 62.37% stake in the company, amounting to 324,324,325 shares[42]. - The company has issued a total of 520,000,000 shares as of June 30, 2024, with a significant shareholder holding 229,000 shares, representing approximately 0.009% of the total registered capital[44]. Compliance and Governance - The company has confirmed compliance with the non-competition agreement established by its controlling shareholder, ensuring no competitive business interests exist as of June 30, 2024[46]. - The company has adopted a code of conduct for securities trading by directors, in line with GEM listing rules, and all directors have confirmed adherence during the reporting period[48]. - The audit committee, established on July 21, 2017, has reviewed the financial reporting process and confirmed compliance with applicable accounting principles for the six months ending June 30, 2024[52]. Dividends and Future Plans - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024, and no final dividend was declared for the year ended December 31, 2023[11]. - The company does not recommend a mid-term dividend for the six months ending June 30, 2024[40]. - The company is continuously evaluating its business strategy to adapt to changing market conditions for sustainable growth[39]. Other Information - The company has no significant contingent liabilities or pledged deposits as of June 30, 2024[27][28]. - The company continues to monitor foreign exchange risks and will use hedging tools as necessary to manage these risks[30]. - No significant acquisitions or disposals of subsidiaries or joint ventures occurred during the six months ending June 30, 2024[29]. - No significant events affecting the company have occurred between June 30, 2024, and the announcement date[49]. - The company has not redeemed, purchased, or sold any of its listed securities during the six months ending June 30, 2024[50]. - The company has changed its English name to "China Shuifa Singyes New Materials Holdings Limited" effective June 28, 2024, and its stock trading abbreviation to "SFSY NEW MAT" effective July 31, 2024[51].
水发兴业新材料(08073) - 2024 - 中期业绩