Report Overview Company Information and GEM Characteristics This 2024 interim report for Shanxi Great Wall Micro-Light Equipment Co., Ltd., listed on HKEX GEM, emphasizes higher investment risks for SMEs and the directors' full responsibility for report accuracy - The Company's H shares are listed on the GEM of HKEX, which serves as a listing platform for small and medium-sized enterprises with higher investment risks110 - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this report's content, with the Company's directors assuming full responsibility for its accuracy, completeness, and non-misleading nature1 Financial Performance Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2024, the Group shifted from profit to a pre-tax loss due to revenue decline, with basic and diluted loss per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 9,046 | 21,987 | (12,941) | -58.86% | | Cost of sales | (5,468) | (12,584) | 7,116 | -56.55% | | Gross profit | 3,578 | 9,403 | (5,825) | -61.95% | | Other income, gains and losses | 1,227 | 5,661 | (4,434) | -78.32% | | Selling and distribution expenses | (150) | (379) | 229 | -60.42% | | Administrative and other operating expenses | (7,330) | (8,354) | 1,024 | -12.26% | | Finance costs | (1,233) | (3,007) | 1,774 | -59.00% | | Profit/(loss) before tax | (3,908) | 3,324 | (7,232) | -217.58% | | Profit/(loss) and total comprehensive profit/(loss) for the period | (3,908) | 3,324 | (7,232) | -217.58% | | Attributable to owners of the Company | (3,908) | 3,324 | (7,232) | -217.58% | | Basic and diluted earnings/(loss) per share | (0.013) | 0.011 | (0.024) | -218.18% | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group reported significant net current and total liabilities, raising substantial going concern uncertainty Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 130,565 | 132,408 | (1,843) | -1.39% | | Current assets | 44,867 | 39,262 | 5,605 | 14.28% | | Current liabilities | 202,047 | 192,590 | 9,457 | 4.91% | | Net current liabilities | (157,180) | (153,328) | (3,852) | 2.51% | | Total liabilities | 287,641 | 279,971 | 7,670 | 2.74% | | Total equity | (112,209) | (108,301) | (3,908) | 3.61% | - As of June 30, 2024, the Group's net current liabilities were approximately RMB 157,180 thousand and net liabilities were RMB 112,209 thousand, indicating significant uncertainty regarding its ability to continue as a going concern4611 Condensed Consolidated Statement of Changes in Equity For H1 2024, total equity attributable to owners further decreased due to a comprehensive loss, worsening negative equity Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2024 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share capital | 30,886 | 30,886 | 0 | | Reserves | (139,076) | (142,984) | (3,908) | | Equity attributable to owners of the Company | (108,190) | (112,098) | (3,908) | | Non-controlling interests | (111) | (111) | 0 | | Total equity | (108,301) | (112,209) | (3,908) | - In the first half of 2024, equity attributable to owners of the Company further decreased due to a total comprehensive loss of RMB 3,908 thousand for the period8 Condensed Consolidated Statement of Cash Flows For H1 2024, net cash from operating activities turned positive, with a slight increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash flows from operating activities | 240 | (1,032) | 1,272 | | Net cash flows from investing activities | (47) | (116) | 69 | | Net cash flows from financing activities | (161) | 1,060 | (1,221) | | Increase/(decrease) in cash and cash equivalents | 32 | (89) | 121 | | Cash and cash equivalents at end of period | 309 | 316 | (7) | - Net cash flows from operating activities turned positive at RMB 240 thousand in 2024, compared to a negative RMB 1,032 thousand in the same period of 20239 Notes to the Condensed Consolidated Financial Statements General Information Shanxi Great Wall Micro-Light Equipment Co., Ltd. was incorporated in China on November 10, 2000, with its H shares listed on the GEM of HKEX - The Company was incorporated in China as a joint stock limited company on November 10, 2000, with its H shares listed on the GEM of HKEX10 Basis of Preparation for Going Concern Significant liabilities as of June 30, 2024, raise substantial doubt about the Group's going concern, despite Board measures to improve liquidity - As of June 30, 2024, the Group's net current liabilities were approximately RMB 157,180 thousand, net liabilities approximately RMB 112,209 thousand, and outstanding bank and other borrowings approximately RMB 71,398 thousand, raising significant doubt about its ability to continue as a going concern11 - The Board has taken measures to improve liquidity, including negotiating debt restructuring with shareholders, lenders, and banks, seeking interest waivers, securing financial assistance, and revitalizing idle assets11 Basis of Preparation The condensed consolidated financial statements are prepared according to HKAS 34 and GEM Listing Rules, with consistent accounting policies - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, with principal accounting policies consistent with the 2023 annual report12 Adoption of New and Revised Hong Kong Financial Reporting Standards The Group adopted new and revised HKFRS effective January 1, 2024, with no material impact on financial statements - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective January 1, 2024, but their adoption has not had a material impact on the financial statements13 Revenue The Group's revenue from fiber optic products significantly decreased in H1 2024, primarily due to reduced overseas orders - Revenue represents the net invoiced value of goods sold, after deducting provisions for returns, trade
长城微光(08286) - 2024 - 中期财报