中国金典集团(08281) - 2024 - 中期业绩

Financial Highlights This section provides a concise overview of the company's financial performance and position Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, group revenue decreased by 14.0% year-on-year to RMB 110.5 million, with loss for the period expanding significantly to RMB 6.155 million due to reduced gross profit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | For the Six Months Ended June 30 (Unaudited) | | | :--- | :--- | :--- | | | 2024 | 2023 | | | RMB thousand | RMB thousand | | Revenue | 110,456 | 128,412 | | Gross Profit | 38,276 | 47,442 | | Loss Before Tax | (6,155) | (170) | | Loss for the Period | (6,155) | (940) | | Basic Loss Per Share (RMB cents) | (0.62) | (0.09) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total group assets decreased to RMB 304.5 million from RMB 348.6 million at the end of 2023, with net assets slightly declining to RMB 253.2 million Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | | RMB thousand (Unaudited) | RMB thousand (Audited) | | Non-current Assets | 162,323 | 169,821 | | Current Assets | 142,179 | 178,742 | | Total Assets | 304,502 | 348,563 | | Current Liabilities | 51,268 | 84,881 | | Net Assets | 253,234 | 263,682 | | Cash and Cash Equivalents | 55,665 | 77,932 | Condensed Consolidated Statement of Changes in Equity Total shareholders' equity decreased from RMB 264 million at the beginning of the period to RMB 253 million at the end, primarily due to the RMB 6.155 million loss and RMB 3.8 million dividend distribution - As of June 30, 2024, total shareholders' equity was RMB 253 million, a decrease from RMB 264 million at the beginning of the period[4] - The decrease in equity was primarily due to a RMB 6.155 million loss for the period and RMB 3.8 million in dividends recognized as distributions[4] Condensed Consolidated Statement of Cash Flows In the first half of 2024, the group's cash position tightened, with net cash outflows from operating, investing, and financing activities leading to a RMB 21.91 million decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (RMB thousand) | Activity Category | For the Six Months Ended June 30 (Unaudited) | | | :--- | :--- | :--- | | | 2024 | 2023 | | | RMB thousand | RMB thousand | | Net Cash Used in Operating Activities | (13,100) | (28,171) | | Net Cash Used in Investing Activities | (4,329) | (4,192) | | Net Cash Used in Financing Activities | (4,478) | (1,698) | | Net Decrease in Cash and Cash Equivalents | (21,907) | (34,061) | | Cash and Cash Equivalents at End of Period | 55,665 | 39,297 | Notes to the Condensed Consolidated Interim Financial Information This section details the accounting policies and specific financial items supporting the interim financial statements Basis of Preparation and Principal Accounting Policies The interim financial information is prepared under HKAS 34 on a historical cost basis, with consistent accounting policies, and the group primarily manufactures and trades oral, leather, and household care products - The group primarily engages in the manufacturing and trading of oral care, leather care, and household hygiene products[6] - The interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with the prior year[6][7] Revenue and Segment Information Total group revenue decreased by 14.0% year-on-year, primarily driven by a 31.8% decline in oral care products due to packaging changes, while household hygiene products also saw a slight 2.3% decrease amid increased market competition Revenue by Segment (RMB thousand) | Segment | For the Six Months Ended June 30 (Unaudited) | | Year-on-Year Change | | :--- | :--- | :--- | :--- | | | 2024 | 2023 | | | | RMB thousand | RMB thousand | | | Oral Care Products | 33,116 | 48,546 | -31.8% | | Leather Care Products | 5,641 | 6,506 | -13.3% | | Household Hygiene Products | 71,699 | 73,360 | -2.3% | | Total | 110,456 | 128,412 | -14.0% | - The primary reason for the decline in oral care product sales was the update of product packaging to comply with the "Measures for the Administration of Cosmetic Labeling," which affected consumer purchasing decisions[36][40] Income Tax Expense No income tax expense was recorded for the current period, compared to RMB 0.77 million in the prior period, as certain PRC subsidiaries enjoy preferential tax rates as high-tech or small-profit enterprises - Income tax expense for the current period was zero, compared to RMB 0.77 million in the prior period[13] - One subsidiary is recognized as a high-tech enterprise, enjoying a 15% preferential tax rate, while another is recognized as a small-profit enterprise, enjoying a 5% preferential tax rate[15] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2024, while shareholders approved a final dividend of HK 0.38 cents per ordinary share for the year ended December 31, 2024 - The Board does not recommend an interim dividend for the current period[47] - Shareholders have approved a final dividend of HK 0.38 cents per ordinary share for the year ended December 31, 2024[18] Key Asset and Liability Items As of June 30, 2024, net trade receivables and bills receivable decreased to RMB 25.93 million from RMB 37.01 million, and trade payables and bills payable significantly dropped to RMB 17.36 million, with the group adding approximately RMB 4.836 million in property, plant, and equipment during the period Key Asset and Liability Items (RMB thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | | RMB thousand (Unaudited) | RMB thousand (Audited) | | Trade Receivables and Bills Receivable (Net) | 25,933 | 37,005 | | Trade Payables and Bills Payable | 17,362 | 36,641 | - During the six months ended June 30, 2024, the group acquired approximately RMB 4.836 million in property, plant, and equipment[19] Related Party Transactions Key related party transactions during the period included office rental from a company controlled by an executive director's close relative, the executive director's personal guarantee for RMB 80 million in bank financing, and total remuneration of RMB 0.727 million paid to directors and key management - The group leases offices from a company controlled by a close relative of Executive Director Ms. Li[34] - Executive Director Ms. Li provided a personal guarantee for RMB 80 million of the group's bank financing[34] - Total remuneration paid to directors and key management during the period was RMB 0.727 million, compared to RMB 0.618 million in the prior period[35] Management Discussion and Analysis This section provides an in-depth review of the company's operational performance, financial position, and future strategic outlook Business Review and Prospects In H1 2024, group revenue declined 14% to RMB 110.5 million and net loss expanded to RMB 6.2 million due to oral care product packaging changes and increased market competition; future strategies focus on R&D, new product launches, and expanding online sales channels Business Performance Summary (RMB million) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | 110.5 million | 128.4 million | -14.0% | | Net Loss | 6.2 million | 0.9 million | +554.8% | | Gross Profit Margin | 34.7% | 36.9% | -2.2pp | - Future strategic priorities include: - Strengthening R&D: Hiring a PhD-level engineer to provide more experimental data validating the efficacy of bio-enzymes in toothpaste products - Launching New Products: Introducing high-efficiency toilet bowl cleaner in Q3 to solidify market position in household hygiene products - Expanding Online Channels: Leveraging live streaming and e-commerce technologies to increase online sales share, adapting to evolving consumer shopping behaviors[38] Analysis of Operating Results Group revenue decreased by 14.0% to RMB 110.5 million, primarily due to lower oral care product sales, while gross profit declined 19.3% to RMB 38.3 million, leading to an expanded net loss of RMB 6.2 million despite reduced selling and administrative expenses - Revenue decreased by 14.0%, primarily due to reduced sales of oral care products caused by packaging changes[39][40] - Gross profit margin decreased from 36.9% in the prior period to 34.7%, mainly due to the implementation of promotional pricing strategies during the period[42] - Selling and distribution costs decreased by 9.4% due to reduced promotional expenses; administrative expenses decreased by 2.5% due to lower R&D and maintenance costs[43][44] - Net loss increased by 554.8% from RMB 0.9 million in the prior period to RMB 6.2 million[46] Liquidity, Financial Resources and Capital Structure As of June 30, 2024, the group's financial position remained stable, with the current ratio improving to 2.77 and the gearing ratio significantly decreasing to 20.2%, indicating reduced financial leverage and sufficient working capital Liquidity and Capital Structure (RMB million) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Shareholders' Equity | 253.2 million | 263.7 million | | Bank Balances and Cash | 55.7 million | 77.9 million | | Current Ratio | 2.77 | 2.11 | | Gearing Ratio | 20.2% | 32.2% | - As of June 30, 2024, the group had RMB 5 million in outstanding bank borrowings, consistent with the end of 2023[47] Other Disclosures During the reporting period, the group had no significant acquisitions or disposals, no material contingent liabilities, complied with GEM Listing Rules on corporate governance, and its audit committee reviewed the interim results, with public float remaining compliant - Executive Directors Ms. Li Qiuyan and Mr. Tong Xing hold 59.36% and 10.69% of the company's shares, respectively, through their wholly-owned companies[55] - The company has established an Audit Committee, comprising three independent non-executive directors, which has reviewed these interim results[65] - During the reporting period and up to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[61]