Revenue Performance - In the first half of 2024, the Group's revenue from CAM sales amounted to approximately US$5.7 million, representing a decrease of 4.3% compared to US$6.0 million in the first half of 2023, accounting for 65.9% of the Group's total revenue[11]. - For the six months ended June 30, 2024, the Group's revenue was approximately US$8.7 million, a decrease of 22.9% compared to US$11.2 million in the same period of 2023[16]. - Intelligent sense sales revenue reached approximately US$2.2 million, accounting for 25.7% of total revenue, representing a significant increase of 291.6% compared to US$0.6 million in the same period of 2023[15]. - Revenue from IC solutions was approximately US$0.7 million, a decrease of 84.5% from US$4.7 million in the same period of 2023, accounting for 8.4% of total revenue[15]. - The percentage of revenue contribution from customers in sanctioned countries slightly increased compared to the corresponding period in 2023[51]. - For the six months ended June 30, 2024, total external revenue was $8,661,523, a decrease from $11,234,029 for the same period in 2023, representing a decline of approximately 22.8%[95]. Market Analysis - Revenue from the largest market, Europe, accounted for 73.1% of CAM's total sales, with a year-on-year decrease of 9.5% primarily due to a decline in product unit prices[11]. - Sales in the domestic market decreased by 26.1% year-on-year, mainly due to the absence of bulk engineering card orders in the first half of this year compared to the same period last year[11]. - Emerging market sales slightly decreased by 2.6% year-on-year, remaining approximately at the same level as the same period last year[11]. - Order demand in Western and Northern Europe decreased year-on-year, primarily due to slower-than-expected inventory consumption by customers[11]. - The Group's CAM sales in Austria and Eastern Europe increased year-on-year due to increased procurement volume driven by major operators' business development[11]. Financial Performance - Gross profit for the six months ended June 30, 2024, was US$4.3 million, an increase of US$0.4 million, with a gross profit margin of 49.4%, up from 34.1% in the same period of 2023[20]. - The loss for the period ended 30 June 2024 was US$15.1 million, compared to a profit of US$0.3 million in the same period last year, primarily due to increased share of losses from investee companies[23]. - The total comprehensive loss for the period was $15,935,622, which is a substantial increase from the total comprehensive loss of $4,965,630 in the prior year[62]. - The company reported a basic loss per share of $(0.05) for the six months ended June 30, 2024, compared to a profit of $0.00 for the same period in 2023[141]. - The net loss attributable to the owners of the company for the period was $14,929,101, compared to a profit of $407,100 in the prior year[145]. Expenses and Cost Management - Research and development expenses decreased by 2.8% to US$5.4 million, remaining approximately at the same level as the previous year[21]. - Selling and distribution expenses amounted to US$0.7 million, an increase of 5.0% compared to the same period last year, primarily due to increased marketing activities in the intelligent sense business[23]. - General and administrative expenses decreased by 16% to US$3.1 million compared to the same period last year, mainly due to reduced personnel costs[23]. - Total cost of sales, research and development expenses, selling and distribution expenses, general and administrative expenses, and net impairment losses on financial assets amounted to $13,730,030, down from $17,268,682, indicating a decrease of approximately 20.5%[127]. Cash Flow and Liquidity - As of 30 June 2024, total cash and cash equivalents amounted to US$16.8 million, down from US$20.6 million as of 31 December 2023[25]. - The current ratio as of 30 June 2024 was 591.5%, an increase from 459% as of 31 December 2023[25]. - The net cash used in operating activities was $(2,897,022) USD, a significant improvement compared to $(12,002,774) USD for the same period in 2023, indicating a reduction of approximately 75.8%[68]. - The company’s cash and cash equivalents were reported at $16,838,811, down from $20,567,731 at the end of 2023[58]. Investments and Equity - As of June 30, 2024, the Group held equity securities investments in six unlisted companies with a total fair value of approximately US$24.7 million[27]. - The Group's equity interest in X-Times was diluted from 10% to approximately 4.0% as of June 30, 2024, due to capital injection agreements with independent PRC corporate investors[27]. - The Group considers its investment in X-Times as a strategic investment to broaden its IC solutions business segment[28]. - The Group's total capital contribution to the Hongtai Angel Fund was RMB100,000,000 (approximately USD15.3 million), with the Group holding a 36% equity interest[130]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with its provisions, except for the separation of the roles of chairman and chief executive[55]. - The dual role arrangement of chairman and chief executive is believed to provide strong leadership and effective business management[55]. - The Board will continue to review and monitor practices to maintain high standards of corporate governance[55]. Future Outlook - The Group's management remains optimistic about future growth opportunities in both domestic and international markets despite current challenges[11]. - The Group will continue to explore new market opportunities and drive business transformation in response to the trends in the global IC industry[30]. - The Group aims to enhance its hard power through investment layout, technology integration, and R&D upgrades to create greater value for shareholders[31].
国微控股(02239) - 2024 - 中期财报