Financial Performance - Revenue decreased from approximately RMB 180.1 million in the same period last year to approximately RMB 76.6 million, a decline of about 57.5%[1] - Gross profit fell from approximately RMB 59.2 million to approximately RMB 21.7 million, a decrease of about 63.3%[1] - The loss attributable to the company's owners for the period was RMB 6.9 million, compared to a profit of RMB 27.6 million in the same period last year[1] - Basic and diluted loss per share changed from a profit of RMB 4.6 cents to a loss of RMB 1.14 cents[2] - The company reported a loss attributable to owners of the company of RMB 6,794,000 for the six months ended June 30, 2024, compared to a loss of RMB 6,852,000 in the same period of 2023[16] - The company reported a loss of approximately RMB 6.9 million after tax for the period, a shift from a profit of approximately RMB 27.6 million in the same period last year, mainly due to reduced revenue from the temporary production stoppage and losses from the disposal of property, plant, and equipment[28] Assets and Liabilities - Total assets decreased from RMB 436.5 million at the end of 2023 to RMB 304.4 million as of June 30, 2024[3] - Current liabilities decreased from RMB 48.9 million to RMB 25.8 million, a reduction of approximately 47.3%[3] - The company's net assets decreased from RMB 472.9 million to RMB 466.6 million[3] - As of June 30, 2024, the total assets of the group were approximately RMB 499.0 million, a decrease from RMB 528.5 million as of December 31, 2023[29] - The debt-to-equity ratio was approximately 0.10% as of June 30, 2024, up from 0.02% as of December 31, 2023, mainly due to an increase in other borrowings[29] Revenue and Sales - Revenue for the six months ended June 30, 2024, was RMB 76,624,000, a decrease of 57.5% compared to RMB 180,091,000 for the same period in 2023[12] - The company recorded a total revenue of approximately RMB 76.6 million for the period, a decrease of about RMB 103.5 million or 57.5% compared to approximately RMB 180.1 million in the same period last year due to temporary production stoppage for repairs[26] - The two best-selling products, Shenqi Filler Pill and Qi Blood Double Supplement Pill, accounted for approximately 46.9% and 45.0% of total revenue respectively during the period[26] Expenses - Employee costs, including directors' remuneration, decreased to RMB 4,165,000 in 2024 from RMB 8,674,000 in 2023, reflecting a reduction of 52.1%[13] - Sales and distribution expenses decreased by approximately 15.3% to about RMB 10.5 million from approximately RMB 12.4 million in the same period last year, mainly due to reduced freight costs[27] - Administrative and other operating expenses increased by approximately 24.2% compared to the same period last year, primarily due to additional miscellaneous costs incurred during the temporary production stoppage[27] Cash Flow and Capital Expenditure - The net cash generated from operating activities during the period was approximately RMB 74.4 million, significantly up from RMB 3.7 million in the same period last year[30] - Capital expenditure for the period was approximately RMB 114.4 million, a substantial increase from RMB 4.9 million for the year ended December 31, 2023, primarily related to the acquisition of properties, plants, and equipment[33] Market and Strategy - The Chinese pharmaceutical market is projected to grow at a compound annual growth rate of 7.0%, with an expected market size exceeding RMB 510 billion by 2024[25] - The company plans to enhance its product portfolio in line with favorable government policies to promote the integration of traditional Chinese medicine into broader development strategies[25] - The group plans to enhance its distribution network in Northern and Eastern China, although the timeline has been adjusted due to economic conditions[36] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's unaudited interim results for the period[40] - The interim report for 2024 will be sent to shareholders and available on the stock exchange and the company's website at an appropriate time[41] Other Information - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on the financial statements[8] - The company did not recommend the payment of an interim dividend for the period, consistent with the same period last year[18] - There have been no significant events occurring after the reporting period up to the date of this announcement[39] - The group had no significant contingent liabilities as of June 30, 2024, consistent with the previous reporting period[31] - The group had no major investments, acquisitions, or disposals during the period, nor any plans for such activities as of June 30, 2024[33] - The company adopted a stock option plan approved by shareholders on December 18, 2020, with no options granted since the listing date of January 15, 2021, resulting in no unexercised options as of June 30, 2024[38]
现代中药集团(01643) - 2024 - 中期业绩