Financial Performance - For the six months ended June 30, 2024, the group recorded unaudited revenue of approximately RMB 39.7 million, an increase of about 16.4% compared to RMB 34.1 million for the same period in 2023[2] - The unaudited loss for the six months ended June 30, 2024, was approximately RMB 6.5 million, compared to a loss of RMB 1.3 million for the same period in 2023[2] - Basic loss per share for the six months ended June 30, 2024, was RMB 0.7 cents, compared to RMB 0.1 cents for the same period in 2023[2] - Gross profit for the six months ended June 30, 2024, was RMB 10.7 million, compared to RMB 10.0 million for the same period in 2023[3] - The company reported a total of RMB (41,067,000) in comprehensive loss for the six months ended June 30, 2024, compared to a loss of RMB (14,197,000) for the same period in 2023, indicating a significant increase in losses[6] - The gross profit margin decreased by 2.2 percentage points from approximately 29.3% to 27.1% during the same period[33] Expenses and Liabilities - Selling and distribution expenses increased to RMB 2.5 million for the six months ended June 30, 2024, from RMB 1.9 million in the same period in 2023[3] - Administrative expenses rose significantly to RMB 15.0 million for the six months ended June 30, 2024, compared to RMB 9.4 million for the same period in 2023[3] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (16,424,000), compared to RMB (8,052,000) for the same period in 2023, indicating a decline in cash flow from operations[8] - Current liabilities increased to RMB 15.1 million as of June 30, 2024, compared to RMB 11.8 million as of June 30, 2023[4] - Total employee costs increased to RMB 13,751,000 in the first half of 2024, up from RMB 9,375,000 in the same period of 2023, reflecting a rise of approximately 46.5%[18] Assets and Equity - Total assets as of June 30, 2024, were RMB 49.9 million, an increase from RMB 40.5 million as of June 30, 2023[4] - The company's total equity increased to RMB 34,520,000 as of June 30, 2024, compared to RMB 28,372,000 as of June 30, 2023, reflecting a year-over-year increase of about 21.8%[6] - Trade receivables increased to RMB 20.3 million as of June 30, 2024, from RMB 12.8 million as of June 30, 2023[4] - As of June 30, 2024, the company's cash and cash equivalents decreased to RMB 15,837,000 as of June 30, 2024, down from RMB 26,995,000 as of June 30, 2023, showing a reduction of approximately 41.2%[8] Business Operations and Strategy - The company has expanded its business operations to include the production and trading of functional textile products in China, indicating a strategic move towards diversification[9] - The company plans to invest more resources in identifying potential customers in China and exploring opportunities with domestic and overseas apparel brands to increase sales and enhance profitability[32] - The company continues to explore new business opportunities to broaden its revenue sources, including through various channels for selling apparel-related products[32] - The company is focusing on online sales channels and development for functional textile products, with an investment of HKD 3.0 million planned[59] Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, compliant with GEM listing rules[64] - The company has maintained the highest standards of corporate governance, adhering to all applicable rules during the reporting period[65] - The Audit Committee was established on June 24, 2017, consisting of three independent non-executive directors[69] - The main responsibilities of the Audit Committee include reviewing financial statements and providing recommendations on the appointment and removal of external auditors[69] Fundraising and Financial Management - The company raised RMB 11,819,000 through the issuance of new shares during the financing activities for the six months ended June 30, 2024[8] - The company raised a total of HKD 12.9 million through the placement of 170 million shares in January and May 2024[27] - The net proceeds from the listing amounted to approximately HKD 37.6 million (approximately RMB 32.7 million) after deducting listing-related expenses[52] - The company has stored all unutilized net proceeds in licensed banks in Hong Kong or China as of June 30, 2024[54] Risks and Challenges - The company faces significant risks including potential impacts from public health events, rising raw material costs, and intense competition in the apparel materials industry[51] - The company plans to continue cost control measures and expand its customer base and product variety in response to challenges in the Chinese apparel materials market[49]
新达控股(08471) - 2024 - 中期业绩