Financial Performance - For the six months ended June 30, 2020, the total sales revenue was approximately RMB 540,575,000, a decrease of 9.0% compared to RMB 593,763,000 for the same period in 2019[8]. - The gross profit for the same period was approximately RMB 55,876,000, down about 18.7% from RMB 68,704,000 in the previous year[9]. - The profit attributable to shareholders for the six months ended June 30, 2020, was approximately RMB 532,000, a significant decline from RMB 15,077,000 in the same period of 2019[15]. - The company's revenue for the first half of 2020 was RMB 540,575 thousand, a decrease of 8.95% compared to RMB 593,763 thousand in 2019[76]. - Gross profit for the first half of 2020 was RMB 55,876 thousand, down 18.66% from RMB 68,704 thousand in the same period last year[76]. - The net profit for the period was RMB 379 thousand, a significant decline of 97.52% compared to RMB 15,218 thousand in 2019[78]. - The total comprehensive income for the period was RMB 973 thousand, down from RMB 15,385 thousand in the previous year, reflecting a decrease of 93.66%[78]. - The pre-tax profit for the first half of 2020 was RMB 532,000, compared to RMB 15,077,000 in the same period of 2019, indicating a significant decline[101]. Expenses and Liabilities - The company's selling expenses decreased by approximately 8.3% to RMB 29,069,000 from RMB 31,702,000 in the previous year[12]. - The management expenses increased by approximately 3.2% to RMB 26,237,000 compared to RMB 25,908,000 in the previous year[13]. - Current liabilities decreased to RMB 408,448 thousand from RMB 487,938 thousand, a reduction of 16.26%[81]. - Total payables and accrued expenses were RMB 408,448,000 as of June 30, 2020, down from RMB 487,938,000 at the end of 2019, showing a reduction of approximately 16.3%[110]. Assets and Equity - As of June 30, 2020, the equity was approximately RMB 690,681,000, with current assets of approximately RMB 818,924,000[16]. - The company's total assets as of June 30, 2020, were RMB 818,924 thousand, compared to RMB 935,050 thousand at the end of 2019, indicating a decrease of 12.43%[81]. - Trade receivables as of June 30, 2020, were RMB 371,669,000, a decrease from RMB 435,748,000 as of December 31, 2019, representing a decline of about 14.7%[104]. Cash Flow - Cash inflow from operating activities was RMB 36,476 thousand, a substantial increase from RMB 3,222 thousand in the same period last year[87]. Shareholder Structure - The company has a significant shareholder structure, with Masuda Katsunori and Masuda Toshimitsu each holding 233,316,864 shares, representing 36.65% of the total equity[46]. - Xu Yong holds 90,086,400 shares, accounting for 14.15% of the company's equity[46]. - The company has a total of 110,880,000 shares held by Superview International Investment Limited, which represents 17.42% of the equity[53]. - The company has a total of 60,104,640 shares held by Ding Hongguang, representing 9.44% of the equity[53]. - Conpri holds a 25.8% interest in the issued share capital of the company through its ownership in Yucheng Machinery[53]. Corporate Governance - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[57]. - The company has established an audit committee consisting of three independent non-executive directors to review financial reports and internal control procedures[58]. - The company has adopted and complied with the corporate governance code, ensuring adherence to relevant regulations[73]. - The company has not purchased directors and officers insurance, believing that the board understands the business risks adequately[73]. Operational Challenges - The company faced challenges due to COVID-19, leading to reduced product orders from some customers, impacting overall financial performance[7]. Future Plans - The company plans to utilize approximately HKD 30 million of unutilized net proceeds for the construction of a new factory in Changchun, China, instead of Tianjin, to meet operational needs[30]. Dividend Policy - The board has proposed not to declare an interim dividend for the six months ending June 30, 2020[43]. - The company did not declare any dividends for the period, maintaining a focus on reinvestment[76]. Compliance and Reporting - The company has disclosed sufficient information in accordance with applicable accounting standards and regulations[56]. - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant financial impact on the interim financial statements[90]. - The unaudited condensed consolidated income statement for the six months ended June 30, 2020, is available for review[75].
YUSEI(00096) - 2020 - 中期财报