Financial Performance - For the six months ended June 30, 2019, Baofeng Modern reported a revenue of approximately RMB 99.9 million, a decrease of 1.7% from RMB 101.7 million in the same period of 2018[12][15]. - The gross profit for the period was RMB 19.0 million, resulting in a gross profit margin of 19.0%, down from 24.6% in 2018[14][16]. - The company experienced a loss for the period of RMB 40.3 million, compared to a loss of RMB 55.0 million in the previous year, indicating a 26.8% improvement[13][14]. - Revenue from graphene-based products decreased significantly, with graphene-based EVA foam material and slippers contributing to this decline[15]. - Revenue from Boree branded products decreased by 48.3% to approximately RMB 1.1 million during the Period, primarily due to a decline in online sales[20]. - Revenue from Graphene-based products fell by 76.2% to approximately RMB 0.5 million, down from RMB 2.3 million in 2018, attributed to issues with the third generation DIY automated vending system[18]. - The Group recorded a net loss of approximately RMB 40.3 million for the Period, an improvement from a net loss of RMB 55.0 million in 2018[19]. - The consolidated loss attributable to owners of the Company for the period was approximately RMB 40,255,000, a decrease from 55,001,000 in 2018, reflecting an improvement of approximately 26.7%[162]. Revenue Segments - The OEM business segment generated revenue of RMB 98.3 million, a slight increase of 1.0% from RMB 97.3 million in 2018[13]. - The OEM business revenue slightly increased by 1.0% to approximately RMB 98.3 million, driven by new customer orders, despite a decrease in gross profit to approximately RMB 18.5 million from RMB 23.6 million in 2018[21]. - The Group's segment revenue for Boree branded products was RMB 1,110,000, for Graphene-based products was RMB 546,000, and for OEM was RMB 98,292,000, totaling RMB 99,948,000[138]. Cost Management - Selling and distribution expenses increased by 9.2% to approximately RMB 6.5 million, accounting for 6.5% of the Group's revenue, due to additional resources allocated to retain and explore new customers[23]. - General and administrative expenses decreased by approximately RMB 2.2 million or 8.2% to RMB 24.5 million, mainly due to a reduction in share-based payment expenses[25]. - The cost of inventories sold for the six months ended June 30, 2019, was RMB 81,007,000, an increase from RMB 77,109,000 in 2018, representing a growth of approximately 2.46%[155]. - Research and development costs for the period were RMB 4,971,000, up from RMB 3,704,000 in 2018, indicating a year-over-year increase of about 34.2%[155]. Assets and Liabilities - Current asset ratio improved to 21.9% from 12.7% in the previous year, indicating better liquidity management[14]. - As of June 30, 2019, cash and bank balances increased by 53.7% to approximately RMB 32.4 million from RMB 21.1 million as of December 31, 2018[27]. - The total liabilities of the Group as of June 30, 2019, were RMB 210,681,000, with corporate and other unallocated liabilities of RMB 210,381,000[139]. - The Group's short-term borrowings were approximately RMB 121.1 million as of June 30, 2019, slightly down from RMB 123.1 million as of December 31, 2018[27]. Share Capital and Equity - Shareholders' equity decreased to RMB 320.7 million from RMB 367.3 million, reflecting a 12.7% decline[14]. - The total number of shares in issue as of June 30, 2019, is 1,486,859,608 shares[52]. - The company issued new shares resulting in an increase of RMB 12,552,000 in share capital during the six months ended June 30, 2019[85]. - The total number of share options granted during the period is not specified, but outstanding options remain at 136,880,000[57]. Strategic Developments - The company is focusing on the development of the fourth generation DIY automated vending system, with a prototype trial run initiated in late December 2018[15]. - The fourth generation DIY automated vending system is expected to launch in the market in the fourth quarter of 2019, featuring advantages such as simple installation and low power consumption[38]. - The Group has initiated discussions with hospitals to promote graphene-based shoes for pregnant women, targeting a market launch in the second half of 2019[41]. - A carbon-based energy storage batteries research and development line was established in the first half of 2019, with the first batch of samples meeting required standards[43]. Compliance and Governance - The company has complied with the Corporate Governance Code, with some deviations noted regarding the roles of Chairman and CEO[69]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[162]. - The Directors believe that the Group has a good track record with banks, which will enhance its ability to renew bank borrowings upon expiry[95]. Accounting Policies - The Group adopted IFRS 16 using the modified retrospective method of adoption effective January 1, 2019[105]. - The Group recognized right-of-use assets and lease liabilities for previously classified operating leases, with lease liabilities based on the present value of remaining lease payments discounted at an incremental borrowing rate of 4.95%[106]. - Right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term[119].
金阳新能源(01121) - 2019 - 中期财报