Financial Performance - The company reported a revenue decrease of approximately RMB 51.7 million or 51.7% to approximately RMB 48.2 million for the six months ended June 30, 2020, compared to RMB 99.9 million in 2019[8]. - Gross profit margin dropped to approximately 12.5% for the period, down from approximately 19.0% in the corresponding period of 2019[9]. - The net loss for the period was approximately RMB 11.4 million, an improvement from a net loss of approximately RMB 40.3 million in the same period last year[9]. - Revenue from OEM business was RMB 46.7 million, significantly impacted by reduced consumer demand and price cuts requested by major customers[6]. - The company recorded a gross profit of RMB 6.0 million, down from RMB 19.0 million in the previous year[7]. - The Group's revenue decreased by approximately RMB 51.7 million or 51.7% to approximately RMB 48.2 million for the six months ended June 30, 2020, compared to RMB 99.9 million in the same period of 2019[10]. - The gross profit margin dropped from approximately 19.0% in 2019 to about 12.5% in 2020 due to price cuts requested by major OEM customers[10]. - The net loss for the period was approximately RMB 11.4 million, a decrease from a net loss of RMB 40.3 million in the same period last year, primarily due to a reduction in intangible asset amortization and employee benefit expenses[10]. - Revenue from the OEM business fell by 52.5% to approximately RMB 46.7 million, down from RMB 98.3 million in 2019[11]. - The Group reported a net cash inflow from operating activities of approximately RMB 6.0 million, an increase of 200.7% compared to RMB 2.0 million in the same period last year[15]. - Cash and bank balances increased by 162.0% to approximately RMB 10.7 million as of June 30, 2020, compared to RMB 4.1 million as of December 31, 2019[15]. - The consolidated loss attributable to owners of the Company for the period was approximately RMB 11,412,000, a significant improvement from RMB 40,255,000 in the previous year, representing a reduction of about 71.6%[112]. Assets and Liabilities - Shareholders' equity decreased to RMB 37.7 million from RMB 320.7 million in the previous year[7]. - Non-current assets were reported at RMB 162.9 million, down from RMB 415.1 million in 2019[7]. - As of June 30, 2020, the Group's gearing ratio was 530.2%, up from 466.4% on December 31, 2019[20]. - The Group's debt ratio as of June 30, 2020, was 84.1%, compared to 82.3% on December 31, 2019[21]. - The total number of employees decreased to approximately 530 as of June 30, 2020, from 740 employees on December 31, 2019, with total staff costs amounting to approximately RMB 21,884,000[21]. - Net current liabilities increased to RMB 122,468 as of June 30, 2020, compared to RMB 102,812 at the end of 2019[70]. - Total liabilities exceeded total assets by approximately RMB 147,807,000 as of June 30, 2020, indicating significant doubt on the Group's ability to continue as a going concern[79]. - Secured bank loans amounting to RMB 98,000,000 were classified as current liabilities due to a repayment on demand clause[81]. - The Group's total liabilities as of June 30, 2020, were RMB 226,420,000, compared to RMB 226,120,000 as of December 31, 2019, indicating a marginal increase[96]. Revenue Breakdown - Revenue from graphene-based products slightly decreased to approximately RMB 0.4 million during the period, down from RMB 0.5 million in 2019, due to delays in product launches[12]. - Revenue for the six months ended June 30, 2020, was RMB 48,240, a decrease of 51.8% from RMB 99,948 in the same period of 2019[68]. - Revenue from external customers in the PRC was RMB 3,060,000 for the six months ended June 30, 2020, down from RMB 4,406,000 in 2019, representing a decline of 30.5%[96]. - Revenue from external customers in the US was RMB 41,106,000 for the six months ended June 30, 2020, down from RMB 93,398,000 in 2019, a decrease of 56%[96]. - Major customer A contributed RMB 27,719,000 in revenue for the six months ended June 30, 2020, down from RMB 47,456,000 in 2019, a decline of 41.7%[99]. - The company’s revenue from Customer B was RMB 9,064,000 for the six months ended June 30, 2020, compared to RMB 6,088,000 in 2019, representing a growth of 48.8%[99]. Cost Management - Selling and distribution expenses decreased by 39.0% to approximately RMB 4.0 million, accounting for 8.2% of the Group's revenue[13]. - General and administrative expenses decreased by approximately RMB 4.6 million or 18.9% to approximately RMB 19.9 million, mainly due to a reduction in share-based payment expenses[14]. - The cost of inventories sold for the period was approximately RMB 42,007,000, a decrease from RMB 81,007,000 in the previous year, reflecting a reduction of about 48.1%[105]. - Employee benefit expenses totaled RMB 21,884,000 for the period, down from RMB 30,875,000 in the previous year, reflecting a decrease of approximately 29.1%[105]. Research and Development - The management is focusing on research and development of carbon-based energy storage batteries to explore new markets and business opportunities[22]. - Research and development costs for the period amounted to RMB 5,104,000, compared to RMB 4,971,000 in the previous year, indicating an increase of approximately 2.7%[107]. Share Options and Capital - The total number of outstanding share options as of June 30, 2020, is 136,880,000[44]. - The total number of shares issued by the company was 1,486,859,608[37]. - The company adopted the Share Option Scheme on January 8, 2011[42]. - The exercise price per share for options granted on December 10, 2015, is HK$0.81, and for those granted on June 19, 2018, is HK$0.54[46]. - The total number of share options granted during the period is 241,180,000[45]. - The exercise period for options granted on December 10, 2015, is from December 10, 2015, to December 9, 2020[46]. - The total number of share options exercised during the period is not specified but is part of the outstanding total[45]. Corporate Governance - The company has complied with the Corporate Governance Code, with some deviations noted[58]. - The roles of Chairman and Chief Executive Officer are held by Mr. Zheng Jingdong, which the board believes provides strong leadership[59]. - The company has adopted the Model Code for securities transactions by directors, and all directors confirmed compliance during the period[60]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a strong independence element[59]. Future Outlook - The Group expects delayed customer orders in the first half of the year to gradually resume in the second half, with anticipated year-on-year sales growth in July and August for the OEM business[28]. - The Group aims to produce low-cost, long-life carbon-based energy storage batteries, targeting completion of all testing in 2020, and plans to enter the energy storage industry post-mass production[32]. - The Group has allocated more resources to online sales in the PRC, focusing on the design and sales of indoor slippers, with the newly launched graphene-based sterilizing slippers "Graphener" expected to see continuous sales growth in the second half of the year[29].
金阳新能源(01121) - 2020 - 中期财报