Financial Performance - The company reported revenue of RMB 1,858,000 for the six months ended June 30, 2020, compared to no revenue in the same period of 2019[6]. - Gross profit for the period was RMB 202,000, resulting in a gross margin of approximately 10.9%[6]. - Other income increased to RMB 16,576,000 from RMB 13,516,000 year-over-year, representing a growth of 22.8%[6]. - The company achieved a profit before tax of RMB 4,733,000, a significant improvement from a loss of RMB 5,735,000 in the previous year[6]. - Net profit for the period was RMB 1,609,000, compared to a net loss of RMB 5,735,000 in the same period of 2019[6]. - Total comprehensive income for the period amounted to RMB 571,000, recovering from a loss of RMB 3,999,000 in the previous year[8]. - Basic and diluted earnings per share were RMB 0.21, compared to a loss per share of RMB 0.65 in 2019[8]. - The total loss before tax for the six months ended June 30, 2020, was RMB (3,918,000), a significant improvement compared to a loss of RMB (9,914,000) for the same period in 2019[24]. - The company recognized a net loss of RMB (2,724,000) from fair value changes of financial assets measured at fair value through profit or loss for the six months ended June 30, 2020[24]. - The company’s total unallocated corporate income was RMB 13,821,000, while unallocated corporate expenses were RMB (4,539,000) for the six months ended June 30, 2020[24]. - The company’s income tax expense for the six months ended June 30, 2020, was RMB 3,124,000, with RMB 3,120,000 attributed to China and RMB 4,000 to Japan[35]. - For the six months ended June 30, 2020, the company reported a profit attributable to owners of approximately RMB 1,849,000, compared to a loss of RMB 5,735,000 for the same period in 2019[43]. - The pre-tax profit for the period was RMB 4,733,000, a significant improvement from a loss of RMB 5,735,000 in the previous year[41]. - Total income tax expense for the period was RMB 3,124,000, with no tax expense reported in the same period last year[41]. Assets and Liabilities - The company's total assets as of June 30, 2020, were RMB 587,350,000, slightly down from RMB 592,613,000 at the end of 2019[10]. - Current liabilities increased to RMB 93,888,000 from RMB 52,771,000 at the end of 2019, indicating a rise in short-term obligations[10]. - The company's equity attributable to owners was RMB 636,287,000, a slight increase from RMB 635,476,000 at the end of 2019[11]. - Total assets of the reportable segments increased to RMB 374,706,000 as of June 30, 2020, compared to RMB 373,952,000 as of December 31, 2019, reflecting a growth of 0.2%[29]. - Total liabilities of the reportable segments rose to RMB 39,882,000 as of June 30, 2020, up from RMB 31,043,000 as of December 31, 2019, indicating an increase of 28.5%[29]. - The company’s total liabilities included notes payable of RMB 9,068,000 as of June 30, 2020, compared to RMB 8,886,000 as of December 31, 2019[55]. - The company’s total liabilities increased significantly, with unallocated and other company liabilities rising to RMB 94,968,000 as of June 30, 2020, compared to RMB 62,984,000 as of December 31, 2019, an increase of 50.8%[29]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 14,814,000, an increase of 44% compared to RMB 10,270,000 for the same period in 2019[15]. - The net cash used in financing activities was RMB (371,000) for the six months ended June 30, 2020, compared to RMB 1,231,000 for the same period in 2019, indicating a significant decrease in financing inflow[15]. - The total cash and cash equivalents at the end of the period was RMB 17,870,000, down from RMB 21,418,000 at the end of June 30, 2019, reflecting a decrease of 16%[15]. - As of June 30, 2020, the group had cash and bank balances of approximately RMB 17,900,000, an increase from RMB 3,500,000 as of December 31, 2019[73]. - The group's net current assets were approximately RMB 53,200,000 as of June 30, 2020, down from RMB 56,500,000 as of December 31, 2019[73]. Operational Highlights - The company reported a total revenue of RMB 1,858,000 from pipeline system products for the six months ended June 30, 2020, with a segment loss of RMB (795,000)[24]. - Revenue from pipeline system product sales was RMB 1,858,000 for the six months ended June 30, 2020, compared to no revenue in the same period of 2019[33]. - The company recognized government subsidies of approximately RMB 183,000 related to COVID-19 during the six months ended June 30, 2020[34]. - The company has taken steps to mitigate risks associated with the temporary decline in its pork business by leasing out some slaughterhouses and breeding farms for a monthly rent of RMB 760,000[65]. - The company is planning to cautiously resume pig breeding while considering various factors, including the risk of infection and price fluctuations[66]. - The company’s sales and distribution expenses were approximately RMB 13,000, consistent with the suspension of pork production and sales[70]. - The company continues to assess the financial performance of its cash-generating units in light of the ongoing impact of African swine fever on its operations[54]. Corporate Governance - The audit committee is responsible for overseeing the financial controls, risk management, and internal control systems of the group[107]. - The company has adopted the corporate governance code as set out in Appendix 14 of the Listing Rules[105]. - All directors confirmed compliance with the standards set out in the code during the six months ending June 30, 2020[104]. - The company has maintained compliance with all code provisions during the six months ending June 30, 2020[106]. - Mr. Huang resigned as an independent non-executive director of Depu Technology Development Co., Ltd. effective March 2, 2020[109]. - Mr. Huang also resigned from his position as an independent non-executive director of Qidi International Co., Ltd. effective July 17, 2020[109]. - Mr. Huang was appointed as an executive director of Nuofa Group Holdings Limited on July 15, 2020[109]. Employee and Shareholder Information - The total employee costs amounted to RMB 2,149,000, slightly down from RMB 2,220,000 in the previous year[41]. - The company employed 40 staff as of June 30, 2020, a decrease from 42 staff as of December 31, 2019[83]. - The company has not recognized any potential dilution of ordinary shares, resulting in basic and diluted earnings per share being the same[44]. - As of June 30, 2020, the total number of issued ordinary shares of the company was 880,838,000[96]. - Executive director Chen Shizheng holds 8,684,000 shares, representing approximately 0.99% of the company's total shares[95]. - The company granted a total of 40,000,000 share options on April 10, 2017, with an exercise price of HKD 0.51 per share[99]. - On July 17, 2018, the company granted an additional 45,788,000 share options, with an exercise price of HKD 0.207 per share[99]. - As of June 30, 2020, a total of 73,420,000 share options were granted, with no options exercised, cancelled, or lapsed during the six months ending on that date[101]. - The board resolved not to declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[82].
惠生国际(01340) - 2020 - 中期财报