Revenue Performance - For the six months ended June 30, 2020, revenue from the marble slabs business was approximately RMB 26.8 million, an increase of approximately RMB 11.1 million or 71.3% compared to RMB 15.7 million for the same period in 2019[13]. - Revenue from the marble slags business reached approximately RMB 12.7 million, representing a decrease of approximately RMB 0.9 million or 7.2% compared to RMB 13.6 million in the first half of 2019[20]. - The Group's revenue increased by approximately RMB10.2 million or 34.8% from approximately RMB29.3 million for HY2019 to approximately RMB39.5 million for HY2020[38]. - Total revenue for the six months ended June 30, 2020, was RMB 39,487,000, an increase from RMB 29,298,000 in the same period of 2019, representing a growth of approximately 34.7%[184]. - Revenue from marble slabs accounted for 68% of total revenue in 2020, up from 53% in 2019, while revenue from marble slags decreased to 32% from 47%[184]. Profitability and Loss - Gross profit decreased by approximately RMB1.8 million or 40.9% from approximately RMB4.4 million for HY2019 to approximately RMB2.6 million for HY2020[45]. - Gross profit margin decreased by approximately 8.4 percentage points from approximately 14.9% for HY2019 to approximately 6.5% for HY2020[46]. - The Group recorded a loss of approximately RMB17.9 million for HY2020, a decrease of approximately RMB2.7 million compared to a loss of RMB20.6 million for HY2019[50]. - The group reported a loss of approximately RMB 17,854,000 for the six months ended June 30, 2020, compared to a loss of RMB 20,606,000 in the same period of 2019, indicating an improvement in financial performance[195]. - Basic loss per share attributable to owners of the company was RMB 0.0063 for the six months ended June 30, 2020, compared to RMB 0.0073 for the same period in 2019[200]. Market Conditions and Outlook - The Group does not foresee signs of recovery in the construction materials market in the near term, which is closely linked to the property development industry[13]. - The economic outlook for China remains cautious due to the ongoing effects of the COVID-19 pandemic and tensions with the US[21]. - The Group believes the decline in the price of marble slags is temporary and expects recovery as demand for marble blocks revives with the resumption of construction projects[21]. - The Group's marble slabs sales increase during HY2020 was primarily due to pent-up demand during the COVID-19 pandemic[13]. Operational Developments - The COVID-19 pandemic caused production disruptions, halting marble slags production until around March 2020[20]. - The Group is adapting to market conditions by potentially converting part of its production capacity from marble blocks to marble slags[21]. - The Group's mining operations are expected to commence large block production no earlier than 2021, requiring further development of the mine[32]. - The Group plans to integrate the GCC business with the existing marble slag business, expecting to enhance competitiveness through stable supply and cost advantages[25]. Financial Position - As of 30 June 2020, the Group's total equity interests were approximately RMB331.5 million, a decrease of approximately RMB16.0 million or 4.6% from approximately RMB347.5 million as of 31 December 2019[51]. - The Group's cash and bank balances decreased to approximately RMB20.6 million as of 30 June 2020, down from RMB49.0 million as of 31 December 2019[58]. - Total borrowings amounted to approximately RMB8.0 million as of 30 June 2020, an increase from RMB4.3 million as of 31 December 2019[59]. - Trade receivables increased significantly to RMB 81,851,000, up 37.9% from RMB 59,368,000 as of December 31, 2019[151]. - Net assets as of June 30, 2020, were RMB 331,510,000, down from RMB 347,524,000 at the end of 2019[152]. Governance and Compliance - The company has not complied with code provisions A.2.1, A.1.8, and A.5.1 of the Corporate Governance Code during HY2020[102]. - The company has not established a nomination committee in compliance with the Corporate Governance Code due to a lack of independent non-executive directors following the AGM[99]. - The audit committee must comprise a minimum of 3 members, with a majority being independent non-executive Directors, as per Listing Rules[111]. - The Company is actively seeking suitable candidates to fill the vacancies for independent non-executive Directors to comply with Listing Rules[113]. Share Options and Dividends - The Board does not recommend the payment of an interim dividend for HY2020[143]. - The New Share Option Scheme was adopted on June 29, 2020, providing flexibility for long-term planning in granting options[132]. - No share options were granted under the New Share Option Scheme since its adoption[133]. - The total number of unexercised share options under the 2011 Share Option Scheme as of June 30, 2020, was 263,247,287[139].
中国金石(01380) - 2020 - 中期财报