Revenue Performance - The group's total revenue for the review period was approximately RMB 128,200,000, an increase of about RMB 37,700,000 or 41.6% compared to RMB 90,500,000 in the same period last year[8]. - Revenue from the packaging business rose 53.7% to RMB 127,600,000, accounting for approximately 99.6% of total revenue[5]. - The mobile gaming segment's revenue decreased by 92.4% to approximately RMB 600,000, representing about 0.4% of total revenue[6]. - Revenue from paper packaging products was RMB 127,596,000, an increase from RMB 83,003,000 in the same period last year, representing a growth of 53.7%[65]. - Revenue from mobile game development and distribution was RMB 569,000, down from RMB 7,502,000, indicating a decline of 92.4%[65]. - Total revenue for the group was RMB 128,165,000, compared to RMB 90,505,000 in the previous year, reflecting a growth of 41.6%[65]. Gross Profit and Margins - The overall gross profit decreased by approximately RMB 400,000 or about 2.3% to approximately RMB 16,900,000, with a gross margin decline from 19.2% to 13.2% due to a significant drop in revenue from the higher-margin mobile gaming business[16]. - The gross profit for flexo-printed boxes increased by approximately RMB 400,000 or about 15.7% to approximately RMB 3,100,000, while the gross margin fell from 8.9% to 6.9% due to rising raw material costs[17]. - The gross profit for litho-printed boxes rose by approximately RMB 5,300,000 or about 65.8% to approximately RMB 13,400,000, with a slight increase in gross margin from 15.2% to 16.2% as most raw material cost increases were passed on to customers[17]. - The mobile gaming business's gross profit plummeted by approximately RMB 6,100,000 or about 92.9% to approximately RMB 500,000, with a slight decrease in gross margin from 88.0% to 82.6%[17]. Expenses and Cost Management - Selling and distribution expenses increased by approximately RMB 900,000 or about 11.5% to approximately RMB 8,700,000, while the ratio of these expenses to total revenue decreased from 8.6% to 6.8%[20]. - Administrative expenses decreased by approximately RMB 8,000,000 or about 27.7% to approximately RMB 20,900,000, mainly due to a strategic review that reduced employee costs[21]. - The cost of goods sold surged to RMB 111,130,000 in the first half of 2021, compared to RMB 7,703,000 in the same period of 2020, reflecting a significant increase in operational costs[77]. - Employee costs decreased to RMB 20,357,000 in the first half of 2021, down from RMB 27,695,000 in the same period of 2020, a reduction of 26.7%[77]. Financial Position - As of June 30, 2021, cash and bank balances were approximately RMB 38,100,000, down from RMB 61,600,000 as of December 31, 2020[27]. - Trade receivables increased to approximately RMB 90,300,000 from approximately RMB 71,900,000, with turnover days rising from 121 days to 127 days[31]. - Total liabilities as of June 30, 2021, were RMB 599,559,000, compared to RMB 580,807,000 at the end of 2020, showing a slight increase[54]. - Current liabilities exceeded current assets by approximately RMB 406,844,000 as of June 30, 2021[60]. - Total assets decreased from RMB 403,884,000 as of December 31, 2020, to RMB 382,185,000 as of June 30, 2021[67]. - Total liabilities decreased from RMB 581,479,000 as of December 31, 2020, to RMB 602,328,000 as of June 30, 2021[67]. Strategic Initiatives - The group is currently reviewing its strategy and resources for the mobile gaming segment due to its declining performance[6]. - The packaging business is primarily focused on manufacturing and selling paper packaging products for various industries, including food and beverage, glass and ceramics, and chemicals[4]. - The group aims to enhance its market position through strategic reviews and potential new product developments in the packaging sector[4]. - The group will continue to focus on high-end packaging business opportunities, which require advanced technology and offer higher profit margins[33]. - The group is implementing cost control measures to achieve positive cash flow from operations[60]. - The company is exploring various alternatives to strengthen its capital base, including seeking new investments and business opportunities[60]. Governance and Compliance - The group has adopted the corporate governance code as per the listing rules and has complied with it during the review period[49]. - The company has established an audit committee to oversee financial reporting and internal controls, enhancing governance practices[51]. Losses and Dividends - The net loss for the period was RMB 51,912,000, a reduction from RMB 63,331,000 in the previous year, reflecting a 18.5% improvement[53]. - The company reported a basic and diluted loss per share of RMB 3.77 for the period, compared to a loss of RMB 4.60 in the same period last year[53]. - The company’s total comprehensive loss for the period was RMB 61,276,000, down from RMB 71,125,000 in the previous year[53]. - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[38].
移动互联(中国)(01439) - 2021 - 中期财报