Financial Performance - For the six months ended June 30, 2019, the revenue was approximately RMB 254.8 million, an increase of about 0.2% or RMB 0.6 million compared to the same period in 2018[5]. - The gross profit for the same period was approximately RMB 55.2 million, a decrease of about 13.1% or RMB 8.3 million compared to the previous year[5]. - The gross profit margin was approximately 21.6%, down about 3.3% from approximately 24.9% in the same period of 2018[5]. - The profit attributable to owners of the company changed from a profit of approximately RMB 16.1 million for the six months ended June 30, 2018, to a loss of approximately RMB 7.8 million for the same period in 2019[5]. - The group’s revenue for the six months ended June 30, 2019, was approximately RMB 254.8 million, an increase of about 0.2% compared to the same period in 2018[18]. - The gross profit decreased by approximately 13.1% to about RMB 55.2 million, with a gross profit margin dropping from approximately 24.9% to about 21.6% due to rising raw material costs[19]. - The company recorded a loss attributable to owners of approximately RMB 7.8 million, compared to a profit of RMB 16.1 million in the same period last year[26]. - The company reported a comprehensive loss of RMB 8,350 thousand for the period, compared to a comprehensive income of RMB 18,382 thousand in 2018[60]. - Basic and diluted loss per share was RMB (0.026), compared to earnings per share of RMB 0.054 in the same period last year[60]. - The company reported a net loss of RMB 7,836 thousand for the six months ended June 30, 2019, compared to a profit of RMB 16,051 thousand in the same period of 2018, indicating a significant downturn[63]. Operational Changes - The average turnover days for trade receivables decreased from about 99 days at the end of 2018 to approximately 76 days for the six months ended June 30, 2019[5]. - The average turnover days for trade payables increased from about 260 days at the end of 2018 to approximately 279 days for the same period in 2019[6]. - The company plans to focus on upgrading its product mix to mid-to-high-end paper cigarette packaging to meet consumer demand[9]. - The company aims to explore new business and revenue sources and will actively develop international trade business[10]. - In July 2019, the company changed its name from "Travel International Holdings Limited" to "Jia Yao Holdings Limited" to seek new opportunities for business diversification[10]. - The company will closely monitor and actively respond to any changes in tobacco control policies and regulations in China[10]. - The company is committed to investing in machinery and equipment to enhance production facilities and ensure productivity meets international standards[15]. - The group emphasizes product design and technology development to strengthen its competitive edge in the market[16]. - The company is actively seeking new business opportunities and expanding into international trade, particularly in the Asian mobile accessories market[12]. - The company plans to enhance product development and design to attract younger consumers, focusing on high-end cigarette packaging as a primary revenue source[41]. - The company aims to expand its business into new areas, including international trade, to drive future growth[41]. Financial Position - Total assets decreased to RMB 643,506 thousand as of June 30, 2019, down 17.83% from RMB 782,970 thousand at the end of 2018[61]. - Total liabilities decreased to RMB 398,382 thousand, down 24.83% from RMB 529,496 thousand at the end of 2018[62]. - Cash and cash equivalents decreased to RMB 123,896 thousand from RMB 212,527 thousand, a decline of 41.73%[61]. - Inventory decreased to RMB 121,113 thousand, down 21.87% from RMB 154,984 thousand in the previous year[61]. - The company maintained a healthy current asset net of approximately RMB 57.4 million as of June 30, 2019, compared to RMB 58.0 million at the end of 2018[29]. - Interest-bearing borrowings decreased from RMB 140.8 million to RMB 134.4 million, with a debt ratio of 4.1% as of June 30, 2019[30]. - Trade and other receivables decreased by approximately 5.2% from RMB 133.9 million to RMB 127.0 million, with trade receivables dropping from RMB 113.8 million to RMB 63.1 million[27]. - Trade and other payables decreased by approximately 32.4% from RMB 384.9 million to RMB 260.0 million, with trade payables falling from RMB 189.4 million to RMB 86.6 million[28]. - The company’s retained earnings decreased to RMB 30,214 thousand as of June 30, 2019, down from RMB 38,050 thousand at the beginning of the year, a decline of approximately 20.5%[63]. - The company’s total liabilities secured by land use rights and property, plant, and equipment amounted to RMB 25,000,000 as of June 30, 2019[94]. Cost and Expenses - Distribution costs increased by approximately 15.4% to about RMB 23.3 million, primarily due to increased customer hospitality expenses during market expansion activities in China[20]. - Administrative expenses rose by approximately 21.5% to about RMB 33.6 million, mainly due to increased spending on new product research and development[21]. - Total operating expenses for the six months ended June 30, 2019, were RMB 256,562,000, an increase of 7.43% from RMB 238,676,000 in 2018[84]. - The cost of inventory for the six months ended June 30, 2019, was RMB 178,622,000, up from RMB 157,784,000 in 2018, reflecting an increase of 13.16%[84]. - The total employee cost for the first half of 2019 was approximately RMB 35.5 million, a decrease from RMB 41.6 million in the same period of 2018[39]. Shareholder Information - The company’s major shareholders include Mr. Yang, holding approximately 69.79% of the shares, and Mr. Feng, holding about 5.21%[42]. - The company has adopted a share option scheme allowing a maximum of 30,000,000 shares to be granted, which is 10% of the shares issued at the time of listing[49]. - No share options have been granted, exercised, cancelled, or lapsed under the share option scheme since its adoption until the report date[50]. - As of June 30, 2019, the company had a total of 300,000,000 shares issued, with major shareholders holding significant stakes, including Spearhead Leader with 69.79% and Star Glide Limited with 5.21%[46][47]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2019[53]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results, ensuring compliance with applicable accounting standards and regulations[55]. - The company has not adopted any new accounting standards that would have a significant impact on its financial statements for the period[69]. Other Financial Metrics - Government grants for the six months ended June 30, 2019, amounted to RMB 2,817,000, compared to RMB 840,000 in 2018, representing a significant increase of 235.71%[82]. - The company incurred a total comprehensive loss of RMB 8,011 thousand for the six months ended June 30, 2019, compared to a total comprehensive income of RMB 18,335 thousand in the same period of 2018[63]. - The company reported a significant decrease in property, plant, and equipment, with a value of RMB 20,238 thousand as of June 30, 2019, down from RMB 30,921 thousand as of December 31, 2018, representing a decline of 34.5%[109].
嘉耀控股(01626) - 2019 - 中期财报