Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 1,112.8 million, a decrease of 38.5% compared to RMB 1,809.7 million for the same period in 2019[7]. - Adjusted gross profit margin for the six months ended June 30, 2020, was 5.7%, down from 19.7% in the same period of 2019, representing a decline of 14.0%[7]. - Consolidated net loss for the six months ended June 30, 2020, was RMB (246.5) million, compared to RMB (59.7) million in the same period of 2019, indicating an increase of over 100% in losses[7]. - Basic and diluted loss per share for the six months ended June 30, 2020, was RMB (3.97), compared to RMB (0.96) for the same period in 2019, reflecting an increase of over 100% in losses per share[7]. - For the six months ended June 30, 2020, the loss attributable to equity shareholders increased by approximately RMB186.8 million or 312.9% to about RMB246.5 million compared to the same period last year[9]. - Total comprehensive loss for the period attributable to equity shareholders was RMB 283,741, compared to a loss of RMB 42,446 in 2019[100]. Revenue Breakdown - Revenue from the domestic market decreased by about RMB192.0 million or 28.0% to approximately RMB495.6 million, contributing about 44.5% of total revenue[11]. - Revenue from the overseas market decreased by about RMB504.8 million or 45.0% to approximately RMB617.3 million, contributing about 55.5% of total revenue[11]. - Revenue from contracts with customers in Mainland China was RMB 495,566,000, a decline of 28% compared to RMB 687,570,000 in 2019[129]. - Revenue from the United States was RMB 156,418,000, down 34.5% from RMB 239,283,000 in the previous year[129]. - The United Kingdom contributed RMB 130,781,000, a decrease of 54% from RMB 284,841,000 in 2019[129]. - Revenue from Australia fell to RMB 85,724,000, down 70.6% from RMB 291,985,000 in the same period last year[129]. Cost and Expenses - The cost of sales decreased by about RMB544.6 million or 37.8% to approximately RMB897.5 million compared to the same period last year[13]. - Selling expenses increased by about RMB4.9 million or 11.9% to about RMB45.9 million, accounting for approximately 4.1% of operating revenue[15]. - Administrative expenses decreased by about RMB67.8 million or 20.5% to about RMB262.4 million, representing approximately 23.6% of operating revenue[15]. - The Group's other income decreased by about RMB9.6 million or 49.2% to about RMB9.9 million compared to RMB19.5 million in the same period last year[15]. - The adjusted gross profit for the reportable segments was RMB 63,279,000 for the first half of 2020, down from RMB 356,943,000 in the same period of 2019, reflecting a significant decline[135]. Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2020, was RMB (933.0) million, a decrease of 12.6% compared to RMB (1,067.4) million for the same period in 2019[7]. - Cash used in operating activities for the same period was RMB 933,038,000, a decrease from RMB 1,067,352,000 in the previous year, indicating improved cash flow management[117]. - Cash and cash equivalents at June 30, 2020, were RMB 311,027,000, a decrease from RMB 559,265,000 at the beginning of the year, primarily due to cash outflows from operations[117]. - The company generated net cash from financing activities of RMB 826,959,000, significantly higher than RMB 195,780,000 in the previous year, indicating increased borrowing to support operations[117]. Assets and Liabilities - As of June 30, 2020, total assets amounted to RMB 7,912,071,000, a decrease from RMB 8,399,134,000 as of December 31, 2019, representing a decline of approximately 5.8%[102]. - Current liabilities decreased to RMB 6,004,120,000 from RMB 6,624,937,000, reflecting a reduction of about 9.4%[102]. - The total equity decreased to RMB 2,447,954,000 from RMB 2,731,695,000, representing a decline of about 10.4%[104]. - The total amount of trade and bills receivables, net of loss allowance, was RMB 4,398,183 thousand as of June 30, 2020, up from RMB 4,232,149 thousand at December 31, 2019, indicating an increase of about 3.9%[165]. - The total financial liabilities measured at amortised cost decreased to RMB 1,736,416 thousand as of June 30, 2020, from RMB 2,582,442 thousand at December 31, 2019, indicating a reduction of about 32.8%[178]. Employee and Management - As of June 30, 2020, the Group had 3,523 full-time employees, a decrease from 4,016 as of December 31, 2019, due to headcount optimization[44]. - The Group's remuneration policy includes basic salary, allowances, fringe benefits, and discretionary bonuses, aligning with market conditions and individual performance[44]. - The Group's management has sound policies for management incentives and competitive remuneration to align interests among management, employees, and shareholders[44]. Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code for the six months ended June 30, 2020[80]. - The interim financial report has been reviewed and approved by the audit committee, ensuring accountability and transparency[80]. Future Plans and Investments - The Group intends to use proceeds from its global offering for expansion of production capacity, repayment of existing debts, investment in research and development, and expansion of its sales and marketing network[27]. - The Group did not make any significant investments during the reporting period[27]. - The Group has no future plans for significant investments or capital assets as of the date of this interim report[27].
远大中国(02789) - 2020 - 中期财报