Financial Performance - For the six months ended June 30, 2019, the company reported revenue of RMB 34,266,000, an increase of 27.1% compared to RMB 26,931,000 for the same period in 2018[4] - The gross profit for the same period was RMB 1,420,000, compared to RMB 356,000 in 2018, indicating a significant improvement in profitability[4] - The company incurred a loss before tax of RMB 2,070,000, which is a reduction of 35.4% from a loss of RMB 3,212,000 in the previous year[4] - The net loss for the six months was RMB 2,069,000, compared to RMB 3,239,000 in the same period last year, reflecting a 36.2% improvement[4] - The company’s basic loss per share improved to RMB 0.41 from RMB 0.63 in the previous year, indicating a reduction in losses on a per-share basis[4] - The group reported a loss attributable to shareholders of approximately RMB 2,069,000, a decrease of about RMB 1,170,000 from RMB 3,239,000 in the same period of 2018, indicating a gradual reduction in losses[44] - The gross profit margin for the six months ended June 30, 2019, was 4.1%, up from 1.3% for the same period in 2018, reflecting ongoing cost control measures[44] Assets and Liabilities - As of June 30, 2019, the company's total current assets were RMB 16,185,000, down from RMB 26,126,000 at the end of 2018[5] - The company's cash and cash equivalents decreased to RMB 1,124,000 from RMB 10,558,000 at the end of 2018, representing a decline of 89.4%[8] - The total liabilities increased to RMB 60,311,000 from RMB 26,460,000, reflecting a substantial rise in financial obligations[5] - As of June 30, 2019, the group's current liabilities net amount was approximately RMB 44,126,000, compared to RMB 334,000 as of December 31, 2018[47] - The company has a loan from a major shareholder amounting to RMB 9,483,000, classified as a current liability due to its remaining term being less than 12 months[31] Revenue Sources - The company is primarily engaged in the sales of electronic equipment and components, focusing on controller systems and electronic parts in China[10] - For the six months ended June 30, 2019, the revenue from the sale of electronic equipment and components was RMB 34,266,000, an increase of 27.1% compared to RMB 26,931,000 for the same period in 2018[18] - Major customers contributed over 10% of total revenue, with Customer A generating RMB 14,485,000 and Customer B RMB 11,286,000 during the six months ended June 30, 2019[21] Costs and Expenses - The financing costs for the six months ended June 30, 2019, were approximately RMB 1,662,000, compared to RMB 1,539,000 for the same period in 2018, reflecting an increase of 8%[22] - The total employee costs for the six months ended June 30, 2019, amounted to RMB 903,000, up from RMB 723,000 in the same period of 2018, representing a rise of 24.9%[24] - The pre-tax loss for the six months ended June 30, 2019, included inventory costs recognized as expenses amounting to RMB 32,846,000, compared to RMB 26,575,000 for the same period in 2018, an increase of 23.6%[24] Shareholder Information - The company has a registered capital of RMB 0.10 per share for domestic shares and is listed on GEM for H-shares, which are traded in HKD[63] - As of June 30, 2019, the company had a total of 370,000,000 domestic shares held by Ruiyuan Robot, representing 74% of the total issued shares[64] - Major shareholders include Ruiyuan Robot, which holds 370,000,000 domestic shares (100% beneficial ownership) and accounts for approximately 74% of the registered capital[66] - Martin Currie China Hedge Fund Limited holds 14,245,000 H-shares, representing 10.96% of the H-share class and 2.85% of the registered capital[66] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with a noted deviation from A.2.1[72] - No arrangements were made for directors or major executives to hold any interests in the company's shares or related securities during the reporting period[68] - The company has not established any arrangements that would allow directors to gain benefits from purchasing shares or bonds of the company[68] - The company has adopted the trading standards as per GEM Listing Rules for its directors and supervisors[71] - There were no known interests or conflicts of interest among directors, supervisors, and management in any business directly or indirectly competing with the company[70] Management and Operations - The company does not have a CEO title, but daily operations are managed by executive directors and senior management[73] - The audit committee was established on June 1, 2003, and consists of three independent non-executive directors[76] - The company reviewed its accounting standards and practices with senior management, discussing internal controls and financial reporting matters[76] - The board of directors includes executive directors He Keng (Chairman), Wu Shan-hong, Chen Wei-qiang, and Ding Cheng[77] - Changes in the board include He Keng leaving Zhejiang Ruiyuan Machine Tool Co., Ltd. and joining Zhejiang Zhuji Ruiyuan Machine Tool Group Co., Ltd. as Chairman[74] - Wu Shan-hong left her position as Chief Financial Officer at Ruiyuan Machine Tool and became the CFO at Ruiyuan Machine Tool Group[74] - Chen Wei-qiang and Ding Cheng transitioned from Ruiyuan Machine Tool to Ruiyuan Machine Tool Group, taking on roles as Marketing Manager and Sales Manager respectively[74] Legal and Compliance - The company has made a provision of approximately RMB 86,000 for potential liabilities related to ongoing legal cases as of June 30, 2019[38] - There were no significant capital commitments as of June 30, 2019, consistent with the previous year[40] - The company did not declare any dividends for the six months ended June 30, 2019, consistent with the same period in 2018[26] - The group did not declare any dividends for the period, consistent with the previous year[46] - There were no significant acquisitions or disposals during the six months ended June 30, 2019[52]
瑞远智控(08249) - 2019 - 中期财报