Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 22,894,000, a 38.5% increase from RMB 16,494,000 in the same period of 2020[4] - The gross profit for the same period was RMB 1,205,000, compared to RMB 271,000 in 2020, reflecting a significant improvement[4] - The company incurred a loss before tax of RMB 2,356,000, which is a reduction from a loss of RMB 3,133,000 in the prior year[4] - The net loss for the six months was RMB 2,376,000, down from RMB 3,115,000 in the same period last year, indicating a narrowing of losses[4] - The company's basic loss per share for the six months was RMB 0.48, an improvement from RMB 0.62 in the same period last year[4] - The loss attributable to shareholders for the six months ended June 30, 2021, was approximately RMB 2,376,000, a decrease of about RMB 739,000 from RMB 3,115,000 for the same period in 2020[40] - The gross profit margin for the six months ended June 30, 2021, was 5.26%, up from 1.64% for the same period in 2020, due to product upgrades and reduced sales costs[40] Assets and Liabilities - As of June 30, 2021, the company's total current assets were RMB 10,822,000, a decrease from RMB 15,472,000 at the end of 2020[6] - The company's current liabilities totaled RMB 24,856,000, down from RMB 29,649,000 at the end of 2020, showing improved liability management[6] - Trade receivables as of June 30, 2021, amounted to RMB 8,379,000, an increase from RMB 5,509,000 as of December 31, 2020, with the aging analysis showing all receivables within 90 days[28] - Trade payables as of June 30, 2021, totaled RMB 9,448,000, compared to RMB 7,402,000 as of December 31, 2020, with RMB 748,000 overdue for more than 365 days[29] - As of June 30, 2021, the group's current liabilities net amount was approximately RMB 14,034,000 and capital deficiency was approximately RMB 42,343,000, indicating significant uncertainty regarding the ability to continue as a going concern[14] - As of June 30, 2021, the group's current liabilities net amount was approximately RMB 14,034,000, a decrease from RMB 14,177,000 as of December 31, 2020[45] - Current assets as of June 30, 2021, were approximately RMB 10,822,000, down from RMB 15,472,000 as of December 31, 2020, with cash and bank balances at RMB 1,142,000 compared to RMB 10,147,000 previously[45] Cash Flow and Financing - The cash and cash equivalents at the end of the period were RMB 1,142,000, significantly lower than RMB 10,147,000 at the beginning of the period[9] - The company reported a net cash outflow from financing activities of RMB 10,403,000 for the six months, compared to RMB 12,848,000 in the same period of 2020[9] - The financing cost for the six months ended June 30, 2021, was approximately RMB 2,674,000, compared to RMB 1,743,000 for the same period in 2020[22] - The group had no bank borrowings as of June 30, 2021, and loans from a major shareholder amounted to approximately RMB 28,595,000, an increase from RMB 25,921,000 as of December 31, 2020[46] Business Operations and Strategy - The group operates a single business unit focused on the sale of electronic equipment and components, primarily in China[20] - The group plans to enhance measures to increase operating capital and cash flow, including closely monitoring administrative expenses and operating costs[14] - The company is actively expanding its existing business and exploring new business opportunities in response to the recovering market economy[38] - The group plans to explore business opportunities in intelligent control systems for heavy industries, such as applications in industrial robots, amid increasing competition in the controller systems market[48] - The company has signed cooperation letters of intent and purchase contracts with multiple trading agents, focusing on metal casting and precision machinery companies to expand its market presence[37] - The company plans to continue purchasing a series of processing equipment to develop new products and enhance its market competitiveness[37] - The group has established strategic partnerships with multiple companies to expand its product and sales markets, focusing on electronic components, communication equipment, and industrial electronic intelligent control systems[42] Corporate Governance and Compliance - The company has confirmed that the information in the report is accurate and complete, with no misleading elements[2] - The company has complied with the corporate governance code as per GEM Listing Rules, with a noted deviation from code provision A.2.1[70] - The company has not adopted new accounting standards that have been issued but not yet effective as of June 30, 2021[16] - The company has not disclosed any changes in the information of directors and supervisors as required by GEM Listing Rules[69] - The board of directors believes that the absence of a CEO does not hinder operational oversight due to the experienced composition of the board[71] - The Audit Committee was established on June 1, 2003, consisting of three independent non-executive directors[72] - The Audit Committee reviewed the accounting standards and practices adopted by the group, discussing internal controls and financial reporting matters[72] - The unaudited consolidated financial statements for the six months ended June 30, 2021, were reviewed by the Audit Committee[72] Shareholder Information - As of June 30, 2021, the company has a total of 370,000,000 domestic shares, representing 74% of the total issued shares[62] - Major shareholders include Ruiyuan Robotics, which holds 370,000,000 domestic shares, accounting for 74% of the registered capital[63] - The company’s major shareholders include Hangzhou Qindie and Zhuji Jinfeng, both holding 370,000,000 domestic shares, representing 74%[64] - The mandatory cash offer concluded with Mr. He holding an interest in 1,000 H shares, representing 0.0008% of the total[70] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[66] - The board did not recommend any dividend payment for the six months ending June 30, 2021, consistent with the previous year[44] - No dividends were declared for the six months ended June 30, 2021, consistent with the previous year[26] Impact of COVID-19 - The impact of the COVID-19 pandemic has severely disrupted many business operations, making it difficult to estimate the overall effect on the group's business[55] - For the six months ended June 30, 2021, the company recorded a revenue of approximately RMB 22,894,000, an increase of about RMB 6,400,000 compared to RMB 16,494,000 for the same period in 2020, reflecting a recovery from the COVID-19 pandemic[40]
瑞远智控(08249) - 2021 - 中期财报