Financial Performance - Revenue for the three months ended June 30, 2021, was RMB 21,196 thousand, a decrease of 11.8% compared to RMB 23,977 thousand for the same period in 2020[4] - Gross profit for the six months ended June 30, 2021, was RMB 8,559 thousand, down 35.5% from RMB 13,305 thousand in the same period of 2020[4] - The net loss for the six months ended June 30, 2021, was RMB 1,484 thousand, compared to a profit of RMB 4,945 thousand for the same period in 2020[4] - Total revenue for the six months ended June 30, 2021, was RMB 34,819,000, a decrease of 6.4% compared to RMB 37,008,000 for the same period in 2020[19] - The company reported a basic and diluted earnings per share of RMB 0.14 for the six months ended June 30, 2021, compared to RMB 0.73 for the same period in 2020[4] - Basic earnings per share for the six months ended June 30, 2021, was RMB 0.14, a decrease of 81.9% compared to RMB 0.73 for the same period in 2020[31] - The company reported a pre-tax profit of RMB 25,921,000 for the six months ended June 30, 2021, compared to RMB 24,792,000 for the same period in 2020, reflecting a year-on-year increase of 4.6%[23] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 75,515 thousand, a decrease from RMB 81,316 thousand as of December 31, 2020[6] - Current liabilities decreased to RMB 26,839 thousand as of June 30, 2021, from RMB 33,708 thousand as of December 31, 2020[6] - Non-current assets as of June 30, 2021, totaled RMB 16,113 thousand, slightly down from RMB 16,326 thousand as of December 31, 2020[6] - The company’s net asset value increased to RMB 59,736 thousand as of June 30, 2021, from RMB 59,090 thousand as of December 31, 2020[6] - Total assets as of June 30, 2021, were approximately RMB 91.6 million, down from RMB 97.6 million as of December 31, 2020[68] - Total liabilities as of June 30, 2021, were approximately RMB 31.9 million, a decrease from RMB 38.6 million as of December 31, 2020[68] Cash Flow - Cash and cash equivalents at the end of the period were RMB 8,744 thousand, down from RMB 16,545 thousand at the beginning of the period[12] - The company incurred a net cash outflow from operating activities of RMB 6,972 thousand for the six months ended June 30, 2021, compared to RMB 11,026 thousand for the same period in 2020[12] - Net cash used in operating activities for the six months ended June 30, 2021, was approximately RMB 7.0 million, down from RMB 11.0 million for the same period in 2020[70] - Cash used in investing activities increased to approximately RMB 703,000 for the six months ended June 30, 2021, compared to RMB 131,000 for the same period in 2020, due to increased acquisitions of property, plant, and equipment[70] Sales and Market Performance - Sales of fiberglass products for the six months ended June 30, 2021, included RMB 19,730,000 from fiberglass grating products, RMB 160,000 from phenolic grating products, and RMB 14,929,000 from epoxy wedge products[19] - Domestic market sales increased by approximately 4.1% to about RMB 226 million, accounting for approximately 65.0% of total sales for the six months ended June 30, 2021, up from 58.8% in the same period of 2020[50] - Sales of fiberglass grating products became the largest revenue source, contributing approximately 56.7% to total revenue, with sales increasing by about RMB 17 million or 9.4% to RMB 197 million[53] - Sales of phenolic grating products slightly decreased by about 1.8% to approximately RMB 160,000, with a gross profit margin decline of 3.4 percentage points to 36.4%[54] - Sales of epoxy wedge products decreased by approximately RMB 39 million or 20.6% to RMB 149 million, with a gross profit margin dropping by 19 percentage points to 20.4%[54] - Sales to the Chinese market increased to approximately RMB 226 million, while sales to the US and UK markets decreased by approximately 12.0% and 29.2%, respectively[60][61] Costs and Expenses - Other income for the six months ended June 30, 2021, totaled RMB 75,000, a decrease of 70.7% compared to RMB 256,000 for the same period in 2020[21] - Research and development costs for the six months ended June 30, 2021, amounted to RMB 1,472,000, a decrease of 47.5% compared to RMB 2,804,000 for the same period in 2020[24] - The company’s total employee costs for the six months ended June 30, 2021, were RMB 6,111,000, an increase of 2.7% compared to RMB 5,952,000 for the same period in 2020[23] - The company’s sales and distribution costs increased by approximately RMB 202,000 or 10.4% to about RMB 2.1 million, mainly due to rising employee costs and marketing expenses[64] - Administrative expenses decreased by approximately RMB 2.4 million or 34.8% to about RMB 4.5 million for the six months ended June 30, 2021, primarily due to reductions in R&D and printing expenses[65] Shareholder Information - The company has a total of 400,000 thousand shares issued and fully paid as of June 30, 2021, unchanged from the previous year[41] - Major shareholders include LFS and LFB, each holding 123,600,000 shares (30.9%), and Yunhong holding 40,000,000 shares (10.0%) as of June 30, 2021[93] - As of June 30, 2021, Mr. Li holds 163,600,000 shares, representing 40.9% of the company's equity, through controlled corporations LFB and Yunhong[87] Corporate Governance - The company confirmed that there are no controlling shareholders or related parties involved in any competing business as of June 30, 2021[99] - The board proposed to change the company's English name from "MEIGU Technology Holding Group Limited" to "Yunhong Guixin Group Holdings Limited" and the Chinese name accordingly[100] - The name change proposal requires approval from shareholders at a special meeting and registration with the Cayman Islands Registrar[101] - The company has adopted the GEM Listing Rules regarding securities trading by directors, confirming compliance during the six months ended June 30, 2021[103] - The company believes it has complied with all applicable corporate governance codes as per the GEM Listing Rules during the reporting period[104] - An audit committee was established on December 16, 2016, to oversee financial reporting, internal controls, and risk management[105]
硅鑫集团(08349) - 2021 - 中期财报