Financial Performance - Revenue for the six months ended June 30, 2024, increased by approximately RMB 46.7 million or 4.4% to approximately RMB 1,115.3 million compared to the same period in 2023[1] - Gross profit for the same period increased by approximately RMB 2.4 million or 1.2% to approximately RMB 210.2 million, while the gross margin decreased by approximately 0.6 percentage points to about 18.8%[1] - Net profit attributable to equity shareholders for the six months ended June 30, 2024, decreased by approximately RMB 23.5 million or 46.9% to approximately RMB 26.6 million compared to the same period in 2023[1] - Basic earnings per share for the same period were approximately RMB 0.065, a decrease of approximately RMB 0.064 or 49.6% year-on-year[1] - Total comprehensive income for the six months ended June 30, 2024, was RMB 33.8 million, down from RMB 41.6 million in the same period of 2023[3] - Operating profit for the six months ended June 30, 2024, was RMB 67.5 million, compared to RMB 55.5 million in the same period of 2023[2] - The company reported a total pre-tax profit of RMB 43,600 thousand for the six months ended June 30, 2024, compared to RMB 49,775 thousand in the same period of 2023[20] - Other operating income increased by approximately RMB 21.3 million or 85.9% to approximately RMB 46.1 million in the first half of 2024, primarily due to increased interest income and government subsidies[60] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 3,686.6 million, compared to RMB 3,598.9 million as of December 31, 2023[6] - The company's net asset value increased to RMB 2,859.8 million as of June 30, 2024, from RMB 2,738.6 million as of December 31, 2023[6] - The total equity as of June 30, 2024, was RMB 2,859,849,000, up from RMB 2,738,573,000 as of January 1, 2024, showing an increase of approximately 4.4%[6] - The total liabilities increased to approximately RMB 1,760,277,000, up 16.6% from RMB 1,509,198,000 as of December 31, 2023[76] - The asset-liability ratio increased to 38% as of June 30, 2024, compared to 36% as of December 31, 2023[76] Revenue Segments - Revenue from digital technology and digital security for the six months ended June 30, 2024, was RMB 78,037,000, an increase from RMB 75,765,000 in 2023, reflecting a growth of approximately 3.4%[14] - Revenue from wireless communication for the six months ended June 30, 2024, was RMB 969,251,000, a decrease from RMB 992,826,000 in 2023, indicating a decline of about 2.4%[14] - The new energy and services segment generated revenue of approximately RMB 68.0 million in the first half of 2024 from solar sales, marking a significant contribution to the company's diversified revenue streams[56] - The digital technology and digital security segment recorded revenue of approximately RMB 78.0 million in the first half of 2024, with customized chip services contributing RMB 49.7 million[78] Expenses and Costs - Selling and distribution expenses rose by approximately RMB 11.4 million or 20.7% to approximately RMB 66.4 million in the first half of 2024, driven by increased salary expenses and transportation costs[61] - Administrative expenses increased by approximately RMB 21.8 million or 76.8% to approximately RMB 50.2 million in the first half of 2024, mainly due to the consolidation of administrative expenses from the acquisition of Zhongguang New Energy[62] - Research and development expenses rose to RMB 72,184 thousand in the first half of 2024, up from RMB 54,455 thousand in the same period of 2023, marking an increase of 32.5%[25] - Interest expenses surged by approximately RMB 18.2 million or 319.3% to approximately RMB 23.9 million in the first half of 2024, primarily due to bank loan interest related to the acquisition of Zhongguang New Energy[65] Shareholder and Dividend Information - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company did not propose or declare any interim dividends for the six months ended June 30, 2024, and June 30, 2023[28] - The company has proposed not to distribute any dividends for the six months ending June 30, 2024[92] Acquisitions and Investments - The company completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. by December 31, 2023, leading to a restructuring of its reportable segments[16] - The acquisition of Nanjing Zhangyu was completed on July 17, 2024, allowing the company to indirectly own 100% of its equity, which will not constitute a continuing connected transaction under the listing rules[50] - The company entered into a share acquisition agreement on May 20, 2024, to acquire the remaining 49% equity of Nanjing Zhangyu and Shanghai Zhangyu Information Technology Co., Ltd. for a total consideration of RMB 522 million[96] Operational Developments - The company is focused on expanding its operations in digital technology, digital security, and renewable energy services, particularly in solar power production and sales[9][13] - The company continues to develop new technologies and products in the semiconductor and digital security sectors, aiming to enhance its market position[9][13] - The company has established an employee equity incentive plan to motivate key employees for sustainable development[95] Market and Economic Outlook - The group anticipates continued economic growth in China due to strong macroeconomic policies, creating numerous investment opportunities during the economic transition[82] - The group expects that the diversification of its business and synergy among its segments will provide a solid foundation for stable and sustainable development, creating greater value for shareholders[82] Compliance and Governance - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2024[90] - The independent non-executive directors have deemed the terms of the service contract fair and reasonable, aligning with the interests of the company and its shareholders[45]
亨鑫科技(01085) - 2024 - 中期业绩