Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 55,949,000, an increase of 8.6% compared to RMB 51,710,000 for the same period in 2023[1] - Gross profit decreased to RMB 6,298,000, resulting in a gross margin of 11.3%, down from 32.3% in the previous year[1] - Net loss for the period was RMB 23,149,000, compared to a net loss of RMB 20,610,000 in the same period last year[2] - Total revenue for the six months ended June 30, 2024, was RMB 55,949,000, an increase from RMB 51,710,000 for the same period in 2023, representing a growth of 8.6%[9] - The group reported a total loss before tax of RMB 23,122,000 for the six months ended June 30, 2024, compared to a loss of RMB 20,225,000 for the same period in 2023[10] - The group incurred total expenses of RMB 49,651,000 for the six months ended June 30, 2024, compared to RMB 33,316,000 in the previous year, reflecting an increase of 48.9%[13] - The gross profit margin decreased, leading to a net loss increase from RMB 20.6 million to RMB 23.1 million during the same period[22] Revenue Breakdown - Revenue from kitchenware decreased to RMB 22,555,000, down 30.8% from RMB 32,568,000 in the previous year, while health product revenue increased to RMB 33,394,000, up 74.6% from RMB 19,142,000[9] - The revenue from health products accounted for 59.7% of total revenue in the six months ended June 30, 2024, compared to 37.0% in the same period of 2023[24] - Approximately RMB 40,528,000 of revenue for the six months ended June 30, 2024, came from three external customers, each contributing over 10% to total revenue[12] Expenses and Costs - Research and development expenses were RMB 2,798,000, a decrease from RMB 3,568,000 in the previous year[2] - Administrative expenses decreased by 16.7% to RMB 9.5 million, mainly due to reduced employee welfare expenses[35] - Research and development expenses decreased by 22.2% to RMB 2.8 million, primarily due to cost control measures implemented by the company[36] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 153,451,000, down from RMB 165,740,000 as of December 31, 2023[4] - Total liabilities increased to RMB 118,638,000 from RMB 107,533,000 at the end of the previous year[5] - Cash and cash equivalents decreased significantly to RMB 2,835,000 from RMB 33,951,000[4] - Trade receivables net amount as of June 30, 2024, was RMB 41.157 million, compared to RMB 18.406 million as of December 31, 2023, representing a significant increase[17] - The group's current assets net value was approximately RMB 11.6 million, down from RMB 32.9 million as of December 31, 2023[42] - The group's total borrowings amounted to approximately RMB 72.5 million as of June 30, 2024, an increase from RMB 69.5 million as of December 31, 2023[42] - The current ratio as of June 30, 2024, was 1.1 times, down from 1.3 times as of December 31, 2023[43] - The debt-to-equity ratio was 2.1 as of June 30, 2024, compared to 1.2 as of December 31, 2023[43] - The weighted average interest rate on borrowings was approximately 10.32% as of June 30, 2024, up from 9.76% as of December 31, 2023[42] Shareholder Information - The company did not declare any dividends for the six months ended June 30, 2024, and 2023[20] - The company completed a placement of 42,310,000 new shares at a price of HKD 0.52 per share, raising approximately HKD 21.0 million net proceeds[60] - Approximately 95.2% of the net proceeds from the placement will be used to repay other borrowings of the group[60] - As of June 30, 2024, Seashore Global holds 15,000,000 shares, representing approximately 19.84% of the company's equity[52] Corporate Governance - The company has adopted a set of corporate governance practices that comply with the requirements of the corporate governance code[59] - The board believes that having the same person serve as both Chairman and CEO provides strong and consistent leadership for the company[59] - The company has confirmed compliance with the standard code of conduct for securities transactions by directors during the interim period[58] Employment and Management - The group employed 127 employees as of June 30, 2024, a decrease from 205 employees as of December 31, 2023[47] - An independent non-executive director, Mr. Wang Shifang, has signed a service contract with the company for a term of one year starting from June 24, 2023, to June 23, 2024, with a one-month written notice required for termination[61] - Another independent non-executive director, Mr. Li Wei, has a service contract effective from January 25, 2023, to January 24, 2024, also requiring a one-month written notice for termination[61] - An executive director, Ms. Ji Zanyue, has a service contract for three years from June 24, 2021, to June 23, 2024, with a three-month written notice required for termination[61] Market Conditions - The company's sales through online platforms accounted for 9.8% of total revenue for the six months ended June 30, 2024[26] - The company's revenue from direct sales through distributors and physical sales locations was RMB 45.531 million, representing 81.4% of total revenue[26] - Sales revenue from corporate clients decreased by 80.0% to RMB 0.2 million, mainly due to a reduction in sales orders from Chinese property developers[28] - Sales revenue from online platforms decreased by 48.5% to RMB 5.5 million, driven by reduced consumer spending due to economic conditions[29] - Sales revenue from physical retail locations increased by 61.4% to RMB 40.0 million, primarily due to increased sales of health products[30]
智慧健康科技(01715) - 2024 - 中期业绩