Financial Performance - For the six months ended June 30, 2024, revenue decreased by approximately 10.2% to about RMB 57.1 million, compared to RMB 63.6 million for the same period in 2023[1] - Gross profit for the same period decreased by approximately 3.8% to about RMB 5.0 million, down from RMB 5.2 million in the prior year[1] - The company recorded a loss attributable to shareholders of approximately RMB 2.3 million, compared to a loss of RMB 3.9 million for the same period in 2023[1] - Basic loss per share for the six months ended June 30, 2024, was approximately RMB 0.3 cents, compared to RMB 0.5 cents for the same period in 2023[1] - Total revenue decreased from approximately RMB 63.6 million for the six months ended June 30, 2023, to approximately RMB 57.1 million for the current reporting period, a decline of about RMB 6.5 million or 10.2%[28] - The total loss and comprehensive loss decreased from approximately RMB 3.9 million to about RMB 2.3 million, mainly due to cost control measures[38] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 309.6 million, down from RMB 365.1 million as of December 31, 2023[5] - Current assets decreased to RMB 263.7 million from RMB 319.1 million at the end of the previous year[5] - Cash and cash equivalents decreased to RMB 67.2 million from RMB 95.1 million as of December 31, 2023[5] - The total equity attributable to shareholders was RMB 217.9 million, slightly down from RMB 220.2 million at the end of 2023[6] - Non-current liabilities decreased to RMB 90.1 million from RMB 143.3 million at the end of the previous year[6] - Trade receivables (net) as of June 30, 2024, were RMB 105,247,000, down from RMB 131,766,000 as of December 31, 2023, indicating a decrease of approximately 20.2%[23] Expenses - Total expenses for the six months ended June 30, 2024, amounted to RMB 61,858 thousand, down from RMB 69,431 thousand in the previous year, reflecting a decrease of 10.1%[15] - The cost of raw materials and goods used was RMB 49,310 thousand, a decrease of 11.5% from RMB 55,879 thousand in the prior year[15] - Employee costs were RMB 5,557 thousand, slightly down from RMB 5,807 thousand, indicating a reduction of 4.3%[15] - Sales expenses increased from approximately RMB 2.2 million to about RMB 2.5 million, an increase of approximately RMB 0.3 million or 13.6%[31] - Administrative expenses decreased from approximately RMB 8.8 million to about RMB 7.3 million, primarily due to reductions in product development costs and employee expenses[32] Taxation and Financial Policies - The group has been granted a preferential income tax rate of 15% as a high-tech enterprise in China for the six months ended June 30, 2024[18] - The group has implemented a 200% super deduction for eligible R&D expenses when determining taxable profits, which may positively impact future financial results[18] - The group expects no significant impact from the adoption of new accounting standards effective from January 1, 2024[10] - The group has not adopted new standards that will take effect in 2025 and 2027, which are not expected to have a significant impact on financial results[10] Shareholder Information - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[1] - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[22] - The company’s director, Mr. Chen, holds 339,040,000 shares, representing 42.38% of the total equity[55] - Director Mr. Yu holds 96,000,000 shares, accounting for 12.00% of the total equity[55] - Major shareholder Cheng Yi Limited owns 339,040,000 shares, which is 42.38% of the total equity[57] - Major shareholder Kai Dong Limited holds 146,960,000 shares, representing 18.37% of the total equity[57] - Major shareholder Yong Ning Limited owns 96,000,000 shares, which is 12.00% of the total equity[57] Employment and Workforce - The group had 109 employees as of June 30, 2024, down from 117 employees a year earlier[49] - Employee costs for the group totaled approximately RMB 5.6 million during the reporting period, compared to RMB 5.8 million in the same period of 2023[49] Corporate Governance - The company has established an audit committee to oversee financial reporting and compliance, consisting of three independent non-executive directors[63] - The audit committee has reviewed the unaudited interim financial results for the six months ending June 30, 2024, and agrees with the accounting treatment adopted by the company[64] - The company confirms compliance with the standard code for securities trading as of June 30, 2024[52] - There are no management or administrative contracts related to significant portions of the company's business during the reporting period[61] Future Outlook - The company anticipates a recovery in orders during the second half of 2024, as the reduction in orders is considered temporary[28] - The company expects stable demand for tobacco products in the foreseeable future, despite government smoking control policies[27] - The company is positioned to benefit from the shift towards mid-to-high-end tobacco products, which typically require advanced packaging materials[27] - The company has a strong R&D capability to provide customized products to its clients in the tobacco packaging industry[27] Capital and Investments - Capital expenditures during the reporting period included approximately RMB 0.6 million for machinery and about RMB 0.4 million for electronic and other equipment[42] - As of June 30, 2024, the group's capital commitments amounted to approximately RMB 2.1 million, an increase from RMB 1.9 million as of December 31, 2023[43] - The group reported no significant contingent liabilities as of June 30, 2024, and December 31, 2023[43] - The group had no major acquisitions or disposals during the reporting period, and there are no significant future investment plans as of June 30, 2024[43] - The group’s net cash available from the IPO, after deducting related expenses, was approximately HKD 90.3 million, with HKD 53.4 million remaining unutilized as of June 30, 2024[47] - The group has pledged assets including properties valued at approximately RMB 10.5 million and machinery valued at RMB 5.9 million as collateral for bank loans as of June 30, 2024[44] Stock Options - The company has adopted a stock option plan, allowing for the issuance of 80,000,000 shares, representing 10% of the issued shares as of January 1, 2024, and June 30, 2024[60] - No stock options have been granted under the stock option plan since its adoption, resulting in no exercised, canceled, or expired options as of June 30, 2024[60] - The company has not set any secondary limits for service providers under the stock option plan[60] Miscellaneous - The company has not reported any new strategies or market expansions in the provided documents[53] - The company expresses gratitude to its management team and employees for their hard work and dedication during the reporting period[66] - The interim report for the six months ending June 30, 2024, will be published in accordance with listing rules[65] - The company has not engaged in any purchases, sales, or redemptions of its listed securities[53] - The group has no significant events occurring after the reporting period[50]
伟立控股(02372) - 2024 - 中期业绩