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 period was RMB 33.8 million, compared to 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, an increase from RMB 55.5 million in the same period of 2023[2]. - The total revenue for the group for the six months ended June 30, 2024, was RMB 1,115,320,000, compared to RMB 1,068,591,000 for the same period in 2023, marking an increase of about 4.4%[14]. - The total comprehensive profit before tax for the group was RMB 43,600 thousand for the six months ended June 30, 2024, down from RMB 49,775 thousand in 2023, a decrease of about 12.4%[20]. Segment Performance - Revenue from the Digital Technology and Digital Security segment for the six months ended June 30, 2024, was RMB 78,037,000, up from RMB 75,765,000 in 2023, indicating a growth of 3.4%[14]. - Revenue from the Wireless Communication segment decreased to RMB 969,251,000 for the six months ended June 30, 2024, down from RMB 992,826,000 in 2023, reflecting a decline of approximately 2.4%[14]. - The group’s revenue from the New Energy and Services segment was RMB 68,032,000 for the six months ended June 30, 2024, compared to no revenue reported in the previous year, indicating a new revenue stream[14]. - The segment profit before tax for the digital technology and security division was RMB 31,346 thousand, down from RMB 47,991 thousand in the previous year, indicating a decline of about 34.7%[20]. - The wireless communication segment's revenue slightly decreased by RMB 23.2 million or 2.3% due to intense market competition[57]. Assets and Liabilities - The company's total assets as of June 30, 2024, were RMB 3,686.6 million, an increase from 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, compared to RMB 2,738.6 million as of December 31, 2023[6]. - The total liabilities increased to approximately RMB 1,760,277,000 as of June 30, 2024, compared to RMB 1,509,198,000 on December 31, 2023, reflecting a rise of about 16.6%[76]. - The asset-liability ratio of the group increased to 38% as of June 30, 2024, compared to 36% at the end of 2023[76]. Cash Flow and Financing - The group's cash and cash equivalents, including time deposits, amounted to approximately RMB 1,419,165,000 as of June 30, 2024, compared to RMB 1,380,821,000 at the end of 2023[75]. - Current and non-current bank loans totaled approximately RMB 1,011.4 million as of June 30, 2024, with a portion used to finance the acquisition of Zhongguang New Energy[74]. - A loan agreement was established for a principal amount of RMB 40 million with Nanjing Zhangyu Information Technology Co., Ltd., at an interest rate of 4.9%[47]. - A second loan agreement was signed for a principal amount of RMB 210 million, also at an interest rate of 4.9%, intended for potential acquisition costs related to Zhejiang Zhongguang New Energy Technology Co., Ltd.[47]. Dividends and Share Capital - 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 2023[28]. - The company issued new shares during the period, increasing the share capital to RMB 362.8 million as of June 30, 2024, from RMB 295.0 million at the beginning of the year[7]. - As of June 30, 2024, the company's total equity increased to 465,600 thousand shares, up from 388,000 thousand shares as of December 31, 2023, representing a 20% increase[29]. Expenses and Investments - Research and development expenses amounted to RMB 72,184 thousand for the six months ended June 30, 2024, compared to RMB 54,455 thousand in 2023, representing an increase of about 32.5%[25]. - Selling and distribution expenses rose by approximately RMB 11.4 million or 20.7% to 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 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]. - Capital expenditures for the six months ended June 30, 2024, were approximately RMB 17.0 million, significantly higher than RMB 6.6 million for the same period in 2023, indicating a 157.6% increase[32]. Acquisitions and Strategic Developments - The group completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. in the fiscal year ending December 31, 2023, which is expected to enhance its market position in the renewable energy sector[16]. - The acquisition of Shanghai Zhangyu Information Technology Co., Ltd. was completed on July 17, 2024, resulting in full ownership[43]. - The company plans to complete the acquisition of remaining shares in Nanjing Zhangyu and Shanghai Zhangyu in the second half of 2024, which is expected to diversify its business model and create stable revenue sources[82]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[90]. - The independent non-executive directors deemed the service contract terms fair and reasonable, aligning with the overall interests of the company and its shareholders[45]. - The loan agreements were approved at the company's special general meetings held on July 19, 2023, and April 26, 2024[47][48]. Market and Industry Insights - The semiconductor industry saw a global revenue increase of 19.3% year-on-year in May 2024, with China experiencing a growth of 24.2%[78]. - The total installed capacity of wind and solar power in China surpassed 1 billion kilowatts, accounting for about 36% of the total power generation capacity[79]. - The cumulative installed capacity of solar thermal power in China was only 588 MW by the end of 2022, highlighting the growth potential in the sector[80].
亨鑫科技(01085) - 2024 - 中期财报