Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 273.4 million, an increase of about 480.9% compared to RMB 47.1 million for the same period in 2023[2] - The gross profit for the same period was approximately RMB 28.2 million, compared to a gross loss of approximately RMB 1.4 million in 2023[2] - The loss attributable to the company's owners was approximately RMB 0.9 million, a decrease of about 82.9% from RMB 5.6 million in the same period of 2023[2] - The basic and diluted loss per share attributable to the company's owners was approximately RMB 0.08, compared to RMB 0.44 in 2023[3] - The company reported a total segment performance of RMB 28,158 thousand for the six months ended June 30, 2024, compared to a loss of RMB 1,432 thousand in the same period of 2023[11] - The company recorded a net loss attributable to owners of RMB 948,000 for the six months ended June 30, 2024, compared to a net loss of RMB 5,552,000 for the same period in 2023[25] - The group recorded a net loss of approximately RMB 0.9 million during the interim period, a decrease of about 82.9% compared to the same period in 2023[51] Revenue Breakdown - The revenue from the manufacturing lace segment was RMB 7,342 thousand, down from RMB 11,876 thousand in 2023, indicating a decline of about 38%[11] - The revenue from the dyeing and finishing services segment increased to RMB 31,656 thousand from RMB 21,803 thousand, reflecting a growth of approximately 45%[11] - The footwear segment generated revenue of RMB 234,399 thousand, a substantial increase from RMB 13,386 thousand in the previous year, marking a growth of around 1,600%[11] - Revenue recognized over time from service provision was RMB 38,998 thousand for the six months ended June 30, 2024, compared to RMB 33,679 thousand in 2023, showing an increase of about 16%[12] - Revenue from product sales at a point in time was RMB 234,399 thousand, a significant rise from RMB 13,386 thousand in the previous year, indicating a growth of approximately 1,600%[12] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 442.7 million, down from RMB 492.2 million as of December 31, 2023[5] - Total liabilities decreased to RMB 127.9 million as of June 30, 2024, from RMB 176.3 million as of December 31, 2023[6] - The company's cash and cash equivalents were RMB 212.4 million as of June 30, 2024, compared to RMB 269.0 million at the end of 2023[5] - Trade receivables as of June 30, 2024, were RMB 84,568,000, an increase from RMB 81,377,000 as of December 31, 2023, representing a growth of about 3%[29] - The total trade payables as of June 30, 2024, were RMB 68,164,000, down from RMB 108,793,000 as of December 31, 2023, reflecting a decrease of approximately 37.3%[36] Expenses - Total expenses for the six months ended June 30, 2024, amounted to RMB 277,675,000, a significant increase from RMB 56,375,000 in the same period of 2023[17] - Research and development expenses for the six months ended June 30, 2024, amounted to RMB 8,603 thousand, compared to RMB 6,546 thousand in 2023, representing an increase of approximately 31%[11] - Selling and distribution expenses increased 23.7 times to approximately RMB 16.2 million, correlating with the rise in footwear revenue[48] - Administrative expenses rose significantly to RMB 1,377,000 for the six months ended June 30, 2024, compared to RMB 443,000 for the same period in 2023, marking an increase of approximately 211%[28] Cash Flow and Financing - The group had borrowings of approximately RMB 37.2 million as of June 30, 2024, compared to RMB 36.9 million as of December 31, 2023[52] - The net financing cost for the interim period was approximately RMB 0.1 million, compared to a net financing income of about RMB 1.1 million in the same period of 2023[50] - The group plans to reallocate approximately HKD 16.9 million of unutilized proceeds for repaying interest-bearing borrowings by December 31, 2024[60] Corporate Governance and Compliance - The company has adopted a set of corporate governance practices in compliance with the corporate governance code[69] - The audit committee reviewed the group's unaudited interim financial information during the interim period[67] Future Outlook - The company plans to gradually reduce investments in lace manufacturing and dyeing services, focusing more on the footwear business to mitigate risks and improve financial performance[40] - The company aims to enhance production efficiency and reduce operating costs while adhering to environmental policies and strengthening R&D capabilities[40] - The demand for dyeing services and lace products is still recovering and has not yet returned to pre-pandemic levels[62]
应星控股(01440) - 2024 - 中期业绩