Financial Performance - The group's unaudited revenue for the six months ended June 30, 2024, was approximately RMB 24,137,000, a decrease of RMB 6,529,000 or 21.3% compared to RMB 30,666,000 for the same period in 2023[1]. - Profit attributable to the owners of the company for the period was RMB 7,277,000, down RMB 6,675,000 or 47.8% from RMB 13,952,000 in the previous year[1]. - Gross profit for the period was RMB 20,570,000, compared to RMB 26,430,000 in the same period last year, reflecting a decline in profitability[2]. - The company's basic earnings per share for the period was RMB 0.7, down from RMB 1.4 in the previous year[2]. - The company reported a pre-tax profit of RMB 10,727,000 for the six months ended June 30, 2024, down from RMB 19,084,000 for the same period in 2023, reflecting a decline of approximately 43.8%[15][16]. - The group's total profit and comprehensive income decreased by 47.8% from RMB 14.0 million for the six months ended June 30, 2023, to RMB 7.3 million for the six months ended June 30, 2024[49]. - The net profit margin declined from 45.5% for the six months ended June 30, 2023, to 30.1% for the six months ended June 30, 2024[49]. Revenue Breakdown - Revenue from grave sales was RMB 17,777,000, while revenue from funeral services was RMB 3,534,000, and revenue from cemetery maintenance services was RMB 2,826,000[12]. - The total revenue from contracts with customers for the six months ended June 30, 2024, was RMB 24,137,000, with RMB 17,542,000 recognized at a point in time and RMB 6,595,000 recognized over time[12]. - Revenue from funeral services increased to RMB 3.534 million for the six months ended June 30, 2024, compared to RMB 2.960 million for the same period in 2023[40]. - Revenue from cemetery maintenance services was RMB 2.826 million for the six months ended June 30, 2024, up from RMB 2.697 million for the same period in 2023[41]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, amounted to RMB 309,032,000, slightly up from RMB 308,373,000 at the end of 2023[3]. - Cash and cash equivalents at the end of the period were RMB 245,202,000, an increase from RMB 234,986,000 at the end of 2023[6]. - Non-current liabilities increased to RMB 83,084,000 from RMB 80,579,000 at the end of 2023, indicating a rise in financial obligations[4]. - The company's total equity as of June 30, 2024, was RMB 225,948,000, down from RMB 227,794,000 at the end of 2023[4]. - The total assets increased from RMB 329.6 million as of December 31, 2023, to RMB 336.8 million as of June 30, 2024[50]. - The debt-to-asset ratio increased to 32.9% as of June 30, 2024, compared to 30.9% as of December 31, 2023, indicating a stable liquidity position[52]. Cash Flow and Operating Activities - The net cash generated from operating activities for the period was RMB 9,683,000, a decrease from RMB 18,978,000 in the same period last year[6]. - Bank deposit interest income increased to RMB 880,000 from RMB 743,000, representing a growth of 18.4% year-over-year[17]. - The estimated interest income from interest-free prepayments and deposits decreased to RMB 1,038,000 from RMB 1,186,000, a decline of 12.5% year-over-year[17]. Expenses and Costs - Total depreciation and amortization expenses rose to RMB 1,662,000 from RMB 1,085,000, marking an increase of 53.2% year-over-year[20]. - Administrative expenses increased by 29.3% from RMB 44 million for the six months ended June 30, 2023, to RMB 57 million for the six months ended June 30, 2024, due to expansion in funeral projects and related services[47]. - Income tax expense decreased by 32.8% from RMB 51 million for the six months ended June 30, 2023, to RMB 35 million for the six months ended June 30, 2024, primarily due to reduced income and increased expenses[48]. Shareholder Information - As of June 30, 2024, Zhao Ying holds 700,000,000 shares, representing 70% of the company's equity[64]. - The Hope Trust, controlled by Zhao Ying, is the sole member of the trust and holds the same 700,000,000 shares, equating to 70% ownership[65]. - TMF (Cayman) Ltd., as the trustee of The Hope Trust, is also considered to hold 700,000,000 shares, which is 70% of the total[69]. - Fei Fu Trading Co., Ltd. owns 87,650,000 shares, accounting for 8.8% of the company's equity[71]. - The total number of issued shares as of June 30, 2024, is 1,000,000,000[66]. - The ownership structure indicates a concentrated control with major shareholders holding significant stakes[68]. Corporate Governance - The board emphasizes the importance of good corporate governance for effective accountability and has adhered to the corporate governance code during the period[76]. - The audit committee has been established to provide independent opinions on financial reporting procedures, internal controls, and risk management effectiveness[78]. - The audit committee reviewed the unaudited consolidated financial statements and confirmed compliance with applicable accounting standards and regulations[79]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the trading standards as per the listing rules[75]. - The company has not reported any conflicts of interest among directors and major shareholders during the period[74]. Future Plans and Developments - The company plans to develop a joint venture cemetery project in collaboration with Langfang New Aviation City Real Estate Development Co., with an estimated capital commitment of approximately RMB 85 million[58]. - The company expects to sign a land transfer agreement for the cemetery project within 2024, following the completion of the land transfer pre-announcement[58]. - The group aims to expand its funeral services and enhance its market position in the Beijing-Tianjin-Hebei metropolitan area through strategic alliances and acquisitions[60]. - The company is actively supporting local government urban development plans by providing collective ash storage services in the vicinity of the new Beijing airport[61].
中国万桐园(06966) - 2024 - 中期业绩