Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 144.3 million, an increase of 12.9% compared to RMB 127.8 million for the same period in 2023[1]. - The gross profit for the same period was approximately RMB 47.1 million, reflecting a 6.6% increase from RMB 44.2 million in the prior year[1]. - The net loss attributable to ordinary equity holders was approximately RMB 247.6 million, up 1.1% from RMB 244.9 million in the same period last year[1]. - Total comprehensive loss for the period was RMB 250.7 million, compared to RMB 246.4 million in the previous year[3]. - The company reported a total capital deficit of RMB 2,584,201,000 as of June 30, 2024, compared to RMB 2,333,542,000 at the end of 2023, reflecting a deterioration of approximately 10.7%[5]. - The company reported a pre-tax loss of RMB 14,794,000 for the six months ended June 30, 2024, compared to RMB 14,243,000 for the same period in 2023, showing an increase in losses of 3.9%[19]. - Basic loss per share attributable to ordinary equity holders for the six months ended June 30, 2024, was RMB (0.43), compared to RMB (0.42) for the same period in 2023[24]. - The company reported a loss attributable to ordinary equity holders of approximately RMB 247.6 million, a slight increase of about 1.1% from RMB 244.9 million in the same period of 2023[46]. Cash Flow and Liquidity - As of June 30, 2024, total assets amounted to RMB 783.9 million, a decrease from RMB 803.3 million as of December 31, 2023[4]. - The company's cash and cash equivalents were RMB 9.9 million, slightly down from RMB 10.1 million at the end of the previous year[4]. - The total liabilities were RMB 3.66 billion, an increase from RMB 3.44 billion at the end of 2023[4]. - The company experienced a net loss of RMB 247,604,000 for the six months ending June 30, 2024, compared to a net loss of RMB 244,926,000 for the same period in 2023, indicating a slight increase in losses[8]. - Cash and cash equivalents were approximately RMB 9,873,000 as of June 30, 2024, a decrease from RMB 10,124,000 at the end of 2023, showing a decline of about 2.5%[8]. - The group anticipates sufficient cash resources to meet operational funding and financial obligations for the next twelve months[10]. Inventory and Receivables - Inventory as of June 30, 2024, was RMB 610.8 million, down from RMB 645.9 million at the end of the previous year[4]. - Raw materials inventory decreased from RMB 11,040,000 to RMB 10,307,000, a decline of approximately 6.6%[27]. - Work-in-progress inventory decreased from RMB 616,847,000 to RMB 583,937,000, a decline of approximately 5.3%[27]. - Finished goods inventory decreased from RMB 18,012,000 to RMB 16,526,000, a decline of approximately 8.2%[27]. - Net trade receivables decreased from RMB 20,775,000 to RMB 18,459,000, a decline of approximately 11.1%[28]. - Trade receivables turnover days improved from 33 days to 25 days due to adjustments in distribution channels and collaboration with higher-quality distributors[65]. Borrowings and Liabilities - The total borrowings of the company as of June 30, 2024, were approximately RMB 3,127,759,000, an increase from RMB 2,808,480,000 at the end of 2023, marking a rise of about 11.4%[8]. - The group reported overdue other borrowings principal of approximately RMB 209,250,000 as of June 30, 2024, which includes machinery and equipment under sale and leaseback arrangements[37]. - The group recognized overdue interest expenses of approximately RMB 114,367,000 related to other borrowings as of June 30, 2024, compared to RMB 108,518,000 as of June 30, 2023[36]. - The group has capital commitments of approximately RMB 14.3 million as of June 30, 2024, down from RMB 19.7 million as of December 31, 2023, primarily due to payments for equipment and construction costs[71]. Operational Developments - The company has not disclosed any new product developments or market expansion strategies in the current report[6]. - The company is enhancing market competitiveness through cost reduction, production efficiency improvements, and product structure optimization[42]. - The company is collaborating with universities for brewing theory research to standardize product craftsmanship[43]. - The company is actively expanding its online sales channels through various platforms, including community e-commerce and group buying[50]. - The company is committed to becoming the preferred brand for consumers in the market[50]. Employee and Management - The company employed 510 full-time employees as of June 30, 2024, down from 528 employees as of December 31, 2023[79]. - Employee benefits expenses (excluding directors' remuneration) for the six months ended June 30, 2024, were RMB 22,867,000, up from RMB 21,323,000 in 2023, indicating a rise of 7.3%[19]. - The company plans to strengthen management and invest in employee training to improve operational efficiency[49]. Market Strategy and Product Development - The company is actively developing a diversified flavor product structure to enhance future business growth, focusing on liquor, soy sauce, rice vinegar, and fermented tofu[46]. - The company plans to enhance its market strategy by expanding distribution channels in lower-tier cities and increasing investment in foreign markets[46]. - The market strategy for the second half of 2024 emphasizes consumer-centered development and the introduction of affordable products to meet diverse consumer needs[48]. - The company aims to enhance its market position in the seasoning industry by expanding diverse sales channels and product offerings[49]. - The company is facing potential risks including rising production costs and changes in consumer behavior towards liquor products[47]. Corporate Governance - The company has adopted corporate governance rules to enhance management structure and internal control systems, ensuring shareholder interests are protected[82]. - The audit committee has reviewed the financial statements and internal controls, ensuring compliance with accounting standards[84].
老恒和酿造(02226) - 2024 - 中期业绩