Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 840 million, a decrease of about 43.6% compared to RMB 1.48 billion for the same period in 2023[1]. - The loss for the six months ended June 30, 2024, was approximately RMB 380.4 million, a decline of about 336.3% compared to a profit of RMB 161 million for the same period in 2023[1]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.11, compared to a basic and diluted earnings per share of RMB 0.05 for the same period in 2023[1]. - Gross profit for the six months ended June 30, 2024, was a loss of RMB 184.96 million, compared to a gross profit of RMB 195.91 million for the same period in 2023[3]. - The operating profit before tax for the six months ended June 30, 2024, was a loss of RMB 380,133,000, compared to a profit of RMB 183,716,000 for the same period in 2023[25]. - The company reported a basic and diluted loss per share of RMB (11.0) for the six months ended June 30, 2024, compared to a profit of RMB 5.3 for the same period in 2023[27]. - The group's revenue for the reporting period was RMB 840 million, a decrease of 43.6% compared to the same period in 2023, with a net loss of RMB 380 million, a reduction of 336.3%[46]. - Total revenue for the six months ended June 30, 2024, was RMB 809.80 million, a decline of 45.0% compared to RMB 1,471.27 million in the prior year[55]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 5.93 billion, down from RMB 6.63 billion as of December 31, 2023[4]. - Current assets as of June 30, 2024, totaled RMB 2.51 billion, a decrease from RMB 3.24 billion as of December 31, 2023[4]. - The company's cash and bank balances as of June 30, 2024, were RMB 45.47 million, significantly reduced from RMB 463.36 million as of December 31, 2023[4]. - The company's non-current liabilities totaled RMB 100.58 million as of June 30, 2024, down from RMB 108.81 million as of December 31, 2023[5]. - The company's equity attributable to owners was RMB 4.92 billion as of June 30, 2024, compared to RMB 5.25 billion as of December 31, 2023[5]. - The company reported a significant decrease in trade receivables, which were RMB 1.21 billion as of June 30, 2024, down from RMB 1.53 billion as of December 31, 2023[4]. - Trade receivables as of June 30, 2024, amounted to RMB 1,265,723 million, down from RMB 1,586,313 million as of December 31, 2023, indicating a decline of about 20.2%[34]. - The total borrowings as of June 30, 2024, were RMB 720,410 million, down from RMB 823,596 million as of December 31, 2023, representing a decrease of approximately 12.5%[39]. Revenue Breakdown - Revenue from the United States was RMB 425,509 thousand, down 52.0% from RMB 887,552 thousand in the previous year[13]. - Revenue from the furniture segment was RMB 666,579 thousand, representing a decline of 52.5% from RMB 1,405,459 thousand in the same period last year[17]. - The company reported a new revenue stream of RMB 12,173 thousand from IT solutions services, which was not present in the previous year[17]. - ODM product sales accounted for over 80% of total sales during the reporting period, highlighting the group's strong design capabilities[46]. - The revenue from the U.S. market decreased by 52.1%, contributing 50.9% to total sales, down from 59.9% in the same period last year[51]. - The revenue from soft furniture increased by approximately 289.6% during the reporting period[49]. - ODM sales for the six months ended June 30, 2024, were RMB 740.15 million, accounting for 91.4% of total sales, a decrease of 39.5% from RMB 1,223.44 million in the same period of 2023[55]. - OEM sales for the same period were RMB 69.65 million, representing 8.6% of total sales, down 71.9% from RMB 247.83 million year-over-year[55]. Expenses and Costs - The company incurred research and development costs of RMB 44,590,000 for the six months ended June 30, 2024, compared to RMB 27,576,000 for the same period in 2023[20]. - The interest expense on bank and other borrowings was RMB 17,187,000 for the six months ended June 30, 2024, compared to RMB 9,601,000 for the same period in 2023[6]. - The income tax expense for the six months ended June 30, 2024, was RMB 292,000, significantly lower than RMB 22,757,000 for the same period in 2023[25]. - The company reported a total depreciation expense of RMB 94,701,000 for the six months ended June 30, 2024, compared to RMB 63,143,000 for the same period in 2023[20]. - Total expenses for property, plant, and equipment during the reporting period amounted to RMB 212,542,500, compared to RMB 335,434,000 for the six months ended December 31, 2023[29]. - Cost of materials consumed decreased by 21.6% to RMB 853.52 million from RMB 1,088.71 million in the previous year[57]. - Total sales costs fell by 20.6% to RMB 1,021.53 million from RMB 1,286.15 million year-over-year[57]. Market and Strategic Outlook - The company remains optimistic about the industry despite global economic downturns and continues to invest in R&D for better future planning[44]. - The ongoing trade tariffs between China and the U.S. continue to impact the company's profits, highlighting the need for strategic adjustments[44]. - The company has noted a decrease in domestic economic growth and consumer spending willingness, which may affect future performance[44]. - The company plans to enhance its market strategies and product development in response to the current economic challenges[44]. - The company expects the real estate market to stabilize and the furniture market to rebound in the second half of 2024, creating a favorable external environment[75]. - The group is actively expanding sales to mainland China and other regions to reduce reliance on the U.S. market[51]. - The company aims to continuously strengthen its ODM capabilities and expand its market share[75]. Corporate Governance and Management Changes - The financial statements are prepared in accordance with Hong Kong Accounting Standards and are unaudited[10]. - The company has not adopted any new accounting standards that would have a significant impact on its financial policies[10]. - The company has not declared any interim dividend for the six months ended June 30, 2024[26]. - The company does not recommend declaring any interim dividends for the reporting period, with no dividends declared as of June 30, 2023[76]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim performance without any dissenting opinions[89]. - The company has adopted corporate governance practices in compliance with the corporate governance code[84]. - The resignation of the executive director, Mr. Zeng Ming, will take effect on August 30, 2024, to allow him to focus on his professional development[91]. - Mr. Wu Runlu has been appointed as the chairman of the board effective August 30, 2024, to fill the vacancy left by Mr. Zeng's resignation[92].
汇森股份(02127) - 2024 - 中期业绩