Financial Performance - For the six months ended June 30, 2024, total revenue decreased by approximately 2.4% to approximately RMB 507.9 million compared to RMB 520.2 million for the same period in 2023[7]. - Gross profit decreased by approximately 0.7% to approximately RMB 155.0 million, down from RMB 156.2 million in the previous year[7]. - Profit attributable to owners of the Company decreased by approximately 95.8% to approximately RMB 0.83 million, compared to RMB 19.7 million for the same period in 2023[7]. - Basic earnings per share for the six months ended June 30, 2024 was approximately RMB0.2 cents, down from RMB4.2 cents for the same period in 2023[10][12]. - The Group's profit for the six months ended June 30, 2024, was approximately RMB 0.83 million, representing a decrease of approximately 95.8% compared to RMB 19.7 million for the same period in 2023[31][36]. - The profit for the period attributable to equity holders of the company was RMB 823,000, a drastic decline from RMB 19,704,000 in the same period last year[120]. - Total comprehensive income for the period attributable to the owners of the company was RMB 241,000, compared to RMB 19,098,000 in the previous year[120]. - The Group's profit before income tax for the six months ended June 30, 2024, was RMB 2,708,000, a significant decrease from RMB 22,547,000 in 2023[166]. Revenue and Segments - The Group recorded revenue of approximately RMB507.9 million for the six months ended 30 June 2024, representing a decrease of approximately 2.4% compared to RMB520.2 million for the same period in 2023[9][17][20]. - Revenue from the PRC was RMB 491,065,000, down 2.8% from RMB 505,154,000 in 2023[170]. - Revenue from external customers in the Aerosols segment was RMB 326,199,000, while the Organic silicone adhesives segment generated RMB 81,492,000 for the six months ended June 30, 2024[164]. - Total reportable segment revenue decreased to RMB 437,103,000 in 2024 from RMB 452,217,000 in 2023[165]. Expenses and Costs - Employee benefit expenses increased to approximately RMB81.9 million from RMB77.8 million in the corresponding period of 2023, reflecting a rise in salaries and welfare expenses[12][13][14]. - Selling and distribution expenses rose from approximately RMB71.6 million to approximately RMB83.3 million, attributed to increased marketing activities and higher staff costs in the sales department[25]. - Administrative expenses rose from approximately RMB61.7 million for the six months ended June 30, 2023, to approximately RMB70.1 million for the six months ended June 30, 2024, primarily due to increased share-based payment expenses and research and development costs[27]. - The total cost of inventories recognized as expenses decreased to RMB 352,926,000 for the six months ended June 30, 2024, from RMB 364,090,000 in 2023, indicating improved inventory management[179]. Cash Flow and Liquidity - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 16,933,000, a significant improvement compared to a net cash used of RMB (26,995,000) in the same period of 2023[129]. - The Group reported a net increase in cash and cash equivalents of RMB 27,740,000 for the first half of 2024, contrasting with a net decrease of RMB (51,441,000) in the same period of 2023[129]. - As of June 30, 2024, the Group had net current liabilities of approximately RMB 72,515,000, indicating potential liquidity challenges[146]. - The Group had unutilized banking facilities of approximately RMB 25,457,000 and a letter of intent for a line of credit of approximately RMB 229,000,000 as of June 30, 2024, to support liquidity[146]. Assets and Liabilities - The Group recorded net current liabilities of approximately RMB 72.5 million as of June 30, 2024, down from approximately RMB 158.1 million as of December 31, 2023[34][39]. - The current ratio improved to approximately 0.82 as of June 30, 2024, compared to approximately 0.63 as of December 31, 2023, due to an increase in cash and cash equivalents[34][39]. - Total assets as of June 30, 2024, increased to RMB 528,743,000 from RMB 503,856,000 as of December 31, 2023, representing a growth of approximately 4.0%[123]. - Net assets increased to RMB 235,696,000 as of June 30, 2024, compared to RMB 231,833,000 at the end of 2023, reflecting a growth of about 1.6%[123]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2024, with one deviation regarding the roles of chairman and chief executive officer being held by the same individual[73]. - All Directors confirmed compliance with the Model Code for Securities Transactions during the six months ended June 30, 2024[77]. - As of June 30, 2024, the Group was not aware of any non-compliance with relevant laws and regulations that had a significant impact on it[71]. Strategic Initiatives - The Group successfully acquired land use rights in Puyang City, Henan Province, aiming to expand its market reach to Central China[15][19]. - A new ERP system has been implemented to enhance management processes and big data analysis, focusing on customer relationship management and product lifecycle management[16][19]. - The Group plans to continue investing in development projects and acquiring suitable plant and machinery, funded by internal resources, external equity financing, and/or borrowings[72]. Environmental and Social Responsibility - The Group is committed to reducing environmental impacts and complying with related laws and regulations, as detailed in its Environmental, Social and Governance Report[67]. - The Group is committed to reducing environmental pollution and effectively utilizing resources to minimize the impact of factories and offices on the environment[68].
三和精化(00301) - 2024 - 中期业绩