Financial Performance - The Group's revenue decreased by 35.1% to approximately RMB54.9 million for the six months ended June 30, 2024, compared to approximately RMB84.6 million for the same period in 2023[5]. - Loss attributable to the owners of the Company increased from approximately RMB8.9 million for the six months ended June 30, 2023, to approximately RMB14.8 million for the six months ended June 30, 2024[5]. - Loss per share increased from RMB0.0027 for the six months ended June 30, 2023, to RMB0.0041 for the six months ended June 30, 2024[5]. - The overall decrease in the Group's revenue was mainly attributable to a decrease in sales demand for both fabrics and clothing products in the People's Republic of China during the period[5]. - Gross profit for the period was RMB 6,269,000, down 42.0% from RMB 10,813,000 in the prior year[59]. - Total comprehensive loss for the period was RMB 19,688,000, significantly higher than RMB 9,250,000 in the previous year[60]. - The Group's loss before tax for the six months ended June 30, 2024, was RMB 16,314,000, compared to a loss of RMB 9,067,000 for the same period in 2023[78]. Revenue Breakdown - Revenue from sales of shoes and clothing decreased from approximately RMB63.1 million for the six months ended June 30, 2023, to approximately RMB25.1 million for the six months ended June 30, 2024[6]. - The Group did not generate any revenue from fabric products during the period, compared to approximately RMB13.1 million in revenue from fabric products for the six months ended June 30, 2023[6]. - Revenue from elastic webbings amounted to approximately RMB12.4 million during the period, compared to RMB8.4 million in the corresponding period in 2023, reflecting a growth of 47.6%[7]. - The new digital marketing services generated approximately RMB17.4 million in revenue during the period[7]. - For the six months ended June 30, 2024, the Group reported total revenue of RMB 54,872,000, with segment revenues from shoes and clothes at RMB 25,061,000, fabrics at RMB 12,418,000, elastic webbings at RMB 17,393,000, and digital marketing services contributing RMB 6,269,000[77]. Expenses and Costs - The cost of sales decreased by 34.1% from approximately RMB73.8 million for the six months ended June 30, 2023, to approximately RMB48.6 million for the six months ended June 30, 2024[10]. - Selling and distribution expenses decreased by 39.8% from approximately RMB6.2 million for the six months ended June 30, 2023, to approximately RMB3.7 million for the six months ended June 30, 2024[16]. - General and administrative expenses increased by 32.4% from approximately RMB12.7 million for the six months ended June 30, 2023, to approximately RMB16.8 million for the six months ended June 30, 2024[16]. - Finance costs increased from approximately RMB7.5 million for the six months ended June 30, 2023, to approximately RMB10.1 million for the six months ended June 30, 2024, due to higher interest expenses on bank borrowings[16]. Cash Flow and Liquidity - As of June 30, 2024, the Group's bank and cash balances amounted to approximately RMB 13.5 million, a decrease from approximately RMB 17.4 million as of December 31, 2023[17]. - Net cash used in operating activities for the six months ended June 30, 2024, was RMB (13,249,000), a decline from a net cash generation of RMB 30,468,000 in the same period of 2023[64]. - Cash and cash equivalents at the end of the period were RMB 13,519,000, down from RMB 23,573,000 at the end of June 2023, reflecting a decrease of approximately 42.6%[64]. - The Group's borrowings decreased to approximately RMB 196.6 million as of June 30, 2024, down from RMB 200.4 million as of December 31, 2023, primarily due to the repayment of bank borrowings of approximately RMB 3.8 million[19]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2024, except for code provision C.1.8[46]. - The Audit Committee comprises three independent non-executive Directors, responsible for reviewing the Group's financial reporting process and overseeing risk management[51]. - The Remuneration Committee is responsible for formulating the Group's policy and structure for all remuneration of the Directors and senior management[52]. - All Directors confirmed compliance with the required standards set out in the Model Code regarding securities transactions during the review period[50]. Strategic Initiatives - Management plans to return the Group to solvency by conducting further fundraising, maintaining sales in its shoes and clothing business, and restructuring the loss-making fabrics business[36]. - The Group has initiated a new online media advertising business since the second half of 2023, aiming to increase income sources[36]. - The Group's strategy includes market expansion through acquisitions to strengthen its revenue sources and improve cash flow[83]. Share Capital and Transactions - The total number of issued and fully paid ordinary shares increased to 3,801,767,000 as of June 30, 2024, from 3,353,073,000 as of December 31, 2023[121]. - The Company completed a placing of 200,000,000 shares at a price of HK$0.100 per share on June 5, 2024, under a general mandate[122]. - The total amount of claims settled for Scheme Creditors was approximately HK$1,034.3 million, with 3,262,705,241 Scheme Shares issued at HK$0.317 per share[122]. Workforce and Operations - As of June 30, 2024, the Group's total workforce decreased to 162 from 190 as of December 31, 2023[30]. - The Group did not acquire any property, plant, or equipment for the six months ended June 30, 2024, and 2023[24]. - The Group's non-current assets were valued at RMB 204,211,000, down from RMB 210,266,000 at the end of the previous year[61].
满地科技股份(01400) - 2024 - 中期业绩