Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 89,327,000, a decrease of 31.9% compared to RMB 131,192,000 for the same period in 2023[8]. - The gross profit for the first half of 2024 was RMB 1,086,000, compared to RMB 228,000 in the same period of 2023, indicating a significant improvement[8]. - The net loss for the period was RMB 11,220,000, slightly improved from a net loss of RMB 11,385,000 in the prior year[8]. - The basic and diluted loss per share for the period was RMB (1.22), compared to RMB (1.09) in the same period last year[9]. - The company incurred a loss of RMB 81,820,000 during the six months ended June 30, 2024, compared to a loss of RMB 20,569,000 in the same period of 2023, indicating a worsening financial performance[12]. - The total comprehensive income for the period was RMB (11,294,000) for the six months ended June 30, 2024, compared to RMB (10,156,000) in the same period of 2023, showing a slight increase in losses[12]. - The loss attributable to the owners of the company for the six months ended June 30, 2024, was approximately RMB 11,257,000, compared to RMB 10,044,000 in the same period of 2023, indicating an increase in loss of approximately 12.1%[34]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 325,312,000, down from RMB 358,849,000 at the end of 2023[10]. - Current liabilities decreased to RMB 208,294,000 from RMB 263,686,000, resulting in a net current liability of RMB (19,294,000) compared to RMB (44,206,000) in the previous year[10]. - As of June 30, 2024, the company's net assets amounted to RMB 59,280,000, a decrease from RMB 70,537,000 as of December 31, 2023, representing a decline of approximately 16%[11]. - Total equity attributable to the owners of the company was RMB 37,305,000 as of June 30, 2024, down from RMB 48,599,000 at the end of 2023, marking a decrease of approximately 23%[12]. - The company's total liabilities decreased to RMB 71,952,000 from RMB 65,360,000, reflecting a change in financial obligations[39]. - Total borrowings as of June 30, 2024, were RMB 71,391,000, a decrease of 8.9% from RMB 78,098,000 at the end of 2023[42]. Cash Flow and Investments - The cash flow from operating activities for the six months ended June 30, 2024, was RMB 9,178,000, significantly up from RMB 358,000 in the same period of 2023, indicating a substantial improvement in operational cash generation[13]. - The company reported a net cash outflow from investing activities of RMB (18,800,000) for the six months ended June 30, 2024, compared to RMB (7,538,000) in the prior year, reflecting increased investment in property, plant, and equipment[13]. - Cash and cash equivalents decreased by RMB 1,066,000 to RMB 343,000 as of June 30, 2024, compared to RMB 1,864,000 at the end of the previous year, highlighting liquidity challenges[13]. - The company raised RMB 8,214,000 from borrowings during the financing activities for the six months ended June 30, 2024, while repaying RMB 8,710,000, indicating active management of debt[13]. Revenue and Sales - For the six months ended June 30, 2024, the revenue from the production and sales of wires and cables, as well as aluminum products, was RMB 89,327,000, a decrease from RMB 131,192,000 in the same period of 2023, representing a decline of approximately 31.9%[26]. - Major customer A contributed RMB 70,273,000 to the total revenue, compared to RMB 48,070,000 in the previous year, indicating an increase of approximately 46.2%[24]. - The cost of inventory recognized as an expense for the six months ended June 30, 2024, was RMB 88,241,000, down from RMB 130,628,000 in the same period of 2023, representing a decrease of approximately 32.5%[30]. - The cost of sales decreased from RMB 131.0 million for the six months ended June 30, 2023, to RMB 88.2 million for the same period in 2024, a reduction of RMB 42.7 million or 32.6%, consistent with the decline in revenue[49]. Operational Strategies and Future Outlook - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[8]. - The company is exploring new strategies for market expansion and product development to improve future performance[8]. - The company plans to continue its focus on expanding its production capabilities and enhancing its product offerings in the wire and cable sector, aiming for market growth in China[14]. - The demand for wires and cables is expected to continue growing due to increasing applications in industries such as automotive, construction, and telecommunications[46]. - Continued government investment in infrastructure development is anticipated to drive demand for wires and cables, benefiting manufacturers and suppliers[46]. - The company aims to shift focus from exports to meeting local demand in the domestic market, which could lead to more stable growth and higher profitability[47]. Shareholder Information and Corporate Governance - The company’s issued and paid-up capital remained at 920,000,000 shares, with a total value of RMB 8,222,000 as of June 30, 2024[43]. - The company confirmed that there are no interests or potential conflicts of interest from its controlling shareholders or directors in any business that competes directly or indirectly with the group[75]. - The company’s audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[79]. - The company’s major shareholders include Fu Chuanrong, holding 120,630,000 shares, which is approximately 13.10% of the total[72]. - The company’s shareholders, Party Fei and Party Jun, collectively control 38.18% of the total issued share capital[73]. - The group employed a total of 119 full-time employees as of June 30, 2024, down from 185 employees as of June 30, 2023, with total employee benefit expenses of approximately RMB 4.4 million for the six months ended June 30, 2024[62]. Compliance and Reporting - The company is committed to adhering to the revised Hong Kong Financial Reporting Standards, which took effect from January 1, 2024, ensuring compliance and transparency in financial reporting[17]. - The report will be available on the Hong Kong Stock Exchange website for at least 7 days from the date of publication[80]. - The report will also be published on the company's website www.saftower.cn[80]. - In case of any discrepancies between the Chinese and English versions of the report, the English version shall prevail[80].
中国蜀塔(08623) - 2024 - 中期财报