Company Overview - Yik Wo International Holdings Limited reported its unaudited consolidated results for the six months ended June 30, 2024[1]. - The company is listed on the GEM of the Hong Kong Stock Exchange, which is known for higher investment risks associated with small and medium-sized enterprises[3]. - The company has a registered office in the Cayman Islands and operates in various locations including China and Hong Kong[7]. - The financial report is compliant with the GEM Listing Rules of the Hong Kong Stock Exchange[2]. - The company has established relationships with major banks for its operations, including Agricultural Bank of China[7]. - The company has two operating segments: (i) design, development, production, and sale of disposable plastic food containers, and (ii) operation of mobile applications and e-commerce platforms[24]. Governance and Compliance - The board of directors confirmed that the information provided in the report is accurate and complete after reasonable inquiries[2]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[6]. - The company emphasizes the importance of understanding the potential risks before investing in GEM-listed companies[3]. - The report will be available on the Hong Kong Stock Exchange website and the company's official website for at least seven days from the date of issuance[1]. Financial Performance - Revenue increased from approximately RMB 147.3 million for the six months ended June 30, 2023, to approximately RMB 155.8 million for the six months ended June 30, 2024, representing an increase of approximately RMB 8.5 million or 5.8%[10]. - Sales cost rose from approximately RMB 104.3 million to approximately RMB 109.6 million, an increase of approximately RMB 5.3 million or 5.1%[11]. - Gross profit increased from approximately RMB 43.0 million to approximately RMB 46.2 million, a rise of approximately RMB 3.2 million or 7.4%, with a slight increase in gross profit margin from 29.2% to 29.6%[12]. - Net profit for the period increased from approximately RMB 10.9 million to approximately RMB 18.8 million, an increase of approximately RMB 7.9 million or 72.3%[17]. - Operating profit increased to RMB 25,897,000, compared to RMB 16,955,000 in the prior year, representing a growth of 52.5%[46]. - Total comprehensive income for the period was RMB 18,802,000, compared to RMB 10,767,000 in the same period last year[46]. Expenses and Costs - Administrative and other operating expenses decreased from approximately RMB 16.5 million to approximately RMB 12.7 million, a reduction of approximately RMB 3.7 million or 22.7%[14]. - Financing costs increased to approximately RMB 140,000 due to leasing arrangements for machinery and equipment[15]. - Income tax expenses rose from approximately RMB 6.0 million to approximately RMB 7.0 million, an increase of approximately RMB 1.0 million or 17.2%[16]. - The company reported a financing cost of RMB 140, which increased from RMB 99 in the previous year[46]. Assets and Liabilities - As of June 30, 2024, the net current assets increased from approximately RMB 210.2 million to approximately RMB 233.7 million, primarily due to an increase in trade and other receivables and a decrease in trade and other payables[19]. - The current ratio improved from approximately 5.3 as of December 31, 2023, to approximately 6.1 as of June 30, 2024[19]. - The debt-to-equity ratio improved from approximately 18.5% as of December 31, 2023, to approximately 15.3% as of June 30, 2024[19]. - As of June 30, 2024, the bank balances and cash amounted to approximately RMB 168.8 million, up from approximately RMB 165.3 million as of December 31, 2023, mainly due to net cash generated from operating activities[20]. - The company had no borrowings as of June 30, 2024, and December 31, 2023[21]. - The company’s non-current assets decreased to RMB 49,141,000 as of June 30, 2024, from RMB 55,197,000 at the end of 2023, representing a decline of approximately 11%[47]. - The total liabilities for the disposable plastic lunch box segment were RMB 39,531, while e-commerce liabilities were RMB 4,761, totaling RMB 48,504[59]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Beijing Youpinhui, enhancing its e-commerce capabilities[8]. - The company completed the acquisition of 100% equity in YP Group for a consideration of HKD 18.5 million, paid through the issuance of 74,000,000 ordinary shares[26]. - The company plans to invest in film projects to capitalize on the recovering entertainment demand post-COVID-19[8]. - The company has recognized a financial asset at fair value through profit or loss related to film production investments, valued at RMB 24,625,000 as of June 30, 2024, unchanged from December 31, 2023[77]. Employee and Management Information - The group employed a total of 202 employees as of June 30, 2024, with employee costs amounting to approximately RMB 9.7 million for the six months ended June 30, 2024[31]. - The company reported management compensation of RMB 486,000 for the six months ended June 30, 2024, compared to RMB 454,000 for the same period in 2023, marking an increase of 7.0%[89]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[41]. - The total issued and paid-up ordinary shares remained at 748,482,760 as of both June 30, 2024, and December 31, 2023[88]. - The company has no share option scheme in place as of June 30, 2024[42]. Cash Flow and Working Capital - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 7,617,000, compared to RMB 9,423,000 for the same period in 2023, indicating a decrease of about 19%[49]. - The company's cash and cash equivalents increased to RMB 168,790,000 as of June 30, 2024, from RMB 124,787,000 a year earlier, reflecting a growth of approximately 35%[49]. - Trade receivables from third parties increased to RMB 70,659,000 as of June 30, 2024, compared to RMB 59,160,000 as of December 31, 2023, representing an increase of approximately 19.4%[79]. - The aging analysis of trade receivables shows that RMB 65,347,000 was overdue as of June 30, 2024, compared to none overdue as of December 31, 2023[82]. - The company maintains a credit period of 60 days for trade receivables, with overdue balances reviewed regularly by senior management[80]. Research and Development - Research and development costs, including employee costs, amounted to RMB 4,960 for the six months ended June 30, 2024, an increase from RMB 3,852 in the previous year[66].
易和国际控股(08659) - 2024 - 中期业绩