Revenue and Profitability - The company's 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 about 5.8%[9]. - Revenue for the six months ended June 30, 2024, was RMB 155,828,000, an increase of 5.4% compared to RMB 147,339,000 for the same period in 2023[45]. - Gross profit for the same period was RMB 46,201,000, representing a gross margin of 29.6%, up from RMB 43,008,000 in 2023[45]. - Operating profit increased to RMB 25,897,000, a significant rise of 52.7% from RMB 16,955,000 in the previous year[45]. - Net profit for the period was RMB 18,765,000, compared to RMB 10,890,000 in 2023, reflecting a year-on-year growth of 72.5%[45]. - Profit for the period increased by approximately RMB 7.9 million or 72.3% to RMB 18.8 million for the six months ending June 30, 2024, driven by reduced legal fees and increased gross profit[16]. Cost and Expenses - The cost of sales rose from approximately RMB 104.3 million for the six months ended June 30, 2023, to approximately RMB 109.6 million for the six months ended June 30, 2024, an increase of approximately RMB 5.3 million or about 5.1%[10]. - Sales expenses decreased by approximately RMB 0.5 million or 6.1% to RMB 8.9 million for the six months ending June 30, 2024, due to reduced promotional efforts[12]. - Administrative and other operating expenses decreased by approximately RMB 3.7 million or 22.7% to RMB 12.7 million for the six months ending June 30, 2024, primarily due to lower legal and professional fees related to the transfer to the main board[13]. Business Operations and Strategy - The company continues to focus on the production of disposable plastic lunch boxes, with increased demand contributing to revenue growth[7]. - The management believes that maintaining product safety and environmental protection, brand promotion, and expanding sales channels will be key drivers for growth in the disposable plastic lunch box business[7]. - The company launched a new e-commerce application platform "Yihotianxia" in July 2022, covering a range of products including daily necessities and agricultural products[7]. - The e-commerce segment has seen revenue growth, contributing to the overall increase in the company's earnings[9]. - The company is positioned to leverage opportunities in the emerging film industry as the demand for entertainment rebounds post-COVID-19[7]. - The company continues to focus on the design, development, production, and sale of disposable plastic lunch boxes and essential household products through e-commerce platforms[49]. Acquisitions and Investments - The company completed the acquisition of Yizhen Media Co., Ltd. for a total consideration of RMB 20,571,430, which is expected to generate significant income and expand the company's business scope[7]. - The company completed the acquisition of 100% equity in Yizhen Film and Television for a consideration of HKD 18.5 million, paid through the issuance of 74 million ordinary shares[25]. - The company established a new joint venture, Beijing Yi He Tian Xia Network Technology Co., Ltd., through a series of contractual arrangements, with a shareholding structure of 50% held by Beijing You Pin Hui and 50% by Mr. Cheng De Nan as of May 11, 2023[26]. Financial Position - Current assets increased from approximately RMB 210.2 million to RMB 233.7 million, with the current ratio improving from about 5.3 to 6.1[18]. - Cash and bank balances increased to approximately RMB 168.8 million as of June 30, 2024, from RMB 165.3 million as of December 31, 2023, mainly due to cash generated from operating activities[19]. - The company had no borrowings as of June 30, 2024[20]. - Total assets as of June 30, 2024, were RMB 279,344,000, an increase from RMB 258,614,000 as of December 31, 2023[46]. - The total liabilities as of June 30, 2024, were RMB 48,504,000, a slight decrease from RMB 52,632,000 as of December 31, 2023[59]. Shareholder and Governance - The major shareholders include Prize Investment Limited with 301,500,000 shares (40.28%) and Merit Winner Limited with 67,500,000 shares (9.02%) as of June 30, 2024[33]. - The company has adhered to the corporate governance code as per GEM listing rules, with distinct roles for the CEO and Chairman[38]. - The company reported no conflicts of interest among directors or major shareholders as of June 30, 2024[36]. - The company has implemented a strict code of conduct for securities trading by directors, with no violations reported during the six months ending June 30, 2024[39]. Employee and Management - As of June 30, 2024, the group employed a total of 202 employees, with employee costs approximately RMB 9.7 million, a decrease from RMB 10.9 million for the same period in 2023[30]. - Total remuneration for key management personnel increased to RMB 486,000 for the six months ended June 30, 2024, compared to RMB 454,000 for the same period in 2023, reflecting a rise of 7.0%[88]. Compliance and Reporting - The group has not applied any new standards or interpretations that have not yet come into effect during the reporting period, ensuring compliance with existing accounting policies[53]. - There were no significant impacts on the financial performance or position due to the adoption of new and revised Hong Kong Financial Reporting Standards[53]. - The company has established an audit committee to oversee financial reporting and internal controls[44].
易和国际控股(08659) - 2024 - 中期财报