Financial Performance - For the six months ended June 30, 2024, the turnover was RMB 2,440,776, a decrease of 7.7% compared to RMB 2,645,133 in the same period of 2023[1] - The profit for the period was RMB 5,556, a significant improvement from a loss of RMB 15,343 in the previous year, representing a 136.2% increase[1] - Profit attributable to owners of the Company was RMB 5,524, compared to a loss of RMB 14,290 in the same period last year, marking a 138.7% increase[1] - Basic and diluted earnings per share were RMB 0.51, a recovery from a loss of RMB 1.31 per share in the previous year, reflecting a 138.9% improvement[1] - Gross profit for the Group was approximately RMB 156.2 million, a decrease of approximately 13.3% compared to RMB 180.1 million in the same period of 2023[28] - The Group recorded a consolidated turnover of approximately RMB2,440.8 million, a decrease of approximately 7.7% compared to RMB2,645.1 million in the same period of 2023[28] - The Group achieved a net profit of approximately RMB5.6 million, a significant improvement from a net loss of RMB15.3 million in 2023[30] - Total comprehensive income for the period, net of tax, was RMB 3,424, recovering from a loss of RMB 13,864 in the previous year[56] Market Trends - Global smartphone shipments increased by 6.5% year-on-year to approximately 285.4 million units in Q2 2024, indicating a recovery in the market[9] - IDC forecasts that global smartphone shipments will rise by 4% year-on-year to approximately 1.21 billion units in 2024, driven by device updates and demand from emerging markets[9] - The smartphone market is anticipated to resume growth as consumer confidence improves, although competition will intensify due to technological advancements[14] - The global smartphone market experienced a year-on-year growth of 6.5% in Q2 2024, reaching approximately 285.4 million units, marking four consecutive quarters of growth[12] Business Strategy - The Group is focusing on R&D and application of lithium-ion batteries, targeting markets for wearable device batteries, car batteries, and backup batteries[9] - The Group is actively exploring new power supply product markets, including backup battery products, to diversify business risks and improve profit margins[20] - The Group's strategy includes continuous investment in R&D for new technologies and innovations in industrial design and AI applications to meet changing customer needs[20] - The Group aims to reduce its dependence on the mobile phone battery segment by broadening its product and technology platforms[19] Revenue Sources - Over 90% of the Group's revenue during the review period (January 1, 2024, to June 30, 2024) was derived from the ODM business, primarily from the smartphone and tablet segments[17] - The ODM business generated a turnover of approximately RMB2,236.9 million, accounting for approximately 91.6% of the Group's consolidated turnover, down from 93.5% in 2023[29] - Sales from mobile phone batteries amounted to approximately RMB1,517.1 million, accounting for 62.2% of the Group's consolidated turnover, down from 67.5% in 2023[31] - New power supply products contributed approximately RMB126.0 million to the ODM business turnover, representing an increase of approximately 29.9% year-on-year[24] Financial Position - Cash and cash equivalents as at 30 June 2024 amounted to approximately RMB255.4 million, an increase from RMB133.8 million at 31 December 2023[40] - The Group recorded a net cash inflow from operating activities of approximately RMB20.1 million for the six months ended 30 June 2024, compared to a net cash outflow of RMB487.9 million in 2023[40] - Outstanding borrowings as at 30 June 2024 amounted to approximately RMB1,283.4 million, a slight decrease from RMB1,299.8 million at 31 December 2023[42] - The total debt to equity ratio was approximately 117.8% as at 30 June 2024, down from 119.7% at 31 December 2023[42] - The Group's current ratio improved to approximately 1.2 times as at 30 June 2024, compared to 1.1 times at 31 December 2023[42] Operational Efficiency - The Group will focus on improving operating efficiency and exploring new power supply product markets to establish competitive advantages[22] - The Group's future business plans will prioritize profit enhancement over revenue growth while monitoring market competition[22] - Selling and distribution expenses decreased to approximately RMB34.0 million, accounting for 1.4% of the Group's consolidated turnover, down from 1.5% in 2023[32] - Administrative expenses were approximately RMB111.6 million, representing 4.6% of the Group's consolidated turnover, a decrease from 4.9% in 2023[32] Employee and Corporate Governance - Employee costs for the review period totaled RMB192.6 million, compared to RMB220.1 million for the six months ended June 30, 2023[45] - The Group had 2,542 full-time employees as of June 30, 2024, down from 2,835 employees as of June 30, 2023[45] - The ratio of male to female employees was 63.8% and 36.2%, respectively, as of June 30, 2024, compared to 65.2% and 34.8% in 2023[45] - The company complied with all code provisions of the Corporate Governance Code during the review period[138] Compliance and Accounting - The interim financial information has been prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant accounting standards[68] - The company has not early adopted any new or amended IFRS Accounting Standards that have been issued but not yet effective in the current accounting period, ensuring stability in accounting practices[71] - The amendments to IFRSs effective from January 1, 2024, did not have any significant impact on the Group's accounting policies, indicating a stable regulatory environment[74] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB20,057,000, a significant improvement from a cash outflow of RMB487,894,000 in the same period of 2023[65] - The net cash generated from investing activities was RMB149,028,000, compared to RMB189,689,000 in the prior year, indicating a decrease of approximately 21.4%[65] - The net cash used in financing activities was RMB47,376,000, a decline from a cash inflow of RMB209,724,000 in the previous year[65] Related Party Transactions - Related party transactions included rental expenses paid to Scud Stock (Fujian) Co., Ltd. totaling RMB5,084,000 during the period, compared to RMB5,506,000 in the previous period[117] - The Group guaranteed certain bank facilities for its subsidiaries amounting to RMB3,521,000,000 as of June 30, 2024, an increase from RMB3,071,000,000 as of December 31, 2023, reflecting a growth of approximately 14.6%[119]
锐信控股(01399) - 2024 - 中期业绩