Financial Performance - The company reported revenue of RMB 23,328,000 for the six months ended June 30, 2024, a significant increase from RMB 4,468,000 in the same period of 2023, representing a growth of approximately 422%[1] - The cost of sales for the same period was RMB 23,305,000, leading to a gross profit of RMB 23,000, compared to a gross profit of RMB 206,000 in 2023[1] - The net loss for the period was RMB 19,636,000, an improvement from a net loss of RMB 43,012,000 in the previous year, indicating a reduction of approximately 54%[2] - The company reported a pre-tax loss of RMB 19,646,000 for the six months ended June 30, 2024[14] - The company reported a loss attributable to shareholders of approximately RMB 16,414,000 for the period, an improvement from a loss of RMB 32,831,000 in the previous year, primarily due to lower gross profit from trading activities[34] Assets and Liabilities - The company’s total assets as of June 30, 2024, were RMB 642,519,000, compared to RMB 632,502,000 as of December 31, 2023, showing a slight increase[4] - The company’s total assets as of June 30, 2024, amounted to RMB 660,394,000, compared to RMB 651,734,000 as of December 31, 2023[16] - The total liabilities increased to RMB 525,548,000 as of June 30, 2024, from RMB 503,659,000 as of December 31, 2023[16] - The company has current liabilities totaling approximately RMB 105,030,000, with additional non-controlling interest payables of RMB 115,498,000 and other borrowings due within the next twelve months amounting to RMB 21,406,000[54] Cash Flow and Financing - The company’s cash and bank balances decreased to RMB 12,102,000 from RMB 17,208,000, indicating a decline of about 30%[4] - The company has cash and bank balances of approximately RMB 12,102,000, with restricted bank deposits of RMB 37,418,000 designated for construction purposes[54] - The company has ongoing discussions to extend the repayment terms of outstanding loans totaling RMB 21,406,000, which are due in August 2024[6] - The company has confirmed that non-controlling interests will not demand repayment of approximately RMB 115,498,000 in outstanding principal, providing some liquidity relief[6] - The company successfully placed a total of 50,888,000 placement shares at HKD 0.14 per share and 10,950,405 rights shares at HKD 0.15 per share, receiving net amounts of approximately RMB 6,321,000 and RMB 522,000 respectively[7] - The company completed a rights issue on July 22, 2024, issuing a total of 8,347,605 shares at a subscription price of HKD 0.15, which represents about 1.8% of the total rights shares available for subscription[47] - The total proceeds from the rights issue and placement amounted to approximately HKD 1.6 million, with a net amount of about HKD 0.56 million after expenses[47] Operational Highlights - The company is actively pre-selling properties in its second Maoming project to generate cash flow[6] - The second Maoming project has approximately 63% of construction completed as of June 2024, with residential property pre-sales scheduled for the second half of 2024 and the first half of 2025[30] - The company has faced financial challenges due to construction delays and cash flow constraints related to the second Maoming project[30] - Revenue from property development and investment was RMB 0 for the current period, a significant decrease from RMB 4,468,000 in the same period last year[28] - The company’s trading business generated revenue of approximately RMB 23,328,000 for the six months ended June 30, 2024, compared to RMB 0 in the same period of 2023, indicating a significant diversification into electronic products trading[32] Employee and Governance - The company employed 36 full-time employees as of June 30, 2024, a decrease from 47 employees as of December 31, 2023, with total compensation for the period amounting to approximately RMB 3,945,000[42] - The company has established an audit committee responsible for reviewing financial reporting and risk management systems[51] - The company has complied with all relevant corporate governance codes during the reporting period[48] - The interim financial statements have been reviewed by an independent auditor, confirming compliance with the applicable accounting standards[53] Accounting and Taxation - The company has not adopted any new or revised accounting standards in advance for the preparation of the interim financial statements[9] - The company has not made any provisions for Hong Kong profits tax for the periods ended June 30, 2024, and 2023 due to no taxable profits[19] - The company recorded a provision for properties held for sale of RMB 2,681,000 for the current period, down from RMB 6,514,000 in the previous year[20] Dividends - The company did not declare or recommend any dividends for the six months ended June 30, 2024, and 2023[21] - No dividends were declared or proposed for the period, consistent with the previous year[44]
中国上城(02330) - 2024 - 中期业绩