Financial Performance - The Group's revenue increased by 4% to RMB186.5 million for the six months ended June 30, 2024, compared to RMB179.4 million in the same period last year[10]. - The gross profit margin decreased to 7.2% during the period, down from 12.1% in the previous year[10]. - The Group recorded a gross profit of RMB13.4 million, a decline from RMB21.7 million in the corresponding period of the previous year[10]. - Revenue from wooden products increased by 4.2% to RMB185.4 million, accounting for 99.4% of total revenue during the period[14]. - Revenue from renewable energy products decreased by 31.2% to approximately RMB1.1 million, primarily due to reduced demand in the domestic market[18]. - Other revenue surged by 171.0% to RMB27.9 million, driven by increased interest income from bank deposits[19]. - The total revenue for the period was RMB186.5 million, up from RMB179.4 million in the previous year[17]. - The Group recorded a loss of approximately RMB1.7 million for the period, compared to a profit of RMB2.7 million in the previous period[25]. - The company reported a profit for the period of RMB (1,715) for the six months ended June 30, 2024, compared to a profit of RMB2,329 for the same period in 2023[82]. - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB (0.0183), compared to earnings of RMB 0.0297 in the same period of 2023[77]. Expenses and Costs - Selling and distribution expenses rose by 24.1% to RMB10.8 million, mainly due to higher shipping and other selling costs[21]. - Administrative expenses decreased to RMB18.0 million from RMB12.8 million in the previous period, attributed to increased research and development costs[25]. - Finance costs increased to approximately RMB8.8 million from RMB3.1 million, primarily due to interest payments for bank loans[25]. - Interest expense on bank loans and debentures rose significantly to RMB8,804,000 in 2024 from RMB3,050,000 in 2023, indicating a substantial increase in financing costs[123]. Assets and Liabilities - Current assets as of June 30, 2024, amounted to RMB475.3 million, up from RMB349.9 million as of December 31, 2023[25]. - Total banking facilities utilized reached RMB132.0 million, an increase from RMB86.9 million as of December 31, 2023[25]. - Total non-current assets decreased to RMB418,098, down from RMB539,632 as of December 31, 2023, representing a decline of approximately 22.5%[80]. - Total current liabilities increased to RMB247,525 from RMB165,199, reflecting a rise of approximately 49.8%[81]. - The company’s cash and cash equivalents decreased to RMB13,615 from RMB32,499, a decline of approximately 58.1%[80]. - The total trade and other payables as of June 30, 2024, were RMB98,633,000, an increase from RMB58,043,000 as of December 31, 2023[150]. - Trade receivables as of June 30, 2024, totaled RMB53,665,000, an increase from RMB48,821,000 as of December 31, 2023[143]. Shareholding and Corporate Governance - Mr. Wu Zheyan holds a total of 10,695,407 shares, representing approximately 11.61% of the total shareholding interest[46]. - Green Seas Capital Limited, a beneficial owner, holds 8,992,948 shares, accounting for 9.76% of the total shareholding interest[49]. - The Group has no material events after the reporting period[40]. - The Group's compensation policy is based on individual employee performance and is regularly reviewed[41]. - There have been changes in the board of directors, with two independent non-executive directors resigning on July 29, 2024[40]. Operational Highlights - The principal segment of the group, manufacturing and sales of wooden products, remains the largest income stream[17]. - The group experienced a reportable segment loss of RMB609,000 in wooden products, compared to a loss of RMB472,000 in the previous year[14]. - The company continues to focus on increasing automation and enhancing employee training to maintain competitiveness[41]. - The company has identified two reportable segments: manufacturing and sales of wooden products and manufacturing and sales of renewable energy products, with no aggregation of operating segments[105]. Market and Economic Conditions - The global GDP growth is expected to be around 2.8% in 2024 and 2025, with risks tilted to the downside due to geopolitical uncertainties[34]. - The geographical revenue breakdown shows that revenue from the PRC decreased to RMB15,125,000 in 2024 from RMB29,657,000 in 2023, indicating a significant decline in domestic sales[115]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB20,811,000, compared to a net cash used of RMB31,340,000 in the same period of 2023[91]. - Proceeds from new bank loans amounted to RMB65,000,000, while repayments were RMB19,900,000, resulting in a net cash from financing activities of RMB36,296,000, compared to RMB37,300,000 in 2023[91]. - The company reported an increase in cash generated from operations, indicating improved operational efficiency[91]. Share Option and Award Schemes - The Share Option Scheme allows for a maximum of 10% of the total shares in issue (100,000,000 shares) to be granted under the scheme[52]. - The Group granted 3,900,000 Award Shares to 7 employees, representing approximately 4.23% of the total shares in issue, with a vesting period of 12 months[168]. - The Share Award Scheme is valid for a term of 10 years from the adoption date, unless terminated early by the board of directors[57].
中科生物(01237) - 2024 - 中期业绩