Revenue Performance - The Group's total revenue decreased by approximately 5.0% from approximately RMB53.1 million for the six months ended 30 June 2023 to approximately RMB50.5 million for the six months ended 30 June 2024[6]. - Revenue from sales of smart toy vehicles dropped by approximately 8.7% from approximately RMB53.1 million for the six months ended 30 June 2023 to approximately RMB48.5 million for the six months ended 30 June 2024[8]. - Revenue for the six months ended June 30, 2024, was RMB 50,488,000, a decrease of 5% compared to RMB 53,148,000 in the same period of 2023[55]. - Sales of smart toy vehicles accounted for RMB 48,509,000, while procurement and selling of raw materials and electronic parts contributed RMB 1,979,000[56]. Economic Impact - The decline in revenue was attributed to the downturn in the PRC's macroeconomic environment and the impact of the Russian-Ukrainian War and global inflation on operations in Hong Kong[6]. - The Group's China branch office operations were significantly affected by the economic conditions, leading to a decrease in orders from both PRC and overseas customers[10]. - The interim report indicates that the Group's operations are facing challenges due to external economic factors, impacting overall performance[10]. - The Group's future outlook may depend on the recovery of the macroeconomic environment in the PRC and global market conditions[10]. Profitability and Loss - Gross profit decreased by approximately 2.4% from approximately RMB8.8 million for the six months ended June 30, 2023, to approximately RMB8.6 million for the six months ended June 30, 2024[14]. - The gross profit margin improved to approximately 17.0% for the six months ended June 30, 2024, up from approximately 16.6% for the same period in 2023, due to effective cost control[14]. - The Group recorded a net loss of approximately RMB17.6 million for the six months ended June 30, 2024, an increase of approximately RMB3.4 million or 23.6% compared to the loss of approximately RMB14.2 million for the same period in 2023[14]. - Total comprehensive loss for the period was RMB 25,271,000, significantly higher than the loss of RMB 11,503,000 in the same period last year[44]. Financial Position - The gearing ratio increased to approximately 46.6% as of June 30, 2024, from approximately 42.7% as of December 31, 2023[18]. - Total borrowings were approximately RMB145.3 million as of June 30, 2024, compared to approximately RMB143.7 million as of December 31, 2023[18]. - The current ratio was approximately 1.4 as of June 30, 2024, down from approximately 1.5 as of December 31, 2023[19]. - Cash and cash equivalents amounted to approximately RMB47.3 million as of June 30, 2024, compared to approximately RMB48.9 million as of December 31, 2023[19]. Employee and Operational Changes - The Group had 14 full-time employees as of June 30, 2024, a decrease from 27 employees as of December 31, 2023[35]. - The Group has implemented training programs to enhance employee productivity, which is believed to have contributed to increased efficiency[36]. - The Group has adopted a share option scheme to reward employees for their contributions[36]. Shareholder Information - Mr. Yu Huang holds a long position in 206,746,667 shares, representing approximately 33.10% of the total shareholding[83]. - Ms. Chen Cheng, as the spouse of Mr. Yu Huang, is also deemed to hold a long position in 206,746,667 shares, equating to approximately 33.10%[88]. - Gold-Face Finance Limited has a security interest in 145,080,000 shares, representing approximately 23.23% of the total shareholding[87]. - Upbest Group Limited, as a controlled corporation, also holds a long position in 145,080,000 shares, equivalent to approximately 23.23%[87]. Corporate Governance - The Company complied with all applicable code provisions of the Corporate Governance Code, except for the separation of the roles of chairman and chief executive officer[101]. - The Company has established an Audit Committee in compliance with Rule 3.21 of the Listing Rules and the CG Code[116]. - All directors confirmed compliance with the Model Code for Securities Transactions during the six months ended June 30, 2024[105]. Share Option Scheme - The total number of Shares that may be allotted and issued upon the exercise of all options under the Share Option Scheme must not exceed 10% of the number of Shares in issue on the listing date, which is 52,000,000 Shares, representing approximately 8.33% of the Shares in issue as of the report date[92]. - The Company conditionally adopted the Share Option Scheme on 13 February 2020 to incentivize selected participants for their contributions[92]. - The company granted 52,000,000 options to employees at an exercise price of HK$1.17 per share, representing approximately 8.33% of the issued shares as of June 30, 2024[95]. - As of June 30, 2024, no options were exercised, lapsed, or cancelled during the six months ended[96].
奇士达(06918) - 2024 - 中期业绩