Financial Performance - The group's revenue for the six months ended June 30, 2024, was RMB 5,037,242 thousand, a decrease of 1.7% compared to RMB 5,122,862 thousand in the same period of 2023 [20]. - Gross profit increased by 3.2% to RMB 1,914,597 thousand, with a gross margin of 38.0%, up 1.8 percentage points from 36.2% in 2023 [20]. - The net profit margin decreased to 13.6% from 14.0% in the previous year, with net profit for the period at RMB 683,198 thousand, down 4.8% from RMB 717,342 thousand [20]. - The comprehensive income for the period was approximately RMB 724.60 million, a decrease of about 1.3% compared to the same period last year [70]. - Basic earnings per share decreased to RMB 11.20 from RMB 11.81, reflecting a decline of 5.2% year-over-year [197]. - The total revenue for the group during the review period was approximately RMB 5,037.24 million, a decrease of about 1.7% compared to the same period last year [70]. Research and Development - The company continued to increase R&D investment in the first half of 2024, focusing on aerosol medical and heated non-combustible products, with expectations for new revenue and profit growth points [13]. - Research and development expenditure totaled approximately RMB 760,112 thousand, an increase of about 23.7% compared to the previous year, with R&D spending as a percentage of revenue rising from approximately 12.0% to about 15.1% [57]. - The R&D team consists of over 1,400 personnel, with significant investment in innovation to support long-term growth and maintain competitive advantages [49]. - The company filed a total of 699 new patent applications globally during the review period, including 401 invention patents, bringing the total to 8,394 patents as of June 30, 2024 [54]. Product Development and Launches - The company launched multiple new products, including the FEELM Pro and the XROS 4, which received positive feedback and contributed to rapid revenue growth in its proprietary brand business [10]. - The atomization beauty product "MOYAL" was successfully launched, being the first in the industry to atomize high-viscosity serums, and is currently in the channel development phase [12]. - The company successfully launched several new product solutions in the first half of 2024, including the world's first 20,000 puff high-explosion dual-core disposable solution [25]. - The company plans to launch more innovative products in the second half of 2024 to enhance its product matrix and market share [15]. Market Expansion and Strategy - The company is actively advancing its atomization technology into new business areas, with steady progress in atomization medical and beauty sectors [12]. - The company is focusing on localizing its sales teams and enhancing delivery capabilities to better meet consumer preferences [12]. - The company plans to diversify its revenue across different countries and regions and enhance its product portfolio, focusing on the application of aerosol technology in healthcare and other industries [39]. - The company is committed to building a global leading aerosol technology platform, with confidence in the long-term growth of the global aerosol market [60]. Financial Position and Assets - The total assets of the group as of June 30, 2024, reached RMB 26,540,994 thousand, representing a 4.0% increase from RMB 25,508,284 thousand at the end of 2023 [20]. - Cash and cash equivalents increased by 22.6% to RMB 6,534,871 thousand from RMB 5,332,076 thousand at the end of 2023 [20]. - As of June 30, 2024, net current assets were approximately RMB 13,861,870 thousand, down from RMB 16,004,419 thousand as of December 31, 2023 [102]. - The current ratio as of June 30, 2024, was approximately 396.2%, down from 548.8% as of December 31, 2023 [102]. Regulatory Environment - The regulatory environment for electronic atomization products is strengthening, which is expected to benefit the long-term development of the industry [10]. - The EU's new regulations require all tobacco products to have unique identification codes, enhancing traceability and compliance [34]. - Belgium has received EU approval to implement a ban on disposable e-cigarettes, set to take effect on January 1, 2025 [35]. Shareholder and Governance - The board declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2024, consistent with the previous year [145]. - The company has established an ESG committee to enhance its ESG management capabilities [131]. - The company has established various communication channels with shareholders and investors to provide updates and gather feedback [141]. - The board of directors believes that the current governance structure is appropriate for shareholder interests and will continue to review its effectiveness [123]. Employee and Operational Efficiency - The company emphasizes employee training and development, with structured programs for various talent levels and a focus on online learning [110]. - The company is focusing on cost reduction and efficiency improvements, successfully achieving a significant decrease in administrative expenses during the review period [27]. - Employee compensation and benefits increased by 37.1% to RMB 148,642 thousand, accounting for 3.0% of total revenue [88]. Future Outlook - The company has outlined a future outlook with a focus on market expansion and new product development [1]. - The company projects a revenue growth of 2.99% to 3.51% for the periods ending in 2025 and 2026, respectively [1]. - The company plans to continue its strategy of incentivizing key personnel through the share incentive plan to drive further growth [169].
思摩尔国际(06969) - 2024 - 中期财报