Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 128.8 million, a decrease of about 53.5% compared to RMB 276.8 million in the same period last year[5]. - The gross profit for the period was approximately RMB 29.2 million, a decrease of about 66.4% from RMB 86.8 million year-on-year, resulting in a gross margin of approximately 22.6%, down from 31.4%[5]. - The company's profit from continuing operations was approximately RMB 14 million, a decrease of about 49.4% compared to RMB 27.6 million in the same period last year, primarily due to poor sales performance in the liquor business[6]. - The liquor trading segment recorded revenue of approximately RMB 94,800,000, a decrease of about 60.3% from approximately RMB 239,000,000 in the same period last year[10]. - The adjusted EBITDA for the liquor trading segment was approximately RMB 24,800,000, down about 64.5% from approximately RMB 69,900,000 in the same period last year[10]. - The company reported a profit of RMB 11,918,000 for the six months ended June 30, 2024, compared to a loss of RMB 10,506,000 for the same period in 2023[38]. - Total comprehensive income for the period was RMB 14,715,000, a significant drop from RMB 371,702,000 in the same period last year[32]. Revenue Sources - Toll revenue from the Qingping Expressway for the period was approximately RMB 34.1 million, down about 9.9% from RMB 37.8 million in the previous year, with total vehicle traffic decreasing by approximately 4.2% to 11.4 million vehicles[5]. - The total toll revenue for the Qingping Expressway was approximately RMB 34,100,000, a decrease of about 9.9% compared to RMB 37,800,000 in the same period last year[9]. - Alcohol sales revenue was RMB 94,772,000, a significant decline of 60.4% from RMB 239,015,000 in the prior year[47]. Expenses and Liabilities - Administrative expenses for the period were approximately RMB 20 million, a reduction of about 42.8% from RMB 35 million in the previous year, mainly due to a one-time special bonus paid to employees in the previous year[6]. - The company incurred income tax expenses of RMB 1,309,000 for continuing operations, a significant decrease from RMB 17,125,000 in the previous year[56]. - Current liabilities increased to RMB 274,400,000 from RMB 124,648,000 at the end of the previous year[33]. - The total amount of bank loans and other borrowings drawn by the company was approximately RMB 187.3 million, compared to zero at the end of the previous year[6]. Cash Flow and Financial Position - The company's cash and cash equivalents totaled approximately RMB 276.3 million, down from approximately RMB 313.7 million at the end of the previous year[6]. - The net cash used in operating activities was RMB (90,303,000), compared to RMB 49,230,000 generated in the same period last year[41]. - The net cash generated from financing activities was RMB 119,357,000, compared to a net cash used of RMB (198,036,000) in the same period last year[41]. - The company reported a net cash position of RMB 276,297,000 as of June 30, 2024[33]. Shareholder Information - As of June 30, 2024, Mr. Chen Yangnan holds a beneficial interest in 300,000,000 shares, representing 72.71% of the total issued shares[19]. - Velocity International Limited, fully owned by Mr. Chen, has pledged 300,000,000 shares to Huilong Finance (Asia) Limited as collateral for a term loan[19]. - The company declared a special interim dividend of HKD 0.121 per share (equivalent to RMB 0.106) after receiving the second installment of the sale of a 60% stake in Daoyue[15]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls[26]. - The interim financial report for the period was unaudited but reviewed by the audit committee and external auditors[26]. - The company has complied with the corporate governance code as stipulated by the Hong Kong Stock Exchange during the reporting period[25]. Future Outlook - The company anticipates steady growth in traffic volume and toll revenue for the Qingping Expressway due to the recovery of economic activities in Shenzhen[16]. - The company aims to improve its liquor trading business performance through enhanced marketing activities and efficient distribution channels[16]. - The company plans to complete the development of a winery and an integrated operation center in Guizhou by the first half of 2025[11].
华昱高速(01823) - 2024 - 中期财报