瑞和数智(03680) - 2024 - 中期财报

Corporate Information Corporate Profile The company provides essential corporate details, including its board, committees, and key advisors - The company's name was changed from "Sumpo Food Holdings Limited" to "Ruihe Data & Intelligence Technology Holdings Limited"[1] - The roles of Chairman and CEO are held by the same individual, Mr. Xue Shouguang[3][4] Financial Highlights Financial Performance Summary Revenue grew significantly while net loss narrowed due to new business lines and effective cost controls Key Financial Metrics for H1 2024 | Metric | H1 2024 (RMB) | H1 2023 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 181 million | 121 million | +49.4% | | Gross Profit | 14.58 million | 25.30 million | -42.4% | | Net Loss | 38.64 million | 63.18 million | -38.8% (Loss Narrowed) | | Basic Loss Per Share | 5.48 cents | 12.40 cents | -55.8% (Loss Narrowed) | - Revenue growth was primarily driven by a 115.7% increase in sales of software, hardware, and related integrated services and the new commodity trading business, which contributed approximately RMB 61.72 million in revenue[10] - The narrowed net loss was mainly due to reduced impairment provisions for financial and contract assets, lower selling and R&D expenses, and no impairment loss on intangible assets[10][11] Management Discussion and Analysis Business Review The Group is transitioning into a digital intelligence service provider by expanding into new data-related sectors Industry Background Analysis National policies supporting the digital economy and AI are creating significant market opportunities for the Group - National policies, such as the "Data Elements ×" Three-Year Action Plan, provide strong support for industry development, heralding the era of data element industrialization[13][14] Relevant Market Size Forecasts | Market | Forecasting Body | Forecast Size | | :--- | :--- | :--- | | China's Digital Economy Market | China Research and Intelligence Co., Ltd. | Expected to reach RMB 70.8 trillion by 2025 | | China's Data Element Market | China Center for Information Industry Development | Expected to approach RMB 200 billion by 2025 | | China's Banking IT Solutions Market | IDC & CCID Consulting | Will reach RMB 139.011 billion by 2026 | H1 2024 Performance Review The Group solidified its core business while expanding into new data asset applications through key partnerships - To consolidate existing business, the Group continued its deep cooperation with a large state-owned bank's head office and successfully renewed contracts and won bids with other city and rural commercial banks[20] - To expand into new sectors, the Group co-invested RMB 100 million to establish a partnership for data asset innovation and signed a strategic cooperation with the Quanzhou Licheng District government[20] - As of June 30, 2024, the Group had applied for 244 national intellectual property certificates, including 47 invention patents and 140 software copyrights[21] - The Group actively built an ecosystem by releasing joint solutions with tech companies like Alibaba Cloud and Huawei and co-authoring a white paper on regional bank data capabilities[22] Future Outlook The Group will focus on AI, data asset accounting, and domestic IT substitution to become a leading service provider - Product Innovation: Focusing on R&D for AI big data, AI, and large model products to continuously upgrade core offerings[28] - Sector Expansion: Seizing market opportunities in data element innovation, data asset accounting, and domestic IT substitution to provide integrated hardware and software solutions[28] - Customer Service: Establishing cross-departmental resource coordination mechanisms and strengthening cooperation with government, enterprises, and universities[29] - Ecosystem Cooperation: Deepening strategic partnerships with internet giants like Huawei Cloud, Alibaba Cloud, and Baidu Cloud, and enhancing collaboration with industry partners[29] Financial Review Revenue grew while gross margin declined due to business mix changes, but net loss narrowed from cost controls Revenue Analysis Total revenue growth was driven by new business segments, offsetting declines in traditional data solutions Revenue Breakdown (RMB '000) | Business Segment | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Data Solutions | 68,491 | 88,885 | -22.9% | | Sales of Software, Hardware & Related Integrated Services | 46,968 | 21,771 | +115.7% | | IT Maintenance & Support Services | 3,832 | 10,470 | -63.4% | | Commodity Trading | 61,720 | 0 | N/A | | Total | 181,011 | 121,126 | +49.4% | Gross Profit and Gross Margin Analysis Gross profit and margin declined significantly due to a revenue mix shift toward lower-margin businesses - Gross profit was approximately RMB 14.58 million, a decrease of RMB 10.73 million (-42.4%) year-over-year[33] - Gross profit margin was approximately 8.1%, compared to 20.9% in the same period last year[33] Expense Analysis The Group effectively controlled operating expenses, with significant reductions in selling and R&D costs Key Expense Changes (RMB '000) | Item | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 5,528 | 11,333 | -51.2% | | R&D Expenses | 19,449 | 22,934 | -15.2% | | Administrative Expenses | 24,053 | 23,678 | +1.6% | Loss for the Period Analysis Net loss narrowed significantly due to lower impairment provisions and reduced operating expenses - Impairment provisions for financial and contract assets decreased by approximately RMB 8.52 million year-over-year[38] - Selling expenses decreased by approximately RMB 5.81 million year-over-year[38] - R&D expenses decreased by approximately RMB 3.49 million year-over-year[38] - No impairment loss on intangible assets was recorded in the period, compared to an impairment loss of approximately RMB 12 million in the prior-year period[38] Liquidity and Cash Flow Analysis Operating cash outflow narrowed, while financing cash flow turned negative due to the absence of share issuance proceeds Cash Flow Statement Summary (RMB '000) | Activity | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (32,104) | (51,588) | | Net Cash from Investing Activities | (5,308) | (698) | | Net Cash from Financing Activities | (7,228) | 106,448 | Capital Structure and Gearing The gearing ratio rose to 216.4% as total borrowings remained high while total equity decreased - As of June 30, 2024, borrowings included RMB 66.74 million in short-term bank loans, RMB 95 million in other borrowings, and RMB 10 million in long-term bank loans[47] - The gearing ratio increased to 216.4% (end-2023: 150.2%), primarily due to a decrease in total equity of approximately RMB 36.83 million during the period[53] - Bank borrowings are secured by pledged bank deposits, certain trade receivables, assets owned by a director, and personal guarantees[54] Corporate Governance and Other Information Directors', Chief Executive's and Substantial Shareholders' Interests This section details the shareholdings of directors and substantial shareholders as of June 30, 2024 Interests of Directors and Chief Executive (Long Positions) | Name | Capacity/Nature of Interest | Number of Shares | Approx. Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Xue Shouguang | Interest in a controlled corporation | 104,000,000 | 15.74 | | Mr. Chen Zhenping | Beneficial interest | 60,980,000 | 9.23 | | Mr. Wu Xiaohua | Interest in a controlled corporation | 29,490,000 | 4.46 | | Ms. Zhao Yiqing | Beneficial interest | 23,740,000 | 3.59 | | Dr. Wu Fushi | Beneficial interest | 11,450,000 | 1.73 | - Substantial shareholders (non-directors) include Treasure Tree Asia Holdings Co. LTD (15.74%), Mr. Wang Donglin (through a controlled corporation, 10.59%), and Beijing Financial Street Capital Operation Group Co., Ltd. (as a security interest holder, 10.00%)[64] Remuneration Policy and Equity Incentive Plans The Group maintains competitive remuneration policies and equity incentive plans to retain its 398 employees - As of June 30, 2024, the Group had a total of 398 employees in Mainland China and Hong Kong[70] - The Company adopted a Share Option Scheme and a Share Award Scheme on June 8, 2020[71] - During the period, 432,464 restricted shares vested and 110,747 shares lapsed under the Share Award Scheme[80] Use of Net Proceeds from Share Offer The net proceeds of approximately HK$104 million from the 2019 listing have been fully utilized Allocation and Use of Net Proceeds (HKD Million) | Purpose | Allocated Amount | Utilized Amount | Unutilized Amount | | :--- | :--- | :--- | :--- | | Enhance data solution portfolio | 20.8 | 20.8 | 0 | | Enhance sales and marketing | 20.8 | 20.8 | 0 | | Develop financial AI lab and other facilities | 36.4 | 36.4 | 0 | | Potential strategic acquisitions | 6.6 | 6.6 | 0 | | Working capital and other | 19.4 | 19.4 | 0 | | Total | 104.0 | 104.0 | 0 | Other Information The company complied with governance codes, with no interim dividend declared and sufficient public float maintained - The Board does not recommend the payment of an interim dividend for 2024[87] - The roles of Chairman and CEO are both held by Mr. Xue Shouguang, a deviation from the Corporate Governance Code which the Board believes ensures consistent leadership[84] - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[82] - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information[91] Interim Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income The company reported a significantly narrowed net loss of RMB 38.64 million on revenue of RMB 181 million Summary of Consolidated Statement of Comprehensive Income (RMB '000) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 181,011 | 121,126 | | Gross Profit | 14,577 | 25,302 | | Operating Loss | (32,320) | (64,628) | | Loss before Income Tax | (39,108) | (64,628) | | Loss for the Period | (38,635) | (63,176) | | Loss attributable to Owners of the Company | (36,040) | (62,141) | Interim Condensed Consolidated Statement of Financial Position The company reported total assets of RMB 383 million and net current liabilities of RMB 36.40 million Summary of Consolidated Statement of Financial Position (RMB '000) | Item | Jun 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Assets | 382,941 | 444,148 | | Non-current Assets | 130,665 | 141,519 | | Current Assets | 252,276 | 302,629 | | Total Liabilities | 302,460 | 326,841 | | Non-current Liabilities | 13,781 | 16,829 | | Current Liabilities | 288,679 | 310,012 | | Total Equity | 80,481 | 117,307 | | Net Current Liabilities | (36,403) | (7,383) | Interim Condensed Consolidated Statement of Changes in Equity Total equity decreased to RMB 80.48 million, primarily due to a total comprehensive loss of RMB 37.01 million - Total equity at the beginning of the period was RMB 117.3 million[101] - Total comprehensive loss for the period was RMB 37.01 million, comprising a loss for the period of RMB 38.64 million and an exchange difference gain of RMB 1.62 million[101] - Total equity at the end of the period was RMB 80.48 million[101] Interim Condensed Consolidated Statement of Cash Flows Cash and cash equivalents decreased by RMB 44.64 million, resulting in a closing balance of RMB 70.23 million Summary of Consolidated Statement of Cash Flows (RMB '000) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (32,104) | (51,588) | | Net cash used in investing activities | (5,308) | (698) | | Net cash from/(used in) financing activities | (7,228) | 106,448 | | Net (decrease)/increase in cash and cash equivalents | (44,640) | 54,162 | | Cash and cash equivalents at beginning of period | 113,257 | 57,480 | | Cash and cash equivalents at end of period | 70,232 | 110,468 | Notes to the Interim Condensed Consolidated Financial Statements Note 6: Revenue and Segment Information The Group operates two segments, with Integrated Data Technology Services contributing most of the revenue Segment Performance (H1 2024, RMB '000) | Segment | Revenue | (Loss)/Profit | | :--- | :--- | :--- | | Integrated Data Technology Services | 119,291 | (37,025) | | Commodity Trading | 61,720 | (64) | | Total | 181,011 | (37,089) | - By revenue recognition timing, RMB 109 million was recognized at a point in time, and RMB 72.32 million was recognized over time[123] Note 13: Trade and Bills Receivables Net trade and bills receivables stood at RMB 91.14 million, with a significant portion aged over one year Aging Analysis of Trade and Bills Receivables (RMB '000) | Aging | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Up to 3 months | 65,198 | 95,467 | | 3 to 6 months | 1,464 | 2,082 | | 6 months to 1 year | 26,183 | 9,073 | | Over 1 year | 62,500 | 59,974 | | Total | 155,345 | 166,596 | - The Group uses a lifetime expected loss provision model for trade and bills receivables, assessed based on customer credit risk and forward-looking information[147] Note 19: Bank and Other Borrowings Total borrowings amounted to RMB 172 million, primarily secured by various corporate and personal assets Composition of Bank and Other Borrowings (RMB '000) | Item | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-current | | | | Bank borrowings | 10,000 | 10,000 | | Current | | | | Bank borrowings | 66,744 | 64,728 | | Other borrowings | 95,000 | 101,464 | | Total | 171,744 | 176,192 | - The weighted average annual interest rate for bank borrowings was 4.3%[159] - At the end of 2023, a convertible loan with a principal of RMB 20 million was reclassified to other borrowings after the investor decided not to exercise the conversion option and demanded repayment[162]