满地科技股份(01400) - 2024 - 中期财报

Corporate Information This section provides essential corporate details including board members, committee structures, and key operational contacts Board of Directors and Committee Members The report details the composition of the Board of Directors and its committees, noting recent changes in membership as of June 18, 2024 - Changes in the Board of Directors and committees occurred, with Mr. Lin Yu-Kang resigning as independent non-executive director and chairman of the audit and remuneration committees on June 18, 2024, and Mr. Guo Xian-Wang appointed to fill the vacancies[3] Corporate Structure and Advisors This chapter outlines the company's auditors, principal bankers, registered office, and stock code on the Hong Kong Stock Exchange - The company's auditor is Evergreen (Hong Kong) CPA Limited[4] - The company's principal bankers include Quanzhou Bank, Bank of China (Hong Kong), Nanyang Commercial Bank, and The Bank of East Asia[4] - The company's stock code on the Hong Kong Stock Exchange is 1400[4] Management Discussion and Analysis This section reviews the group's operational and financial performance, highlighting key trends and strategic initiatives Business and Industry Review The group's total revenue declined by 35.1% to 54.9 million RMB in the first half of 2024, primarily due to reduced demand for fabric and apparel products in China Key Performance Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (million RMB) | 54.9 | 84.6 | -35.1% | | Loss Attributable to Owners (million RMB) | 14.8 | 8.9 | +66.3% | | Loss Per Share (RMB) | 0.0041 | 0.0027 | +51.9% | - According to China's National Bureau of Statistics, in the first six months of 2024, revenue for textile enterprises above designated size increased by approximately 4.5%, and net profit increased by approximately 19.3%, indicating an overall positive trend in the industry[5] Financial Review The group's financial performance was pressured by a 35.1% revenue decline, a lower gross margin, and increased administrative and finance costs Revenue Analysis Total group revenue decreased to 54.9 million RMB, with significant declines in footwear and apparel sales, while digital marketing services emerged as a new revenue stream Revenue Breakdown by Product Category (thousand RMB) | Product Category | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Footwear & Apparel | 25,061 | 63,053 | -60.3% | | Fabric | 0 | 13,139 | -100.0% | | Elastic Webbing | 12,418 | 8,418 | +47.5% | | Digital Marketing Services | 17,393 | 0 | N/A | | Total | 54,872 | 84,610 | -35.1% | - Digital marketing services emerged as a new revenue pillar, contributing 31.7% of total revenue, partially offsetting the decline in traditional businesses[7][9] Gross Profit Analysis Overall gross profit decreased to 6.27 million RMB, with the gross margin declining to 11.4% primarily due to increased raw material costs for elastic webbing Gross Profit and Gross Margin by Product Category (thousand RMB) | Product Category | H1 2024 Gross Profit | H1 2024 Gross Margin | H1 2023 Gross Profit | H1 2023 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Footwear & Apparel | 4,350 | 17.4% | 8,807 | 14.0% | | Fabric | – | – | 197 | 1.5% | | Elastic Webbing | 597 | 4.8% | 1,809 | 21.5% | | Digital Marketing Services | 1,322 | 7.6% | – | – | | Total | 6,269 | 11.4% | 10,813 | 12.8% | Operating Expenses and Costs Net other income significantly improved due to foreign exchange gains, while administrative expenses rose due to increased R&D and depreciation costs - Net other income/(expenses) significantly improved, shifting from an expense of 1.29 million RMB in the prior period to income of 8.05 million RMB this period, primarily due to a recognized foreign exchange gain of approximately 6.7 million RMB[14][15] - General and administrative expenses increased by 32.4% year-on-year, from 12.7 million RMB to 16.8 million RMB, mainly due to increased research and development expenses and depreciation[16] - Finance costs increased from 7.5 million RMB to 10.1 million RMB, primarily due to increased accrued interest on bank borrowings[16] Liquidity and Financial Resources The group maintains a prudent financial strategy, completing a new share placement to raise approximately 19.5 million HKD for general working capital - On June 5, 2024, the company completed a new share placement, successfully placing 200 million shares at 0.100 HKD per share, raising net proceeds of approximately 19.5 million HKD[17][18] - As of June 30, 2024, approximately 15.9 million HKD of the placement proceeds had been utilized, with 14.4 million HKD used to settle trade and other payables[18] Capital Structure and Risk Management Total borrowings slightly decreased, but the current ratio declined due to reduced receivables, with limited foreign exchange risk as most operations are RMB-denominated Liquidity Indicators | Indicator | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current Assets (thousand RMB) | 92,961 | 100,153 | | Current Liabilities (thousand RMB) | 428,158 | 439,941 | | Net Current Liabilities (thousand RMB) | (335,197) | (339,788) | | Current Ratio | 21.7% | 22.8% | - Total group borrowings decreased from 200.4 million RMB to 196.6 million RMB, primarily due to the repayment of 3.8 million RMB in bank borrowings during the period[19][21] - The group primarily operates in Mainland China, with most transactions denominated and settled in RMB, thus limiting foreign exchange risk[23][27] Future Outlook Management is actively exploring acquisition opportunities and expects the new online media advertising business to boost revenue, alongside plans for further financing and business restructuring - Management is confident in the new online media advertising business launched in the second half of 2023, believing it will increase the group's revenue streams[36] - Future plans include further financing, maintaining the scale of core businesses (footwear and apparel, elastic webbing), and restructuring the loss-making fabric business[36] - Subsequent to the reporting period, Zhuhai Hongli Technology Co Ltd, in which the company indirectly holds 68.11%, resolved to apply for delisting from the National Equities Exchange and Quotations[40][42] Additional Information This section covers corporate governance practices, compliance with listing rules, and the review of interim results by the audit committee Corporate Governance The company maintains high corporate governance standards, largely complying with the Corporate Governance Code, and its interim results were reviewed by the Audit Committee - For the six months ended June 30, 2024, the company complied with all code provisions of the Corporate Governance Code, except for code provision C.1.8[46][48] - Based on public information and the directors' knowledge, the company maintained a sufficient public float of at least 25%, complying with Listing Rules requirements[44][47] - The group's unaudited interim results for the six months ended June 30, 2024, have been reviewed by the Audit Committee[58] Condensed Consolidated Financial Statements This section presents the group's unaudited interim financial statements, including the statement of profit or loss, financial position, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the group reported a 35.1% revenue decrease and an expanded loss for the period to 16.32 million RMB H1 2024 Statement of Profit or Loss Summary (thousand RMB) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 54,872 | 84,610 | | Gross Profit | 6,269 | 10,813 | | Loss from Operations | (6,175) | (1,573) | | Loss Before Tax | (16,314) | (9,067) | | Loss for the Period | (16,318) | (9,250) | | Loss Attributable to Owners | (14,803) | (8,868) | | Basic Loss Per Share (RMB) | 0.0041 | 0.0027 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the group reported total assets of 297.17 million RMB, total liabilities of 444.61 million RMB, and a net liability position of 147.43 million RMB Statement of Financial Position Summary (thousand RMB) | Item | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 204,211 | 210,266 | | Current Assets | 92,961 | 100,153 | | Total Assets | 297,172 | 310,419 | | Current Liabilities | 428,158 | 439,941 | | Non-current Liabilities | 16,448 | 16,604 | | Total Liabilities | 444,606 | 456,545 | | Net Liabilities | (147,434) | (146,126) | | Equity Attributable to Owners | (157,753) | (158,853) | | Total Equity | (147,434) | (146,126) | Condensed Consolidated Statement of Cash Flows Operating activities resulted in a net cash outflow of 13.25 million RMB, while financing activities generated a net inflow of 14.57 million RMB, leading to a decrease in cash and cash equivalents Cash Flow Statement Summary (thousand RMB) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (13,249) | 30,468 | | Net Cash Used in Investing Activities | (1,805) | (2,823) | | Net Cash from/(Used in) Financing Activities | 14,566 | (5,370) | | Net Increase/(Decrease) in Cash and Cash Equivalents | (488) | 22,275 | | Cash and Cash Equivalents at Period End | 13,519 | 23,573 | Notes to the Condensed Consolidated Financial Information This section provides detailed notes explaining the significant accounting policies, segment information, and specific financial statement line items Note 1: General Information The company is an exempted company incorporated in Bermuda, listed on the Hong Kong Stock Exchange, with subsidiaries primarily engaged in footwear and apparel sales, fabric and elastic webbing, and digital marketing services - The group primarily engages in three main businesses: (a) sales of footwear and apparel, (b) design, manufacturing, and sales of fabrics and elastic webbing, and (c) provision of digital marketing services[66][68] Note 4: Segment Information The group operates in four reportable segments: footwear and apparel, fabric, elastic webbing, and digital marketing services, with China being the predominant market H1 2024 Segment Results (thousand RMB) | Segment | Revenue from External Customers | Segment Profit | | :--- | :--- | :--- | | Footwear & Apparel | 25,061 | 4,350 | | Fabric | – | – | | Elastic Webbing | 12,418 | 597 | | Digital Marketing Services | 17,393 | 1,322 | | Total | 54,872 | 6,269 | - Geographically, China is the group's primary market, contributing 45.36 million RMB in revenue, representing the vast majority of total revenue[79] Note 10: Loss Per Share Basic loss per share for the six months ended June 30, 2024, was 0.0041 RMB, based on a loss attributable to owners of 14.80 million RMB and a weighted average of 3.61 billion shares Basic Loss Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss Attributable to Owners (thousand RMB) | (14,803) | (8,868) | | Weighted Average Number of Ordinary Shares Issued (thousand shares) | 3,604,625 | 3,297,498 | | Basic Loss Per Share (RMB per share) | 0.0041 | 0.0027 | Note 17: Borrowings As of June 30, 2024, total group borrowings were 196.6 million RMB, with approximately 162.9 million RMB of bank borrowings overdue due to temporary funding shortages - As of June 30, 2024, approximately 162.9 million RMB of the group's bank borrowings were overdue due to temporary funding shortages[119] - Approximately 129.6 million RMB of the group's bank borrowings are secured by its property, plant and equipment, and right-of-use assets[119] Note 18: Share Capital During the first half of 2024, the company issued 200 million new ordinary shares through a placement, bringing the total issued and fully paid shares to 3.80 billion shares - On June 5, 2024, the company completed a placement under general mandate, issuing 200 million new shares with a par value of 0.10 HKD per share[121][122]