神冠控股(00829) - 2024 - 中期财报

Company and Financial Overview Company and Investor Information This section provides essential company and listing details for Shenguan Holdings (Group) Limited, including corporate structure, advisors, and share information - The company was listed on the Hong Kong Stock Exchange on October 13, 2009, with stock code 00829[3] - As of June 30, 2024, the company had 3,230,480,000 shares in issue, with a market capitalization of HKD 872,229,600[3] Key Financial Highlights Revenue declined by 11.2% to RMB 452 million, while profit attributable to owners of the parent surged by 580.2% to RMB 8.2 million, with operating cash flow turning negative Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue (RMB Million) | 452.4 | 509.3 | -11.2% | | Profit Attributable to Owners of the Parent (RMB Million) | 8.2 | 1.2 | +580.2% | | Basic Earnings Per Share (RMB Cents) | 0.25 | 0.04 | +525.0% | | Net Cash (Outflow)/Inflow from Operating Activities (RMB Million) | (149.5) | 24.9 | N/A | Key Operational Efficiency Indicators | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Inventory Turnover Days - Raw Materials (Days) | 60.6 | 38.7 | | Inventory Turnover Days - Finished Goods and Work-in-Progress (Days) | 232.9 | 157.5 | | Accounts Receivable Turnover Days (Days) | 66.4 | 68.0 | Management Discussion and Analysis Market and Business Review The Group advanced its "One Body, Three Wings" health strategy, launching six new collagen casing series and achieving 327.0% year-on-year revenue growth in collagen food, skincare, and medical biomaterials - The Group accelerated the development of its "One Body, Three Wings" grand health industry, encompassing three major sectors: collagen casings, collagen food, collagen skincare, and collagen medical biomaterials[6] - Successfully developed and launched six new series of collagen casing products, with annual collagen casing production capacity reaching 7 billion meters[7] - Combined sales revenue from collagen food, skincare, and medical biomaterials increased by approximately 327.0% year-on-year, with medical collagen raw material sales growing by 648.7%[8][9] Operations Overview The Group achieved multiple certifications and honors, including trademark recognition and Halal certification, holds 113 authorized patents, and benefited from eased raw material supply and reduced prices - The Group's "Shenguan" trademark was included in China's First Batch of Key Trademarks for Light Industry Protection, and Halal collagen casings obtained "Halal Certification"[10] - As of June 30, 2024, the Group held a total of 113 authorized patents globally, with 78 valid[11][12] - The tight supply of bovine inner hide, a key raw material, eased during the period, and its price decreased compared to the previous period[16] Financial Analysis Revenue decreased by 11.2% due to product upgrades, but cost of sales dropped 19.5%, boosting gross profit by 72.5% and gross margin to 17.5%, with profit attributable to owners of the parent soaring 580.2% to RMB 8.2 million Key Income Statement Item Changes | Item | H1 2024 (RMB) | H1 2023 (RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 452.4 million | 509.3 million | -11.2% | | Cost of Sales | 373.3 million | 463.5 million | -19.5% | | Gross Profit | 79.0 million | 45.8 million | +72.5% | | Gross Margin | 17.5% | 9.0% | +8.5pp | | Profit Attributable to Owners of the Parent | 8.2 million | 1.2 million | +580.2% | - The revenue decrease was primarily due to the Group's product upgrades, shifting promotion focus from old products to six new product series, with product transition and customer adaptation periods impacting sales volume[18] - Gross margin significantly improved due to expanded raw material supply channels, technological innovation, equipment upgrades, and infrastructure improvements, leading to a notable decrease in unit production costs[20] - Other income and gains decreased by 54.5% year-on-year, mainly due to a one-off gain of approximately RMB 39.7 million from the transfer of drug marketing authorization in the prior period[21] Liquidity and Capital Resources The Group's net cash position was RMB 550 million, with a RMB 150 million net cash outflow from operations due to increased inventory, and capital expenditure of RMB 73.3 million for the period Capital Structure and Cash Position (June 30, 2024) | Indicator | Amount (RMB) | | :--- | :--- | | Cash and Cash Equivalents (including deposits) | 883.6 million | | Total Bank Borrowings | 333.3 million | | Net Cash Position | 550.3 million | | Debt-to-Equity Ratio | 15.1% | - Net cash outflow from operating activities was approximately RMB 149.5 million, primarily due to increased raw material and finished goods inventory to support the launch of new casing products[30] - Capital expenditure for H1 2024 was approximately RMB 73.3 million, with estimated full-year capital expenditure of approximately RMB 240 million, primarily for new production lines and equipment expansion[32] Human Resources As of June 30, 2024, the Group employed approximately 2,730 contract employees, with total staff costs and benefits for the period amounting to approximately RMB 124 million Human Resources Overview | Indicator | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Number of Contract Employees | Approx. 2,730 | Approx. 2,700 | | Staff Costs and Benefits (H1) | Approx. RMB 124 million | Approx. RMB 112.6 million | Outlook and Strategies The Group will continue its "One Body, Three Wings" strategy, focusing on stabilizing new casing product quality, expanding collagen food marketing, enhancing skincare sales, and accelerating medical biomaterial clinical trials and licensing - Core Strategy: Adhere to the "One Body, Three Wings" product diversification strategy, with collagen casings as the foundation and collagen food, skincare, and medical devices as the "three wings"[35] - Collagen Casings: Further stabilize the quality of six new products, improve production support, and accelerate the development of marketing and technical service teams[36] - Collagen Food and Skincare: Adjust marketing strategies, promote food through in-store experiences and online live streaming; simultaneously strengthen skincare advertising and fully advance both online and offline sales[36] - Collagen Medical Biomaterials: Accelerate clinical trials and production license applications for products such as "artificial bone," "post-oral surgery sponge," and "mini beauty needles," and expand the medical collagen raw materials market[37] Other Information Shares and Dividends This section details the company's share option scheme, noting no grants since adoption, and confirms the Board's decision not to declare a 2024 interim dividend - The company adopted a share option scheme in May 2020, but since its adoption, no share options have been outstanding, granted, exercised, cancelled, or lapsed[38][39] - The Board does not recommend the payment of no interim dividend for the six months ended June 30, 2024[39] Directors' and Major Shareholders' Interests This section discloses directors' and major shareholders' interests in the company's shares as of June 30, 2024, with Chairwoman Ms. Zhou Yaxian holding approximately 49.18% through controlled corporations Major Directors' Shareholdings (June 30, 2024) | Director's Name | Capacity/Nature | Number of Shares Held (Long Position) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Zhou Yaxian | Interest in Controlled Corporation and Beneficial Owner | 1,591,811,510 | 49.28% (Total) | | Dato' Sri Liew Chze Kwang | Interest in Controlled Corporation | 414,906,424 | 12.84% | - Major shareholder Fortunate Limited (indirectly wholly-owned by Chairwoman Ms. Zhou Yaxian) beneficially holds 39.23% of the company's shares[44] Corporate Governance The company largely complied with the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, a structure the Board believes fosters strong leadership, and the Audit Committee has reviewed the interim results - The company deviates from Corporate Governance Code provision C.2.1, where the Chairman and Chief Executive Officer roles combined are not segregated and are held by Ms. Zhou Yaxian concurrently[46] - The Audit Committee, comprising three independent non-executive directors, has reviewed unaudited interim results and deemed them compliant with accounting standards and Listing Rules[48] Financial Statements and Notes Independent Review Report Ernst & Young, the auditor, issued an unmodified review report, concluding that the interim financial information is prepared in all material respects according to HKAS 34 - Auditor Ernst & Young issued an unmodified conclusion in their review report, stating that the interim financial information is prepared in all material respects in accordance with Hong Kong Accounting Standard 34[51] Condensed Consolidated Financial Statements This section provides the condensed consolidated financial statements for the six months ended June 30, 2024, including the statement of profit or loss, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, revenue was RMB 452 million (-11.2%), gross profit RMB 79.02 million (+72.5%), and profit attributable to owners of the parent RMB 8.23 million (+580.2%) H1 2024 Income Statement | Item (RMB Thousand) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 452,357 | 509,306 | | Gross Profit | 79,023 | 45,799 | | Profit Before Tax | 18,703 | 19,287 | | Profit for the Period | 8,979 | 140 | | Profit Attributable to Owners of the Parent | 8,231 | 1,210 | | Basic Earnings Per Share (RMB Cents) | 0.25 | 0.04 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets were RMB 2.996 billion, total liabilities RMB 724 million, and net assets RMB 2.272 billion, with inventory increasing 38.1% to RMB 696 million Financial Position Statement Summary (RMB Thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,321,053 | 1,327,015 | | Total Current Assets | 1,675,073 | 1,630,281 | | Total Assets | 2,996,126 | 2,957,296 | | Total Current Liabilities | 696,158 | 553,937 | | Total Non-current Liabilities | 27,893 | 27,143 | | Total Liabilities | 724,051 | 581,080 | | Net Assets | 2,272,075 | 2,376,216 | Condensed Consolidated Statement of Cash Flows Net cash outflow from operating activities was RMB 150 million, net cash inflow from investing activities RMB 23.85 million, and from financing activities RMB 54.29 million, with period-end cash and cash equivalents at RMB 392 million Cash Flow Statement Summary (RMB Thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (149,486) | 24,912 | | Net Cash From Investing Activities | 23,846 | 343,602 | | Net Cash From/(Used in) Financing Activities | 54,293 | (403,812) | | Net Decrease in Cash and Cash Equivalents | (71,347) | (35,298) | Notes to the Condensed Interim Financial Information These notes provide supplementary information on the financial statements, covering basis of preparation, accounting policies, segment information, revenue composition, related party transactions, and share capital - The Group is primarily engaged in the manufacturing and sale of edible collagen casing products, as well as collagen food, skincare, and medical biomaterials. As over 90% of revenue from collagen casings, no separate operating segments are presented[60][66] Revenue from External Customers by Geographical Region (RMB Thousand) | Region | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Mainland China | 380,261 | 441,033 | | Asia (excluding Mainland China) | 48,162 | 30,197 | | Other Countries/Regions | 23,934 | 38,076 | | Total | 452,357 | 509,306 | - Multiple related party transactions occurred during the period, the largest of which was the purchase of bovine hide from a company controlled by a director of the company, amounting to RMB 188 million[82][83] - The Board approved and authorized the publication of this interim financial information on August 23, 2024[87]