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乐氏国际控股(01529) - 2024 - 中期财报
YUES INTL HLDGYUES INTL HLDG(HK:01529)2024-09-17 08:30

Corporate Information The report details key management personnel, including directors and committee members, along with core company information like registered office and principal bankers - The report provides a list of key management personnel, including executive directors, independent non-executive directors, and members of various committees (Audit, Remuneration, Nomination), along with core company information such as its registered office, headquarters, principal place of business in Hong Kong, and principal bankers46 Condensed Consolidated Financial Statements This section presents the group's condensed consolidated financial statements, including profit or loss, comprehensive income, financial position, equity changes, and cash flows Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, group revenue grew 55.3% to RMB 94.70 million, but increased subcontracting and operating expenses led to a 25.2% wider loss of RMB 13.22 million, with basic loss per share at RMB 0.8772 cents Summary of Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 94,701 | 60,977 | +55.3% | | Other income and gains, net | 3,895 | 4,794 | -18.8% | | Employee benefit expenses | (36,793) | (31,811) | +15.7% | | Subcontracting expenses | (48,070) | (13,111) | +266.6% | | Other expenses | (21,498) | (28,381) | -24.3% | | Loss before taxation | (13,463) | (10,287) | +30.9% | | Loss for the period | (13,224) | (10,562) | +25.2% | | Loss attributable to owners of the Company | (10,588) | (10,562) | +0.2% | | Loss per share - Basic | (0.8772 RMB cents) | (1.0952 RMB cents) | - | Condensed Consolidated Statement of Comprehensive Income After accounting for RMB 1.604 million in foreign currency translation losses from overseas operations, the group's total comprehensive expense for the six months ended June 30, 2024, expanded 40.4% to RMB 14.828 million Summary of Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the period | (13,224) | (10,562) | +25.2% | | Other comprehensive (expense)/income | (1,604) | 4 | - | | Total comprehensive expense | (14,828) | (10,558) | +40.4% | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets slightly increased to RMB 286 million, with total equity rising to RMB 145 million primarily due to share placement, and net current assets improving from RMB 100 million to RMB 110 million Summary of Statement of Financial Position | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 72,253 | 80,004 | -9.7% | | Total current assets | 213,625 | 202,824 | +5.3% | | Total assets | 285,878 | 282,828 | +1.1% | | Total equity | 145,454 | 143,808 | +1.1% | | Total non-current liabilities | 36,581 | 39,020 | -6.3% | | Total current liabilities | 103,843 | 100,000 | +3.8% | | Total liabilities | 140,424 | 139,020 | +1.0% | Condensed Consolidated Statement of Changes in Equity As of June 30, 2024, total equity slightly increased from RMB 144 million to RMB 145 million, primarily influenced by a RMB 13.224 million loss for the period offset by a RMB 16.474 million increase from new share placements - During the period, the company issued new shares through a share placement, raising RMB 16.474 million, which effectively offset the negative impact of operating losses on shareholders' equity21 Condensed Consolidated Statement of Cash Flows In H1 2024, the group reported a net cash outflow of RMB 25.694 million from operating activities, a net inflow of RMB 25.450 million from investing activities, and RMB 6.447 million from financing activities, increasing period-end cash and cash equivalents to RMB 82.796 million Summary of Cash Flow Statement (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (25,694) | (6,623) | | Net cash generated from investing activities | 25,450 | 8,738 | | Net cash generated from/(used in) financing activities | 6,447 | (1,972) | | Net increase in cash and cash equivalents | 6,203 | 143 | | Cash and cash equivalents at beginning of period | 78,026 | 55,530 | | Cash and cash equivalents at end of period | 82,796 | 55,392 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, elaborating on revenue, segment information, share capital, and post-reporting period events 3. REVENUE The group's total revenue is segmented by service type, with transportation services being the largest contributor, growing 150.5% to RMB 48.746 million, while warehousing services also saw significant growth and in-plant logistics services declined Revenue by Service Type (For the six months ended June 30) | Service Type | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Transportation services | 48,746 | 19,458 | +150.5% | | Warehousing services | 17,509 | 9,812 | +78.4% | | In-plant logistics services | 27,617 | 31,043 | -11.0% | | Customized services | 829 | 664 | +24.9% | | Total | 94,701 | 60,977 | +55.3% | 4. SEGMENT INFORMATION By business segment, transportation and in-plant logistics services were primary profit contributors with segment results of RMB 3.305 million and RMB 3.249 million respectively, while warehousing services incurred a slight loss, and approximately 96% of the group's revenue originated from China Segment Results for H1 2024 | Segment | Revenue (RMB thousand) | Segment result (RMB thousand) | | :--- | :--- | :--- | | Transportation services | 48,746 | 3,305 | | Warehousing services | 17,509 | (55) | | In-plant logistics services | 27,617 | 3,249 | | Customized services | 829 | 182 | | Total | 94,701 | 6,681 | - The group's business is highly concentrated in China, with approximately 96% of external customer revenue for the six months ended June 30, 2024, originating from China (95% for the same period in 2023)58 12. SHARE CAPITAL As of June 30, 2024, the company's issued and fully paid share capital increased to HKD 13,341,600, representing 1,334,160,000 ordinary shares, primarily due to the issuance of 192,880,000 new shares through a share placement during the period - During the reporting period, the company issued 192,880,000 new shares through a share placement, increasing the total number of issued shares from 1,141,280,000 at the beginning of 2024 to 1,334,160,000 at period-end80 14. EVENTS AFTER THE REPORTING PERIOD On August 8, 2024, the group entered a conditional sale and purchase agreement to dispose of its entire equity interest in Gainsun Logistics (Overseas) Investment Limited and its subsidiaries for a total consideration of RMB 3.5 million, with the disposal yet to be completed as of the report approval date - Subsequent to the reporting period, on August 8, 2024, the group agreed to dispose of its entire equity interest in Gainsun Logistics (Overseas) Investment Limited and its subsidiaries for RMB 3.5 million83 Management Discussion and Analysis This section provides an overview of the company's business performance, financial results, and future outlook, including strategic initiatives and capital allocation plans BUSINESS REVIEW AND OUTLOOK In H1 2024, despite steady recovery in China's logistics demand, the company faced challenges from slowing economic growth, rising costs, and intense competition, but anticipates continued demand growth and plans to pursue sustainable growth through smart automation, Haihui Group integration, and traditional Chinese medicine business expansion - In H1 2024, China's national logistics volume grew 5.8% year-on-year, providing industry growth opportunities, yet slowing economic growth and rising costs also pressured the company8789 - The company's acquisition of a 60% equity interest in Haihui Group in October 2023 is expected to significantly contribute to 2024 turnover and optimize resource allocation95 - Future strategies include developing smart and automated warehousing, optimizing inventory management, and actively seeking new opportunities, such as participating in the storage and distribution of traditional Chinese medicine products9196 FINANCIAL REVIEW In H1 2024, group revenue grew 55.3% to RMB 94.7 million, driven by Haihui Group acquisition, but subcontracting expenses surged 266.6% to RMB 48.1 million, alongside increased staff costs and finance costs, expanding net loss to RMB 13.2 million, though liquidity remained robust with gearing ratio significantly down from 9.2% to 1.6% Revenue Performance by Business Segment (For the six months ended June 30) | Service Type | 2024 Revenue (RMB million) | 2023 Revenue (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Transportation services | 48.7 | 19.5 | +150.5% | | Warehousing services | 17.5 | 9.8 | +78.4% | | In-plant logistics services | 27.6 | 31.0 | -11.0% | - Subcontracting expenses significantly increased from RMB 13.1 million in the prior period to RMB 48.1 million, primarily due to increased revenue, particularly from local transportation and international freight forwarding service orders107 - Finance costs increased from RMB 0.2 million to RMB 2.1 million, mainly due to interest on bank loans from the Haihui Group acquisition in H2 2023110 Key Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net current assets | RMB 109.8 million | RMB 100.0 million | | Cash and cash equivalents | RMB 82.8 million | RMB 78.0 million | | Gearing Ratio | 1.6% | 9.2% | USE OF PROCEEDS The company disclosed the use of proceeds from three share placements in 2022, 2023, and 2024, with all funds unutilized as of June 30, 2024, but designated for developing traditional Chinese medicine business, smart logistics services, and investing in logistics infrastructure Net Proceeds from Placements and Usage Plan | Placement Year | Net Proceeds (HKD million) | Planned Use | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | | 2022 | 14.0 | Development of traditional Chinese medicine business and/or general working capital | On or before December 31, 2025 | | 2023 | 34.2 | Development of smart logistics services business | For the year ending December 31, 2024 | | 2024 | 18.5 | Investment in logistics business infrastructure | For the year ending December 31, 2024 | Corporate Governance and other Information This section covers the company's corporate governance practices, share option scheme details, and interests of directors and substantial shareholders SHARE OPTION SCHEME The company adopted a new share option scheme in November 2023, with 69,000,000 unexercised options outstanding as of June 30, 2024, at an exercise price of HKD 0.188 per share, valid until May 31, 2030, and no new options were granted, exercised, lapsed, or cancelled during the period - As of June 30, 2024, the company had 69,000,000 unexercised share options, representing approximately 5.7% of the weighted average number of shares in issue during the period146 DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS The report discloses directors' and substantial shareholders' interests in the company's shares, with Mr. Zhu Zhijian holding 12.49% through Portree Wealth Limited as a key substantial shareholder, and other major shareholders holding between 6.00% and 6.60% as of June 30, 2024 Substantial Shareholders' Shareholdings (As of June 30, 2024) | Shareholder Name | Number of Shares Held | Shareholding Percentage | | :--- | :--- | :--- | | Mr. Zhu Zhijian (through Portree Wealth) | 166,700,000 | 12.49% | | Zai Tingji | 88,000,000 | 6.60% | | Xie Zhimin | 82,000,000 | 6.15% | | Zhongbei Investment Holding Group (Hainan) Co., Ltd. | 80,000,000 | 6.00% | Corporate Governance Practices The company maintains high corporate governance standards, complying with Listing Rules' Corporate Governance Code, with the Audit Committee reviewing interim financial statements for compliance and adequate disclosure, and Ms. Liu Ping appointed as Executive Director on April 15, 2024 - The company confirmed compliance with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024164 - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period167 - Ms. Liu Ping was appointed as an Executive Director of the company on April 15, 2024168