Financial Performance - Winshine Science Company Limited reported a significant increase in revenue, achieving a total of HK$XX million for the interim period, representing a YY% growth compared to the previous year[3]. - For the six months ended June 30, 2024, the Group reported revenue of HK$191,131,000, a decrease of 5.9% compared to HK$202,686,000 for the same period in 2023[27]. - The Group recorded a loss of approximately HK$26.73 million for the interim period ended June 30, 2024, compared to a loss of approximately HK$21.11 million for the same period in 2023, representing an increase in loss of approximately HK$5.62 million[8]. - The basic and diluted loss per share for the period was HK21.99 cents, compared to HK26.95 cents in the previous year, showing a decrease in loss per share[27]. - The Group incurred a loss before tax of HK$26,709,000, compared to a loss of HK$21,109,000 in the previous year, reflecting a deterioration of 26.5%[27]. - The total comprehensive expenses for the period amounted to HK$26,731,000, compared to HK$25,122,000 in 2023, indicating an increase of 6.4%[29]. - The loss attributable to owners of the Company for the six months ended June 30, 2024, was HK$26,565,000, compared to HK$21,050,000 for the same period in 2023, representing an increase of approximately 26.5%[70]. Revenue Breakdown - Revenue from the plantation and sales of agricultural products increased sharply by 760.8% to HK$1.36 million for the interim period ended June 30, 2024, attributed to early-stage sales growth[9]. - Revenue from toy products was HK$189,771,000, down from HK$202,528,000 in 2023, indicating a decrease of about 6.3%[50]. - Revenue from agricultural products increased to HK$1,360,000 from HK$158,000, showing a significant growth of approximately 764.6%[50]. Cost Management and Profitability - The gross profit margin improved to EE%, up from FF% in the previous period, indicating better cost management and pricing strategies[3]. - The gross profit for the same period was HK$4,070,000, down 62.7% from HK$10,921,000 in 2023[27]. - The reportable segment loss before tax for the toy segment was HK$18,344,000, compared to a loss of HK$12,881,000 in 2023, reflecting a worsening of approximately 42.5%[53]. - Management expects to improve profitability in the toy business and redeploy resources into high-growth and more profitable sectors moving forward[15]. Cash Flow and Financial Position - Winshine's cash flow from operations increased by HH%, providing a solid foundation for future investments and growth initiatives[3]. - The net cash used in operating activities for the first half of 2024 was HK$105,182,000, a decrease from HK$123,138,000 in the same period of 2023, indicating improved cash flow management[38]. - The company’s cash and bank balances decreased significantly to HK$16,137,000 from HK$119,335,000, a decline of approximately 86.5%[32]. - As of June 30, 2024, the Group's net current liabilities were HK$202.0 million, with a current ratio of 0.58, down from 0.63 as of December 31, 2023[13]. - The Group's borrowings totaled HK$245.3 million as of June 30, 2024, an increase from HK$238.1 million as of December 31, 2023[13]. Strategic Initiatives - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of BB% driven by new product launches and market expansion strategies[3]. - Winshine is actively investing in R&D for innovative technologies, with a budget allocation of HK$CC million, aiming to enhance product offerings and improve market competitiveness[3]. - The company is exploring potential acquisitions to strengthen its market position, with discussions ongoing regarding several targets in the industry[3]. - Winshine's market expansion efforts include entering new geographical regions, with plans to establish a presence in DD countries by the end of the fiscal year[3]. Employee and Corporate Governance - As of June 30, 2024, the Group had approximately 2,820 employees, an increase of 25.8% from 2,240 employees a year earlier[21]. - The Group's total staff costs include various benefits such as provident fund schemes, pension schemes, and discretionary bonuses, reflecting a commitment to employee welfare[21]. - The company complied with all applicable provisions of the Corporate Governance Code throughout the six months ended June 30, 2024, except for one deviation explained in the report[130]. Share Capital and Financing - The company completed a share consolidation on May 24, 2024, converting every five issued shares of HK$0.01 each into one consolidated share of HK$0.05 each, resulting in an authorized share capital of HK$700,000,000 divided into 14,000,000,000 consolidated shares[109]. - The company issued 101,964,566 ordinary shares at a subscription price of HK$0.066 per share, completed on January 15, 2024[112]. - The total authorized ordinary shares as of June 30, 2024 were 70,000,000, with a par value of HK$0.01 each[106]. - The company raised HK$6,575,000 from the issuance of new shares under a subscription agreement during the first half of 2024[38]. Risk Management - The Group's foreign currency risk management strategy includes matching foreign currency assets with liabilities to minimize exposure[15]. - The company continues to assess credit risk based on the financial condition of counterparties and industry outlooks[86].
瀛晟科学(00209) - 2024 - 中期财报