Revenue Performance - Revenue for the embedded software and secure payment products segment decreased by 39.2% to RMB 290,292,000 in H1 2024 compared to RMB 477,310,000 in H1 2023[6]. - Revenue for the platform and service segment decreased by 6.3% to RMB 251,720,000 in H1 2024 compared to RMB 268,574,000 in H1 2023[6]. - Total revenue for the six months ended June 30, 2024, was RMB 542,012,000, a decline of 27.3% from RMB 745,884,000 for the same period in 2023[7]. - For the six months ended June 30, 2024, the Group recorded a revenue of approximately RMB542.0 million, representing a year-on-year decrease of approximately 27.3%[13]. - Revenue from embedded software and secure payment products was RMB 290,292,000, down 39.2% from RMB 477,310,000 in the prior year[131]. - Revenue from data processing and other services amounted to RMB 164,202,000, compared to RMB 268,574,000 in the previous year, reflecting a decline of 38.9%[131]. - The Chinese mainland contributed RMB 479,975,000 to total revenue, while non-Chinese mainland markets generated RMB 62,037,000, indicating a shift in geographical revenue distribution[129]. Profitability and Financial Performance - Gross profit for the period was RMB 132,310,000, down 37.2% from RMB 210,537,000 in H1 2023[7]. - Profit for the period decreased by 64.4% to RMB 30,472,000 compared to RMB 85,615,000 in H1 2023[7]. - Net profit margin for H1 2024 was 5.6%, down from 11.5% in H1 2023, representing a decline of 5.9 percentage points[7]. - Total comprehensive income for the period was RMB 30,902,000, down 64.7% from RMB 87,490,000 in the previous year[109]. - Basic and diluted earnings per share were both 3.8 cents, a decrease from 9.3 cents in the same period of 2023[109]. - Profit before income tax for the six months ended June 30, 2024, was RMB 31,498,000, a decrease of 67.3% compared to RMB 96,215,000 for the same period in 2023[138]. - The effective income tax expense for the six months ended June 30, 2024, was RMB 1,026,000, significantly lower than RMB 10,600,000 in 2023, indicating a reduction of 90.3%[141]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,465,759,000, a decrease of 8.5% from RMB 2,693,907,000 as of December 31, 2023[8]. - Total liabilities decreased by 22.9% to RMB 461,711,000 as of June 30, 2024, from RMB 598,836,000 as of December 31, 2023[8]. - Current liabilities decreased to RMB 419,886,000 from RMB 554,055,000, a decline of about 24.2%[111]. - Total equity attributable to owners of the Company was RMB 2,001,562,000, down from RMB 2,073,331,000 at the end of 2023[110]. - The company reported total trade receivables of approximately RMB380.6 million as of June 30, 2024, an increase from RMB331.0 million as of December 31, 2023[53]. - The total current assets of the Group as of June 30, 2024, were approximately RMB1,711.7 million, down from approximately RMB1,952.9 million as of December 31, 2023[58]. Research and Development - The Group invested approximately RMB53.4 million in research and development, representing a year-on-year increase of approximately 4.3%, and accounting for approximately 9.9% of the revenue[14]. - Research and development expenses for the six months ended June 30, 2024, were RMB 53,410,000, slightly higher than RMB 51,223,000 in 2023, indicating a year-over-year increase of 4.2%[138]. Employee and Management Information - Total employee benefits expenses for the six months ended June 30, 2024, amounted to approximately RMB111.1 million, compared to approximately RMB109.8 million for the same period in 2023[72]. - The Group had a total of 1,342 employees as of June 30, 2024, a decrease of 165 employees from 1,507 as of December 31, 2023[72]. - The company conducts an annual salary review and has implemented various incentive schemes, including share option and share reward plans, to motivate potential employees[75]. - Directors' fees for the period amounted to RMB 294,000, a slight decrease from RMB 300,000 in the previous period[187]. Corporate Governance and Compliance - The company has complied with all applicable Code Provisions in the Corporate Governance Code throughout the six months ended June 30, 2024[79]. - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[78]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report[90]. - The company complies with corporate governance codes and has established an audit committee[90]. Strategic Initiatives and Market Outlook - The company is facing challenges due to geopolitical tensions and slower economic growth in developed economies, impacting its outlook[9]. - The company aims to reinforce confidence and accelerate the implementation of its digital and platform-based strategy in response to market conditions[9]. - The Group aims to adapt its product structure and accelerate the implementation of its digital and platform-based strategy in response to market challenges[11]. - The Group plans to expand its global business territories by actively promoting successful business models in target regions, focusing on diverse needs across different countries[29][31]. Shareholder Information - The company declared a final dividend of HK10.0 cents per ordinary share for 2023, down from HK12.0 cents in 2022, with total dividends amounting to HK$73,817,000 compared to HK$86,469,000 in the previous year[35]. - As of June 30, 2024, the company had issued a total of 817,935,000 shares[92]. - Chairman LU Run Ting holds 299,759,422 shares, representing 36.65% of the company's interests[91]. - The company has a discretionary trust established by Chairman LU, influencing share ownership[91]. Cash Flow and Capital Expenditure - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 227,989,000, compared to a net cash used of RMB 37,987,000 in the same period of 2023, indicating a significant improvement[116]. - Cash flows from investing activities resulted in a net cash outflow of RMB 216,000,000 for the first half of 2024, compared to a net cash outflow of RMB 71,934,000 in the same period of 2023[116]. - Capital expenditures for the Group amounted to approximately RMB 11,574,000 for the six months ended June 30, 2024, a decrease from RMB 14,993,000 in the same period of 2023[155].
金邦达宝嘉(03315) - 2024 - 中期财报