Revenue Performance - The group's revenue for the first half of 2024 increased by approximately 22.4% year-on-year, reaching about RMB 176.5 million, primarily driven by growth in the cleanroom wall and ceiling systems segment [12]. - Revenue from the cleanroom wall and ceiling systems segment increased by approximately RMB 36.0 million (or about 27.6%), with sales in the Chinese market growing by approximately 66.8% [16]. - Revenue from China increased by approximately RMB 53.3 million (or about 66.8%) to RMB 133,232 thousand in the first half of 2024 compared to RMB 79,893 thousand in the same period of 2023 [24]. - Revenue for the six months ended June 30, 2024, was RMB 176,464 thousand, representing a 22.4% increase from RMB 144,157 thousand in the same period of 2023 [85]. - Revenue from cleanroom projects significantly increased to RMB 148,448,000, up 115.5% from RMB 68,809,000 year-on-year [105]. - Revenue from product sales decreased to RMB 28,016,000, down 62.8% from RMB 75,348,000 in the previous year [105]. - Revenue from external customers in mainland China was RMB 133,232,000, a substantial increase of 66.7% compared to RMB 79,893,000 in the prior year [111]. - Revenue from Malaysia decreased to RMB 27,094,000, down 47.5% from RMB 51,610,000 year-on-year [111]. Profitability and Margins - The net profit for the first half of 2024 significantly decreased by approximately 29.1% to about RMB 22.0 million, attributed to a decline in gross margin and credit loss provisions on contract assets [12]. - Gross profit for the cleanroom wall and ceiling systems segment decreased from RMB 45,971 thousand (35.3% margin) in the first half of 2023 to RMB 41,328 thousand (24.9% margin) in the first half of 2024 [26][28]. - Total gross profit for the first half of 2024 was RMB 45,830 thousand, down from RMB 51,576 thousand in the same period of 2023, reflecting a gross margin decline from 35.8% to 26.0% [26][37]. - Net profit decreased by approximately 29.1% to RMB 22.0 million in the first half of 2024, down from RMB 31.0 million in the same period of 2023, with a net profit margin decline from 21.5% to 12.5% [37]. - The company reported a total comprehensive income of RMB 21,140 thousand for the six months ended June 30, 2024, down from RMB 30,588 thousand in the same period of 2023 [86]. - The company reported a total comprehensive income for the period was RMB 21,025,000, compared to RMB 30,406,000 in the previous year, reflecting a decline of approximately 30.7% [91]. Expenses and Costs - The gross margin for the cleanroom wall and ceiling systems segment declined due to increased project costs, including direct material costs and subcontracting expenses [12]. - Other income decreased by approximately RMB 15 million in the first half of 2024, primarily due to the absence of temporary government subsidies received in the first half of 2023 [29]. - Research and development expenses increased by approximately RMB 1.3 million to RMB 3.9 million in the first half of 2024, mainly due to rising material costs [33]. - Financing costs increased to RMB 862,000 for the six months ended June 30, 2024, from RMB 511,000 in the same period of 2023, with bank loan interest expenses rising to RMB 723,000 [117]. - The income tax expense for the six months ended June 30, 2024, was RMB 4,496,000, a decrease from RMB 8,333,000 for the same period in 2023 [125]. Financial Position - Cash and cash equivalents as of June 30, 2024, were approximately RMB 123.2 million, down from RMB 134.4 million as of December 31, 2023 [43]. - Bank borrowings increased to approximately RMB 69.0 million as of June 30, 2024, compared to RMB 59.1 million as of December 31, 2023, with an effective interest rate ranging from approximately 3.1% to 4.4% [43]. - Total assets as of June 30, 2024, were RMB 442,367 thousand, compared to RMB 413,363 thousand as of December 31, 2023, reflecting a growth of 7.0% [88]. - The company reported a decrease in cash and cash equivalents to RMB 123,153,000 as of June 30, 2024, down from RMB 134,372,000 at the beginning of the period, a decline of about 8.9% [95]. - The company’s total assets increased to RMB 335,670,000 as of June 30, 2024, compared to RMB 321,374,000 at the beginning of the year, representing a growth of approximately 4.5% [91]. - Total equity increased to RMB 308,252,000 as of June 30, 2024, up from RMB 292,005,000 at the beginning of the year, reflecting a growth of about 5.5% [90]. Strategic Initiatives and Outlook - The group maintains a cautiously optimistic outlook for the future, attributing its resilience to long-term customer relationships and strong brand recognition [13]. - The group is facing construction delays for its new production facility in Malaysia, with completion expected by Q2 2025 and full production anticipated by Q3 2025 [12]. - The company continues to explore suitable locations for a second factory in China [12]. - The company plans to maintain its focus on market expansion and new product development as part of its strategic initiatives moving forward [118]. - The company continues to focus on expanding its cleanroom systems and equipment offerings in the Southeast Asian market [104]. Shareholder Information - A mid-term dividend of HKD 0.44 per share was declared for the six months ending June 30, 2024 [51]. - Major shareholders include Mr. Ng Yew Sum with a 24.28% stake and Mr. Law Eng Hock with a 4.29% stake [51]. - Major shareholders include Yap Fui Lee with 339,958,550 shares (24.28%), Francis Chia Mong Tet with 150,773,100 shares (10.76%), and Yau Ah Lan @ Fara Yvonne with 150,773,100 shares (10.76%) [54]. - The company has adopted a share option scheme allowing for the issuance of up to 30% of the total issued share capital [61]. - The maximum number of shares that can be issued under the share option scheme is capped at 140,000,000 shares, which is 10% of the issued shares at the time of listing [63]. Corporate Governance - The company has fully complied with the applicable code provisions of the corporate governance code, except for the separation of roles between the chairman and CEO, which is currently under review [72]. - The audit committee, composed entirely of independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024 [74]. - The independent auditor's review report indicates no significant issues with the interim financial statements prepared in accordance with Hong Kong Accounting Standards [82]. - The company has adopted the corporate governance code as the basis for its governance practices, emphasizing the importance of high standards for shareholder value and transparency [72].
捷芯隆(02115) - 2024 - 中期财报