Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 106,092,000, a decrease of approximately 6.1% compared to RMB 113,838,000 for the same period in 2023[10]. - Operating profit for the same period was RMB 10,919,000, down from RMB 18,049,000 in 2023, reflecting a decline of approximately 39.3%[10]. - Revenue from wireless telecom network optimization services decreased by approximately 3.1% to RMB 41,136,000 from RMB 42,404,000 in the previous year[18]. - Revenue from telecom network infrastructure maintenance and engineering services fell by approximately 10.2% to RMB 16,842,000 from RMB 18,709,000, primarily due to the loss of a customer[19]. - Revenue from ICT integrated services decreased by approximately RMB 3.4 million or about 9.6% to approximately RMB 32.2 million for the six months ending June 30, 2024, primarily due to intense domestic market competition and reduced revenue from major clients[20]. - Revenue from software-related business decreased by approximately RMB 1.3 million or about 7.6% to approximately RMB 15.9 million for the six months ending June 30, 2024, mainly due to a reduction in the number of projects generating revenue[21]. - Profit attributable to equity holders for the period was RMB 10,721 thousand, a decrease of 27.1% from RMB 14,658 thousand in the same period last year[61]. - Basic and diluted earnings per share for the period were RMB 2.18, compared to RMB 3.91 for the same period in 2023[61]. - The total comprehensive income for the six months ended June 30, 2024, was RMB 10,719,000, down from RMB 14,658,000 in the previous period[66]. Assets and Equity - The total assets increased to RMB 275,018,000 as of June 30, 2024, compared to RMB 183,592,000 at the end of 2023, marking an increase of approximately 50%[11]. - The total equity rose significantly to RMB 190,996,000 from RMB 85,150,000, indicating an increase of approximately 124.5%[11]. - Current assets increased to RMB 264,745 thousand from RMB 180,487 thousand at the end of 2023, reflecting a growth of 46.6%[62]. - Non-current assets totaled RMB 10,273 thousand, up from RMB 3,105 thousand at the end of 2023[62]. - The company reported a statutory reserve of RMB 17,979,000 as of June 30, 2024, reflecting compliance with Chinese regulations[66]. - The retained earnings as of June 30, 2024, stand at RMB 82,500,000, up from RMB 71,779,000 at the beginning of the year[66]. Cash Flow and Financing - Cash and cash equivalents increased by approximately 317.6% to approximately RMB 99.4 million as of June 30, 2024, primarily due to net proceeds from share sales[35]. - The cash flow from operating activities for the six months ended June 30, 2024, was a net outflow of RMB 20,520,000, compared to an inflow of RMB 6,501,000 in the previous year[69]. - The company’s cash flow from financing activities resulted in a net inflow of RMB 97,165,000 for the six months ended June 30, 2024, compared to an outflow of RMB 17,270,000 in the same period last year[69]. - The company raised RMB 113,725,000 from the issuance of shares post-listing, with associated expenses of RMB 18,598,000[69]. - The company's bank borrowings amounted to RMB 20,000,000 as of June 30, 2024, a decrease of 16.67% from RMB 24,000,000 as of December 31, 2023[98]. - The company's bank borrowings as of June 30, 2024, had an interest rate range of 2.95% to 2.98%, down from 3.7% to 4.1% as of December 31, 2023[98]. Investments and Capital Structure - The company is actively adjusting its capital structure and optimizing asset allocation to prepare for future growth opportunities[13]. - The planned use of the net proceeds includes funding for future ICT integration projects (20.5% of net proceeds), new R&D projects (34.6%), and sales and marketing efforts (5.4%) with expected implementation timelines by the end of 2027 and 2026 respectively[45]. - The company had no significant capital commitments as of June 30, 2024, consistent with the previous year[40]. - There were no major investments, acquisitions, or disposals of subsidiaries or associated companies during the six months ended June 30, 2024[42]. Employee and Management Information - As of June 30, 2024, the total salary and wages (including director remuneration) amounted to approximately RMB 73 million, compared to RMB 72 million for the same period in 2023, reflecting a slight increase[41]. - The company had 119 employees as of June 30, 2024, a slight decrease from 121 employees as of December 31, 2023[41]. - Employee benefits expenses totaled RMB 9,725 thousand for the six months ended June 30, 2024, an increase of 6.8% from RMB 9,108 thousand in the same period of 2023[82]. - The company reported a total of RMB 825,000 in key management compensation for the six months ended June 30, 2024, up 47.5% from RMB 559,000 for the same period in 2023[105]. Corporate Governance and Compliance - The company established an audit committee on December 15, 2023, to enhance corporate governance and oversight of financial reporting[58]. - The company has adopted a written guideline for employees regarding the trading of company securities, ensuring compliance with corporate governance standards[57]. - The company confirms compliance with the standards set out in the code of conduct for securities transactions by directors[56]. - The board of directors will continue to review and consider the separation of the roles of chairman and CEO in the future[46]. - The company has no related party transactions or continuing connected transactions during the reporting period[48]. Shareholder Information - As of June 30, 2024, major shareholders include Jingwei Tiandi Group Limited and Cheer Partners Limited, each holding 375,000,000 shares, representing 75% of the issued share capital[50]. - On July 24, 2024, Jingwei Tiandi Group Limited sold a total of 120,000,000 shares at HKD 2.16 per share, equivalent to 24% of the company's total issued share capital[52]. - The company has adopted a share option scheme on December 15, 2023, with a total of 50,000,000 options available for grant as of January 1 and June 30, 2024[55]. - The company's total issued and paid-up share capital increased to 1,000,000,000 shares as of June 30, 2024, from 38,000,000 shares as of December 31, 2023, representing a growth of 2,526.32%[99]. Risks and Contingencies - The group maintained a strong and robust liquidity position, with no significant foreign exchange risks or derivative agreements in place as of June 30, 2024[39]. - There were no significant contingent liabilities as of June 30, 2024, remaining at zero as in the previous year[43]. - The company reported a foreign exchange loss of RMB 2,000 during the reporting period[66]. Miscellaneous - The company was established on September 14, 2021, in the Cayman Islands and is primarily engaged in telecommunications network optimization services, infrastructure maintenance, and software development[70]. - The company completed a restructuring process to prepare for its initial public offering (IPO) on the Hong Kong Stock Exchange, which involved multiple steps including the acquisition of various subsidiaries[71]. - The interim financial statements are prepared in Renminbi thousands and have not been audited, authorized for publication on August 29, 2024[70]. - The company has adopted several revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the interim financial statements[74]. - The comparative figures for earnings per share have been retrospectively adjusted to align with the current reporting period[109].
经纬天地(02477) - 2024 - 中期财报