Financial Performance - In the first half of 2024, China Yurun Food Group recorded revenue of HKD 539 million, a decrease of 30.0% compared to HKD 770 million in the same period of 2023[10]. - The group reported a loss attributable to equity holders of HKD 10 million, an improvement from a loss of HKD 20 million in the first half of 2023[10]. - Fresh meat sales amounted to HKD 270 million, down 39.0% from HKD 443 million in the same period last year, accounting for approximately 50% of total revenue before internal sales[8]. - The sales revenue from deep-processed meat products was HKD 227 million, a decrease of about 2.2% compared to the same period last year[13]. - The revenue from low-temperature meat products increased by approximately 9.5% to HKD 154 million, representing about 28% of total revenue[14]. - The overall gross profit margin improved from 9.0% to 14.0%, with total gross profit rising by approximately 9.4% to HKD 76 million[15]. - The gross profit margin for low-temperature meat products increased significantly by 5.2 percentage points to 37.2%[16]. - Operating expenses decreased by 33.5% to HKD 66 million, accounting for 12.2% of total revenue[18]. - The group's operating profit was approximately HKD 12 million, a turnaround from an operating loss of HKD 28 million in the same period last year[19]. - The net loss for the period was HKD 13,191,000, compared to a net loss of HKD 39,149,000 in the same period last year, indicating a 66% improvement[56]. - The company reported a basic and diluted loss per share of HKD 0.006, an improvement from HKD 0.011 in the previous year[55]. Economic Environment - The overall economic environment in China showed a GDP growth of 5.0% in the first half of 2024, with consumer price index (CPI) rising only 0.1% year-on-year[4]. Production and Sales - The group maintained annual production capacities of approximately 3.35 million heads for upstream slaughtering and 56,000 tons for downstream processed meat products as of June 30, 2024[9]. - The group's overall sales revenue from upstream operations decreased by 43.1% to HKD 312 million, with a slaughter volume drop of approximately 50.1% to about 149,000 heads[12]. - Fresh meat accounted for approximately 50% of total revenue and 86% of upstream revenue, generating HKD 270 million, a decrease of 39.0% year-on-year[12]. - The sales of frozen meat products increased by 9.5% to HKD 154 million, representing about 28% of total revenue before internal sales[8]. Assets and Liabilities - As of June 30, 2024, the total assets of the group were HKD 958 million, a decrease of HKD 54 million from HKD 1,012 million on December 31, 2023[30]. - The total liabilities of the group as of June 30, 2024, were HKD 1,695 million, down by HKD 6 million from HKD 1,701 million on December 31, 2023[30]. - The net current liabilities amounted to HKD 1,019 million, with net debt of HKD 737 million and bank borrowings of HKD 465 million[31]. - The group has approximately HKD 364 million in non-current assets to support its ongoing operations despite being in a net debt position[31]. - The total equity attributable to the owners of the company was HKD (727,067,000) as of June 30, 2024, compared to HKD (694,969,000) at the end of 2023[59]. Cash Flow and Financing - The net cash used in operating activities was HKD 33,000 for the six months ended June 30, 2024, compared to HKD 7,386,000 in the previous year[62]. - The net cash used in investing activities was HKD 5,882,000 for the six months ended June 30, 2024, compared to HKD 5,035,000 in the previous year[62]. - The net cash used in financing activities was HKD 1,469,000 for the six months ended June 30, 2024, compared to HKD 2,323,000 in the previous year[62]. - The company is actively negotiating with banks regarding the renewal and waiver of certain loan covenants and is optimistic about its financial outlook[31]. - The company is actively negotiating with banks to update financing terms and seek additional funding sources to alleviate liquidity pressure[67]. - Certain bank borrowings totaling HKD 433,956,000 have become overdue, and the company is facing litigation from banks for repayment[66]. Management and Governance - The board has resolved not to declare an interim dividend for the review period, consistent with the previous year[42]. - The company has not granted any stock options under the new stock option plan since its adoption[45]. - The total number of stock options authorized for grant under the new stock option plan is 182,275,565[45]. - The total remuneration for key management personnel was HKD 1,318,000 for the six months ended June 30, 2024, down from HKD 1,373,000 for the same period in 2023[99]. Legal and Compliance - As of June 30, 2024, the group faced litigation from banks demanding immediate repayment of approximately HKD 434 million in bank loans[34]. - The company has outstanding bank loans totaling HKD 433,956,000 as of June 30, 2024, which have not met certain covenants[75]. Investments and Acquisitions - The company has no significant investments or plans for major acquisitions or capital asset purchases as of the report date[33]. - The company entered into an asset transfer agreement to sell property in Shanxi Province for a total consideration of RMB 51 million[53]. - On August 5, 2024, the group agreed to sell land and property in Xinjiang County for a total consideration of RMB 51,000,000 (approximately HKD 55,590,000)[100].
雨润食品(01068) - 2024 - 中期财报