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智昇集团控股(08370) - 2024 - 年度财报
ZHI SHENG GPZHI SHENG GP(HK:08370)2024-09-20 13:52

Real Estate Market Performance - For the period ending June 30, 2024, the real estate development investment in China was CNY 608.77 billion, a year-on-year decrease of 10.2%[7] - The sales area of newly built commercial housing was 541.49 million square meters, down 18.6% year-on-year, with residential sales area decreasing by 21.1%[7] - The sales revenue of newly built commercial housing was CNY 533.30 billion, a decline of 24.3%, with residential sales revenue dropping by 25.9%[7] - The real estate market remains sluggish, impacting the demand for furniture due to a decrease in the number of new commercial building developments[7] Company Strategy and Market Focus - The company is focusing on the southwestern regions of China, including Sichuan, Chongqing, and Tibet, to stabilize market share[7] - The company is actively exploring new market opportunities and expanding its customer base, targeting hotels, schools, and small businesses[13] - The company is committed to developing existing customer potential and assisting them in expansion, despite challenges in acquiring new clients post-pandemic[9] - The company aims to diversify its furniture operations to mitigate risks associated with market volatility and stabilize group revenue[18] Financial Performance and Challenges - The company reported a significant asset impairment loss of approximately RMB 49.8 million due to a borrower’s failure to repay loans, impacting financial stability[10] - The company has fully recognized investment loss provisions of approximately RMB 9.5 million for overdue financial products, reflecting a cautious financial approach[12] - The company recorded a loss of approximately RMB 38.5 million for the reporting period, an improvement from a loss of RMB 79.2 million in the previous year[27] - The company’s income decreased by approximately 48.1% year-on-year, while the cost of sales decreased by approximately 46.2%[50] Revenue and Sales Performance - The company's furniture sales revenue was approximately RMB 37.1 million, a decrease of about RMB 11.2 million or approximately 23.1% compared to the same period last year[21] - Revenue from the furniture manufacturing and sales segment was approximately RMB 37.1 million, down RMB 11.2 million or about 23.1% year-on-year, primarily due to a significant decline in the southwestern region's market[33] - The data center segment generated revenue of approximately RMB 20.4 million, a decrease of about RMB 3.3 million or approximately 13.9% year-on-year[25] - The data center segment's revenue decline is attributed to increased market competition and customer retention challenges due to the pandemic[25] Cost Management and Operational Efficiency - The company has implemented strict cost control measures and actively collected overdue accounts receivable, achieving some positive results[7] - The group implemented cost reduction and efficiency improvement measures, including negotiating rental price discounts with suppliers for server racks[37] - The group's sales cost for the reporting period was approximately RMB 53.8 million, a decrease of about RMB 46.2 million or 46.2% compared to the same period last year[37] - The group’s administrative and other expenses during the reporting period amounted to approximately RMB 26.1 million, a decrease of about RMB 56.8 million or approximately 68.5% compared to the same period last year[45] Corporate Governance and Management - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15, with the exception of the separation of roles between the Chairman and the CEO, which has not been fulfilled since September 2018[96] - The company emphasizes effective communication and strong leadership during the transitional period, despite the dual role of the CEO as Chairman[96] - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[100] - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring sufficient independence to protect shareholder interests[105] Risk Management - The company identified and categorized major risks as strategic, compliance, operational, and financial risks during the reporting period[150] - The internal audit team conducted a series of daily audits and assessments to identify and evaluate the company's risks, reporting findings to the audit committee and board[145] - The company aims to strengthen its risk management and internal control systems based on the internal audit team's recommendations[152] - The board believes that the main risk factors related to the company have been disclosed in the prospectus and summarized in the report[161] Shareholder and Capital Management - The company plans to issue convertible bonds with a total principal amount of USD 8 million, which will mature 30 months from the issuance date, with a conversion price of HKD 0.50 per share[62] - The company has confirmed the issuance of convertible bonds totaling HKD 12.4 million at an initial conversion price of HKD 0.683 per share, which will result in the issuance of approximately 18,155,197 shares, representing about 20.01% of the total shares outstanding as of the report date[89] - The board has resolved not to recommend the payment of any interim or final dividends for the year ending June 30, 2024[166] - The company has no outstanding interest-bearing bank loans as of June 30, 2024[66] Environmental and Social Responsibility - The group has implemented various environmental protection measures to minimize its impact on the environment, complying with all applicable regulations[83] - The company is committed to maintaining high standards of corporate governance and business practices throughout its operations[96] - The company has adopted a board diversity policy, considering various factors such as age, cultural and educational background, professional experience, skills, and knowledge[129]