Financial Performance - Revenue decreased from approximately RMB 180.1 million in the same period last year to approximately RMB 76.6 million, a decline of about 57.5%[2] - Gross profit fell from approximately RMB 59.2 million to approximately RMB 21.7 million, representing a decrease of about 63.3%[2] - The company recorded a loss attributable to owners of RMB 6.9 million for the period, compared to a profit of RMB 27.6 million in the same period last year[2] - The overall gross margin decreased from approximately 32.9% to about 28.3%, primarily due to rising raw material costs[5] - The company incurred a loss before tax of RMB 4,328,000, compared to a profit of RMB 39,256,000 in the same period last year[33] - The total comprehensive loss for the period was RMB 6,296,000, a significant decline from a comprehensive income of RMB 30,140,000 in the previous year[33] - The company reported a loss of RMB 6,852,000 for the six months ended June 30, 2024, compared to a profit of RMB 27,580,000 for the same period in 2023[36] Expenses and Liabilities - Sales and distribution expenses decreased by approximately 15.3% to about RMB 10.5 million, mainly due to reduced freight costs[6] - Administrative and other operating expenses increased by approximately 24.2% due to additional miscellaneous costs incurred during the temporary shutdown[6] - Total liabilities decreased to approximately RMB 32.4 million from RMB 55.6 million as of December 31, 2023[8] - The capital debt ratio increased to approximately 0.10% from 0.02% as of December 31, 2023, mainly due to an increase in other borrowings[8] Cash Flow and Investments - The net cash generated from operating activities for the period was approximately RMB 74.4 million, a significant increase from RMB 3.7 million in the same period last year[9] - The net cash used in investing activities was approximately RMB 114.0 million, up from RMB 4.2 million in the same period last year, primarily due to the acquisition of property, plant, and equipment[9] - The total capital expenditure for the period was approximately RMB 114.4 million, compared to RMB 4.9 million for the year ended December 31, 2023, mainly related to the purchase of property, plant, and equipment[15] Assets and Equity - Total assets as of June 30, 2024, were approximately RMB 499.0 million, down from RMB 528.5 million as of December 31, 2023[8] - The company's total assets as of June 30, 2024, were RMB 304,362,000, down from RMB 436,513,000 at the end of 2023[34] - The company’s equity as of June 30, 2024, was RMB 466,593,000, a slight decrease from RMB 472,889,000 at the end of 2023[34] - The company’s cash and cash equivalents decreased to RMB 247,054,000 at the end of the reporting period, compared to RMB 286,266,000 at the beginning[37] Shareholder Information - Major shareholder Modern Biotechnology holds 402,000,000 shares, representing 67% of the company's equity[25] - The company has not issued any share options since its listing on January 15, 2021, and there are no unexercised options as of June 30, 2024[26] - The company's issued and fully paid share capital as of June 30, 2024, was RMB 5,010,000, with a total of 600,000 shares issued[63] Future Outlook and Strategy - The company remains confident in the future prospects of the Chinese economy and the traditional Chinese medicine industry, driven by government policies and market demand[4] - The company plans to expand its distribution network in South and East China, with an allocation of approximately HKD 19.7 million for this purpose[17] - The company aims to enhance brand awareness through media marketing and promotional activities, with a planned allocation of approximately HKD 12.0 million[17] Other Financial Information - The company has no significant contingent liabilities as of June 30, 2024, consistent with December 31, 2023[10] - There were no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[14] - The company has no significant foreign exchange risk as most of its business and borrowings are denominated in RMB[11] - The company has no assets pledged as of June 30, 2024, consistent with December 31, 2023[12] - The board does not recommend the payment of an interim dividend for the period, consistent with the same period last year[15] - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[50] - The total income tax expense for the six months ended June 30, 2024, was RMB 2,524 thousand, a decrease of 78.4% compared to RMB 11,676 thousand for the same period in 2023[46] - The foreign exchange reserve increased to RMB 8,792,000 as of June 30, 2024, from RMB 8,236,000 at the beginning of the year[36] - The company’s accumulated profits as of June 30, 2024, were RMB 299,464,000, down from RMB 306,316,000 at the beginning of the year[36] - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial statements[41] - The company's total liabilities and equity as of June 30, 2024, were RMB 466,593,000, reflecting the overall financial position of the company[36] Trade and Receivables - Trade receivables from third parties as of June 30, 2024, amounted to RMB 28,616 thousand, a decrease from RMB 103,603 thousand as of December 31, 2023[52] - Trade payables as of June 30, 2024, were RMB 25,008 thousand, down from RMB 48,802 thousand as of December 31, 2023[55] - The company has no single external customer contributing 10% or more to total revenue for the six months ended June 30, 2024, and 2023[42] Management and Governance - The total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 691,000, compared to RMB 1,054,000 for the same period in 2023, indicating a decrease[64] - The mid-term financial statements were approved by the board of directors on August 22, 2024[65]
现代中药集团(01643) - 2024 - 中期财报