Business Growth and Expansion - In the first half of 2024, Zall Smart Commerce Group achieved stable growth in digital trade scale, focusing on supply chain management and logistics services [7]. - The company expanded its product offerings, launching over 3,000 SKU items in the agricultural sector and establishing high-end coffee trade channels in Peru and Costa Rica [8]. - Zall Smart Commerce's revenue from the steel supply chain services increased significantly, supporting large-scale end-users in infrastructure and renewable energy sectors [8]. - The company has developed digital "cloud factories" in various sectors, enhancing supply chain flexibility and efficiency through big data and AI technologies [10]. - Zall Smart Commerce's ranking in the Fortune China 500 improved by 13 positions, reflecting its growing market presence and recognition [7]. - The company is actively pursuing ESG development principles, receiving multiple social responsibility awards and recognitions [7]. - Zall Smart Commerce is focusing on expanding its market share in bulk commodities through service extension and category expansion [7]. - The company has implemented a "pull-based" supply chain model, transitioning from production-driven to sales-driven operations [10]. - In the first half of 2024, the company achieved a cumulative export value exceeding $18 billion through various new business models, including market procurement and cross-border e-commerce [13]. - The company has registered a total of 16,486 users on the CIC platform, with a cumulative transaction volume exceeding $20.6 billion in the first half of 2024, indicating steady growth [13]. - The company has established 30 large-scale comprehensive professional market clusters, enhancing its position as a leading supply chain management center and commercial logistics platform in China [16]. - The company has been recognized as a "National Supply Chain Innovation Demonstration Market" and a "Hubei Province Trustworthy Consumption Demonstration Unit" in 2023 [16]. - The company is actively constructing a large logistics center, including a sorting center and an urban logistics distribution center, to support the development of a national logistics hub in Wuhan [16]. - The company has introduced 24 varieties of chili peppers from India, Vietnam, and Xinjiang, establishing a service network covering four provinces in Central China [12]. - The company has launched the 2.0 version of its digital service platform for the textile and apparel industry, facilitating nearly 9,000 enterprises to join the digital supply chain [12]. - The company is focusing on integrating digital trade and supply chain services, aiming to enhance its international trade platform capabilities and promote the integration of domestic and foreign trade [13]. - The company is leveraging data elements to create an international trade data search platform, expanding its business to over 30 countries globally [13]. - The company is committed to enhancing its supply chain digital service capabilities to support the digital economy's competitiveness and influence [13]. - In the first half of 2024, the company launched the HanKou North Chili Exchange cold storage warehouse, becoming a major integrated trading center for chili varieties in Central and Western China, with 24 domestic and international chili varieties introduced [18]. - The company's B2B trading platform, Zhongnong Network, achieved a revenue of approximately RMB 16.6 billion during the reporting period, focusing on enhancing customer-centric services and digital supply chain capabilities [20]. - Zhongnong Network's new product offerings included nearly 3,500 SKU items, with a customer conversion rate of 55% and a repurchase rate of 31% [20]. - The company established strategic partnerships with major fishing areas and ports, creating a new seafood supply chain model that connects directly from the ocean to the market [18]. - The digital management platform 2.0 was launched in June 2024, significantly improving the market's information technology and digital management capabilities [18]. - The company expanded its agricultural business, covering over 800 new farmers and collaborating on 4,000 acres of sugarcane cultivation in regions like Guangxi and Yunnan [20]. - The company invested in a seasoning processing center in Xinjiang, with the first phase of the cumin production center nearing completion [20]. - The company’s digital supply chain and cloud factory initiatives have linked over 120 downstream plastic product enterprises, supplying a total of 20,000 tons of raw materials [22]. - The company actively participated in various trade fairs and events, enhancing its brand visibility and market presence in the industry [18]. Financial Performance - The company's revenue increased by approximately 24.3% from RMB 54,931.5 million for the six months ended June 30, 2023, to RMB 68,276.4 million for the six months ended June 30, 2024 [32]. - Revenue from supply chain management and trading business contributed approximately 99.7% of total revenue, increasing by about 24.5% year-on-year [33]. - Rental income from investment properties rose from RMB 115.4 million to RMB 122.4 million, attributed to an increase in new tenants and leased area [34]. - Financing income decreased by approximately 11.2% from RMB 34.9 million to RMB 31.0 million, mainly due to a reduction in the scale of supply chain finance business [36]. - Sales revenue from properties and related services decreased by approximately 15.3% from RMB 64.1 million to RMB 54.3 million, primarily due to a decrease in the area of properties delivered [37]. - Gross profit decreased by approximately 8.9% from RMB 399.5 million to RMB 363.8 million, with a gross profit margin dropping from 0.7% to 0.5% [39]. - Other net income turned positive at RMB 55.1 million compared to a loss of RMB 36.5 million in the previous period, mainly due to changes in fair value of listed equity securities and financial products [40]. - Financial income decreased by approximately 23.1% from RMB 159.7 million to RMB 122.8 million, while financial costs increased by approximately 8.2% from RMB 313.2 million to RMB 338.9 million [46]. - Net profit for the period increased by approximately 9.7% from RMB 37.2 million to RMB 40.8 million [51]. - Income tax expense increased by approximately 372.5% from RMB 20.7 million to RMB 97.9 million, primarily due to deferred tax liabilities related to investment property valuation gains [50]. - As of June 30, 2024, the group's net current liabilities amounted to approximately RMB 5,070.8 million, an increase from RMB 2,830.4 million as of December 31, 2023 [52]. - The group's cash and cash equivalents were approximately RMB 2,024.8 million as of June 30, 2024, compared to RMB 1,783.0 million as of December 31, 2023, indicating a growth of about 13.5% [53]. - The total interest-bearing borrowings decreased by approximately 5.0% from RMB 15,268.3 million as of December 31, 2023, to RMB 14,508.9 million as of June 30, 2024 [54]. - The net debt ratio increased from approximately 28.1% as of December 31, 2023, to 51.9% as of June 30, 2024, primarily due to a decrease in pledged bank deposits [56]. - As of June 30, 2024, the group had pledged assets with a total book value of approximately RMB 16,179.1 million, down from RMB 17,155.7 million as of December 31, 2023 [58]. - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024 [59]. - The group employed a total of 1,628 full-time employees as of June 30, 2024, a decrease from 1,734 employees as of June 30, 2023 [65]. - Employee benefit expenses for the six months ended June 30, 2024, were approximately RMB 129.6 million, down from RMB 149.3 million for the same period in 2023 [65]. - The group continues to seek opportunities to sell non-core assets and businesses to enhance liquidity and focus resources on core operations [59]. - The group plans to invest in the upgrade of the Hankou North International Trading Center to enhance service levels and promote the integration of online and offline businesses [60]. - The company has a total of 15,547,407 unexercised stock options, representing approximately 0.13% of the issued shares as of the report date [70]. - The maximum number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the adoption date, which equates to 1,178,282,580 shares [89]. - The stock option plan adopted in 2011 has expired, and no further options can be granted under this plan [70]. - The stock options granted under the 2021 stock option plan can be exercised within 10 years from the grant date [73]. - The exercise price for stock options must not be lower than the highest of the closing price on the grant date or the average closing price over the preceding five trading days [75]. - The company has not experienced any stock options that have lapsed, been granted, exercised, or canceled in the six months ending June 30, 2024 [84]. - The 2021 stock option plan aims to incentivize and reward eligible participants for their contributions to the company's growth [87]. - The total number of stock options that can be issued under the 2021 stock option plan is approximately 9.5% of the company's issued share capital as of the report date [89]. - Eligible participants for the stock option plans include full-time and part-time employees, directors, and other contributors as determined by the board [69]. - The company must issue a circular and obtain shareholder approval for any stock options exceeding 1% of the issued shares within any 12-month period [72]. - The maximum number of shares that can be issued under the Share Award Scheme is capped at 10% of the total issued shares as of the adoption date, equating to 1,178,282,580 shares [101]. - As of June 30, 2024, there are no unexercised options under the 2021 Share Option Scheme, with no options granted, expired, or canceled during the six-month period [96]. - The number of shares available for grant under the Share Award Scheme is 1,161,602,580 shares, representing approximately 9.4% of the company's issued share capital [101]. - The 2021 Share Option Scheme allows options to be exercised within 10 years from the grant date, with no minimum holding period required before exercise [93]. - The company has not granted any award shares under the Share Award Scheme during the six-month period ending June 30, 2024 [106]. - The maximum number of shares that can be granted to selected employees under the Share Award Scheme is limited to 1% of the total issued shares at any time [102]. - The company anticipates that the sale of 66,677,559 shares by Seller D will be completed by December 31, 2024, due to current market conditions [107]. - The exercise price for any specific option under the 2021 Share Option Scheme is determined by the board but must be higher than the closing price on the grant date [95]. - The Share Award Scheme aims to recognize contributions from selected employees and attract suitable personnel for further development of the group [99]. - The 2021 Share Option Scheme has been effective since May 28, 2021, and will last for 10 years [96]. - The company is in the process of acquiring an additional 3% equity stake in the target company, with a remaining payment of approximately RMB 88,000,000 expected to be completed by December 31, 2024 [109]. - As of June 30, 2024, Yan Zhi holds 8,633,306,868 shares, representing 69.63% of the company's total shares [114]. - The annual director remuneration for Yan Zhi has been adjusted from HKD 1,280,000 to HKD 480,000, effective April 1, 2024 [111]. - The total number of issued shares of the company as of June 30, 2024, is 12,399,505,800 shares [115]. - The company has not established any arrangements for directors to acquire shares or bonds during the review period [110]. - The company anticipates the completion of the second batch of acquisitions by the end of 2024, pending the fulfillment of remaining conditions [109]. - The company has disclosed no changes in director information that require further disclosure under the listing rules since the last annual report [111]. - As of June 30, 2024, the beneficial ownership of shares by Yu Gang includes 270,000 shares and 11,800,000 shares through spouse rights [114]. - The company has not reported any interests or positions held by directors or senior management beyond those disclosed [117]. - The company is actively pursuing further acquisitions as part of its growth strategy, as indicated in multiple announcements [109]. - Major shareholder Zall Development Investment holds 7,323,906,268 shares, representing 59.07% of total shares as of June 30, 2024 [119]. - Zall Holdings owns 1,309,400,600 shares, accounting for 10.56% of total shares as of June 30, 2024 [119]. - China Huarong Asset Management holds 685,689,000 shares, which is 5.53% of total shares as of June 30, 2024 [119]. - The total number of issued shares as of June 30, 2024, is 12,399,505,800 [120]. - The company did not declare an interim dividend for the six months ended June 30, 2024 [128]. - The audit committee reviewed the unaudited interim financial results for the six months ended June 30, 2024 [127]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024 [125]. - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange listing rules [123]. - The company has completed the sale of most properties in the Han Kou North Zall Life City Phase II project, with approximately 41,600 square meters remaining for sale [125]. - The company confirmed compliance with the standards for securities trading by directors during the six months ended June 30, 2024 [124]. - Revenue for the six months ended June 30, 2024, was RMB 68,276,396 thousand, an increase from RMB 54,931,545 thousand in the same period of 2023, representing a growth of 24.3% [130]. - Gross profit decreased to RMB 363,830 thousand from RMB 399,453 thousand, reflecting a decline of 8.9% year-over-year [130]. - Operating profit increased significantly to RMB 354,292 thousand, compared to RMB 211,085 thousand in the previous year, marking a growth of 67.6% [130]. - Net profit attributable to equity shareholders rose to RMB 49,817 thousand, up from RMB 22,364 thousand, indicating a substantial increase of 122.3% [130]. - Basic and diluted earnings per share improved to RMB 0.40 from RMB 0.18, representing a growth of 122.2% [130]. - Total assets as of June 30, 2024, were RMB 37,274,839 thousand, slightly down from RMB 37,481,900 thousand at the end of 2023 [133]. - Non-current assets increased to RMB 26,624,259 thousand from RMB 26,296,774 thousand, showing a growth of 1.2% [133]. - Inventory rose to RMB 5,214,250 thousand from RMB 4,779,687 thousand, reflecting an increase of 9.1% [133]. - Current liabilities increased to RMB 42,345,664 thousand from RMB 40,312,320 thousand, indicating a rise of 5.1% [135]. - The company reported a total comprehensive income of RMB 38,078 thousand for the period, down from RMB 44,964 thousand in the previous year, a decrease of 15.2% [132]. - For the six months ended June 30, 2024, the company reported a total revenue of RMB 44,964,000, an increase from RMB 30,176,000 in the same period of 2023, representing a growth of approximately 48.9% [137]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (3,411,736), compared to RMB 2,699,357 in the same period of 2023, indicating a significant decline in cash flow from operations [139]. - The company recorded a net cash inflow from investing activities of RMB 4,139,967 for the six months ended June 30, 2024, a substantial increase from RMB 610,036 in the same period of 2023 [139]. - The net cash used in financing activities was RMB (483,720) for the six months ended June 30, 2024, compared to RMB (3,160,689) in the same period of 2023, showing an improvement in financing cash flow [141]. - The company's cash and cash equivalents increased to RMB 2,024,826 as of June 30, 2024, up from RMB 1,491,709 at the end of the same period in 2023, reflecting a growth of approximately 35.7% [141]. - The total comprehensive income for the six months ended June 30, 2024, was RMB 38,078, compared to RMB 47,135 in the same period of 2023, indicating a decrease of about 19.5% [141]. - The company reported a profit of RMB 22,364 for the six months ended June 30, 2024, compared to RMB 14,788 in the same period of 2023, representing an increase of approximately 51.5% [137]. - The company’s investment in associates amounted to RMB (49,000) for the six months ended June 30, 2024, compared to RMB (30,000) in the same period of 2023, indicating increased investment activity [139]. - The company’s total assets as of June 30, 2024, were RMB 14,206,685, reflecting an increase from RMB 14,148,106 at the end of the previous period [137]. - The company’s equity attributable to shareholders was RMB 396,394 as of June 30, 2024, compared to RMB 386,309 at the end of the same period in 2023, showing a growth of approximately 2.8% [137]. - As of June 30, 2024, the group's net current liabilities amounted to approximately RMB 5,
卓尔智联(02098) - 2024 - 中期财报