Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 31,817 thousand, a decrease of 22.6% compared to RMB 42,862 thousand in the same period of 2023[2] - The gross loss for the period was RMB 1,833 thousand, compared to a gross profit of RMB 1,718 thousand in the previous year[2] - The company incurred a loss before tax of RMB 8,599 thousand, significantly higher than the loss of RMB 1,636 thousand reported in the same period last year[2] - The total comprehensive loss attributable to owners of the company was RMB 8,490 thousand, compared to a loss of RMB 18,405 thousand in the same period of 2023[3] - Total revenue for the six months ended June 30, 2024, was RMB 31,817 thousand, with a pre-tax loss of RMB (8,599) thousand[12][13] - The company reported a loss attributable to shareholders of approximately RMB 8,551,000 for the six months ended June 30, 2024, compared to a loss of RMB 4,796,000 for the same period in 2023, with a weighted average of 884,069,000 shares outstanding[32] - The group recorded revenue of approximately RMB 31.8 million, a decrease of about 25.9% or RMB 11.1 million compared to RMB 42.9 million in the same period last year[50] - The group experienced a gross loss of approximately RMB 1.8 million for the six months ended June 30, 2024, compared to a gross profit of approximately RMB 1.7 million in the same period last year[50] - The pork business revenue decreased by approximately 21.6% or RMB 7.9 million to approximately RMB 31.8 million, while the pipeline business revenue was zero compared to RMB 3.2 million in the previous year[50] Assets and Liabilities - Trade receivables increased to RMB 27,307 thousand from RMB 16,936 thousand, indicating a rise of 60.1%[4] - The company's total assets decreased to RMB 425,909 thousand from RMB 413,802 thousand, reflecting a marginal increase of 2.6%[4] - The company’s equity attributable to owners decreased to RMB 414,462 thousand from RMB 420,888 thousand, a decline of 1.0%[5] - Total assets as of June 30, 2024, were RMB 496,736 thousand, an increase from RMB 487,477 thousand at the end of the previous period[19] - Total liabilities for the reportable segments increased to RMB 66,263 thousand from RMB 53,453 thousand[19] - Trade receivables, net of expected credit loss provisions, increased to RMB 27,307,000 as of June 30, 2024, from RMB 16,936,000 as of December 31, 2023[35] - The expected credit loss provision for trade receivables rose to RMB 15,546,000 as of June 30, 2024, compared to RMB 13,125,000 as of December 31, 2023[36] - Trade payables increased significantly to RMB 25,459,000 as of June 30, 2024, from RMB 12,072,000 as of December 31, 2023[39] Cash Flow - Cash and cash equivalents at the end of the period were RMB 392,343 thousand, slightly down from RMB 400,085 thousand at the end of the previous year[7] - The net cash generated from operating activities was RMB 1,867 thousand, compared to a net cash used of RMB (13,718) thousand in the previous period[8] - The net cash generated from investing activities was RMB 525 thousand, down from RMB 602 thousand[8] - The net increase in cash and cash equivalents was RMB 2,392 thousand, compared to a decrease of RMB (13,116) thousand in the prior period[8] - The company’s cash and cash equivalents at the beginning of the period were RMB 389,836 thousand, down from RMB 416,389 thousand[8] - As of June 30, 2024, the group had cash and bank balances of approximately RMB 392.3 million, compared to RMB 389.8 million as of December 31, 2023[52] Expenses and Costs - The company reported an increase in administrative expenses to RMB 7,389 thousand from RMB 8,253 thousand, a decrease of 10.5%[2] - The company incurred total employee costs of RMB 662,000 for the six months ended June 30, 2024, down from RMB 1,343,000 in the same period of 2023, indicating a reduction of 50.7%[31] - Depreciation of property, plant, and equipment amounted to RMB 2,776,000, a decrease from RMB 4,525,000 in the previous year, representing a decline of 38.7%[31] - Interest income totaled RMB 746,000, down from RMB 790,000 in the previous year, reflecting a decrease of 5.6%[26] Taxation - The company reported no income tax expense for the current period, compared to RMB 3,346,000 in the previous year due to prior year provisions[27][30] - The company has not recognized deferred tax impacts during the reporting period, benefiting from tax exemptions for agricultural business operations[29] - The effective tax rate in Japan is approximately 30.6%, impacting the company's tax liabilities in that region[30] Share Capital and Dividends - No interim dividend was declared or paid for the six months ended June 30, 2024, consistent with the previous year[33] - The company issued 42,000,000 new ordinary shares on June 17, 2024, raising approximately RMB 390,000 in share capital and RMB 1,674,000 in share premium after deducting issuance costs[41] - The company’s total equity increased to RMB 7,698,000 as of June 30, 2024, reflecting the new share issuance[41] - The company's issued shares increased from 880,838,000 to 922,838,000 shares during the six months ending June 30, 2024[59] - The company issued 42,000,000 subscription shares at a price of HKD 0.053 per share on June 17, 2024, as part of a joint venture and service fee for slaughtering license application[59] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and regular reviews[69] - The audit committee consists of three independent non-executive directors, enhancing oversight of financial reporting and risk management[69] - The company has confirmed that all directors have complied with the standard code of conduct for securities trading[68] - The company has appointed a new independent non-executive director and committee chair, ensuring fresh oversight[69] - The company is committed to maintaining and improving its corporate governance standards through regular reviews[69] Business Strategy and Market Outlook - The company is currently conducting trial operations at its joint venture slaughterhouse to assess its future operational capabilities[61] - The company anticipates a more significant market role and increased market share due to rising pig prices and ongoing market monitoring[61] - The company is exploring diversified business opportunities to create new revenue streams and enhance profitability[61] - The company is focused on expanding its pork product trade business and developing new partnerships in Southeast Asia[67] - The company acknowledges the risks associated with fluctuating pig prices due to various factors, including policy changes and market demand[61] Share Options - The new share option plan adopted on June 30, 2023, allows for the issuance of up to 88,083,800 shares, representing approximately 9.5% of the company's issued capital[62] - The company aims to attract and retain talent through the new share option plan, which aligns the interests of participants with those of shareholders[63] - The company granted a total of 88,080,000 share options, which will expire on July 27, 2024[67] - No share options were exercised, cancelled, or lapsed during the six months ending June 30, 2024, maintaining the total granted[67] - Each employee holds no more than 1% of the company's shares, indicating a broad distribution of equity incentives[65]
惠生国际(01340) - 2024 - 中期财报