Revenue Performance - Total revenue for the first half of 2024 was RMB 138.8 million, a decrease of 19.7% compared to RMB 173.0 million in the same period of 2023[3]. - Revenue from the water business segment increased by 10.9% year-on-year to RMB 54 million, driven by higher sales volume in key channels[10]. - The beer business segment experienced a significant decline, with sales volume down 28.5% to 115,557 hectoliters and revenue down 31.8% to RMB 83.6 million[10]. - Revenue for the first half of 2024 was RMB 138,815,000, a decrease of 19.7% compared to RMB 172,971,000 in the same period of 2023[36]. - Revenue from sales of water products increased to RMB 50,935,000 in 2024 from RMB 45,510,000 in 2023, while beer product sales decreased to RMB 83,581,000 from RMB 122,226,000[78]. Profitability and Expenses - Overall gross profit margin decreased to 21.1%, down 7.9 percentage points from the first half of 2023, primarily due to increased fixed costs and lower average selling prices in the beer segment[11]. - Adjusted EBITDA for the beer segment was RMB 43.7 million, a decrease of 4.2% compared to RMB 45.6 million in the first half of 2023[10]. - Gross profit for the first half of 2024 was RMB 29,228,000, down 41.8% from RMB 50,171,000 in the first half of 2023[36]. - Operating profit for the first half of 2024 was RMB 17,021,000, compared to an operating loss of RMB 7,375,000 in the same period of 2023[36]. - The profit for the first half of 2024 was RMB 9 million, a recovery from a loss of RMB 13 million in the first half of 2023[16]. - Basic and diluted earnings per share for the first half of 2024 was RMB 0.21, compared to a loss per share of RMB 0.35 in the same period of 2023[36]. Financial Position - The Group's total assets as of June 30, 2024, were RMB 3,879.4 million, a slight decrease from RMB 3,985.6 million at the end of 2023[4]. - Equity attributable to owners of the Company increased to RMB 2,959.5 million from RMB 2,855.8 million at the end of 2023[4]. - As of June 30, 2024, inventories decreased to RMB 99 million from RMB 119 million as of December 31, 2023, mainly due to a reduction in raw materials inventories[16]. - Net trade receivables increased to RMB 193 million as of June 30, 2024, compared to RMB 182 million as of December 31, 2023[16]. - The Group's contract liabilities increased to RMB 42 million as of June 30, 2024, compared to RMB 17 million as of December 31, 2023, primarily due to increased advances received from customers[17]. Cash Flow and Financing - Net cash flows from operating activities increased to RMB 95,220,000 in 2024, compared to a net outflow of RMB 45,536,000 in 2023[47]. - Cash generated from operations was RMB 52,943,000 in 2024, a significant improvement from a cash usage of RMB 49,606,000 in 2023[47]. - The company reported a cash inflow of RMB 28,524,000 from loan repayments received from third parties in 2024, compared to RMB 11,160,000 in 2023[47]. - The company’s total cash and cash equivalents at the beginning of the period were RMB 21,758,000 in 2024, down from RMB 58,147,000 in 2023[48]. - The net cash flows used in financing activities were RMB 109,406,000 in 2024, contrasting with a net inflow of RMB 179,935,000 in 2023[48]. Share Capital and Equity - The Company completed the placing of 500,000,000 new shares at HK$0.218 per share, with net proceeds of approximately HKD106 million fully utilized by June 30, 2024[28]. - The Board did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[29]. - The Company adopted a new share option scheme in 2023, but no share options have been granted under this scheme as of June 30, 2024[18]. - The total number of shares in issue as of June 30, 2024, is 4,579,188,000[177]. - The Company is committed to obtaining shareholder approval for any issuance exceeding the established limits under the share schemes[166]. Employee and Management - The total number of employees increased to 360 as of June 30, 2024, from 348 as of June 30, 2023[18]. - Employee costs for the first half of 2024 were RMB 33 million, a decrease from RMB 37 million in the first half of 2023[18]. - Key management compensation for the six months ended June 30, 2024, was RMB 5,358,000, slightly up from RMB 5,248,000 in the same period of 2023, an increase of 2.1%[164]. Governance and Compliance - The Company has complied with the Corporate Governance Code and confirmed no incidents of non-compliance among its Directors[35]. - The Audit Committee has reviewed the accounting principles and practices adopted by the Group for the first half of 2024[35]. - The Group's financial statements for the six months ended 30 June 2024 are prepared on a historical cost basis, with certain financial instruments measured at fair value[53]. Strategic Initiatives - The Group aims to enhance brand value and expand overseas markets while increasing investment in production research and development[31]. - The Group's strategy includes optimizing sales layout and enriching product range to meet future development needs[31]. - The Company plans to accelerate overseas market expansion and increase investment in product research and development[34].
西藏水资源(01115) - 2024 - 中期财报