MLCC Segment Performance - MLCC segment achieved sales revenue of RMB205.6 million in the first half of 2024, representing a 5.84% increase compared to the same period in 2023[14] - The average price of MLCC products rose by approximately 10% year-over-year, driven by an increase in the proportion of high-frequency, high-capacitance industrial-grade products[14] - Revenue from the MLCC segment increased by RMB11.3 million or 5.8% to RMB205.6 million, driven by higher average product prices[33][37] - MLCC segment revenue for the six months ended 30 June 2024 was RMB 205.6 million, with a segment loss of RMB 54.1 million[134] - MLCC segment revenue for the six months ended 30 June 2023 was RMB 194.25 million, with a segment loss of RMB 69.12 million[135] - Revenue from MLCC sales rose to RMB 205,602 thousand in 2024, up 5.8% from RMB 194,252 thousand in 2023[143] - MLCC segment assets increased to RMB 1,430,026 thousand as of June 30, 2024, compared to RMB 1,360,081 thousand at the end of 2023, reflecting a growth of 5.1%[138][139] Production Capacity and Expansion - The Group's new production base in Chuzhou has been put into operation, while the Dongguan base completed relocation and expansion, gradually increasing production capacity[20] - The company's new production bases in Chuzhou and Dongguan are operational, with capacity gradually increasing to meet the growing demand in industrial and automotive markets[21] - The net book value of the Group's property, plant, and equipment increased to RMB959.7 million as of 30 June 2024, up by RMB46.2 million from 31 December 2023, primarily due to additions for MLCC production equipment[51] - Capital commitments decreased to RMB150.5 million as of 30 June 2024 from RMB261.9 million at the end of 2023, mainly due to the completion of new factory construction in the MLCC segment[53] - Capital commitments outstanding at the end of the reporting period totaled RMB 156,512 thousand, a decrease from RMB 259,524 thousand at the end of 2023[192] R&D and Product Development - The Group continues to invest in R&D, focusing on ultra-micro, high capacitance, high temperature, and high reliability products to enhance competitiveness in the high-end market[19] - The company increased R&D investment and technical cooperation, focusing on ultra-micro, high-capacity, high-temperature, and high-reliability product layouts to enhance competitiveness in the high-end market[21] - The company expanded its product portfolio to include consumer-grade, automotive-grade, and industrial-grade products, with a shift from small-size to large-size, high-capacity, and high-voltage specifications[21] - Research and development costs decreased by RMB3.7 million to RMB27.8 million, reflecting better cost control in new product and technology development[43][48] - Research and development costs for the current period amounted to RMB 27,758 thousand in 2024, down 11.7% from RMB 31,438 thousand in 2023[148] - Staff costs included in research and development increased to RMB 16,369 thousand in 2024, up 43.6% from RMB 11,399 thousand in 2023[149] - R&D costs include depreciation of RMB 1,402,000 (H1 2023: RMB 1,815,000) and employee costs of RMB 16,369,000 (H1 2023: RMB 11,399,000)[150] Financial Performance and Ratios - Total revenue for the six months ended 30 June 2024 was RMB219.4 million, an increase of RMB6.79 million or 3.2% compared to the same period in 2023[33][37] - The Group's gross profit margin improved to 12.4%, up 4.2 percentage points from the previous year, with the MLCC segment's gross profit margin reaching 6.47% compared to a gross loss margin of 0.5% in 2023[34][38] - Revenue for the six months ended 30 June 2024 increased to RMB 219,404 thousand, up 3.2% from RMB 212,614 thousand in the same period last year[107] - Gross profit for the six months ended 30 June 2024 was RMB 27,099 thousand, a significant increase from RMB 17,454 thousand in the same period last year[107] - Loss from operations for the six months ended 30 June 2024 improved to RMB 41,102 thousand, compared to RMB 60,219 thousand in the same period last year[107] - Loss for the period decreased to RMB 59,169 thousand, down from RMB 69,744 thousand in the same period last year[107] - Total comprehensive loss for the period was RMB 58,817 thousand, an improvement from RMB 64,229 thousand in the same period last year[107] - Loss per share attributable to owners of the Company improved to RMB 7.94 cents, compared to RMB 9.36 cents in the same period last year[109] - Total reportable segment loss from external customers improved to RMB 44,649 thousand in 2024 from RMB 58,955 thousand in 2023, a reduction of 24.3%[141] Investment and Financial Services - The company manages 11 funds with a total capital commitment of approximately $647.8 million, of which the company has committed $89.9 million and invested $77.5 million[27] - The six funds invested by the company resulted in a net loss of RMB 7.2 million for the six months ended 30 June 2024, despite generating asset management fee income of RMB 21 million[27] - The company's investments are spread across five countries or regions: Australia, Hong Kong, PRC, UK, and the US, in the form of debt, common equity, or preferred equity[31] - The company made no new investments during the six months ended 30 June 2024[32] - Investment and financial services segment revenue for the six months ended 30 June 2024 was RMB 20.95 million, with a segment profit of RMB 9.43 million[134] - Investment and financial services segment revenue for the six months ended 30 June 2023 was RMB 20.28 million, with a segment profit of RMB 10.17 million[135] - Asset management fee income increased slightly to RMB 20,953 thousand in 2024 from RMB 20,281 thousand in 2023, a growth of 3.3%[143] Market Trends and Future Outlook - The MLCC industry's inventory levels have returned to normal, with downstream orders gradually increasing month by month, indicating a recovery in the end-market for the second half of 2024[14] - The MLCC market is expected to grow due to demand from IoT, 5G, new energy vehicles, and AI servers, with the Group focusing on expanding in automotive electronics and communication base stations[66] - MLCC market is expected to grow in the long term due to demand from IoT, 5G communications, new energy vehicles, and AI servers, despite challenges in 2024[67] - The company plans to expand its market share in automotive electronics, communication base stations, and data centers, while continuing to invest in R&D, equipment, and automation[67] - The company has increased its product lines to include larger-sized MLCCs with high capacity, high Q, high temperature, and high voltage characteristics, meeting industrial and automotive-grade reliability requirements[67] Financial Position and Liabilities - The Group's financial assets at fair value through profit or loss (FVPL) decreased by 1% to RMB407.9 million as of 30 June 2024, mainly due to a fair value loss of RMB7.2 million and exchange rate depreciation effects[51] - Accounts and bills receivables decreased by RMB38.7 million to RMB308.5 million as of 30 June 2024, driven by accelerated collection efforts in the first half of 2024[51] - Cash and bank balances increased by RMB19.3 million to RMB66.2 million as of 30 June 2024, primarily due to additional drawdowns of bank and other loans[51] - Trade and bills payables increased by RMB14.4 million to RMB130.4 million as of 30 June 2024, mainly due to higher MLCC production during the period[53] - Bank and other loans increased by RMB100.1 million to RMB815.9 million as of 30 June 2024, driven by additional drawdowns[53] - The Group's net current liabilities increased to RMB205.3 million as of 30 June 2024, compared to net current assets of RMB41.8 million as of 31 December 2023[54] - Current assets decreased to RMB844.9 million as of 30 June 2024 from RMB1,005.4 million as of 31 December 2023[54] - Current liabilities increased to RMB1,050.2 million as of 30 June 2024 from RMB963.6 million as of 31 December 2023[54] - The Group's current ratio decreased to 0.8 as of 30 June 2024 from 1.0 as of 31 December 2023[54] - The Group's gearing ratio increased to 69.5% as of 30 June 2024 from 65.5% as of 31 December 2023[56] - The Group's banking facilities increased to RMB868.0 million as of 30 June 2024 from RMB788.0 million as of 31 December 2023[54] - Utilized banking facilities increased to RMB760.4 million as of 30 June 2024 from RMB643.6 million as of 31 December 2023[54] - The Group's revenue is mainly denominated in Renminbi, US dollars, and HK$, while purchases are mainly in Renminbi, US dollars, HK$, and Japanese Yen[58] - The Group has pledged assets with carrying amounts of approximately RMB652.7 million as securities for bank and other loans facilities as of 30 June 2024[59] - The Group's cash flow projections cover a period of not less than 12 months from 30 June 2024, with confidence in sufficient working capital[125] - The Group is exploring debt or equity financing arrangements to improve financial ratios[125] - The Group is implementing measures to speed up the collection of outstanding accounts and bills receivables[125] - The Group did not meet certain financial covenants for bank loans as of 30 June 2024, leading to renegotiations with lenders[124] - The Group's current liabilities include bank and other loans totaling RMB 815,948,000, with RMB 170,101,000 repayable within 12 months, RMB 425,500,000 repayable on demand but expected after 12 months, and RMB 220,347,000 reclassified as current liabilities due to loan agreement provisions[124] - The Group breached certain terms of bank loans with a carrying amount of RMB 509,517,000 at 30 June 2024, primarily related to the asset-liability ratio and current ratio of a subsidiary and the net assets level of another subsidiary[186] - The Group is in negotiations with lenders to extend the repayment period for RMB 401,500,000 of loans, which were originally due within one year, for at least the next 12 months[188] - The directors believe that adequate alternative sources of finance are available to ensure the continuing operations of the Group, even if lenders demand immediate repayment[189] Corporate Governance and Shareholding - The Board is committed to maintaining high corporate governance standards and has complied with the Corporate Governance Code throughout the six months ended 30 June 2024[74][78] - Mr. Zhou Chunhua holds 7,358,000 shares, representing approximately 0.99% of the total issued shares as of 30 June 2024[82] - Cosmic Riches Investments Limited holds 93,443,650 shares, representing 12.55% of the total issued shares[85] - China Tian Yuan Manganese Limited holds 60,590,482 shares, representing 8.13% of the total issued shares[85] - The total issued shares of the company as of 30 June 2024 are 744,750,000[86] - Ms. Du Weilin is deemed to have an interest in 93,443,650 shares held by Cosmic Riches Investments Limited[88] - Ningxia Tianyuan Manganese Industry Group Co., Ltd. and Mr. Jia Tianjiang are deemed to have an interest in 60,590,482 shares held by China Tian Yuan Manganese Limited[88] - Ms. Dong Jufeng is deemed to have an interest in 60,590,482 shares held by China Tian Yuan Manganese Limited due to her being the spouse of Mr. Jia Tianjiang[88] - The Share Award Scheme, adopted on 14 July 2017, is valid for 10 years and the total number of shares to be awarded shall not exceed 10% of the issued share capital as of the Adoption Date[90] - No shares were purchased or granted under the Share Award Scheme during the period ended 30 June 2024[92] - Mr. Zhou Chunhua, a Director of the Company, participated in the Share Award Scheme during the six months ended 30 June 2024[95] - The fair value of the awarded shares is based on the fair value at the date of grant[94] Expenses and Costs - Selling and distribution costs rose by 9.7% to RMB10.2 million, attributed to increased sales efforts in the MLCC segment[41][46] - Administrative expenses decreased by RMB2.0 million to RMB43.7 million, mainly due to reduced staff costs[42][47] - Finance costs increased by RMB7.7 million to RMB15.8 million, driven by additional bank loan interest in the first half of 2024[44][49] - Administrative expenses decreased to RMB 43,691 thousand, compared to RMB 45,724 thousand in the same period last year[107] - Finance costs increased to RMB 15,832 thousand, up from RMB 8,124 thousand in the same period last year[107] - Other income increased to RMB 12,152 thousand, compared to RMB 5,445 thousand in the same period last year[107] - Total interest expense on financial liabilities not at FVPL decreased to RMB 15,832 thousand in 2024 from RMB 21,335 thousand in 2023, a reduction of 25.8%[145] - Key management personnel remuneration for the six months ended 30 June 2024 was RMB 4,541 thousand, down from RMB 5,955 thousand in the same period of 2023[196] Assets and Liabilities - The Group's investment property remained stable at RMB23.7 million as of 30 June 2024, comparable to RMB24.1 million at the end of 2023[51] - Prepayments, deposits, and other receivables increased by RMB3.9 million to RMB48.9 million as of 30 June 2024, primarily due to deposits for property, plant, and equipment acquisitions[51] - Deferred income, accruals, and other payables decreased by RMB27.0 million to RMB82.3 million as of 30 June 2024, mainly due to the settlement of payables for production equipment acquired in 2023[53] - Total non-current assets increased to RMB 1,243,653,000 as of 30 June 2024, up from RMB 1,008,347,000 at the end of 2023[110] - Current assets decreased to RMB 844,844,000 as of 30 June 2024, down from RMB 1,005,443,000 at the end of 2023[110] - Total current liabilities increased to RMB 1,050,193,000 as of 30 June 2024, up from RMB 963,625,000 at the end of 2023[110] - Net current liabilities stood at RMB 205,349,000 as of 30 June 2024, compared to net current assets of RMB 41,818,000 at the end of 2023[110] - Total equity decreased to RMB 609,146,000 as of 30 June 2024, down from RMB 667,963,000 at the end of 2023[112] - Property, plant, and equipment carrying amount increased to RMB 959,726,000 as of 30 June 2024 (31 December 2023: RMB 913,518,000)[162] - Investment properties carrying amount decreased to RMB 23,715,000 as of 30 June 2024 (31 December 2023: RMB 24,122,000)[164] - Financial assets at amortized cost decreased to RMB 386,327 thousand as of 30 June 2024 from RMB 401,932 thousand at the end of 2023[200] - Financial liabilities at amortized cost increased to RMB 1,441,318 thousand as of 30 June 2024 from RMB 1,299,477 thousand at the end of 2023[200] - Bank and other loans rose to RMB 1,224,462 thousand as of 30 June 2024, up from RMB 1,074,836 thousand at the end of 2023[200] Cash Flow and Financing - Net cash generated from operating activities was RMB 919,000 for the six months ended 30 June 2024, compared to a net cash used of RMB 71,471,000 in the same period of 2023[116] - Net cash used in investing activities was RMB 97,370,000 for the six months ended 30 June 2024, compared to RMB 86,994,000 in the same period of 2023[116] - Net cash generated from financing activities was RMB 128,254,000 for the six months ended 30 June 2024, compared to RMB 203,196,000 in the same period of 2023[116] - Cash and cash equivalents at the end of the period were RMB 63,308,000 as of 30 June 2024, down from RMB 108,007,000 at the end of the same period in 2023[116] - The Group's cash and cash equivalents amounted to RMB 63,308,000 as of 30 June 2024[124] - The Group incurred a net loss of RMB 59,169,000 for the six months ended 30 June 2024[124] - The Group's current liabilities exceeded its current assets by
天利控股集团(00117) - 2024 - 中期财报