Financial Performance - The company reported a net loss attributable to shareholders of approximately RMB 36.9 million for the first half of 2024, compared to a profit of RMB 16.5 million in the same period of 2023, indicating a significant decline in performance[7]. - Revenue for the first half of 2024 was approximately RMB 196.3 million, a decrease of about 41.6% from RMB 336.4 million in the same period of 2023[7]. - Gross profit fell by approximately 40.9% from RMB 179.1 million in the first half of 2023 to RMB 105.9 million in the first half of 2024, aligning with a total revenue decrease of about 41.6%[14]. - Operating loss for the six months was RMB 36,539 thousand, compared to an operating profit of RMB 38,801 thousand in the prior year, reflecting a significant shift in performance[86]. - Total comprehensive loss for the period amounted to RMB 37,055 thousand, compared to a total comprehensive income of RMB 16,360 thousand in the previous year[88]. - The company's net asset value decreased to RMB 519,160 thousand from RMB 562,226 thousand at the end of 2023, reflecting a decline of approximately 7.7%[91]. - The company's equity holders' share of the loss for the period was RMB 36,949,000, compared to a profit of RMB 16,447,000 in the same period last year, reflecting a challenging operating environment[96]. Research and Development - Research and development expenses for the first half of 2024 amounted to approximately RMB 57.1 million, significantly higher than RMB 24.0 million in the same period of 2023, reflecting the company's commitment to R&D[7]. - The company has 60 ongoing research projects, with 7 projects currently under review by the National Medical Products Administration, and expects to launch at least 20 new products in the next three years[9]. - Research and development expenses increased significantly to RMB 57,059 thousand, compared to RMB 24,028 thousand in the same period of 2023, marking an increase of approximately 137.5%[86]. Cost Management and Efficiency - The company plans to enhance production efficiency and reduce costs through upgrades to production equipment and the implementation of photovoltaic power generation projects[9]. - The total capital expenditures amounted to approximately RMB 46.0 million in the first half of 2024, down from RMB 73.3 million in the first half of 2023[27]. - The company anticipates that market demand will gradually recover, leading to improved sales performance as inventory levels normalize[9]. Shareholder Information - The major shareholders include Full Bliss Holdings Limited with 27.53% and Rayford with 24.03% of the shares[47]. - The largest shareholder, Mr. Cao Changcheng, holds 72.18% of the shares through controlled entities[39]. - The company has a stock option plan that was adopted on June 14, 2018, with no stock options granted during the six months ended June 30, 2024[49]. - The company has 16,000,000 unexercised stock options under the stock option plan, representing approximately 2.13% of the issued share capital[50]. Liquidity and Financial Position - Cash and cash equivalents decreased to approximately RMB 2.8 million as of June 30, 2024, from RMB 34.8 million as of December 31, 2023[29]. - The group has committed to enhancing collection efforts on receivables from government-related entities to improve liquidity[1]. - The group anticipates that, assuming the success of the measures taken, it will have sufficient funds to meet its liabilities for at least the next twelve months[1]. - As of June 30, 2024, cash and cash equivalents stood at RMB 2,823,000, a significant drop from RMB 78,299,000 at the end of June 2023, highlighting liquidity challenges[97]. Inventory and Receivables - Inventory as of June 30, 2024, totaled RMB 140,835,000, down from RMB 161,718,000 as of December 31, 2023, representing a decrease of approximately 12.9%[121]. - Trade receivables as of June 30, 2024, were RMB 155,749,000, a decrease from RMB 183,482,000 as of December 31, 2023, indicating a reduction of about 15.1%[122]. Financing and Debt - Financing costs net increased from RMB 2.2 million in the first half of 2023 to RMB 7.4 million in the first half of 2024, mainly due to increased loan interest[20]. - The debt-to-equity ratio increased from 60.9% as of December 31, 2023, to 67.0% as of June 30, 2024, primarily due to increased bank loans[30]. - Total bank and other loans amounted to RMB 347,944,000 as of June 30, 2024, compared to RMB 342,256,000 as of December 31, 2023, showing a slight increase[129]. Corporate Governance - The company has complied with all applicable corporate governance codes except for a specific provision regarding the company secretary[71]. - The company reported no significant events occurring after the reporting period[149].
福森药业(01652) - 2024 - 中期财报