Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 105,104,000, a 113.4% increase from RMB 49,159,000 in 2023[5] - Gross profit for the same period was RMB 51,877,000, compared to RMB 31,132,000 in 2023, reflecting a 66.9% increase[5] - Profit before income tax increased to RMB 25,864,000, up from RMB 13,620,000, marking an increase of 90.0% year-on-year[5] - Profit for the period attributable to owners of the Company was RMB 20,446,000, a significant rise of 94.5% from RMB 10,525,000 in 2023[5] - Total comprehensive income for the period was RMB 18,860,000, compared to RMB 10,559,000 in 2023, indicating an increase of 78.0%[5] - The Group's revenue for the six months ended June 30, 2024, was approximately RMB 105.1 million, representing an increase of approximately 113.6% compared to the same period last year[14] - The net profit for the same period was approximately RMB 20.4 million, reflecting an increase of approximately 94.3% year-on-year[14] - Gross profit increased from approximately RMB 31.1 million to approximately RMB 51.9 million, although the overall gross profit margin decreased from approximately 63.3% to approximately 49.4%[14][15] - The Group's gross profit for the six months ended June 30, 2024, was approximately RMB 51.9 million, an increase of approximately 66.9% compared to RMB 31.1 million for the same period in 2023[32] - Other income rose from approximately RMB 1.7 million for the six months ended June 30, 2023, to approximately RMB 2.3 million for the same period in 2024, reflecting an increase of approximately 35.3%[38] - Selling expenses increased by approximately 128.6% to approximately RMB 1.6 million for the six months ended June 30, 2024, compared to RMB 0.7 million in the previous year[38] - Administrative expenses increased by approximately 39.2% to approximately RMB 23.1 million for the six months ended June 30, 2024, up from RMB 16.6 million in the same period of 2023[39] - The Group's income tax expense was approximately RMB 5.4 million for the six months ended June 30, 2024, representing an increase of approximately 74.2% compared to RMB 3.1 million for the same period in 2023[49] - The effective tax rate for the Group was approximately 20.9% for the six months ended June 30, 2024, down from 22.7% in the previous year, primarily due to increased sales of pyrite concentrate and higher research and development expenses[49] Operational Developments - The Company has commenced production operations of a new production line for sulphuric acid, enhancing resource recovery from hazardous waste[10] - The Group is focusing on building a resource-cycling industry system and promoting product extension and expansion in 2024[16] - New production lines launched at the end of 2023 significantly contributed to the Group's revenue growth[15][16] - The Group is engaged in the production and R&D of new products such as sulfamic acid, magnesium sulfate, and magnesium fertilizers, with phased results achieved[18][20] - The Group holds a total of ten patented technologies, enhancing its long-term competitiveness and innovation capabilities[19][20] - The Group aims to leverage its strengths in recycled product production to extend its value chain and improve core competitiveness[18][20] - The company is actively promoting the comprehensive utilization of solid waste resources towards high-value development[19] - The Group's strategic approach includes expanding hazardous waste recycling and guiding the development of solid waste recycling projects[15] - The principal market for the company is located in Laizhou city, Shandong province, China, where the majority of revenue and operating profit are generated[181] - The company has commenced production and sales of products from the reprocessing of pyritic concentrate since late 2023, expanding its operational capabilities[181] Market Position and Challenges - The hazardous waste market is facing challenges due to a sluggish global economy and intensified competition, impacting demand and supply dynamics[11] - The Company is the only entity in Laizhou city with a Hazardous Waste Business Licence, positioning it uniquely in the market[10] - The strategic location of production facilities in Laizhou city capitalizes on the region's leading gold reserves[10] - The Company achieved year-on-year growth despite adverse industry conditions, attributed to effective business strategies and stakeholder collaboration[11] Financial Position and Cash Flow - Total assets as of June 30, 2024, amounted to RMB 764,039,000, a decrease from RMB 796,655,000 as of December 31, 2023[137] - Total equity attributable to owners of the Company increased to RMB 490,050,000 from RMB 471,190,000[137] - Non-current liabilities decreased to RMB 129,299,000 from RMB 147,768,000[137] - Current liabilities decreased to RMB 144,690,000 from RMB 177,697,000[137] - Cash and cash equivalents decreased to RMB 29,686,000 from RMB 76,119,000[137] - Trade receivables decreased to RMB 26,563,000 from RMB 40,642,000[137] - Inventories decreased to RMB 28,656,000 from RMB 34,348,000[137] - Cash generated from operations for the six months ended June 30, 2024, was RMB 40,940,000, leading to a net cash generated from operating activities of RMB 36,045,000, compared to a net cash used of RMB 20,091,000 in 2023[141] - The company reported net cash used in investing activities of RMB 68,318,000 for the six months ended June 30, 2024, compared to RMB 31,729,000 in the same period of 2023[141] - The net cash used in financing activities was RMB 14,258,000 for the six months ended June 30, 2024, compared to a net cash generated of RMB 31,723,000 in 2023[141] Shareholder Information and Corporate Governance - As of June 30, 2024, Zeming International Investment Co., Ltd holds 589,500,000 shares, representing approximately 58.95% of the company's total shares[70] - Ms. Li Liyan, as the spouse of Mr. Liu, has an interest in 595,500,000 shares, equating to approximately 59.55% of the company's total shares[70] - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2024[74] - The Group employed 296 employees as of June 30, 2024[75] - The remuneration policy for employees is based on local market standards, industry benchmarks, and employee performance[75] - The Directors' emoluments are reviewed by the remuneration committee and approved by the Board, considering the Group's profitability and market conditions[76] - The company has adopted a code of conduct for securities transactions by directors, which meets or exceeds the standards set out in the Model Code[95] - Directors have confirmed compliance with the required standards during the reporting period[95] - The company has adopted and complied with the Corporate Governance Code for the six-month period ended June 30, 2024[100] Capital Expenditure and Funding - Capital expenditure for the six months ended June 30, 2024, was approximately RMB 46.2 million, down from approximately RMB 78.2 million as of December 31, 2023[50] - As of June 30, 2024, the Group's capital commitments amounted to approximately RMB 28.5 million, an increase from RMB 17.5 million as of December 31, 2023[50] - The total net book value of assets pledged to secure the Group's borrowings was approximately RMB 28.6 million as of June 30, 2024, compared to RMB 29.1 million as of December 31, 2023[50] - The gearing ratio as of June 30, 2024, was approximately 42.1%, down from 46.6% as of December 31, 2023[57] - The Group's treasury policy focuses on managing liquidity risk and ensuring the fulfillment of funding requirements for business development[53] - The Group does not currently have a hedging policy for foreign exchange risk, as it primarily operates in RMB, with minimal exposure to HKD fluctuations[53] Compliance and Risk Management - The Group's condensed consolidated interim financial statements for the six months ended June 30, 2024, have been prepared in accordance with IAS 34 Interim Financial Reporting[163] - The Group did not change its accounting policies or make retrospective adjustments due to the adoption of new or amended standards effective from January 1, 2024[166] - Management is currently assessing the effects of applying new standards and amendments on the Group's financial statements, with no significant impact expected[172] - The company has not made any changes to its risk management policies since the end of the previous year[181] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[94] - There were no significant labor disputes or difficulties in recruiting and retaining experienced employees during the reporting period[84]
鸿承环保科技(02265) - 2024 - 中期财报