Financial Performance - For the six months ended June 30, 2024, the total revenue was approximately RMB 325.8 million, representing an increase of approximately 9.2% from RMB 298.3 million for the same period in 2023[10][16]. - Gross profit for the six months ended June 30, 2024, was approximately RMB 32.0 million, down from RMB 47.2 million for the same period in 2023, resulting in a gross profit margin decrease from 15.8% to 9.8%[11][18]. - The increase in revenue was primarily driven by a higher number of projects in property cleaning services[16]. - Net profit decreased from approximately RMB 15.3 million for the six months ended June 30, 2023, to approximately RMB 10.2 million for the same period in 2024, with a net profit margin decline from 5.1% to 3.1%[32]. - Profit attributable to owners of the Company for the period was RMB 10,155,000, down from RMB 15,308,000, indicating a decline of approximately 33.5%[68]. - Basic earnings per share decreased to 0.62 RMB cents in 2024 from 1.22 RMB cents in 2023, reflecting a decline of about 49.2%[141]. Revenue Composition - Revenue from property cleaning services accounted for 96.0% of total revenue, while public space cleaning services accounted for 4.0%[15]. - All revenue for the period was derived from cleaning and maintenance services provided in China, with no individual customer contributing 10% or more of the total revenue[98]. Cost and Expenses - The cost of services increased from approximately RMB 251.1 million for the six months ended June 30, 2023, to approximately RMB 293.7 million for the same period in 2024, representing an increase of approximately 17.0%[17]. - Employee benefit expenses were a significant factor contributing to the decrease in gross profit margin[11][18]. - Selling and marketing expenses increased by approximately 29.6%, from RMB 2.7 million for the six months ended June 30, 2023, to RMB 3.5 million for the same period in 2024[23]. - General and administrative expenses decreased by 24.1%, from approximately RMB 24.0 million for the six months ended June 30, 2023, to approximately RMB 18.3 million for the same period in 2024[24]. - Employee benefit expenses for the six months ended June 30, 2024, totaled RMB 178.0 million, compared to RMB 166.0 million in FY2023[63]. Assets and Liabilities - As of June 30, 2024, the company's net assets amounted to approximately RMB 309.0 million, up from RMB 298.8 million as of December 31, 2023[33]. - Total assets as of June 30, 2024, amounted to RMB 452,582,000, an increase from RMB 440,353,000 as of December 31, 2023, representing a growth of about 2.8%[71]. - Current liabilities increased slightly to RMB 137,507,000 from RMB 135,301,000, indicating a rise of about 1.6%[73]. - Trade receivables as of June 30, 2024, were RMB 285,948,000, up from RMB 241,856,000 as of December 31, 2023, reflecting an increase of about 18.2%[147]. Cash Flow - For the six months ended June 30, 2024, the net cash used in operating activities was RMB (55,722) thousand, a significant increase from RMB (4,563) thousand in the same period of 2023, indicating a decline in operational cash flow[79]. - The net cash generated from financing activities was RMB 10,938 thousand, a substantial increase from RMB 1,553 thousand in the prior year, primarily due to proceeds from bank borrowing of RMB 11,790 thousand[79]. - Cash and cash equivalents at the end of the period were RMB 99,236 thousand, up from RMB 49,858 thousand at the end of June 2023, indicating improved liquidity[79]. Strategic Plans - The company plans to expand its presence in both existing and new markets, leveraging its experience in cleaning and maintenance services[12]. - Future growth strategies include potential acquisitions and investments in cleaning service providers in the Greater Bay Area to enhance geographic reach[12]. - The company aims to replicate its business model in other regions of China with strong demand for property cleaning services[12]. Shareholder Information - The Group's controlling shareholders, Mr. Li and Mr. Chen, each hold a significant interest of 36.095% in the company, indicating strong ownership concentration[176]. - The total number of shares held by controlling shareholders is 1,173,087,500, which includes shares from both Prosperity Cleanness and Sunrise Cleanness[185]. - The company is owned 36.095% by each of Prosperity Cleanness and Sunrise Cleanness, both of which are wholly owned by Mr. Li and Mr. Chen respectively[184]. Management and Governance - Mr. Chen has over 23 years of management experience in the cleaning service industry and has been instrumental in the growth of the Group since its establishment in August 2000[2]. - The Group's strategic management and business strategies are overseen by Mr. Chen, who also serves as a director for its subsidiaries[3]. - The company has maintained a strong governance structure with a clear delineation of responsibilities among its executive directors[8].
升辉清洁(02521) - 2024 - 中期财报