Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 224,894,000, an increase from RMB 211,772,000 in the same period of 2023, representing a growth of 6.3%[11] - Gross profit for the same period was RMB 75,254,000, with a gross margin of 33.5%, down from a gross margin of 36.0% in 2023[11] - Net profit for the six months ended June 30, 2024, was RMB 11,525,000, compared to RMB 14,427,000 in 2023, reflecting a decrease of 20.0%[11] - Adjusted net profit (non-HKFRS measure) was RMB 19,441,000, down from RMB 21,968,000 in the previous year[11] - Basic and diluted earnings per share for the period were RMB 3.07, compared to RMB 3.85 in the same period last year[11] - For the six months ended June 30, 2024, the company reported a net profit of RMB 11.5 million, a decrease of 20.1% compared to RMB 14.4 million for the same period in 2023[20] - Adjusted net profit (non-HKFRS measure) for the same period was RMB 19.4 million, down 11.5% from RMB 22.0 million in 2023[13] - Revenue for the first half of 2024 was RMB 224.9 million, representing a year-on-year increase of 6.2% from RMB 211.8 million[20] - The gross profit for the same period was RMB 75.3 million, a decrease of 1.4% compared to RMB 76.3 million in 2023[20] - Profit before tax was RMB 15,515,000, down 22.1% from RMB 19,918,000 in the same period last year[97] - Total comprehensive income for the period was RMB 11,179,000, down 22.8% from RMB 14,449,000 year-over-year[97] Revenue Breakdown - Revenue from sulfur recovery and volatile organic compound incineration equipment surged by 86.8% from RMB 39.1 million in the first half of 2023 to RMB 73.1 million in the first half of 2024[26] - Revenue from catalytic cracking equipment decreased by 10.2% from RMB 147.7 million in the first half of 2023 to RMB 132.7 million in the first half of 2024[27] - The revenue from equipment manufacturing and sales included RMB 73,112,000 from sulfur recovery equipment and RMB 132,673,000 from volatile organic compound incineration equipment, compared to RMB 39,145,000 and RMB 147,679,000 respectively in the previous year[119] - The company reported a total of RMB 59,191,000 in sales of products recognized during the interim period, up from RMB 33,063,000 in the same period last year, indicating a significant increase of approximately 79%[121] Expenses and Costs - Selling expenses rose from RMB 13.2 million in the first half of 2023 to RMB 14.4 million in the first half of 2024, attributed to an increase in sales staff and salary levels[33] - Administrative expenses increased from RMB 17.1 million in the first half of 2023 to RMB 21.4 million in the first half of 2024, due to a rise in management and administrative staff[36] - R&D expenses decreased from RMB 16.4 million in the first half of 2023 to RMB 14.7 million in the first half of 2024, as some engineers were reassigned to overseas sales contracts[37] - Financial costs rose to RMB 2,836,000 for the six months ended June 30, 2024, compared to RMB 2,414,000 in 2023, indicating an increase of 17.5%[128] - Income tax expenses decreased to RMB 3,990,000 from RMB 5,491,000, a reduction of 27.3% year-over-year[129] Cash Flow and Financial Position - As of June 30, 2024, the company's cash and cash equivalents amounted to RMB 217 million[43] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (11,257,000), an improvement from RMB (25,757,000) in the same period of 2023, indicating a reduction of 56.3%[106] - Cash and cash equivalents decreased by RMB 23,984,000 during the six months ended June 30, 2024, compared to an increase of RMB 23,778,000 in the same period of 2023[106] - The company reported a net cash outflow from financing activities of RMB (9,752,000) for the six months ended June 30, 2024, compared to an inflow of RMB 51,844,000 in the same period of 2023[106] - The company's total liabilities decreased to RMB 296,876,000 from RMB 359,078,000 at the end of 2023[99] - The company's equity attributable to owners was RMB 286,334,000, down from RMB 295,155,000 at the end of 2023[101] - The company's total assets as of June 30, 2024, were RMB 295,155,000, reflecting an increase from RMB 240,490,000 as of January 1, 2023, representing a growth of approximately 22.7%[103] Shareholder Information - One Ideal Limited and Now Wealth Limited each hold 164,171,263 shares, representing 32.83% of the company[53] - TCT (BVI) Limited holds 328,342,526 shares, accounting for 65.66% of the company[53] - The shareholding structure indicates significant control by a few major shareholders, with One Ideal Limited and Now Wealth Limited being key stakeholders[54] - The company has adopted a post-IPO share option plan with a total of 50,000,000 options available for grant[58] - The maximum number of shares that can be issued under the post-IPO share option plan is capped at 10% of the total shares issued on the listing date[62] Corporate Governance and Compliance - The company has adopted the corporate governance code as a regular basis since the listing date, although certain principles were not applicable during the reporting period[76] - The audit committee has reviewed the interim financial information and believes it complies with applicable accounting standards and regulations[83] - The company confirmed compliance with the standard code for securities trading by all directors from the listing date to the date of this interim report[78] - The company is actively seeking suitable candidates to fill the vacancies of independent non-executive directors to comply with listing rules[79] Market and Economic Environment - The Chinese petrochemical industry achieved a revenue of RMB 8 trillion in the first half of 2024, with a year-on-year growth of 5.1%[19] - The investment growth rate in the petrochemical sector has slowed, with chemical raw materials and chemicals manufacturing investment increasing by 8.4%, down 5.5 percentage points from the previous year[19] - The international oil price showed a "V-shaped" trend in the first half of 2024, influenced by geopolitical factors and OPEC+ production decisions[18] - China's GDP grew by 5.0% year-on-year in the first half of 2024, indicating a stable economic environment despite various challenges[17] Other Information - The company has no significant capital commitments as of June 30, 2024[156] - The company has not reported any transfers between Level 1 and Level 2 inputs, nor any transfers into or out of Level 3 inputs during the interim period[117] - Government subsidies for the six months ended June 30, 2024, amounted to RMB 2,716,000, significantly up from RMB 713,000 in the same period of 2023, representing an increase of 280%[126] - Interest income increased to RMB 132,000 for the six months ended June 30, 2024, compared to RMB 101,000 in the prior year, reflecting a growth of 30.7%[126]
瑞昌国际控股(01334) - 2024 - 中期财报