Financial Performance - Revenue for the six months ended 31 December 2024 was RMB 179,825,000, a decrease of 8.2% compared to RMB 195,916,000 for the same period in 2023[5]. - Gross profit increased to RMB 10,348,000, representing a significant improvement from RMB 6,590,000 in the previous year, marking a growth of 57.5%[5]. - Loss before income tax for the period was RMB 40,284,000, slightly higher than the loss of RMB 38,127,000 recorded in the same period last year, indicating a 5.7% increase in losses[5]. - Total comprehensive loss for the period was RMB 40,960,000, compared to RMB 40,312,000 in the previous year, reflecting a 1.6% increase in overall losses[5]. - Revenue from food products sales was RMB 169,523,000, down from RMB 195,916,000, indicating a decline of 13.5%[26]. - The Group recorded a loss of approximately RMB40.3 million for the Reporting Period, compared to a loss of RMB38.1 million for the same period in 2023[65][67]. - Revenue from the food business decreased from approximately RMB195.9 million to approximately RMB169.5 million, accounting for 94.2% of total revenue in the Reporting Period[67][75]. Assets and Liabilities - Trade receivables increased significantly to RMB 180,672,000 from RMB 89,913,000, showing an increase of 100.8%[7]. - Cash and cash equivalents decreased to RMB 7,301,000 from RMB 60,927,000, a decline of 88.0%[7]. - Non-current assets rose to RMB 28,843,000, up from RMB 23,155,000, indicating a growth of 24.0%[7]. - Net assets decreased to RMB 150,053,000 from RMB 178,375,000, a decline of 16.0%[7]. - Total trade receivables as of 31 December 2024 amounted to RMB 181,408,000, significantly up from RMB 90,271,000 as of 30 June 2024, reflecting a growth of approximately 101%[52]. - Net current assets decreased from approximately RMB 199.2 million as of 30 June 2024 to approximately RMB 158.4 million as of 31 December 2024[91][98]. - Cash and cash equivalents dropped to approximately RMB 7.3 million as of 31 December 2024, down from approximately RMB 60.9 million as of 30 June 2024[92][99]. Shareholder Information - The company did not recommend any interim dividend for the six months ended 31 December 2024, consistent with the previous year[44]. - The weighted average number of ordinary shares for calculating basic loss per share increased from 123,000,000 in 2023 to 151,561,902 in 2024, an increase of about 23.3%[47]. - The Group's total issued shares increased from 144,000,000 to 154,010,000 due to a placing of new shares, raising approximately HK$15.7 million[60][61]. - A separate placing agreement on 20 November 2023 raised approximately HK$42.3 million by placing up to 24,000,000 shares at HK$1.80 each[61][62]. - A proposed rights issue was announced to raise approximately HK$30.8 million by issuing 77,005,000 rights shares at HK$0.40 per share, with a completion date of January 3, 2025[114]. Operational Highlights - The Group commenced a new food and beverage business in Zhuhai, PRC, generating revenue of RMB10.3 million during the Reporting Period[68][71]. - The Group's strategy includes sourcing high-quality raw materials and subcontracting processing to enhance product offerings under its brand "Wofan" and expand into the food and beverage sector[64][69]. - The Group offered over 100 types of dried seafood, 30 types of algae and fungi, and 60 types of seafood snacks, aiming to differentiate itself from competitors[66][70]. - The company initiated a fresh pork wholesale business at the beginning of 2025, sourcing from high-quality pig farms[116]. Governance and Compliance - The company has adopted the Corporate Governance Code and is committed to enhancing its governance practices[122]. - The board consists of four executive directors and three independent non-executive directors, ensuring a significant percentage of independent voices[128]. - The Audit Committee, composed entirely of independent non-executive directors, has reviewed the interim results for the six months ended December 31, 2024[131]. - Mr. Shum Ching Hei has been appointed as the chairman of the Audit Committee, which is responsible for overseeing financial reporting and compliance[135]. - The company will continue to enhance its corporate governance practices to meet increasing regulatory requirements and stakeholder expectations[128]. Market Insights - China's total retail sales of consumer goods in 2024 were approximately RMB48.79 trillion, reflecting a 3.5% increase from the previous year, indicating a shift in consumer behavior towards actual needs[115]. - The company plans to actively develop new businesses, particularly in the Internet sector, to diversify revenue sources and stabilize financial performance[121]. - The company will continue to monitor market conditions to identify opportunities for growth and expansion[126].
中国升海集团(01676) - 2024 - 中期业绩