Financial Performance - For the six months ended December 31, 2023, the company reported revenue of RMB 370,017,000, a 40.3% increase from RMB 263,761,000 in the same period of 2022[12]. - Gross profit for the same period was RMB 51,119,000, up 52.7% from RMB 33,452,000 year-on-year[12]. - The company incurred a loss before tax of RMB 3,102,000, compared to a loss of RMB 227,000 in the previous year[12]. - The loss for the period attributable to owners of the company was RMB 5,863,000, an increase from RMB 3,178,000 in the prior year[12]. - Basic and diluted loss per share for the period was RMB 0.27, compared to RMB 0.15 in the same period last year[12]. - Other income increased to RMB 12,420,000 from RMB 6,944,000, reflecting an increase of 78.5%[12]. - Distribution costs rose significantly to RMB 38,301,000 from RMB 19,957,000, indicating a 92.5% increase[12]. - Administrative expenses also increased to RMB 23,848,000 from RMB 18,446,000, a rise of 29.2%[12]. - The company reported finance costs of RMB 4,121,000, up from RMB 2,850,000, representing a 44.6% increase[12]. - The company reported a loss for the period of RMB 5,125,000 for the six months ended December 31, 2023, compared to a loss of RMB 1,738,000 for the same period in 2022, indicating an increase in loss of approximately 195%[14]. - Total comprehensive expense for the period was RMB 5,167,000, up from RMB 3,616,000 in the previous year, reflecting a year-over-year increase of about 43%[14]. - Segment profit for steel products was RMB 9,083,000, compared to RMB 7,577,000 in the previous year, reflecting a growth of 19.9%[34]. - The Group reported a loss of approximately RMB 5,863,000 for the six months ended 31 December 2023, compared to a loss of RMB 3,178,000 for the same period in 2022, indicating an increase in loss of 84%[53][57]. Assets and Liabilities - Non-current assets increased to RMB 97,702,000 as of December 31, 2023, from RMB 79,438,000 as of June 30, 2023, representing a growth of approximately 23%[15]. - Current assets rose to RMB 491,296,000 from RMB 454,349,000, marking an increase of about 8%[15]. - The company's net current assets decreased to RMB 38,805,000 from RMB 62,262,000, a decline of approximately 38%[15]. - Total equity attributable to owners of the company decreased to RMB 68,907,000 from RMB 74,812,000, reflecting a decrease of about 8%[15]. - The company’s cash and cash equivalents decreased to RMB 34,914,000 from RMB 46,388,000, a decline of approximately 25%[15]. - Trade and other receivables increased to RMB 372,758,000 from RMB 315,005,000, indicating a rise of about 18%[15]. - Total liabilities of reportable segments increased to RMB 249,075,000 from RMB 207,254,000, a rise of 20.2%[34]. Cash Flow - Net cash used in operating activities decreased to RMB (29,554) thousand from RMB (33,904) thousand, representing a reduction of approximately 13.9% year-over-year[18]. - Cash flows from investing activities resulted in a net cash outflow of RMB (18,529) thousand, compared to RMB (3,729) thousand in the previous year, indicating a significant increase in investment expenditures[18]. - Net cash generated from financing activities was RMB 37,955 thousand, up from RMB 24,513 thousand, reflecting a growth of approximately 54.7% year-over-year[18]. - The total cash and cash equivalents at the end of the period stood at RMB 34,914 thousand, an increase from RMB 25,725 thousand, marking a growth of approximately 35.7%[18]. Business Operations - The Group's principal activities include manufacturing steel pipes and sheets, as well as urban renewal project planning and consulting, indicating a diversified business model[20]. - The Group's segment for steel products primarily derives revenue from manufacturing and trading in the PRC, highlighting its operational focus in this region[32]. - The urban renewal projects segment generates revenue from planning and consulting services in Zhuhai City, Guangdong Province, emphasizing the Group's involvement in local development initiatives[32]. - The Group is focusing on business operations in processing, manufacturing, and selling steel products in China[110]. - Guangzhou Mayer's steel products are exported to multiple regions including Southeast Asia, Africa, Europe, and the USA, with significant clients such as the Chinese Ministry of Construction[128]. Legal and Compliance Issues - The company is involved in a legal dispute regarding the disposal of a 51% equity interest in Hei Jing for a cash consideration of RMB 5.3 million, which the board considers too low and unfair[74]. - The Shenzhen Baoan District People's Court dismissed the initial claim related to the Hei Jing disposal, and the company has decided to appeal this decision[75]. - The Company has suspended trading of its shares on the Stock Exchange effective from 9:00 a.m. on September 29, 2023, pending the publication of the 2023 Annual Results[88]. - The Company received Resumption Guidance from the Stock Exchange on December 28, 2023, which includes the need to publish outstanding financial results and address any audit modifications[89]. - The Auditor raised potential audit issues regarding the 2023 Annual Results, including the need for the finalized Investigation Report and management accounts of Happy Group for the six months ended June 30, 2023[90]. - The Company must comply with all Resumption Guidance and remedy substantive issues causing the trading suspension before resuming trading[93]. - The Stock Exchange may cancel the listing of the Company's securities if trading remains suspended for a continuous period of 18 months, with the deadline being March 28, 2025[94]. - The Company must re-comply with Rules 3.10(1) and 3.21 of the Listing Rules following the resignation of an independent non-executive director on January 18, 2024[96]. - The Company currently has only two independent non-executive directors, which is below the minimum requirement of three as per Rule 3.10(1) of the Listing Rules[100]. - The Audit Committee of the Board has only two members, falling short of the minimum requirement of three members as stipulated in Rule 3.21 of the Listing Rules[100]. Future Outlook and Strategy - The company is focused on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[12]. - Looking ahead, the company plans to improve product quality, modernize production equipment, and expand sales channels to increase market share while controlling operational costs[132]. - The company has established a registered non-Hong Kong company in Hong Kong in December 2022 to enhance customer outreach and sales[131]. - The company aims to leverage environmental technologies to reduce operational costs while enhancing service quality and efficiency in response to the growing demand in China[184]. Environmental and Technological Initiatives - The Company has entered into a consultancy agreement with Sino Light Investment Advisory Limited to assist in developing its Environmental Technology Business[181]. - The Company has engaged in an equity investment agreement with Guangdong Golden Way Environmental and Energy Saving Technology Co., Ltd, resulting in a dilution of its equity interest in Mayer Technology from 100% to 70%[197]. - Following the equity investment agreement, Mayer Technology will focus on manufacturing and selling 8°C Nano PCMs and related equipment[199]. - The initial cash contribution for the exclusive rights granted to Mayer Technology was RMB 5 million, which facilitated the construction of production lines for Nano PCMs[199]. - The company has entered into a Consultancy Agreement with a consultant to provide advisory services for the development of its Environmental Technology Business, which includes the application of environmental technologies in the production of composite steel and other industrial composite materials[184].
MAYER HOLDINGS(01116) - 2025 - 中期业绩