济丰包装(01820) - 2025 - 中期业绩

Performance Highlights The company reported a slight decrease in revenue and a widened net loss for the first half of 2025, with the Board resolving not to declare an interim dividend | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 993.9 | 997.2 | -0.3% | | Net loss attributable to owners of the Company | (24.5) | (15.3) | +60.0% | - The Board has resolved not to declare any interim dividend for the period[3] Condensed Consolidated Interim Financial Statements This section presents the company's financial performance and position for the interim period, detailing comprehensive income, assets, liabilities, and equity Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company experienced a slight decrease in revenue, an increase in cost of sales, leading to a significant reduction in gross profit, while increased finance costs resulted in a wider loss for the period year-on-year | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 993,903 | 997,243 | | Cost of sales | (862,141) | (847,649) | | Gross profit | 131,762 | 149,594 | | Loss before income tax | (30,461) | (17,289) | | Loss for the period | (24,458) | (15,292) | | Basic loss per share | (RMB 0.08) | (RMB 0.05) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, both non-current and current assets decreased, with notable declines in inventories and trade receivables, while current liabilities also decreased, but net current assets turned into net current liabilities, leading to an overall decrease in net assets | Metric | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 856,161 | 894,863 | | Current assets | 831,832 | 957,350 | | Current liabilities | 845,342 | 910,007 | | Net current (liabilities) / assets | (13,510) | 47,343 | | Net assets | 480,060 | 526,063 | - Inventories decreased from RMB 172,810 thousand as of December 31, 2024, to RMB 89,891 thousand as of June 30, 2025[5] - Trade and other receivables decreased from RMB 673,888 thousand as of December 31, 2024, to RMB 610,045 thousand as of June 30, 2025[5] Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, accounting policies, estimates, revenue, and financial positions General Information The company was incorporated in the Cayman Islands in 2014, primarily engaged in the manufacturing and sale of packaging materials, and operates as an investment holding company - The Company was incorporated as an exempted company under the laws of the Cayman Islands on July 31, 2014[6] - The Company is an investment holding company, and the Group is principally engaged in the manufacturing and sale of packaging materials[7] Basis of Preparation The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange, adopting the same accounting policies as the 2024 annual financial statements, with no significant impact from new standards - The financial statements are prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[8] - The financial statements adopt the same accounting policies as the 2024 annual financial statements, and the application of new or revised International Financial Reporting Standards has no significant impact on the Group's condensed consolidated interim financial statements[8] - The condensed consolidated interim financial statements are unaudited but have been reviewed by BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410[9] Use of Judgements and Estimates The preparation of interim financial statements involves management's judgments, estimates, and assumptions, with uncertainties primarily consistent with those applied in the 2024 annual financial statements - The preparation of financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[10] - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are consistent with those applied in the 2024 annual financial statements[10] Revenue and Segment Reporting The Group's revenue primarily derives from the sale of corrugated packaging products and corrugated paperboards, classified by end-product industry, with all revenue recognized at a point in time Revenue Breakdown This subsection provides a detailed breakdown of revenue by product type and industry for the interim period | Product Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Corrugated packaging products | 905,823 | 901,710 | | Corrugated paperboards | 88,080 | 95,533 | | Total | 993,903 | 997,243 | | Revenue by Industry | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Food and beverages | 283,882 | 266,756 | | Paper and packaging | 125,394 | 139,385 | | Non-food and beverage consumables | 176,962 | 151,009 | | Home furnishings | 42,831 | 65,529 | | Medical products | 59,899 | 59,974 | | Supply chain solutions | 19,339 | 27,236 | | E-commerce | 11,228 | 14,398 | | Home appliances | 24,736 | 22,783 | | Chemical products | 40,470 | 43,880 | | Machinery manufacturing | 40,620 | 40,617 | | Computer and electronic product manufacturing | 28,846 | 33,314 | | Textiles | 29,032 | 29,983 | | Others | 110,664 | 102,379 | | Total | 993,903 | 997,243 | Segment Reporting This subsection outlines the Group's operating segment and geographical segment reporting - The Group has identified one operating segment, namely the manufacturing and sale of packaging materials, as resources are integrated and the chief operating decision-maker focuses on the Group's overall operating performance[16] - Over 90% of revenue and operating profit are generated from the manufacturing and sale of packaging materials in China, and over 90% of identifiable assets and liabilities are located in China, thus no geographical segment information is presented[17] - During the current and prior periods, sales to a single customer did not account for 10% or more of the Group's revenue[18] - Revenue refers to the net invoiced value of goods sold by the Group during the period (net of value-added tax)[11] - The Group has applied the practical expedient under IFRS 15 and has not disclosed the transaction price allocated to unsatisfied performance obligations under contracts with an original expected duration of one year or less[14] Loss Before Income Tax For the six months ended June 30, 2025, loss before income tax increased to RMB 30.461 million from RMB 17.289 million in the prior period, primarily due to costs of inventories sold, depreciation, freight charges, and employee benefit expenses | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 862,141 | 847,649 | | Depreciation of property, plant and equipment | 59,926 | 52,467 | | Freight charges | 43,104 | 41,256 | | Employee benefit expenses | 110,991 | 115,492 | | Retirement benefit costs | 15,547 | 15,537 | | Net exchange (gain) / loss | (1,662) | 1,120 | - Cost of inventories sold includes raw material costs, component costs, outsourced production costs, employee benefit expenses, and depreciation of property, plant and equipment[21] Income Tax Credit The income tax credit for the period was RMB 6.003 million, mainly from the origination and reversal of deferred tax, with PRC Enterprise Income Tax accrued at a statutory rate of 25% and no assessable profits in Hong Kong | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 1,767 | 3,872 | | Deferred tax - origination and reversal of temporary differences | (7,770) | (5,869) | | Income Tax Credit | (6,003) | (1,997) | - PRC Enterprise Income Tax is provided at a statutory rate of 25%, with no assessable profits in Hong Kong[20] - Dividends distributed to foreign investors in China are generally subject to a 10% withholding tax, which can be reduced to 5% under specific conditions, and withholding tax on direct reinvestment may be deferred[21][22] Loss Per Share For the six months ended June 30, 2025, basic loss per share increased to RMB 0.08 from RMB 0.05 in the prior period, primarily due to the expanded loss for the period | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Loss for the period (RMB thousand) | (24,458) | (15,292) | | Weighted average number of ordinary shares in issue (thousand shares) | 300,632 | 300,632 | | Basic loss per share (RMB) | (RMB 0.08) | (RMB 0.05) | - No diluted earnings per share is presented as there were no potential ordinary shares outstanding during the current and prior periods[24] Trade and Other Receivables As of June 30, 2025, total trade and other receivables decreased to RMB 610.0 million from RMB 673.9 million at the end of 2024, including net trade receivables of RMB 526.2 million and bills receivable of RMB 20.5 million | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (net of impairment) | 526,221 | 602,473 | | Bills receivable | 20,464 | 18,182 | | Other receivables | 13,698 | 9,664 | | Deposits | 25,927 | 24,360 | | Prepayments | 23,735 | 19,209 | | Total | 610,045 | 673,888 | | Aging | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 240,714 | 297,188 | | 1 to 3 months | 236,155 | 255,056 | | 3 months to 1 year | 69,816 | 68,411 | | Total | 546,685 | 620,655 | - The average credit period for goods sold is 30 to 120 days from the invoice date[26] Trade and Other Payables As of June 30, 2025, total trade and other payables decreased to RMB 251.3 million from RMB 321.8 million at the end of 2024, with all amounts due for settlement within twelve months | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 130,973 | 191,106 | | Bills payable | 56,250 | 56,250 | | Accruals and other payables | 64,044 | 74,427 | | Total | 251,267 | 321,783 | | Aging | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 100,647 | 173,461 | | 1 to 3 months | 57,644 | 63,165 | | 3 months to 1 year | 28,932 | 10,730 | | Total | 187,223 | 247,356 | - Bank deposits of RMB 11,250,000 have been pledged to secure certain bills payable[28] Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings amounted to RMB 434.2 million, comprising RMB 400.1 million in current liabilities and RMB 34.1 million in non-current liabilities, with average effective annual interest rates ranging from 2.24% to 3.75%, a decrease from the prior period | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Secured bank loans | 320,151 | 328,505 | | Liabilities under supplier financing arrangements | 45,000 | 45,000 | | Secured other borrowings | 69,085 | 67,148 | | Total | 434,236 | 440,653 | | Classified as: | | | | Current liabilities | 400,123 | 396,767 | | Non-current liabilities | 34,113 | 43,886 | - The average effective annual interest rate for bank loans ranged from 2.24% to 3.75% (prior period: 3.00% to 6.51%), representing a decrease[31] - New supplier financing arrangements were entered into during the period, with RMB 35,000,000 transferred from trade payables to liabilities under supplier financing arrangements, extending the maturity to 30 to 45 days after the invoice date[34] - Other borrowings primarily relate to sale and leaseback arrangements with Chongqing Tanshan Financial Leasing Co., Ltd., an associated company, with relevant property, plant and equipment pledged as collateral[35] Pledged Assets As of June 30, 2025, the Group's total pledged assets had a carrying value of RMB 117.1 million, primarily comprising property, plant and equipment, right-of-use assets for leasehold land, and pledged deposits, serving as collateral for bills payable, bank financing, and sale and leaseback arrangements | Item | 2025-06-30 (RMB thousand) | 2024-12-31 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 97,334 | 96,220 | | Right-of-use assets for leasehold land | 8,549 | 8,691 | | Pledged deposits | 11,250 | 11,250 | | Total | 117,133 | 116,161 | - Pledged assets are used to secure bills payable, bank financing, and sale and leaseback arrangements with associated companies[36] Dividends The company did not declare any interim dividends for the six months ended June 30, 2025, or 2024; a special dividend declared in August 2024 was paid in December 2024, and a special dividend of RMB 21.934 million approved in March 2025 was recognized as dividends payable - The Company did not declare any interim dividend for the current or prior periods[37] - A special dividend of HKD 0.08 per share (totaling RMB 21,952,000) declared on August 26, 2024, was paid on December 16, 2024[37] - A special dividend of HKD 0.08 per share (totaling RMB 22,207,000) approved on March 25, 2025, after exchange adjustments, RMB 21,934,000 was recognized as dividends payable as of June 30, 2025[37] Management Discussion and Analysis This section provides management's discussion and analysis of the Group's business and financial performance, including revenue, costs, and liquidity Business Review In the first half of 2025, global economic recovery was weak amid escalating geopolitical conflicts and trade protectionism, yet China's economy maintained stable growth with structural optimization, resilient industrial production, and a vibrant consumer market; the paper packaging industry faced downward price pressure but found demand support from export recovery, consumption upgrades, and new productive forces, prompting the Group to actively optimize its product structure and customer portfolio - Global economic recovery is weak, with escalating geopolitical conflicts and trade protectionism, leading to a complex and severe external environment[38] - China's economy maintains stable growth with structural optimization, industrial production growth exceeding expectations, a vibrant consumer market, and continuously rising retail sales[38] - The paper packaging industry faces downward price pressure, but resilient export recovery, consumption upgrades, and new productive forces provide downstream demand support[38] - The Group is actively seizing market opportunities from high-end manufacturing, consumption upgrades, and export recovery, optimizing its product structure and customer portfolio[38] Financial Review Revenue for the period slightly decreased by 0.3% year-on-year to RMB 993.9 million, with the overall gross profit margin declining by 1.7 percentage points to 13.3%, and gross profit decreasing by 11.9% to RMB 131.8 million; basic loss per share widened to RMB 0.08, and the Board maintains cautious optimism for the second half's traditional peak season | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 993.9 | 997.2 | -0.3% | | Overall gross profit margin | 13.3% | 15.0% | -1.7个百分点 | | Gross profit | 131.8 | 149.6 | -11.9% | | Basic loss per share | RMB 0.08 | RMB 0.05 | Loss widened | - The Directors maintain a cautious optimistic view on the Group's performance in the second half of 2025, with management continuing to monitor market conditions and take appropriate measures[39] Revenue Analysis Total revenue for the period decreased by 0.3% year-on-year to RMB 993.9 million, with sales revenue from corrugated packaging products increasing while sales revenue from corrugated paperboards decreased Sales of Corrugated Packaging Products This subsection details the revenue generated from the sales of corrugated packaging products | Product Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | Proportion | | :--- | :--- | :--- | :--- | :--- | | Corrugated packaging products | 905.8 | 901.7 | +0.5% | 91.1% | - The increase in revenue from sales of corrugated packaging products was primarily due to higher sales volume[41] Sales of Corrugated Paperboards This subsection details the revenue generated from the sales of corrugated paperboards | Product Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | Proportion | | :--- | :--- | :--- | :--- | :--- | | Corrugated paperboards | 88.1 | 95.5 | -7.8% | 8.9% | - The decrease in sales of corrugated paperboards was primarily due to lower sales volume[42] - Revenue for the period was approximately RMB 993.9 million, a decrease of approximately RMB 3.3 million or 0.3% compared to the prior period[40] Cost of Sales Cost of sales for the period was approximately RMB 862.1 million, a 1.7% increase year-on-year, primarily due to higher sales volume | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of sales | 862.1 | 847.6 | +1.7% | - The increase in cost of sales was primarily due to higher sales volume[43] Gross Profit Gross profit for the period was approximately RMB 131.8 million, an 11.9% decrease year-on-year, with the overall gross profit margin falling from 15.0% to 13.3%, mainly because the decline in average selling price exceeded the decrease in unit cost of raw paper | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross profit | 131.8 | 149.6 | -11.9% | | Overall gross profit margin | 13.3% | 15.0% | -1.7个百分点 | | Gross profit margin for corrugated packaging products | 14.1% | 15.9% | -1.8个百分点 | | Gross profit margin for corrugated paperboards | 4.1% | 6.8% | -2.7个百分点 | - The decrease in gross profit margin was primarily due to the decline in average selling price exceeding the decrease in unit cost of raw paper[44] Selling and Distribution Expenses Selling and distribution expenses increased by 0.9% from RMB 67.5 million in the prior period to RMB 68.1 million in the current period, primarily due to higher sales volume | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 68.1 | 67.5 | +0.9% | - The increase in selling and distribution expenses was primarily due to higher sales volume[45] Administrative Expenses Administrative expenses were approximately RMB 72.4 million, a 14.6% decrease year-on-year, primarily due to enhanced cost control measures | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 72.4 | 84.9 | -14.6% | - The decrease in administrative expenses was primarily due to enhanced cost control measures[46] Finance Costs Finance costs increased by 29.2% from RMB 17.7 million in the prior period to RMB 22.9 million in the current period, primarily due to an increase in bank loans | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Finance costs | 22.9 | 17.7 | +29.2% | - The increase in finance costs was primarily due to an increase in bank loans[47] Loss for the Period A loss of RMB 24.5 million was recorded for the period, widening from RMB 15.3 million in the prior period, mainly due to a decrease in average selling price and investment in new plants | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the period | (24.5) | (15.3) | Loss widened | - The increase in loss was primarily due to a decrease in average selling price and investment in new plants[48] Liquidity and Capital Resources The Group's cash inflows primarily originated from operating activities, while cash outflows were mainly for the purchase of property, plant and equipment, and repayment of bank borrowings and finance leases Working Capital This subsection provides an overview of the Group's working capital position, including cash and cash equivalents | Metric | 2025-06-30 (RMB million) | | :--- | :--- | | Cash and cash equivalents | 120.6 | Cash Flows This subsection details the Group's cash flows from operating, investing, and financing activities for the interim period | Cash Flow Type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 162.4 | 35.1 | +127.3 | | Net cash used in investing activities | (18.7) | (54.2) | -35.5 | | Net cash used in financing activities | (122.5) | (76.5) | +46.0 | | Cash and cash equivalents at end of period | 120.6 | 49.7 | +70.9 | - The increase in net cash generated from operating activities was primarily due to a decrease in inventory levels and changes in receivables[52] - The decrease in net cash used in investing activities was primarily due to equipment purchases[53] - The increase in net cash used in financing activities was primarily due to the repayment of finance lease principal and interest, as well as bank loans and interest[54] - The Group's cash inflows primarily originated from operating activities, while cash outflows were mainly for the purchase of property, plant and equipment, and repayment of bank borrowings[50] Major Acquisitions and Disposals The Group had no major acquisitions or disposals during the period - The Group had no major acquisitions or disposals during the period[55] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[57] Purchase, Sale or Redemption of Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares listed on the Stock Exchange during the period - During the period, the Company did not redeem any shares listed on the Stock Exchange, nor did the Company or any of its subsidiaries purchase or sell any such shares[58] Interim Dividend The Board has resolved not to declare any interim dividend for the period - The Board has resolved not to declare any interim dividend for the period[59] Significant Events After the Period No significant events occurred after the period and up to the date of this announcement - No significant events occurred after the period and up to the date of this announcement[60] Corporate Governance and Other Information This section outlines the company's corporate governance practices, compliance with securities trading standards, review of interim results, and board composition Corporate Governance The company is committed to maintaining high standards of corporate governance, with one deviation from Corporate Governance Code provision C.2.1 where Mr. Zheng Xianjun holds both Chairman and Chief Executive Officer roles; the Board believes this arrangement is in the Group's best interest and has implemented sufficient checks and balances - The Company is committed to maintaining high standards of corporate governance, with no material deviations except for a departure from Code Provision C.2.1 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[61] - Mr. Zheng Xianjun serves concurrently as Executive Director, Chief Executive Officer, and Chairman of the Board, an arrangement the Board believes ensures consistent internal leadership, aligns with the Group's best interests, and is supported by sufficient checks and balances[61][62] Standard Code for Securities Transactions The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance during the period and up to the announcement date - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[64] - Following specific enquiries, each Director confirmed compliance with the required standards set out in the Model Code during the period and up to the date of this announcement[64] Review of Interim Results The company's audit committee has reviewed the Group's accounting principles, practices, and unaudited financial results, discussing audit, internal control, risk management, and financial reporting matters, with the condensed consolidated interim financial statements reviewed by independent auditor BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410 - The Company's Audit Committee has reviewed the accounting principles and practices adopted by the Group, and has also reviewed and confirmed the Group's unaudited financial results for the period[65] - Independent auditor BDO Limited has reviewed the condensed consolidated interim financial statements for the period in accordance with Hong Kong Standard on Review Engagements 2410[65] Publication of Interim Results and Interim Report This interim results announcement has been published on the Stock Exchange and the company's website, and the interim report will be dispatched to shareholders and published in due course - This interim results announcement is published on the Stock Exchange and the Company's website[66] - The Group's interim report for the period, containing all information required by the Listing Rules, will be dispatched to shareholders and published in due course[66] Board of Directors As of the announcement date, the company's Board of Directors comprises two executive directors (Mr. Zheng Xianjun, Mr. Tan Dacheng) and four independent non-executive directors (Mr. Wang Jisheng, Mr. Jiang Tianxi, Dr. Su Chongwu, Ms. Zhu Ying) - The Company's executive directors are Mr. Zheng Xianjun and Mr. Tan Dacheng[67] - The Company's independent non-executive directors are Mr. Wang Jisheng, Mr. Jiang Tianxi, Dr. Su Chongwu, and Ms. Zhu Ying[67]