Financial Performance - Revenue increased by approximately 17.7% from RMB 75.0 million for the six months ended June 30, 2024, to RMB 88.3 million for the six months ended June 30, 2025[5] - Gross profit for the six months ended June 30, 2025, was approximately RMB 38.0 million, compared to RMB 28.5 million for the same period in 2024[5] - Net profit for the six months ended June 30, 2025, was approximately RMB 31.6 million, up from RMB 14.9 million for the six months ended June 30, 2024[5] - Basic and diluted earnings per share increased to RMB 6.32 for the six months ended June 30, 2025, compared to RMB 3.29 for the same period in 2024[6] - The company reported a total comprehensive income of RMB 31.3 million for the six months ended June 30, 2025, compared to RMB 14.8 million for the same period in 2024[6] - Profit for the period rose from approximately RMB 14.9 million in the first half of 2024 to approximately RMB 31.6 million in the first half of 2025, with a net profit margin increasing from about 19.8% to 35.8%[54] Assets and Liabilities - Total assets less current liabilities increased to RMB 529.3 million as of June 30, 2025, from RMB 489.6 million as of December 31, 2024[7] - Cash and cash equivalents increased to RMB 285.1 million as of June 30, 2025, compared to RMB 226.1 million as of December 31, 2024[7] - Trade receivables rose to RMB 60.3 million as of June 30, 2025, from RMB 49.6 million as of December 31, 2024[7] - Non-current assets increased to RMB 249.8 million as of June 30, 2025, from RMB 232.9 million as of December 31, 2024[7] - Trade payables as of June 30, 2025, amounted to RMB 37,545 thousand, a decrease from RMB 52,856 thousand as of December 31, 2024[31] - Bank loans with collateral increased significantly to RMB 135,000 thousand as of June 30, 2025, compared to RMB 40,000 thousand as of December 31, 2024[30] - The debt-to-equity ratio increased significantly to 29.0% as of June 30, 2025, from 9.2% as of December 31, 2024, primarily due to bank borrowings rising from RMB 40.0 million to RMB 143.9 million[57] Revenue Sources and Sales - Revenue for the six months ended June 30, 2025, was RMB 88,252,000, an increase of 17.3% from RMB 75,011,000 in the same period of 2024[18] - Sales to major customers included Customer A at RMB 13,598,000 (up 8.0% from RMB 12,595,000), Customer B at RMB 10,814,000 (up 7.8% from RMB 10,028,000), and Customer C at RMB 9,747,000 (up 7.5% from RMB 9,065,000) for the six months ended June 30, 2025[18] - The sales volume of potted vegetable products rose from approximately 5.0 million pots in the first half of 2024 to approximately 5.8 million pots in the first half of 2025, an increase of about 16%[44] Costs and Expenses - The cost of sales rose from approximately RMB 46.5 million in the first half of 2024 to approximately RMB 50.2 million in the first half of 2025, an increase of about 8.1%[45] - Administrative and other expenses increased from approximately RMB 6.9 million in the first half of 2024 to approximately RMB 11.4 million in the first half of 2025, primarily due to increased professional fees and R&D expenses[51] - The group’s employee costs, including director remuneration, totaled RMB 20,828,000 for the six months ended June 30, 2025, compared to RMB 19,362,000 in the same period of 2024[23] Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2025[5] - The group did not declare or recommend any dividends for the six months ended June 30, 2025, consistent with the previous year[24] - As of June 30, 2025, Mr. Zhang holds 273,636,275 shares, representing 54.73% of the company's total shares[80] - Mr. Cui holds 9,900,010 shares, representing 1.98% of the company's total shares[80] - The major shareholder, Huide International, holds 273,636,275 shares, representing approximately 54.73% of the total shares[83] Corporate Governance - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[73] - The board of directors has confirmed their responsibility for the preparation of the company's financial statements, which have not been audited[75] - The company has established a balance of power and authority between the board and management, despite the chairman and CEO being the same person[73] - The company plans to continue reviewing and enhancing its corporate governance practices to ensure compliance with the corporate governance code[72] Future Plans and Investments - The group plans to achieve sustainable growth in sales and profits by expanding planting capacity and establishing new planting bases in new regional markets[71] - The planned use of proceeds includes RMB 24.4 million for expanding planting capacity in existing markets and RMB 9.5 million for establishing new planting bases in new geographic markets[76] - The establishment of a dedicated organic substrate production base has been postponed to December 2025 due to delays in obtaining necessary raw materials from overseas[78] - The upgrade of the IT system to improve operational efficiency has also been delayed to December 2025 as the company is still searching for a suitable ERP system provider[78] Related Party Transactions - The company has entered into related party transactions, including a maximum mortgage agreement with a bank for RMB 28 million to secure debts of related parties[86] - The total claims under the related party agreements amount to RMB 28 million, secured by the same asset[87] - The company has entered into related transactions under the Li Tai Asset Mortgage Agreement and the Dongfang Mingzhu Asset Mortgage Agreement, with the highest applicable percentage rates exceeding 5% but below 25%[88] Audit and Compliance - The Audit Committee has reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2025, confirming compliance with applicable accounting standards and regulations[94] - The company failed to comply with notification and announcement requirements under the listing rules regarding the asset mortgage agreements due to unintentional oversight[89] - The company has confirmed that the financial information disclosed is adequate and complies with legal requirements[94]
富景中国控股(02497) - 2025 - 中期业绩