惠生国际(01340) - 2025 - 中期业绩

Huishang International Holdings Limited Interim Results Announcement for the Six Months Ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue significantly decreased by 76.7% to RMB 7.386 million, but gross profit turned from loss to a profit of RMB 346 thousand, with the loss for the period narrowing to RMB 6.573 million and basic loss per share at RMB 0.72 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | For the Six Months Ended June 30, 2025 (RMB thousands) | For the Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 7,386 | 31,817 | | Cost of Sales | (7,040) | (33,650) | | Gross Profit / (Loss) | 346 | (1,833) | | Other Income | 1,803 | 3,506 | | Loss Before Tax | (6,573) | (8,599) | | Loss for the Period | (6,573) | (8,599) | | Loss Per Share Attributable to Owners of the Company (RMB cents) | (0.72) | (0.97) | - Revenue decreased by 76.7% year-on-year, primarily due to intensified market competition[4][49] - Gross profit turned from a loss in the prior period to a profit, reflecting initial effects of cost control and operational adjustments[4][49] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets and total liabilities both decreased, with net current assets maintained at RMB 337.9 million and bank balances and cash reduced to RMB 316.0 million Condensed Consolidated Statement of Financial Position Key Data | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 47,939 | 50,070 | | Current Assets | 411,289 | 417,636 | | Current Liabilities | 73,403 | 73,751 | | Net Current Assets | 337,886 | 343,885 | | Net Assets | 385,587 | 393,704 | | Total Equity | 385,587 | 393,704 | - Bank balances and cash decreased to RMB 316.0 million, from RMB 397.8 million at the end of 2024[6][51] Notes to the Condensed Consolidated Interim Financial Statements This section details the basis of preparation, accounting policies, segment information, revenue composition, taxation, loss per share, share capital changes, and specifics of various assets and liabilities, providing context for understanding the financial data Basis of Preparation - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of Appendix 16 to the Listing Rules of the Stock Exchange of Hong Kong[8] - HKAS 21 (Revised) "Lack of Exchangeability" was first applied in the current period, with no significant impact on the Group's financial position or performance for the current and prior periods[11] Segment Information - The Group primarily operates in two reportable segments: slaughtering and pork product trading, and pipe system products[13][14] Segment Revenue and Results Segment Revenue and Results | Segment | For the Six Months Ended June 30, 2025 (RMB thousands) | For the Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Slaughtering and Pork Product Trading Revenue | 7,386 | 31,817 | | Slaughtering and Pork Product Trading Results | (4,026) | (4,545) | | Pipe System Products Revenue | - | - | | Pipe System Products Results | - | (1) | - Revenue from the slaughtering and pork product trading segment significantly decreased, but the segment loss narrowed[15][16] Segment Assets and Liabilities Segment Assets and Liabilities | Segment | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Slaughtering and Pork Product Trading Assets | 453,161 | 460,568 | | Slaughtering and Pork Product Trading Liabilities | (38,328) | (41,703) | | Pipe System Products Assets | 203 | 173 | | Pipe System Products Liabilities | (13,669) | (11,671) | Geographical Information - All of the Group's revenue is derived from the Mainland China market[21] Information About Major Customers - For the six months ended June 30, 2025, only one customer (Customer A) accounted for more than 10% of the Group's total revenue, compared to seven customers in the prior period[22][23] Revenue and Other Income Revenue and Other Income Details | Item | For the Six Months Ended June 30, 2025 (RMB thousands) | For the Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Customer Contracts (Pork Product Sales) | 7,386 | 31,817 | | Total Other Income | 1,803 | 3,506 | | Of which: Total Interest Income | 208 | 746 | | Of which: Dividend Income from Equity Investments | 105 | 1,261 | - Other income decreased year-on-year, primarily due to a decline in interest income and dividend income from equity investments[24] Finance Costs Finance Costs | Item | For the Six Months Ended June 30, 2025 (RMB thousands) | For the Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 5 | - | Taxation - The Group incurred no income tax expenses in Hong Kong, China, or Japan[28][32] - Hunan Huishang, a Chinese subsidiary, is exempt from enterprise income tax due to its engagement in primary processing of agricultural products, in accordance with tax preferential policies[30] Loss for the Period Loss for the Period Deductions | Item | For the Six Months Ended June 30, 2025 (RMB thousands) | For the Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Directors' Remuneration | 137 | 180 | | Total Staff Costs | 397 | 662 | | Depreciation of Property, Plant and Equipment | 2,011 | 2,776 | | Depreciation of Right-of-use Assets | 120 | 122 | | Cost of Inventories Recognized as Expense | 7,040 | 33,031 | Loss Per Share Attributable to Owners of the Company Loss Per Share and Number of Shares | Indicator | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | 6,667 | 8,551 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 922,838,000 | 884,069,000 | | Basic and Diluted Loss Per Share (RMB cents) | (0.72) | (0.97) | Dividends - No interim dividends were paid or declared by the Company for the six months ended June 30, 2025[36] Movements in Property, Plant and Equipment and Right-of-use Assets - No new property, plant and equipment or right-of-use assets were recognized during this interim period[37] Financial Assets at Fair Value Through Profit or Loss Financial Assets at Fair Value Through Profit or Loss | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Held-for-trading investments: Equity securities listed in Hong Kong | 4,617 | 5,379 | Trade Receivables Trade Receivables Ageing Analysis (Net of Provisions) | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 2,217 | 12,532 | | 31 to 60 days | 224 | 304 | | 61 to 90 days | 7,750 | 180 | | Total | 10,191 | 13,016 | - Net trade receivables decreased, and the proportion of receivables aged 61-90 days significantly increased[40] Loans Receivable, Prepayments, Deposits and Other Receivables Loans Receivable, Prepayments, Deposits and Other Receivables | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Loans Receivable (net) | 2,624 | 2,699 | | Other Receivables (net) | 7,711 | 7,176 | | Deposits (net) | 9,974 | 8,521 | | Other Prepayments (net) | 80,155 | 1,299 | | Less: Provision for Expected Credit Losses | (19,965) | (18,222) | | Total (net) | 80,499 | 1,473 | - Other prepayments significantly increased to RMB 80.155 million, primarily due to prepayments for biological assets[42] Trade Payables Trade Payables Ageing Analysis | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 734 | 5,051 | | Over 60 days | 9,144 | 7,332 | | Total | 9,878 | 12,383 | - Total trade payables decreased, but the proportion of payables over 60 days significantly increased[43] Share Capital Share Capital Movements | Item | Number of Shares | Amount (RMB thousands) | | :--- | :--- | :--- | | Issued and fully paid as of January 1, 2024 | 880,838,000 | 7,308 | | Subscription of new shares | 42,000,000 | 390 | | Issued and fully paid as of June 30, 2025 | 922,838,000 | 7,698 | - The Company completed a subscription of new shares on June 17, 2024, issuing 42,000,000 shares at HKD 0.053 per share[45] Management Discussion and Analysis This section reviews the Group's business performance, particularly the intensified market competition in pork trading and the suspension of pipe system products business, noting a significant revenue decrease but a positive gross margin and narrowed net loss, with stable financial position and no major capital commitments, maintaining an optimistic outlook for the future of the hog industry Business Review - The Group primarily engages in slaughtering and trading of livestock and pork products, and previously in sales of pipe system products and related technical consulting services[46] Slaughtering and Pork Product Trading Business - The Group maintains its position as one of the pork suppliers in Changde City, Hunan Province, China, with core business including production and sales of pork products[47] - Due to intensified local market competition, the Group's revenue continued to decline, but gross margin recorded positive growth through effective cost control and strict quality control[47] Pipe System Products - The pipe system products business was suspended due to a significant increase in import costs from Germany, affected by the depreciation of the Japanese Yen and US tariffs[48] Financial Review - For the period ended June 30, 2025, the Group's revenue was approximately RMB 7.4 million, a decrease of approximately 76.7% compared to the same period last year[49] - The Company achieved a gross profit of approximately RMB 346,000 in the interim period of 2025, reversing the gross loss recorded in previous periods[49] - Administrative expenses decreased by approximately RMB 2.6 million, a reduction of approximately 35.1%, to approximately RMB 4.8 million, leading to a narrowed net loss for the period[50] Liquidity, Financial Resources and Funding and Treasury Policies - As of June 30, 2025, the Group's bank balances and cash were approximately RMB 316.0 million, with net current assets of approximately RMB 337.9 million[51] - The Group adopts a conservative treasury policy, holding most bank deposits in Hong Kong Dollars or local operating subsidiary currencies to minimize exchange rate risk[51] Gearing Ratio - The Group's gearing ratio was zero as of June 30, 2025[52] Foreign Exchange Risk - The Group's assets, liabilities, and operating cash flows are primarily denominated in Hong Kong Dollars, Renminbi, and Japanese Yen, with no related foreign exchange hedging currently in place[53] Capital Commitments and Contingent Liabilities - For the six months ended June 30, 2025, the directors were not aware of any significant capital commitments or contingent liabilities[54] Material Acquisitions and Disposals - During the review period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[55] Material Investments - No other material investments were made during the review period[56] Events After the Reporting Period - As of the date of this announcement, no significant events after the reporting period have occurred for the Company or the Group[57] Interim Dividends - The Board of Directors has resolved not to declare any interim dividends for the six months ended June 30, 2025[58] Employees and Remuneration Policy - As of June 30, 2025, the Group employed 30 staff, with remuneration determined based on performance and experience, and benefits including social insurance, medical insurance, and retirement scheme contributions[59] Capital Structure - As of June 30, 2025, the Company had 922,838,000 ordinary shares in issue, with a par value of HKD 0.01 per share[60] - There were no changes in the Company's capital structure for the six months ended June 30, 2025, and up to the date of this announcement[60] Competing Interests of Directors and Controlling Shareholders - No director, controlling shareholder, or substantial shareholder of the Company, or any of their respective close associates, is considered to have an interest in any business that competes or is likely to compete, directly or indirectly, with the Group's business[61] Directors' Interests in Contracts - Save for service contracts and letters of appointment with each director, neither the Company nor any of its subsidiaries entered into any material contract in which a director had a direct or indirect material interest that was subsisting at the end of the reporting period or at any time during the period[62] Outlook and Future Prospects - Despite recent stabilization in pork prices, market uncertainties persist, and the Group will continue to closely monitor market dynamics, policy changes, and environmental factors[63] - The trial operation of the joint venture slaughterhouse is progressing smoothly and has gradually commenced operations, expected to enhance production efficiency, expand the pork product line, and optimize cost structure[63] - The Group's management team is committed to implementing a strategic focus on the hog industry and remains optimistic about the Group's long-term development prospects[63] Corporate Governance and Other Information The Group complies with the Model Code for Securities Transactions by Directors and the Code on Corporate Governance Practices; the Audit Committee has reviewed the interim financial statements, and this announcement and the interim report will be published on the HKEX and company websites Compliance with the Model Code for Securities Transactions by Directors - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules and confirms that all directors have complied with it[64] Code on Corporate Governance Practices - The Company has adopted the Code on Corporate Governance Practices as set out in Appendix C1 of the Listing Rules and has complied with all code provisions for the six months ended June 30, 2025[65][66] Audit Committee and Review of Financial Statements - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, with management[67] - The Audit Committee comprises three independent non-executive directors, with Mr. Luo Mingsheng serving as its chairman[67] Publication of Interim Results Announcement and Interim Report - This interim results announcement and interim report will be published on the HKEX website www.hkexnews.hk and the Company's website www.hsihl.com[68](index=68&type=chunk)