嘉耀控股(01626) - 2025 - 中期财报

Financial Highlights Key Financial Metrics Changes for the Six Months Ended 30 June 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | Remarks | | :--- | :--- | :--- | :--- | :--- | | Revenue | 260.5 | 742.8 | -64.9% | Primarily due to disposal of paper packaging business and decline in e-cigarette sales | | Gross Profit | 57.8 | 153.6 | -62.3% | | | Gross Margin | 22.2% | 20.7% | +1.5% | Primarily due to disposal of less profitable paper packaging business | | Loss/Profit Attributable to Owners of the Company | (16.8) | 14.8 | Shifted from profit to loss | | | Average Trade and Bills Receivables Turnover Days | 139 days | 74 days (End of 2024) | Increased by 65 days | | | Average Trade and Bills Payables Turnover Days | 104 days | 124 days (End of 2024) | Decreased by 20 days | | | Average Inventory Turnover Days | 79 days | 51 days (End of 2024) | Increased by 28 days | | | Interim Dividend | Not recommended for distribution | None | - | | Company Information - The Board of Directors includes Executive Directors Mr. Yang Yong'an (Chairman) and Mr. Li Lin, Non-executive Director Mr. Yang Fan, and Independent Non-executive Directors Mr. Gong Jinjun, Mr. Wang Ping, and Ms. Guo Wei; Mr. Feng Bin resigned as a Non-executive Director on 20 June 2025[6] - The Company's registered office is in the Cayman Islands, its China headquarters are in Shenzhen, Guangdong Province, and its principal place of business in Hong Kong is in Causeway Bay[6] - The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, and has published its company website and primary banking relationship information[6] Chairman's Statement The Chairman's Statement outlines the complex and challenging global operating environment in H1 2025, particularly the tightening regulations and market volatility in the e-cigarette industry. The Group adopted a prudent strategy, focusing on operational resilience, supply chain consolidation, and strategic cooperation, while increasing investment in proprietary brands to navigate challenges and achieve sustainable long-term development Global Operating Environment and Industry Challenges In H1 2025, the global economic environment was complex, with inflationary pressures, geopolitical friction, and market volatility dampening industry activity and investment sentiment. The e-cigarette industry faced an increasingly fragmented and stringent regulatory network, leading to restricted market access and logistical disruptions, directly impacting the Group's operations - Global operating environment in H1 2025 was complex and challenging, marked by entrenched inflationary pressures, significant geopolitical friction, and notable market volatility[9] - The global e-cigarette industry faces an increasingly fragmented and stringent regulatory network, with strict compliance frameworks implemented across jurisdictions worldwide, directly impacting market access and causing logistical disruptions[9] Group Strategic Response and Future Outlook Facing external pressures, the Group's management actively monitored the regulatory environment, implementing targeted strategic measures to maintain operational integrity, consolidate the supply chain, and preserve core market relationships. Future development will be guided by prudent principles, strengthening financial resilience, optimizing operational efficiency, and increasing investment in proprietary brand development and production to adapt to global e-cigarette regulatory fluctuations and international trade disputes - The Group actively monitors the evolving regulatory environment, implementing strategic responses to maintain operational integrity, consolidate the supply chain, and preserve core market relationships[9] - The Group has expanded close cooperation with key local distributors in various countries and regions, and increased investment in proprietary brand development and production based on local consumer preferences and e-cigarette product regulations[10] - Looking ahead, the Group will adopt a more conservative approach to capital allocation and risk management, focusing on strengthening financial resilience, optimizing operational efficiency, and only pursuing strategic initiatives that offer clear and reliable returns to achieve sustainable, long-term stable development[12] Management Discussion and Analysis This section details the macroeconomic headwinds and e-cigarette industry challenges faced by the Group in H1 2025, reviewing its business performance and financial position. The Group responded to market changes by adjusting sales strategies, strengthening operational management, optimizing product portfolios, and expanding distribution networks, but performance was still significantly affected, resulting in a shift from profit to loss. Future focus will remain on compliance, innovation, and global market expansion Market Review In H1 2025, global economic growth was weak, with global GDP growth projected to slow due to geopolitical tensions, restrictive financial conditions, and a fragmented trade environment. China's economy showed moderate resilience but consumer confidence was low, and the real estate sector continued to drag down investment. The global e-cigarette industry faced increased regulatory scrutiny in North American and European markets, and maturing tax frameworks and comprehensive legislation in the Asia-Pacific region, leading to increased compliance costs and market access challenges - Global economic growth was weak in H1 2025, with the IMF projecting global GDP growth to slow from 3.3% in 2024 to approximately 3.0% in 2025[15] - China's economy grew by 5.3% in H1 2025, but depressed consumer confidence and the real estate sector continued to drag down investment sentiment, with deflationary trends highlighting domestic demand weaknesses[15] - The global e-cigarette industry faces increased regulatory scrutiny in North American and European markets, and maturing tax frameworks and comprehensive legislation in the Asia-Pacific region (e.g., Malaysia, Philippines, Indonesia), leading to increased compliance costs and market access challenges[16] Business Review In H1 2025, the Group's performance was significantly impacted by macroeconomic and industry headwinds, leading to restricted demand for non-essential goods. The Group executed a dual-pronged strategy, strengthening operational resilience, strictly managing efficiency and inventory, and pursuing strategic market diversification. Concurrently, it focused on commercial risks, collaborating with local distributors to ensure products met consumer preferences and regulatory environments. The Group continued to drive innovation, optimize production line efficiency, increase investment in core technology R&D, and implement stringent cost control measures Sales and Distribution During the review period, the Group's revenue contracted due to macroeconomic uncertainties and tightening e-cigarette regulations. The Group managed operational headwinds by strategically optimizing its inventory portfolio, adjusting production volumes, and re-aligning labor cost allocation, while committing to strategic investments in global market development and brand positioning to solidify future market leadership - Group revenue contraction is a direct result of macroeconomic uncertainties and increasingly stringent and divergent regulatory frameworks for e-cigarette products in major international markets[20] - The Group strategically optimized its inventory portfolio to align with evolving demand patterns and optimized production volumes, and re-aligned labor cost allocation[20] - The Group is committed to strategic and forward-looking investments in global market development and brand positioning, maintaining a strong presence in key markets across Europe, the Americas, and Asia through establishing strategic relationships with key local distributors in target markets[20] Product Research, Development and Design The Group continuously drives innovation, leveraging advanced production lines and facilities to produce mid-to-high-end products to maintain market leadership. During the reporting period, the Group reviewed its product development technologies, fully considering automation production requirements during the design phase to enhance product manufacturability and the feasibility of automation implementation - The Group leverages its technological expertise and development achievements, including advanced production lines and state-of-the-art manufacturing facilities, aiming to maximize production capacity for mid-to-high-end products[21] - During the reporting period, the Group reviewed its product development technologies, fully considering product manufacturability and automation integration requirements during the product design phase to enhance manufacturability and feasibility of automation implementation[21] Technology Development and Quality Control The Group adheres to the philosophy of "management innovation and system leadership," continuously increasing investment in core technology R&D and improving management levels. Proprietary brand e-cigarettes gained rapid customer recognition and achieved satisfactory sales growth during the reporting period due to high safety and better user experience. Concurrently, the Group actively implements environmental protection measures, controlling raw materials and manufacturing processes to provide high-quality, safe, and environmentally friendly products - The Group advocates the philosophy of "management innovation and system leadership," continuously increasing investment in core technology R&D and constantly improving management levels[23] - Proprietary brand e-cigarettes quickly gained recognition from multiple customers due to high safety and better user experience, and achieved satisfactory sales growth during the reporting period[23] - The Group actively implements environmental protection measures, including strict environmental indicators, controlling raw material and auxiliary material input and manufacturing processes, to provide high-quality, safe, and environmentally friendly products[23] Cost Control The Group is committed to integrating core businesses and controlling costs by optimizing processes and materials, improving productivity, introducing new suppliers, and conducting competitive negotiations to reduce raw material costs. Additionally, measures such as rolling inventory preparation and consolidating production orders for increased batch production have strengthened control over production processes, effectively enhancing production efficiency - The Group adopts strategies such as optimizing processes and materials, improving productivity, introducing new suppliers, and conducting competitive negotiations to reduce raw material costs[24] - The Group strengthens control over production processes and drives improvements in production efficiency through measures such as rolling inventory preparation, consolidating production orders for increased batch production, reducing production costs, and preventing inefficiencies caused by secondary loading due to insufficient delivery quantities[24] Financial Review This section provides a detailed review of the Group's financial performance in H1 20