Financial Performance - Total revenue for the six months ended June 30, 2025, was approximately RMB 319,937,000, a decrease of about 68.55% compared to RMB 1,017,421,000 for the same period last year[1] - The unaudited net loss for the six months ended June 30, 2025, was approximately RMB 15,499,000, compared to a net profit of RMB 13,857,000 for the same period last year[1] - Basic loss per share for the six months ended June 30, 2025, was approximately RMB 0.030, compared to basic earnings per share of RMB 0.0317 for the same period last year[4] - The company reported a net loss attributable to the owners of the parent of approximately RMB 15,621 thousand for the six months ended June 30, 2025, compared to a net profit of RMB 16,487 thousand for the same period in 2024[19] - The company recorded an unaudited net loss attributable to the owners of the parent company of approximately RMB 15,621,000 for the six months ended June 30, 2025, compared to a net profit of approximately RMB 16,487,000 in the same period last year, primarily due to a significant reduction in the number of high-standard farmland construction projects and a substantial decline in sales of PVC pipe products[36] Operating Costs and Expenses - Total operating costs for the six months ended June 30, 2025, were RMB 338,106,000, compared to RMB 1,001,086,000 for the same period last year[3] - Research and development expenses increased to RMB 4,574,000 for the six months ended June 30, 2025, from RMB 2,738,000 in the same period last year[3] - The unaudited sales expenses for the six months ended June 30, 2025, were approximately RMB 7,407,000, a decrease of about 10.58% from approximately RMB 8,284,000 in the same period last year[33] - The unaudited management expenses increased to approximately RMB 29,789,000, up about 10.02% from approximately RMB 27,077,000 in the previous year[33] - The total profit for the six months ended June 30, 2025, included depreciation of RMB 19,438 thousand, up from RMB 13,297 thousand in the same period of 2024[15] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2025, were RMB 360,251,000, down from RMB 422,324,000 as of December 31, 2024[5] - The net cash flow from operating activities for the six months ended June 30, 2025, was RMB (90,368) thousand, compared to RMB 74,064 thousand for the same period in 2024, indicating a significant decline[8] - The financing activities generated a net cash flow of RMB 27,582 thousand for the six months ended June 30, 2025, compared to RMB 23,587 thousand in the same period of 2024, reflecting a 12.6% increase[8] - The company has not encountered any liquidity issues during the six months ended June 30, 2025, relying primarily on cash generated from operating activities[39] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 1,178,038,000, compared to RMB 1,232,947,000 as of December 31, 2024[6] - Total liabilities as of June 30, 2025, were RMB 778,942,000, compared to RMB 822,939,000 as of December 31, 2024[6] - The total equity attributable to owners of the parent as of June 30, 2025, was RMB 370,684,000, down from RMB 381,718,000 as of January 1, 2025[7] - The company reported a total accounts receivable of RMB 298,992,000 as of June 30, 2025, compared to RMB 292,507,000 as of December 31, 2024[9] - The accounts payable amounted to RMB 353,040,000 as of June 30, 2025, down from RMB 452,530,000 as of December 31, 2024[24] Corporate Governance and Compliance - The board of directors recommended not to declare an interim dividend for the six months ended June 30, 2025[1] - The company did not declare an interim dividend for the six months ending June 30, 2025, compared to no dividend declared in the same period of 2024[53] - The board of directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2025[56] - The company adhered to the corporate governance code during the reporting period, enhancing accountability and transparency[55] - No conflicts of interest were reported among directors, management, and shareholders regarding competitive businesses[52] Strategic Focus and Future Plans - The company aims to strengthen its position as a leader in modern water-saving irrigation agriculture, focusing on five major business segments: plastic product R&D and production, hydraulic engineering, plastic product sales, planting and land transfer, and smart agricultural information networks[37] - The company plans to increase R&D investment in water-saving irrigation technology and enhance core competitiveness through deepening industry-academic-research cooperation and accelerating technology transfer[38] - The company has no major investments or future plans for significant investments as of June 30, 2025, indicating a cautious approach to capital allocation[46] Employee and Operational Structure - The company has approximately 469 full-time employees as of June 30, 2025, emphasizing the importance of employee quality for business growth and profitability[42] - The company has not engaged in any significant acquisitions or disposals as of June 30, 2025, reflecting a stable operational strategy[47] Shareholding Structure - Xinjiang Tianye (Group) Co., Ltd. holds approximately 98.98% of the company's domestic shares, representing about 60.42% of the total issued share capital[49] - Longmao Holdings Limited holds 14,407,000 H-shares, representing approximately 7.12% of the total issued shares of the company[50] - The total number of issued shares of the company is 519,521,560, including domestic and H-shares[51] Restructuring and Related Transactions - The restructuring arrangement involves Tianze Water Conservancy directly holding 313,886,921 domestic shares, accounting for approximately 98.98% of the total issued domestic shares and about 60.42% of the total issued share capital[59] - The restructuring arrangement includes Tianye Group and the Eighth Division State-owned Assets Supervision and Administration Commission holding 51% and 49% voting rights in Tianze Water Conservancy, respectively[59] Audit and Internal Controls - The audit committee reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[54] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the six months ending June 30, 2025[58]
天业节水(00840) - 2025 - 中期财报