Financial Performance - For the six months ended June 30, 2025, the Group's revenue was approximately RMB262,889,000, a decrease of 9.9% compared to RMB291,829,000 in the prior period[14]. - The Group's gross profit for the period was approximately RMB126,076,000, representing a decrease of 9.7% from RMB139,662,000 in the prior period[14]. - The net profit for the period was approximately RMB15,334,000, a decrease of 25.3% compared to RMB20,530,000 in the prior period, primarily due to increased selling and distribution expenses[15]. - Basic and diluted earnings per share were RMB1.93 cents, down from RMB2.85 cents in the prior period[16]. - Total comprehensive income for the period attributable to owners was RMB14,342,000, down 29.5% from RMB20,334,000 in 2024[113]. - Profit for the period was RMB15,334,000, representing a decline of 25.5% from RMB20,530,000 in 2024[113]. - Profit before tax for the six months ended June 30, 2025, was RMB17,490,000, down from RMB23,219,000 in the same period of 2024, representing a decline of 24.0%[136][138]. - The Group's profit before tax for the six months ended June 30, 2025, was RMB17,490,000, down from RMB23,219,000 in the same period of 2024, representing a decline of 24.0%[136][138]. Segment Performance - Revenue from the Faux Leather Chemicals Business decreased by 6.6% to approximately RMB113,104,000, while gross profit for this segment was approximately RMB26,137,000[18]. - The segment revenue from the Chinese Liquor Business was approximately RMB149,785,000, down from RMB170,795,000 in the prior period, with a gross profit of approximately RMB99,940,000[26]. - Segment profit from the Chinese Liquor Business was approximately RMB11,350,000, down from RMB19,817,000 in the prior period[26]. - The segment profit for the Faux leather chemicals was RMB4,951,000, while the Chinese Liquor products segment reported a profit of RMB11,350,000[136]. Expenses and Costs - Selling and distribution expenses for the period were approximately RMB7,942,000, accounting for 7.0% of segment revenue, up from 5.4% in the prior period[23]. - The Group's finance costs increased to RMB960,000 from RMB519,000, representing an increase of 84.9%[155]. - Research and development expenses for the period were RMB3,914,000, slightly down from RMB4,142,000 in 2024[157]. - The Group received government grants totaling RMB1,210,000, down from RMB1,782,000 in 2024, indicating a decrease of 32%[150]. Assets and Liabilities - The current assets of the Group as of June 30, 2025, were approximately RMB652,560,000, up from RMB557,411,000 as of December 31, 2024[39]. - The current liabilities of the Group as of June 30, 2025, were approximately RMB213,407,000, compared to RMB155,653,000 as of December 31, 2024[39]. - The current ratio decreased from approximately 3.58 times as of December 31, 2024, to approximately 3.06 times as of June 30, 2025[39]. - Total segment assets increased to RMB794,306,000 as of June 30, 2025, compared to RMB761,510,000 as of December 31, 2024, reflecting a growth of 4.3%[139]. - The liabilities of the Faux leather chemicals business rose to RMB200,330,000 as of June 30, 2025, from RMB141,054,000 as of December 31, 2024, indicating a significant increase of 42.0%[139]. Cash Flow - Net cash used in operating activities for the six months ended June 30, 2025, was RMB23,227,000, compared to a net cash generated of RMB8,390,000 in 2024[121]. - Net cash used in investing activities was RMB2,285,000, a significant decrease from RMB40,777,000 in the previous year[121]. - The company generated net cash from financing activities amounting to RMB48,132,000, an increase from RMB27,484,000 in the prior year[121]. - Cash and cash equivalents at the end of the period increased to RMB77,819,000 from RMB43,766,000 at the end of June 2024[121]. Shareholder Information - As of June 30, 2025, Mr. Chen Hua held 6,000,800 shares (0.83% of total shareholding) and Mr. Huang Zhenming held 4,000,000 shares (0.56% of total shareholding)[90][92]. - As of June 30, 2025, Sunlight Global Investment Limited and Lilian Global Investment Limited held approximately 0.50% and 0.33% of the total issued share capital of the Company, respectively[93]. - Ms. Zheng Xiuyue holds a long position of 52,000,000 shares, representing approximately 7.22% of the Company's shareholding[99]. - No other persons, apart from Directors and chief executives, had interests or short positions in the shares or underlying shares of the Company as of June 30, 2025[100]. Corporate Governance - The company has adopted the Corporate Governance Code and is committed to transparency and accountability to shareholders[79]. - The company has complied with the Corporate Governance Code since the listing date, with exceptions related to the absence of a Chairman since May 25, 2022[80]. - The Audit Committee, comprising independent non-executive Directors, reviewed the interim financial report and discussed internal control and financial reporting matters[105]. - All directors have complied with the Model Code for Securities Transactions during the reporting period[83]. Strategic Developments - The Group entered into a strategic cooperation agreement with Shanghai Jiuyue in August 2025 to expand the sales of alcoholic beverages and food products[36]. - The Group continues to explore sales channels for its Chinese baijiu products through advertising and hosting tasting events[26]. - The Group's management continues to focus on strategic expansions and partnerships to enhance market presence and operational efficiency[187].
帝王实业控股(01950) - 2025 - 中期财报