旷世芳香(01925) - 2025 - 中期财报

Definitions This section provides definitions for key terms and abbreviations used throughout the report to ensure clear understanding - The report defines key terms including 'Board', 'China', 'Company', 'Directors', 'Group', 'HKD', 'Hong Kong', 'Listing Rules', 'Model Code', 'RMB', 'SFO', 'Shares', 'Shareholders', 'Stock Exchange', and 'USD' to ensure clear understanding of the report content[7][8][11] Corporate Information This chapter outlines the company's board members, committee structures, key personnel, and principal places of business - The Board of Directors includes executive directors Mr. Jin Jianxin (Chairman) and Mr. Tian Dong, and independent non-executive directors Mr. Li Zhenyu, Ms. Xu Qiong, and Mr. Zhou Kai. Mr. Shao Ping resigned as a non-executive director on July 7, 2025[13][14] - Mr. Li Zhenyu chairs the Audit Committee, Ms. Xu Qiong was appointed as a member on July 7, 2025, and Mr. Shao Ping resigned on the same day. Mr. Zhou Kai chairs the Remuneration Committee, and Ms. Xu Qiong chairs the Nomination Committee[13][14][15] - Mr. Liu Zhongwei serves as Company Secretary, and PricewaterhouseCoopers is the external auditor. The company has its registered office in the Cayman Islands and principal places of business in Hong Kong and China[13][14][16][17] Management Discussion and Analysis This chapter analyzes the Group's business performance, recent developments, financial position, and changes in key financial indicators Business Review The Group designs and manufactures home decor and fragrance products, expanding production capacity in China and overseas to enhance efficiency - The Group provides design and manufacturing solutions for home decor and home fragrance products, with core offerings being scented candles and diffusers[20][24] - The Yinzhou plant has been operational since 2020, equipped with advanced automation and implementing 'informatization' to enhance production efficiency and shorten lead times[21][24] - The Wuhu production base became operational in the first half of 2025 with a building area of approximately 87,000 square meters. Additionally, Vietnam production facilities are in use, and new facilities in Thailand are under construction, indicating active overseas capacity expansion[22][23][24] Recent Developments The EU imposed a 70.9% provisional anti-dumping duty on Chinese candles, significantly impacting the Group's revenue and profit, with legal advice being sought - The European Commission announced on August 13, 2025, the imposition of a 70.9% provisional anti-dumping duty on candle products originating from China[26][30] - Given that over 50% of the Group's sales are from candle product orders by customers in EU member states, the Board believes the provisional duty may significantly impact the Group's overall revenue and profit[26][30] - The European Commission stated that the findings on the provisional duty rate are temporary and may be revised during the final stage of the anti-dumping investigation. The Group is seeking legal advice regarding the provisional duty[26][30] Financial Review The Group's H1 2025 financial performance showed modest revenue growth, declining profitability, and shifts in key balance sheet items Revenue The Group's revenue grew by 6.7% in H1 2025, mainly due to organic growth from existing customer orders Revenue Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 356.6 | 334.2 | 22.4 | 6.7% | - Revenue growth was primarily attributable to increased purchase orders from existing customers, leading to organic business growth[28][31] Gross Profit and Gross Profit Margin Gross profit margin slightly decreased from 24.4% to 23.3%, primarily due to the diminishing positive impact of RMB depreciation in the prior period Gross Profit Margin Change | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 23.3% | 24.4% | - The decrease in gross profit margin was mainly due to the positive impact of RMB depreciation against the USD in H1 2024 no longer being significant in the current period[29][32] Other Income Other income primarily includes tax incentives for high-tech enterprises, government grants, and net income from bulk raw material sales - Other income primarily includes tax incentives for high-tech enterprises in China, government grants, and net income from bulk sales of raw materials to other market participants[34][40] Administrative Expenses Administrative expenses increased by 17.9% to RMB 51.2 million, driven by higher staff and payroll costs for business growth and Wuhu operations Administrative Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 51.2 | 43.4 | 7.8 | 17.9% | - The increase in administrative expenses was mainly due to higher staff numbers and payroll costs required to support business growth and the operation of the Wuhu production base[36][41] Selling and Marketing Expenses Selling and marketing expenses decreased by 10.4% to RMB 17.1 million, primarily due to effective cost-saving measures implemented by the Group Selling and Marketing Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 17.1 | 19.0 | (2.0) | -10.4% | - The decrease in selling and marketing expenses was attributable to effective cost-saving measures implemented by the Group[38][42] Other Net Gains Other net gains significantly decreased by 85.8% to RMB 4.3 million, mainly due to a one-off gain from subsidiary disposal in H1 2024 Other Net Gains Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Other Net Gains | 4.3 | 30.0 | (25.7) | -85.8% | - The decrease in balance was mainly due to a one-off gain of approximately RMB 21.7 million from the disposal of a subsidiary in H1 2024[45][51] - Other income for the period primarily included fair value gains on fund investments of approximately RMB 3.4 million and foreign exchange gains of approximately RMB 0.9 million[39][43] Finance Income and Finance Costs Finance income decreased due to lower deposit rates, while finance costs increased as the Group secured more cost-effective borrowings amid falling interest rates - The decrease in finance income was mainly due to financial institutions lowering interest rates on deposits placed with them[47][52] - The increase in finance costs was mainly due to the Group arranging more borrowings from financial institutions at lower interest rates, making the financial arrangements more cost-effective[47][52] Income Tax Expenses Income tax expenses decreased by 51.9% to RMB 3.7 million, consistent with the Group's decline in profit before tax Income Tax Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expenses | 3.7 | 7.7 | (4.0) | -51.9% |