Financial Performance - For the six months ended June 30, 2023, Shuanghua Holdings Limited reported sales revenue of approximately RMB 287 million, an increase of approximately RMB 157 million compared to the same period last year[6]. - The company recorded a profit attributable to owners of the company of approximately RMB 0.2 million, a significant improvement from a loss of approximately RMB 5.8 million in the same period last year[9]. - Revenue for the six months ended June 30, 2023, was RMB 28,701,000, a significant increase from RMB 13,037,000 in the same period of 2022, representing a growth of 120.5%[69]. - Gross profit for the same period was RMB 7,015,000, compared to RMB 2,214,000 in 2022, indicating a gross margin improvement[69]. - The group reported a pre-tax profit of RMB 204,000 for the six months ended June 30, 2023, compared to a pre-tax loss of RMB 6,049,000 in the same period of 2022[87][89]. - Basic and diluted earnings per share for the period were 0.03 cents, compared to a loss of 0.90 cents per share in 2022[69]. - The company reported a gain from the sale of property, plant, and equipment amounting to RMB 30,000, compared to a loss of RMB 2,000 in the previous year[113]. Business Strategy and Focus - The company is focusing on diversifying its supply chain management business, aiming to enhance business scale and profitability[10]. - Shuanghua plans to expand its supply chain services, including cold storage and property services, to increase customer volume and turnover rates[11]. - The company aims to develop new customers in large food processing enterprises, supermarkets, trading companies, and e-commerce platforms to enhance its business scale[11]. - The company is actively reducing its traditional fuel vehicle parts business to mitigate losses and concentrate resources on higher growth potential sectors[9]. - The company aims to diversify its supply chain services through acquisitions, investments, or strategic alliances in areas such as lithium battery recycling and energy-saving industries[14]. - Shuanghua is leveraging its automotive industry resources to continue developing its new energy business[10]. Economic Environment - The global economic environment remains uncertain, with risks including global debt crises and geopolitical conflicts, which may impact future growth[10]. - The company emphasizes the importance of domestic demand for the recovery of the Chinese economy in the second half of 2023[10]. Financial Position and Assets - Total assets as of June 30, 2023, were RMB 308,230,000, slightly up from RMB 303,532,000 at the end of 2022[72]. - Cash and cash equivalents increased to RMB 91,371,000 from RMB 89,275,000 at the end of 2022, reflecting a positive cash flow[78]. - The company maintained a stable equity position with total equity of RMB 289,905,000 as of June 30, 2023, compared to RMB 289,701,000 at the end of 2022[73]. - The company’s non-current assets totaled RMB 187,122,000, a decrease from RMB 191,103,000 at the end of 2022[72]. - The company’s investment properties increased to RMB 79,771,000 from RMB 51,048,000, indicating a strategic focus on asset growth[72]. Operational Efficiency - Average inventory turnover days decreased to 6 days for the six months ended June 30, 2023, compared to 19 days for the same period in 2022, indicating improved efficiency in inventory management[32]. - The average turnover days for trade receivables and bills decreased to 45 days as of June 30, 2023, compared to 106 days for the same period in 2022[34]. - The average turnover days for trade payables and bills decreased to 76 days as of June 30, 2023, compared to 118 days for the same period in 2022[34]. Expenses and Liabilities - Administrative expenses decreased by approximately 6% to about RMB 7.9 million for the six months ended June 30, 2023, mainly due to reclassification of property depreciation[25]. - Total liabilities, including trade payables and lease liabilities, rose to RMB 12,183,000 as of June 30, 2023, compared to RMB 7,554,000 as of December 31, 2022, indicating a 61.5% increase[134]. - Employee benefits expenses, excluding directors and CEO remuneration, increased to RMB 4,128,000 from RMB 3,828,000, marking a rise of 8%[107]. Shareholder Information - As of June 30, 2023, the total number of issued shares was 650,000,000 ordinary shares[46]. - The company has a total of 282,750,000 shares held by Youshen Group, representing 43.5% of the issued share capital[49]. - Ms. Zhou Shuxian holds 120,160,000 shares, accounting for 18.5% of the issued share capital[49]. - Mr. Xu Zonglin owns 59,144,000 shares, which is 9.1% of the issued share capital[49]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[42]. Governance and Management - The company has adopted all provisions of the Corporate Governance Code as per the Listing Rules[58]. - The roles of the Chairman and CEO are not separated, with Mr. Zheng Ping holding both positions[59]. - The Nomination Committee has been established to recommend suitable directors and management personnel to enhance the company's strategy[63].
双桦控股(01241) - 2023 - 中期财报