Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 74.29 million, a decrease of 23.6% compared to RMB 97.20 million in the same period last year[18]. - The net profit for the same period was RMB 3.96 million, an increase of RMB 1.01 million compared to the previous year[18]. - Revenue for the six months ended 30 June 2022 was approximately RMB74.3 million, representing a decrease of approximately 23.6% from approximately RMB97.2 million for the corresponding period in 2021[20]. - The Group's total revenue for the six months ended June 30, 2022, was RMB 74,287 thousand, compared to RMB 97,201 thousand in 2021, indicating a decrease of 23.5%[178]. - Gross profit for the period was RMB 16,654 thousand, down from RMB 19,226 thousand, reflecting a gross margin decline[135]. - Overall gross profit margin increased to approximately 22.4% for the six months ended 30 June 2022, up from 19.8% in the same period of 2021[29]. - Operating profit increased to RMB 2,848 thousand, compared to RMB 1,807 thousand in the previous year, indicating improved operational efficiency[135]. - Profit for the period attributable to shareholders was RMB 3,959 thousand, up from RMB 2,948 thousand, representing a growth of 34.3%[137]. Assets and Liabilities - The company's total assets as of June 30, 2022, were RMB 768.215 million, an increase of 4.8% from RMB 732.955 million at the end of 2021[14]. - Current liabilities rose to RMB 132,245 thousand from RMB 100,944 thousand, indicating a 31% increase[142]. - The Group's gross accounts receivable increased by approximately 8.9% from RMB220.2 million as at 31 December 2021 to RMB241.8 million as at 30 June 2022, with notes receivable rising by 7.0% to RMB93.8 million[43][47]. - The Group's inventories increased by approximately 7.1% from RMB109.0 million as at 31 December 2021 to RMB116.7 million as at 30 June 2022, mainly due to an increase in raw materials[44][48]. - Trade and notes payables increased by approximately 24.4% from RMB47.9 million as at 31 December 2021 to RMB59.5 million as at 30 June 2022, driven by increased purchases of raw materials[45][49]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 39,189 thousand from RMB 33,817 thousand, showing improved liquidity[140]. - Net cash flows generated from operating activities for the six months ended June 30, 2022, were RMB 4,668 thousand, compared to a net cash outflow of RMB 12,797 thousand for the same period in 2021[147]. - The net increase in cash and cash equivalents for the six months ended June 30, 2022, was RMB 4,948 thousand, while there was a decrease of RMB 4,888 thousand in the same period of 2021[150]. - The Group's cash flows from investing activities generated a net cash inflow of RMB 280 thousand for the six months ended June 30, 2022, down from RMB 7,909 thousand in the same period of 2021[147]. Expenses and Costs - Selling expenses decreased by approximately 12.9% to approximately RMB1.3 million, attributed to reduced travel expenses due to the pandemic[31]. - Administrative expenses decreased by approximately 3.1% to approximately RMB11.8 million, primarily due to a reduction in professional fees[38]. - Employee benefit expenses for the six months ended June 30, 2022, were RMB 10,905 thousand, slightly increasing from RMB 10,527 thousand in the same period of 2021[190]. - The total cost of sales, selling expenses, and administrative expenses amounted to RMB 70,776 thousand, a decrease of 22.8% compared to RMB 91,695 thousand for the same period in 2021[182]. Revenue Sources - Sales of brass electroplating wire production lines generated revenue of approximately RMB21.2 million for the six months ended 30 June 2022, an increase compared to the previous year[24]. - Revenue from standalone machines decreased by approximately 63.6% to approximately RMB30.8 million, with 173 units sold compared to 768 units in the same period of 2021[24]. - Revenue from sales of production lines for the six months ended June 30, 2022, was RMB 21,206 thousand, compared to RMB 13,176 thousand for the same period in 2021, representing a 60.5% increase[174]. - Total revenue from Mainland China for the six months ended June 30, 2022, was RMB 67,665 thousand, down from RMB 96,524 thousand in 2021, a decrease of 30.0%[178]. Investments and Future Plans - The Group plans to continue implementing a diversified development strategy and actively seek potential investment opportunities in the future[57]. - The Group had no future plans for material investments and expected sources of funding as at 30 June 2022[57]. - The Group's capital structure remained unchanged during the six months ended June 30, 2022, consisting solely of ordinary shares[68]. - The Group aims to complete a major project with an estimated annual production capacity of 1.3 million tons of ultra-tensile fine steel cord and 200,000 tons of tyre bead wire, positioning itself as the largest framework materials producer in the PRC[131]. Foreign Exchange and Risk Management - The Group has entered into forward foreign exchange contracts of approximately USD6,439,000 to mitigate foreign exchange risk due to exposure from transactions denominated in USD[70]. - If the USD had strengthened/weakened by 5% against the RMB, the Group's net results for the six months ended June 30, 2022 would have been approximately RMB4.7 million better/worse due to financial assets denominated in USD[70]. - The Group's foreign exchange risk is managed to maintain net exposure at an acceptable level, with ongoing monitoring of foreign exchange fluctuations[70]. Employee and Operational Insights - The total employee remuneration for the six months ended June 30, 2022, was approximately RMB10.9 million, representing about 14.7% of the Group's total revenue[133]. - The Group employed a total of 166 full-time employees as of June 30, 2022, an increase from 141 employees as of December 31, 2021[133]. - The Group will continue to upgrade existing production lines to enhance production capacity in response to rising customer demand for tailor-made products[131]. - The Group is committed to maintaining a good relationship with its staff and ensuring high standards of service to customers[133].
盛力达科技(01289) - 2022 - 中期财报