Revenue Growth - For the first half of 2022, the total revenue of Yunnan Energy International Co. Limited increased by HKD 93.3 million or 483.1% to HKD 112.6 million, primarily driven by the growth in the supply chain business[11]. - Revenue for the first half of 2022 increased by 483.1% to HKD 112.6 million compared to HKD 19.3 million in the first half of 2021, primarily due to increased contributions from the supply chain business[14]. - Total revenue for the company reached HKD 112,608,000, significantly up from HKD 19,314,000 year-over-year[98]. - The revenue from the supply chain business segment reached HKD 110,310,000, accounting for 98% of the total revenue, while the distribution business contributed HKD 2,298,000[102]. Supply Chain Business Performance - The supply chain business revenue surged by HKD 92.9 million or 533.7% to HKD 110.3 million, with approximately 7,500 tons of stainless steel pipes and structural steel sold, along with 60 tons of coffee powder supply agreements[11]. - The company aims to expand its supply chain business to include not only construction materials and medical devices but also consumer products and agricultural goods[11]. - The company signed a supply chain contract to procure 3,450 tons of rubber in August 2022, enhancing its supply chain business in the region[44]. - Major customer A from the supply chain business contributed HKD 58,070,000 to the total revenue in 2022, compared to HKD 17,407,000 in 2021, indicating a growth of 234%[99]. - Major customer B from the supply chain business generated HKD 24,974,000 in revenue in 2022, which was not applicable in 2021 due to not meeting the 10% revenue contribution threshold[99]. Distribution Business Performance - The distribution business revenue rose by HKD 0.4 million or 20.5% to HKD 2.3 million, despite challenges posed by the COVID-19 pandemic affecting sales activities[7]. - Over 90% of the distribution business's customers are located in China, including universities, research institutes, and government agencies[7]. - Revenue from the distribution business increased to HKD 2,298,000, up from HKD 1,907,000 year-over-year[95]. Financial Performance - The company's loss for the first half of 2022 decreased by 99.9% to HKD 3,000, attributed to increased revenue and reduced operating expenses[11]. - The company reported a loss of HKD 3,000 in the first half of 2022, a 99.9% decrease from a loss of HKD 29.5 million in the same period of 2021[24]. - The company reported a pre-tax loss of HKD (3,000) for the current period, an improvement from HKD (29,532,000) in the previous period[95]. - Total comprehensive loss for the first half of 2022 was HKD 3,375,000, compared to HKD 29,214,000 in the same period of 2021[69]. Cost and Expenses - Cost of sales rose by 560.8% to HKD 107.4 million in the first half of 2022, up from HKD 16.3 million in the same period of 2021, consistent with revenue growth[15]. - Gross profit increased by 69.9% to HKD 5.2 million in the first half of 2022, with a gross margin of 4.6%, down from 15.8% in the first half of 2021, mainly due to a higher contribution from lower-margin supply chain operations[16]. - Selling and distribution expenses increased by 43.7% to HKD 1.3 million in the first half of 2022, up from HKD 0.9 million in the first half of 2021, due to increased sales activities in overseas markets[19]. - Administrative expenses decreased by 16.7% to HKD 4.8 million in the first half of 2022, down from HKD 5.8 million in the same period of 2021, mainly due to reduced depreciation of property, plant, and equipment[20]. - Financing costs increased by 133.8% to HKD 1.5 million in the first half of 2022, compared to HKD 0.6 million in the first half of 2021, primarily due to a higher average outstanding loan principal[23]. Assets and Liabilities - Inventory as of June 30, 2022, was HKD 45.2 million, an increase of HKD 38.8 million from HKD 6.4 million as of December 31, 2021, mainly due to expanded supply chain operations[25]. - Trade receivables as of June 30, 2022, were HKD 64.7 million, up from HKD 64.1 million as of December 31, 2021, primarily due to an increase in trade receivables under 90 days as revenue grew[26]. - Current assets increased to HKD 285,726,000 as of June 30, 2022, compared to HKD 266,451,000 at the end of 2021[71]. - Non-current assets decreased to HKD 1,385,000, compared to HKD 1,678,000 at the end of 2021, indicating a decline in long-term asset value[71]. - The company's total equity as of June 30, 2022, was HKD 184,650,000, down from HKD 188,025,000 at the end of 2021[76]. Corporate Governance - The audit committee reviewed the unaudited interim results for the first half of 2022 and found no objections to the accounting principles adopted by the company[58]. - The company is committed to good corporate governance and will continue to review its governance structure to comply with applicable codes[59]. - The company has adopted the standard code of conduct for securities trading, confirming compliance by all board members in the first half of 2022[66]. Future Plans and Strategies - The company plans to expand its distribution business in Southwest China, particularly leveraging the resources and marketing network of Yunnan Energy Investment Group[37]. - The company is actively exploring new potential projects to improve revenue sources and profitability in its supply chain business[40]. - The company continues to strengthen cooperation with highway companies and explore long-term collaboration models for road construction projects[41]. - The company is focusing on sustainable development opportunities in the supply chain business, particularly in green energy and health-related sectors[44]. - The company aims to leverage its overseas network to enhance relationships with potential customers and suppliers, thereby improving competitive advantages in the supply chain business[47]. Shareholder Information - The company has a significant shareholder, Baodi International Investment, holding approximately 73.05% of the issued share capital[54]. - The company did not declare any interim dividends for the six months ended June 30, 2022, consistent with the previous year[116]. - The company aims to retain and attract suitable personnel through its share award plan, which was adopted on January 11, 2017[150].
云能国际(01298) - 2022 - 中期财报