Revenue Performance - Revenue from the marble slags business for HY2023 was approximately RMB 14.4 million, a decrease of approximately RMB 11.1 million or 43.4% compared to RMB 25.5 million for HY2022[12]. - The Group's revenue decreased by approximately RMB10.8 million or 41.7%, from approximately RMB25.8 million for HY2022 to approximately RMB15.0 million for HY2023[31]. - Sales of marble slags dropped by approximately RMB11.1 million, from approximately RMB25.5 million for HY2022 to approximately RMB14.4 million for HY2023, primarily due to decreased demand amid the economic downturn in China[32]. - Revenue for the six months ended June 30, 2023, was RMB 15,043,000, a decrease of 41.2% compared to RMB 25,813,000 for the same period in 2022[116]. - Revenue from marble slags was RMB 14,439,000, down 43.3% from RMB 25,498,000 in the previous year[156]. - Revenue from food sales increased to RMB 604,000, up 91.5% from RMB 315,000 in the same period last year[156]. Profitability and Loss - The Group's gross profit decreased by approximately RMB2.8 million or 31.1%, from approximately RMB9.0 million for HY2022 to approximately RMB6.2 million for HY2023[36]. - The gross profit margin increased by approximately 6.4 percentage points, from approximately 34.7% for HY2022 to approximately 41.1% for HY2023, mainly due to a decrease in average subcontracting cost per ton[36]. - The Group recorded a loss of approximately RMB 9.0 million in HY2023, an improvement of about RMB 13.8 million compared to a loss of approximately RMB 22.8 million in HY2022[45]. - Loss before tax for the period was RMB 8,986,000, an improvement from a loss of RMB 22,405,000 in the previous year[116]. - Loss attributable to owners of the company was RMB 8,986,000, compared to RMB 22,760,000 in the same period last year[116]. - Total comprehensive loss for the period attributable to owners of the company was RMB 9,489,000, down from RMB 21,757,000 in 2022[116]. Expenses and Cost Management - Selling and distribution expenses decreased by approximately RMB0.7 million, from approximately RMB1.8 million for HY2022 to approximately RMB1.1 million for HY2023[37]. - Administrative expenses decreased by approximately RMB3.2 million, from approximately RMB14.7 million for HY2022 to approximately RMB11.5 million for HY2023[38]. - The Group recorded an impairment loss of RMB3.5 million on trade receivables, a decrease of approximately RMB10.5 million compared to RMB14.0 million for HY2022[39]. - Interest on amounts due to a director decreased from RMB 219,000 in 2022 to RMB 61,000 in 2023, reflecting a significant reduction of approximately 72%[191]. Assets and Liabilities - As of June 30, 2023, total equity interests were approximately RMB 194.7 million, a decrease of about RMB 6.5 million or 3.2% from RMB 201.2 million as of December 31, 2022[46]. - Cash and bank balances as of June 30, 2023, were approximately RMB 2.4 million, down from RMB 3.2 million as of December 31, 2022[47]. - Total borrowings amounted to approximately RMB 17.9 million as of June 30, 2023, a decrease from RMB 19.0 million as of December 31, 2022[48]. - Trade receivables as of 30 June 2023 totaled RMB62,598,000, slightly down from RMB64,305,000 as of 31 December 2022, a decrease of about 2.7%[182]. - Trade payables increased to RMB41,961,000 as of 30 June 2023 from RMB37,249,000 as of 31 December 2022, representing an increase of approximately 12.5%[185]. Business Operations and Strategy - The Group believes that weak domestic and global demand will persist, leading to a slowdown in marble slags business growth in the coming years[12]. - The Group has launched a virtual restaurant brand for delivery-only operations, including ready-to-cook meal kits sold through its website and retail channels[18]. - The Group aims to find cooperation partners to develop the ground calcium carbonate (GCC) business plan, leveraging its marble resources[13]. - The Group's virtual restaurant is considered a key growth potential business[18]. - The Group plans to continue consolidating production and operations while exploring new business opportunities to maximize shareholder value in the future[27]. - The Group expects challenges for business growth in the forthcoming years due to weakening domestic demand and geopolitical tensions[27]. Mining and Resources - The Zhangjiaba Mine contains 44.2 million cubic meters of measured and indicated marble resources, with 16.8 million cubic meters of proved and probable marble reserves[20]. - The renewed mining permit for the Zhangjiaba Mine is valid from 21 February 2021 to 21 February 2026[19]. - The initial term of the mining permit for the Zhangjiaba Mine was granted for a 10-year period in February 2011[19]. - There was no geological exploration activity conducted during HY2023[20]. Shareholder and Corporate Governance - The company has complied with all code provisions of the CG Code throughout HY2023, except for deviations from provisions C.2.1, C.1.8, and F.2.2[74]. - The audit committee, consisting of three independent non-executive Directors, has reviewed the unaudited interim results for HY2023 and recommended their adoption to the Board[80]. - The chairman of the Board attended the annual general meeting, while other members were unable to attend due to business commitments[76]. - The company confirms that all Directors have complied with the Model Code for Securities Transactions throughout HY2023[79]. - The Board comprises four executive Directors and three independent non-executive Directors as of June 30, 2023[81]. - The company did not recommend the payment of an interim dividend for the first half of 2023[114]. Legal and Compliance Issues - The company is currently involved in litigation with claims totaling approximately HK$23.7 million against a related party and HK$21.2 million against the company itself[192]. - The High Court dismissed a summary judgment application related to a claim of approximately HK$61.4 million against the company, indicating ongoing legal challenges[196]. - The company does not anticipate incurring further liabilities from ongoing litigation as of June 30, 2023, due to the early stage of the proceedings[197]. - The company has not made provisions for ongoing litigation, assessing that it is unlikely to incur additional liabilities[197]. Financial Reporting and Compliance - The interim financial statements were prepared in accordance with International Accounting Standard 34 and were approved for issue by the board of directors on August 28, 2023[128]. - The Group has not applied any new IFRS amendments that have been issued but not yet effective for the current accounting period[146]. - The application of amendments to IFRSs in the current period has had no material impact on the Group's financial positions and performance[145]. - The financial statements for the six months ended June 30, 2023, remain unaudited, indicating a need for further review before finalization[191].
中国金石(01380) - 2023 - 中期财报