Financial Performance - For the six months ended June 30, 2023, the company recorded a profit of approximately RMB 7.3 million, a decrease from RMB 10.1 million in the same period of 2022, primarily due to increased administrative expenses and reduced sales expenses [4][16]. - Revenue increased by approximately 5.0% from RMB 182.5 million for the six months ended June 30, 2022, to RMB 191.6 million for the same period in 2023, driven by higher sales of OEM products [6]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 52.0 million, up from RMB 51.3 million in the same period of 2022, with gross margins of 27.1% and 28.1% respectively [9]. - The net profit for the period was RMB 7,275,000, down 28.0% from RMB 10,116,000 in the previous year [88]. - Basic and diluted earnings per share decreased to RMB 0.9 from RMB 1.3, reflecting the decline in net profit [88]. - The company reported a total comprehensive income for the period of RMB 5,552 thousand, down from RMB 9,204 thousand in the same period of 2022, representing a decrease of approximately 39.5% [94]. Expenses and Costs - Sales costs rose by approximately 6.4%, from RMB 131.3 million in the first half of 2022 to RMB 139.7 million in the first half of 2023, mainly due to increased direct material costs [8]. - Other income and gains increased from RMB 1.3 million in the first half of 2022 to RMB 1.9 million in the first half of 2023, primarily due to increased government subsidies [10]. - Selling expenses decreased from RMB 19.3 million in the first half of 2022 to RMB 15.5 million in the first half of 2023, attributed to reduced marketing and promotional activities [11]. - Administrative expenses surged by approximately 57.3%, from RMB 12.4 million in the first half of 2022 to RMB 19.5 million in the first half of 2023, mainly due to increased travel and entertainment costs [13]. - Financing costs remained stable at approximately RMB 6.3 million and RMB 6.8 million for the six months ended June 30, 2022, and 2023, respectively [15]. Assets and Liabilities - As of June 30, 2023, the group's cash and cash equivalents amounted to approximately RMB 25.1 million, a decrease of about 8.7% from RMB 27.5 million as of December 31, 2022, primarily due to increased prepayments for raw materials [24]. - The total borrowings of the group as of June 30, 2023, were approximately RMB 218.5 million, an increase from RMB 201.6 million as of December 31, 2022 [25]. - The group's debt-to-asset ratio as of June 30, 2023, was approximately 62.4%, up from 57.6% as of December 31, 2022, mainly due to the addition of bank borrowings during the period [28]. - Total liabilities increased to RMB 559,582 thousand as of June 30, 2023, up from RMB 514,596 thousand at the end of 2022, indicating a rise of approximately 8.7% [90]. - The company's total equity increased to RMB 400,818 thousand as of June 30, 2023, compared to RMB 395,266 thousand at the end of 2022, reflecting a growth of about 1.3% [91]. Shareholder Information - As of June 30, 2023, the company’s major shareholders, Zheng Guosi and Zheng Zhenzhong, each hold 72.75% of the shares, totaling 576,179,908 shares [57]. - Xiejia Limited holds 201,662,968 shares, representing approximately 25.46% of the total issued shares [63]. - Canon International Limited owns 172,853,972 shares, accounting for about 21.82% of the total issued shares [65]. - The company has not granted, exercised, canceled, or expired any options under the share option plan as of June 30, 2023 [67]. - The share option plan allows for a maximum of 79,200,000 shares to be issued, which is 10% of the total issued shares as of March 16, 2021 [71]. Operational Insights - The company aims to strengthen existing business development and provide stable returns and growth prospects for shareholders in the future [5]. - The company aims for sustainable growth and plans to expand production capacity, upgrade existing production lines, enhance marketing through e-commerce, and continue product development [47]. - The company focuses on producing and selling confectionery products, including gummy candies, tablet candies, puffed candies, and hard candies, to maintain quality control and production efficiency [49]. - The company holds a significant market position in China as a confectionery manufacturer and intends to strengthen brand recognition and awareness through marketing initiatives [49]. Risk Management - The group has implemented measures to manage credit risk, including setting credit limits and conducting individual assessments of receivables [39]. - The group has no significant foreign exchange risk and does not hold any foreign exchange contracts or financial derivatives as of June 30, 2023 [35]. - The company has confirmed that no options were granted or exercised under the share option plan during the reporting period [67]. Employee and Governance - The company emphasizes the importance of employee training, including internal professional development seminars and safety training programs [45]. - The board believes that maintaining a good working relationship with employees is crucial for sustainable development [45]. - The company is committed to high standards of corporate governance and has adopted all applicable codes of corporate governance [50].
久久王(01927) - 2023 - 中期财报