Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,302.2 million, a decrease of 9.1% compared to RMB 1,442.3 million for the same period in 2021[12] - Adjusted gross profit margin for the period was 9.1%, down from 19.3% in the previous year[12] - Profit attributable to equity shareholders for the period was RMB 4.7 million, compared to RMB 6.2 million in the same period last year[12] - Basic and diluted earnings per share were RMB 0.08, down from RMB 0.10 in the same period last year[12] - Total comprehensive income for the period attributable to equity shareholders was RMB 2,058, significantly down from RMB 24,725 in the previous year[80] - Gross profit for the period was RMB 132,747, down 53.8% from RMB 287,109 in the previous year[68] - The Group reported a profit of RMB 4,726 for the six months ended June 30, 2022, compared to a loss of RMB 1,002,074 for the same period in 2021[88] - The company reported a profit before taxation of RMB 17,449 for the six months ended June 30, 2022, compared to RMB 18,935 in 2021, a slight decrease of about 7.8%[131] Cash Flow and Liquidity - Net cash used in operating activities was RMB (193.1) million, an improvement from RMB (276.3) million in the previous year[12] - Cash on hand and in bank decreased by about RMB 719.4 million or 42.8% to approximately RMB 959.6 million from RMB 1,679.0 million at the end of 2021[29] - The net cash used in operating activities for the six months ended 30 June 2022 was RMB 193,109,000[101] - The cash and cash equivalents at 30 June 2022 were RMB 225,216,000, an increase from RMB 196,182,000 at the same date in 2021[96] - The net decrease in cash and cash equivalents for the six months ended 30 June 2022 was RMB 150,203,000, compared to a decrease of RMB 308,742,000 in the same period of 2021[96] - The Group's liquidity needs are being addressed through various initiatives identified by the directors[102] Revenue Breakdown - Revenue from the domestic market decreased by about RMB 137.7 million or 23.0% to about RMB 461.2 million, contributing approximately 35.4% of the total revenue[20] - Revenue from the overseas market decreased by about RMB 2.4 million or 0.3% to about RMB 841.0 million, contributing approximately 64.6% of the total revenue[20] - Revenue from customers in Mainland China decreased to RMB 461,154 from RMB 598,875, a decline of 22.9%[120] - Revenue from the United Kingdom increased significantly to RMB 382,121 from RMB 259,317, representing a growth of 47.3%[120] - Revenue from Australia rose to RMB 251,155 from RMB 107,537, marking an increase of 133.3%[120] - Revenue from the United States decreased to RMB 16,682 from RMB 181,584, a decline of 90.8%[120] Expenses and Cost Management - Selling expenses decreased by about RMB 13.5 million or 37.8% to approximately RMB 22.1 million, accounting for about 1.7% of operating revenue[25] - Administrative expenses decreased by about RMB 47.9 million or 22.6% to approximately RMB 163.9 million, accounting for about 12.6% of operating revenue[25] - Research and development costs amounted to RMB 23,386 in the first half of 2022, compared to RMB 38,129 in 2021, indicating a reduction of approximately 38.7%[135] - Total borrowing costs decreased to RMB 50,598 in the first half of 2022 from RMB 58,678 in 2021, reflecting a decline of approximately 13.3%[133] Strategic Direction and Outlook - The company is focusing on technology leadership and value creation through services as part of its strategic direction[2] - Future outlook includes potential market expansion and new product development initiatives[2] - The company anticipates that many countries may implement accommodative monetary policies and fiscal stimulus to support economic recovery in the second half of 2022[18] - The company remains confident and cautious about the overall market opportunities and will continue to focus on project construction and technological innovation[18] - The property market in Mainland China is expected to gradually recover and remain resilient in the long run, supported by appropriate government measures[18] Corporate Governance and Management Changes - The company has appointed Zhao Zhongqiu as the new Chief Executive Officer as of July 4, 2022, following the resignation of Liu Futao[4] - The company has complied with all code provisions of the Corporate Governance Code for the reporting period[61] - The Board resolved not to declare any interim dividend for the six months ended June 30, 2022[42] - The Group did not have any material acquisitions or disposals of subsidiaries and associated companies during the reporting period[36] Financial Position and Assets - As at 30 June 2022, net current assets decreased by about RMB 385.7 million or 23.2% to approximately RMB 428.0 million from RMB 813.7 million at the end of 2021[29] - Non-current assets decreased to RMB 901,826 from RMB 916,939 at the end of 2021[81] - Current assets decreased to RMB 5,132,515 from RMB 5,863,411 at the end of 2021[81] - The total amount of contract assets expected to be billed within one year was RMB 1,549.744 million as of June 30, 2022[152] - The total financial assets measured at amortised cost increased to RMB 1,645.5 million as of June 30, 2022, compared to RMB 1,583.5 million at December 31, 2021, reflecting a growth of 3.9%[163] Shareholder Information - As of June 30, 2022, Kang Baohua holds a beneficial ownership of 228,636,000 shares, representing 3.68% of the company's shares[47] - Kang Baohua also has an interest in controlled corporations amounting to 3,589,548,694 shares, which is 57.81% of the company's shares[47] - Best Outlook Limited, wholly owned by Kang Baohua, holds 2,597,531,923 shares, accounting for 41.84% of the issued share capital[56] - Neo Pioneer Limited, also wholly owned by Kang Baohua, holds 992,016,771 shares, representing 15.98% of the issued share capital[56] - As of June 30, 2022, no other directors or chief executives had interests or short positions in the shares of the company[54]
远大中国(02789) - 2022 - 中期财报