Financial Performance - Revenue increased by 11.4% to approximately RMB 75,830,000 compared to RMB 68,065,000 in the previous year[6] - Gross profit rose by 22.4% to approximately RMB 30,177,000, with a gross margin of 39.8% compared to 36.2% in the previous year[6] - Profit attributable to equity holders was approximately RMB 4,028,000, a turnaround from a loss of RMB 1,005,000 in the previous year[6] - Basic earnings per share were approximately RMB 0.105, compared to a loss per share of RMB 0.026 in the previous year[6] - The company reported a profit attributable to equity holders of RMB 4,028,481 for the six months ended June 30, 2023, compared to a loss of RMB (1,004,912) for the same period in 2022, indicating a significant turnaround in performance[38] - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.105, compared to a loss per share of RMB (0.026) in the same period of 2022[38] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 279,635,724, slightly up from RMB 278,152,459 at the end of 2022[9] - Total liabilities decreased to RMB 160,480,232 from RMB 163,025,448 at the end of 2022[9] - Non-current assets increased to RMB 124,113,819 from RMB 118,817,267 at the end of 2022[8] - The company’s total assets as of June 30, 2023, were RMB 119,155,492, reflecting growth from RMB 115,127,011 at the beginning of the year[11] - The company’s retained earnings increased to RMB 30,696,947 as of June 30, 2023, from RMB 26,668,466 at the beginning of the year[11] - The company’s trade payables decreased to RMB 24,169,911 as of June 30, 2023, from RMB 24,664,261 as of December 31, 2022[47] Cash Flow - The net cash generated from operating activities was RMB 2,126,229, a significant improvement from a net cash used of RMB (13,310,390) in the first half of 2022[13] - Cash and cash equivalents were RMB 18,558,337, down from RMB 19,355,608 at the end of 2022[8] - The cash and cash equivalents at the end of the period were RMB 18,558,337, down from RMB 19,355,608 at the beginning of the period[13] - The group's cash and cash equivalents decreased by approximately RMB 798,000, with net cash inflow from operating activities of about RMB 2,126,000 and net cash outflow from investing activities of approximately RMB 4,034,000[70] Research and Development - Research and development expenses increased to RMB 5,343,483 from RMB 4,903,098 in the previous year[7] - The company has undertaken the development of two provincial-level new products and has applied for six patents during the reporting period[49] - The company established a key laboratory for the development and application of critical mineral materials in collaboration with Wuhan University of Technology, focusing on strategic mineral resources[49] - Research and development expenses increased by approximately RMB 440,000 or 9.0% to about RMB 5,343,000, mainly due to increased work on environmental research projects with Jilin Petrochemical Design Institute[63] Revenue Breakdown - Revenue from organic bentonite products was RMB 50,022,734, a 31.2% increase from RMB 38,108,519 in the same period of 2022[27] - Revenue from paper chemicals decreased by approximately RMB 6,626,000 or 30.6% to about RMB 15,021,000 for the six months ended June 30, 2023, primarily due to a sales volume decline of about 28.8%[51] - Organic bentonite revenue increased by approximately RMB 11,915,000 or 31.3% to about RMB 50,023,000 for the six months ended June 30, 2023, driven by increased sales volume[53] - Inorganic gel revenue rose by approximately RMB 3,566,000 or 66.8% to about RMB 8,907,000 for the six months ended June 30, 2023, also due to increased sales volume[53] Expenses - Total sales cost increased by approximately RMB 2,232,000 or 5.1% to about RMB 45,652,000 for the six months ended June 30, 2023[55] - The interest expenses for the period were RMB (3,484,126), up from RMB (2,979,885) in the previous year, reflecting increased borrowing costs[29] - The company reported a tax expense of RMB (174,996) for the six months ended June 30, 2023, compared to a tax credit of RMB 371,044 in the same period of 2022[35] Corporate Governance - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, and confirmed compliance with current accounting standards and GEM listing rules[107] - The company has adopted corporate governance measures to enhance internal control systems and ensure compliance with applicable codes[101] Dividends - The board of directors decided not to declare any interim dividend for the six months ended June 30, 2023[6] - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[40] - The board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[100] Shareholding - As of June 30, 2023, Mr. Zhang Youlian holds 19,220,600 shares, representing approximately 50.05% of the issued share capital[88] - Ms. Yu Hua owns 3,576,000 shares, accounting for 9.31% of the issued share capital[91] - The company has maintained at least 25% of its issued share capital held by public shareholders during the reporting period[96] Future Outlook - The group believes it has sufficient financial resources to continue operations for the foreseeable future[80] - The company will issue its interim report for the six months ending June 30, 2023, to shareholders at an appropriate time[109] - The interim report will be available on the company's website and the Hong Kong Stock Exchange website[109] Other Information - The company has no significant contingent liabilities, legal proceedings, or potential lawsuits as of June 30, 2023[77] - There were no major acquisitions or disposals during the six months ended June 30, 2023[79] - There were no related party transactions or continuous related party transactions during the reporting period[94] - There were no significant events occurring after the reporting period as of the report date[108]
长安仁恒(08139) - 2023 - 中期财报