Financial Performance - The group's revenue decreased from approximately RMB 39,270,000 to approximately RMB 29,580,000, representing a decline of about 24.68% compared to the same period in 2022[3]. - The net loss for the six months ended June 30, 2023, was approximately RMB 9,830,000[3]. - The gross loss for the six months ended June 30, 2023, was RMB 115,000, compared to a gross loss of RMB 2,023,000 for the same period in 2022[4]. - The total comprehensive loss for the six months ended June 30, 2023, was RMB 9,827,000, compared to RMB 7,124,000 for the same period in 2022[4]. - The group reported a total loss before tax of RMB 9,714,000 for the six months ended June 30, 2023, compared to a loss of RMB 6,468,000 for the same period in 2022[24]. - The company reported a net loss of RMB 9,827,000 for the six months ended June 30, 2023, compared to a loss of RMB 7,124,000 in the same period last year, indicating an increase in losses of approximately 38.0%[33]. - The group reported a loss of approximately RMB 9,830,000, an increase of about RMB 2,700,000 or 37.94% compared to the same period last year[60]. Revenue Breakdown - For the six months ended June 30, 2023, the total revenue was RMB 29,579,000, a decrease of 24.7% compared to RMB 39,271,000 for the same period in 2022[20]. - The revenue from the manufacturing and sales of woven fabrics was RMB 28,266,000, down 24.2% from RMB 37,319,000 in the previous year[24]. - The subcontracting service revenue was RMB 1,313,000, a decline of 32.7% from RMB 1,952,000 in the same period last year[24]. - Revenue from China decreased to RMB 23,823,000 from RMB 24,929,000, a decline of approximately 4.4% year-over-year[27]. - Revenue from Europe dropped significantly to RMB 4,670,000 from RMB 11,302,000, representing a decrease of about 58.7%[27]. - Revenue from the associate company, Beijing Taibiya Technology Co., Ltd., decreased by approximately RMB 2,920,000 or about 22.81% due to reduced income from reservoir maintenance services[58]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 53,815,000, an increase from RMB 46,981,000 at the beginning of the period[9]. - The group reported a net cash outflow from operating activities of RMB 2,008,000 for the six months ended June 30, 2023[9]. - The total assets less current liabilities amounted to RMB 193,959,000 as of June 30, 2023, down from RMB 202,596,000 as of December 31, 2022[6]. - Trade receivables decreased to RMB 19,441,000 as of June 30, 2023, down from RMB 25,955,000, a decline of approximately 25.1%[36]. - Trade payables decreased to RMB 12,219,000 as of June 30, 2023, compared to RMB 14,895,000, reflecting a decrease of about 18.0%[38]. - The group’s current assets and net current assets were approximately RMB 94,140,000 and RMB 53,740,000, respectively, compared to RMB 100,930,000 and RMB 57,630,000 as of December 31, 2022[76]. Expenses and Costs - Total employee costs rose to RMB 10,079,000 for the six months ended June 30, 2023, up from RMB 8,573,000, marking an increase of about 17.6%[31]. - Administrative expenses increased by approximately RMB 450,000 or about 6.49% due to new rental costs from a sales office[57]. - Sales and distribution costs slightly increased by approximately RMB 43,000 or about 2.78%, primarily due to increased exhibition expenses[56]. Dividends and Governance - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2023[3]. - The company did not recommend the payment of interim dividends for the periods ended June 30, 2023, and June 30, 2022[32]. - The audit committee has been established and consists of three independent non-executive directors, ensuring compliance with GEM listing rules and adequate disclosure of financial performance[90]. - The company has adhered to all corporate governance code provisions as per GEM listing rules for the six months ending June 30, 2023[91]. Inventory and Production - The group's inventory increased to RMB 20,879,000 from RMB 19,044,000 year-on-year[5]. - Inventory as of June 30, 2023, was approximately RMB 20,880,000, an increase from RMB 19,040,000 as of December 31, 2022, with finished goods increasing by approximately RMB 2,510,000 or about 18.08%[63]. Future Outlook and Strategy - The group anticipates that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on its performance and financial position[18]. - The board believes that a favorable external environment will emerge in the post-pandemic era, focusing on maximizing shareholder value, cost savings, and revenue growth[75]. - The group plans to continue efforts in sustainable development and providing better products for global consumers[75]. - The group continued to innovate and develop new products to meet customer demands and enhance sales orders[73]. - The group has actively participated in various trade fairs in China to enhance its visibility in the textile market and promote new products[74]. Debt and Liabilities - Estimated interest on interest-free loans payable to the parent company increased to RMB 1,156,000 for the six months ended June 30, 2023, compared to RMB 1,091,000 in the previous year, reflecting a rise of about 6.0%[28]. - The remaining principal amount owed to the direct holding company was approximately RMB 218,475,000 as of March 31, 2022[45]. - The company agreed to early repayment of RMB 18,000,000 of the amount owed to the direct holding company under the third supplementary debt repayment agreement[47]. - The company has a repayment schedule starting from the third year after the supplementary debt agreement, requiring fixed annual repayments of RMB 800,000[46]. - The fair value of the new debt after modifications was approximately RMB 33,726,000, leading to a decrease in other reserves of about RMB 14,351,000 for the year ended December 31, 2022[48]. - The group had no significant contingent liabilities as of June 30, 2023, consistent with December 31, 2022[78]. - The group had no pledges on its assets as of June 30, 2023, similar to the situation on December 31, 2022[79].
浙江永安(08211) - 2023 - 中期财报