Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 23,341 thousand, a decrease of 32.9% compared to RMB 34,819 thousand for the same period in 2021[4] - Gross profit for the six months ended June 30, 2022, was RMB 5,709 thousand, down 33.5% from RMB 8,559 thousand in the previous year[4] - The net loss attributable to owners for the six months ended June 30, 2022, was RMB 163 thousand, compared to a profit of RMB 579 thousand in the same period of 2021[4] - The company reported a basic and diluted loss per share of RMB (0.04) for the six months ended June 30, 2022, compared to earnings of RMB 0.14 in the same period of 2021[4] - The pre-tax profit for the six months ended June 30, 2022, was RMB 5,202,000, a decrease of 14.5% from RMB 6,111,000 for the same period in 2021[20] - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the decision for the same period in 2021[26] - The group recorded a net loss of approximately RMB 163,000 for the six months ended June 30, 2022, compared to a net profit of approximately RMB 579,000 for the same period in 2021, mainly due to a significant revenue decrease of approximately 33.0%[69] Cash Flow and Assets - Operating cash flow for the six months ended June 30, 2022, was RMB 1,832 thousand, a significant improvement from a cash outflow of RMB 6,972 thousand in the previous year[9] - Total assets as of June 30, 2022, were RMB 71,242 thousand, a slight decrease from RMB 73,506 thousand as of December 31, 2021[6] - Current liabilities decreased to RMB 29,403 thousand as of June 30, 2022, from RMB 31,912 thousand at the end of 2021[6] - Cash and cash equivalents increased to RMB 9,566 thousand as of June 30, 2022, compared to RMB 8,220 thousand at the beginning of the period[9] - Non-current assets totaled RMB 36,673 thousand as of June 30, 2022, slightly down from RMB 37,073 thousand at the end of 2021[6] - Trade receivables as of June 30, 2022, amounted to RMB 36,571 thousand, down from RMB 42,845 thousand as of December 31, 2021, representing a decrease of approximately 14.5%[31] - The net amount of trade receivables and bills receivable, after deducting expected credit loss provisions, was RMB 47,655 thousand as of June 30, 2022, compared to RMB 46,133 thousand as of December 31, 2021[32] - Total trade and other payables as of June 30, 2022, was RMB 27,177 thousand, a decrease from RMB 29,853 thousand as of December 31, 2021, reflecting a reduction of approximately 9.0%[34] Revenue Breakdown - For the six months ended June 30, 2022, the total revenue from the sale of fiberglass products was RMB 23,341,000, a decrease of 32.9% compared to RMB 34,819,000 for the same period in 2021[17] - The revenue from fiberglass grating products for the six months ended June 30, 2022, was RMB 9,279,000, down 53.0% from RMB 19,730,000 in the previous year[17] - Domestic market sales decreased by approximately 21.0% from RMB 226 million in 2021 to RMB 179 million for the six months ended June 30, 2022, with the domestic market accounting for 76.6% of total sales[52] - As of June 30, 2022, sales of epoxy wedge products accounted for approximately 60.3% of the total revenue, generating revenue of RMB 141 million, a decrease of RMB 867,000 or 5.8% compared to RMB 149 million for the same period in 2021[57] - Sales to the U.S. market decreased by approximately 76.6% to RMB 1.3 million, primarily due to increased tariffs and adverse impacts of the COVID-19 pandemic on the U.S. economy[66] Cost and Expenses - The company incurred employee costs of RMB 4,715,000 for the six months ended June 30, 2022, down 14.4% from RMB 5,513,000 in the previous year[20] - The company’s total tax expense for the six months ended June 30, 2022, was RMB 624,000, a decrease from RMB 905,000 in the same period of 2021[23] - Administrative expenses increased by approximately RMB 1.1 million or 24.9% to RMB 5.7 million for the six months ended June 30, 2022, mainly due to increased employee costs and rental expenses[67] - The total employee cost for the six months ending June 30, 2022, was approximately RMB 5.2 million, down from RMB 6.1 million for the same period in 2021[80] Market Outlook and Strategy - The company anticipates steady growth in the overall fiberglass market in China, driven by the material's advantages over traditional materials[45] - The company plans to enhance product recognition through improved technology and will hire senior talent to achieve its R&D and market expansion goals[49] - The economic environment remains uncertain, with challenges expected in the second half of 2022 due to ongoing COVID-19 impacts and geopolitical tensions[48] - The company will actively participate in bidding for potential projects in both domestic and overseas markets to mitigate business risks[49] - The company expects to explore new revenue sources to reduce business risks amid the uncertain economic landscape[51] Shareholder Information - As of June 30, 2022, Mr. Li held 163,600,000 shares, representing 40.9% of the company's equity[82] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, which is 30.9% of the company's equity[87] - Mr. Wu holds 40,000,000 shares in the company, accounting for 10.0% of the total issued shares[88] Corporate Governance - The company has adopted the GEM Listing Rules regarding the code of conduct for directors' securities transactions, and all directors confirmed compliance during the six-month period[97] - The company believes it has complied with all applicable corporate governance codes as per GEM Listing Rules Appendix 15 during the six months ended June 30, 2022[98] - The Audit Committee, established on December 16, 2016, reviewed the unaudited results for the six months ended June 30, 2022[99]
硅鑫集团(08349) - 2022 - 中期财报