Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 229.5 million, an increase of about 8.0% compared to the corresponding period[5]. - Revenue from overseas markets increased by approximately 8.5%, driven by demand from Pakistan, India, UAE, and Indonesia[5]. - Gross profit rose to approximately RMB 55.3 million, an increase of about 28.3% from RMB 43.1 million in the corresponding period, with a gross margin of approximately 24.1%[7]. - The operating profit for the six months ended June 30, 2023, increased to RMB 13,248 thousand, compared to RMB 7,450 thousand for the same period in 2022, reflecting an increase of 77.4%[28]. - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 6,933 thousand, significantly higher than RMB 2,645 thousand for the same period in 2022, marking a growth of 162.5%[28]. - The total comprehensive income for the first half of 2023 was RMB 8,783,000, compared to RMB 1,619,000 in the same period of 2022, marking a substantial increase[33]. - The company reported a profit of RMB 6,933,000 for the first half of 2023, up from RMB 2,645,000 in the same period of the previous year, indicating a year-on-year growth of approximately 162%[33]. Expenses and Costs - Selling expenses decreased by approximately RMB 1.1 million or 6.8% to RMB 15.2 million, primarily due to reduced licensing fees from related product sales[9]. - Administrative expenses increased by approximately RMB 6.3 million or 27.3% to RMB 29.4 million, mainly due to maintenance costs related to new factory renovations[10]. - Other income and gains decreased by approximately RMB 1.2 million or 32.4% to RMB 2.6 million, primarily due to a reduction in government subsidy income[11]. - Net finance costs increased by approximately RMB 1.3 million or 28.4% to RMB 6.0 million, mainly due to increased interest expenses from higher bank borrowings[12]. - The company reported a depreciation and amortization expense of RMB 17,703,000 for the six months ended June 30, 2023, compared to RMB 13,756,000 in 2022, indicating an increase of 28.5%[54]. Assets and Liabilities - The company had a total asset value of RMB 590,641 thousand as of June 30, 2023, compared to RMB 580,956 thousand as of December 31, 2022[31]. - As of June 30, 2023, the total liabilities of Shenglong Jinxi International Limited amounted to RMB 354,703,000, slightly up from RMB 353,801,000 as of December 31, 2022[32]. - The company's total equity increased to RMB 590,641,000 as of June 30, 2023, compared to RMB 580,956,000 at the end of 2022, reflecting a growth of approximately 1.2%[32]. - Long-term bank loans increased to RMB 206,537,000 as of June 30, 2023, from RMB 154,613,000 at the end of 2022, representing a rise of about 33.5%[32]. - The company's current assets minus current liabilities improved to RMB 70,450,000 as of June 30, 2023, compared to a negative net of RMB 3,071,000 at the end of 2022[32]. Cash Flow - The net cash flow from operating activities for the first half of 2023 was RMB 3,709,000, a significant improvement from a cash outflow of RMB 31,352,000 in the same period of 2022[34]. - The net increase in cash and cash equivalents for the first half of 2023 was RMB 17,741,000, compared to a modest increase of RMB 739,000 in the first half of 2022[36]. - Cash flow from financing activities for the first half of 2023 was RMB 17,606,000, compared to RMB 12,733,000 in the same period of 2022, indicating a growth of approximately 38%[34]. Workforce and Development - The group employed 368 staff as of June 30, 2023, an increase from 347 staff as of December 31, 2022, reflecting a focus on workforce development[21]. - The group plans to enhance operational efficiency and product quality control through advanced technology in the second half of 2023[26]. - The company is committed to optimizing its R&D capabilities and product offerings, including new products and materials, to maintain competitiveness and profitability[26]. Corporate Governance - The company confirms compliance with corporate governance standards, except for the separation of the roles of Chairman and CEO, which are held by Mr. Sheng[96]. - The audit committee, consisting of three independent non-executive directors, oversees the financial reporting process and internal controls[97]. - The company has adhered to all corporate governance code provisions during the reporting period, except for the aforementioned role separation[96]. - The audit committee has reviewed the unaudited interim consolidated results, affirming compliance with applicable accounting standards[99]. Shareholder Information - The company has a total of 500,000,000 shares issued, with Mr. Sheng holding 322,760,000 shares, representing 64.55% ownership[88]. - Bright Commerce, fully owned by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[89]. - The company has not granted any share options since the adoption of the share option scheme in June 2017[84]. - The company did not recommend any interim dividend for the period, consistent with the previous period[75].
盛龙锦秀国际(08481) - 2023 - 中期财报