Revenue and Financial Performance - The Group's revenue for the six months ended June 30, 2023, was RMB 10,312,000, a decrease of 56% compared to RMB 23,413,000 in the same period of 2022[162]. - Revenue for the first half of 2023 amounted to RMB10.3 million, a decrease of 56.0% compared to RMB23.4 million in the same period of 2022[49]. - The trading of construction materials segment saw a significant decline in revenue, dropping 62% from RMB 23,413,000 in 2022 to RMB 8,844,000 in 2023[167]. - Gross profit for the same period was RMB 699,000, compared to RMB 165,000 in 2022, indicating a significant improvement in gross margin[134]. - Loss for the period was RMB 1,923,000, reduced from RMB 3,253,000 in the previous year, reflecting a 41% decrease in losses[134]. - The Group's loss before tax for the six months ended June 30, 2023, was RMB 1,923,000, an improvement from a loss of RMB 3,253,000 in the same period of 2022[162]. - The Company reported a total comprehensive loss of RMB 1,139,000 for the six months ended June 30, 2023, compared to a total comprehensive loss of RMB 1,898,000 for the same period in 2022[141]. - The accumulated losses increased to RMB 29,960,000 as of June 30, 2023, from RMB 28,867,000 at the beginning of the year[141]. - The net cash flows generated from operating activities for the six months ended June 30, 2023, were RMB 125,000, a significant improvement compared to a net cash outflow of RMB 1,612,000 for the same period in 2022[144]. - Interest received increased to RMB 253,000 in the first half of 2023, up from RMB 189,000 in the same period of 2022, indicating improved investment income[144]. Property Development and Projects - Meijun Project Phase Three is a flagship project, with the management confident in its development within the next couple of years[22]. - The development of Meijun Project Phase Three will be divided into two stages, with Stage 1 covering approximately 95,820 square meters and Stage 2 covering approximately 77,334 square meters[26]. - The Group has obtained the State-owned Land Use Certificate for Meijun Land A but is still awaiting the certificate for Meijun Land B[26]. - The local government is actively planning the development of Zouping City South New Town, which positively impacts the land value of the Meijun Project Phase Three area[24]. - The management has taken a conservative approach to potential projects due to the fluctuating real estate market in Zouping City[17]. - The Group plans to commence demolition works for Meijun Project Phase Three in early 2024, with completion expected by late 2024[30]. - The Land Use Certificate for Meijun Land B is anticipated to be obtained in 2025, allowing for the commencement of pre-sale activities for Stage 1[30]. - The entire development of Meijun Project Phase Three Stage 1 is expected to be completed by late 2027[30]. - The Group has received positive responses from stakeholders, including potential customers and local communities, regarding the Meijun Project Phase Three[25]. - The management is committed to utilizing internal resources and manpower for the development of Meijun Project Phase Three[25]. Trading and Construction Materials - The Group's main source of revenue for the six months ended June 30, 2023, is trading of construction materials in the PRC, with all revenues derived from Shandong Province[15]. - The Group sold approximately 2,356 tonnes of construction materials during the period, representing a 60% decrease compared to approximately 6,000 tonnes sold in the same period of 2022[36]. - The Group intends to expand its trading of construction materials in Zouping City, leveraging established industry relationships[35]. Financial Position and Expenses - Cost of sales for the same period was RMB 9.6 million, down 58.7% from RMB 23.2 million in 1H2022[50]. - Selling and marketing expenses remained stable during the period, primarily representing the remuneration of sales staff[57]. - Administrative expenses decreased to RMB 4.1 million from RMB 5.0 million in 1H2022, mainly due to reduced exchange losses and legal fees[59]. - Finance costs increased significantly from RMB 0.2 million at 30 June 2022 to RMB 2.0 million at 30 June 2023 due to higher lease liabilities[65]. - As of 30 June 2023, the Group's cash and cash equivalents remained stable at RMB 151 million, with a gearing ratio of 4.0%[68]. - The Group had no significant investments, acquisitions, or disposals during the period, nor plans for future material investments[74]. - Capital commitments as of 30 June 2023 amounted to RMB 0.9 million, unchanged from 31 December 2022[76]. - The Group employed 21 staff as of 30 June 2023, with staff-related costs increasing to RMB 1.2 million from RMB 0.9 million in 1H2022[78]. Governance and Compliance - The company has adopted good governance principles in line with the Corporate Governance Code and has complied with all applicable code provisions throughout the period[84][87]. - Following the resignation of a director, the board was temporarily non-compliant with Listing Rules but has since met the requirements with the appointment of a new independent non-executive director[85][90]. - The Audit Committee was reconstituted on July 6, 2023, to comply with the Listing Rules, now comprising three independent non-executive directors[91][93]. - The company regularly reviews compensation schemes for directors and employees, considering their experience and responsibilities[83]. - The company has established a compensation committee to determine and review the remuneration packages for directors and senior management[83]. Shareholding and Investments - As of June 30, 2023, Wang Yong held 982,999,588 ordinary shares, representing approximately 69.78% of the company's shareholding[99]. - Xiwang Group holds a beneficial interest of RMB 620 million, representing 25.24% of the company[101]. - Xiwang Hong Kong directly holds 95% of the issued share capital of Xiwang Holdings, with Mr. WANG Yong and 22 individuals holding the remaining 5%[103]. - The company has a total of 506,244,669 convertible preference shares held by Xiwang Investment, representing 99.75%[100]. - The convertible preference shares held by Qilu Investment Funds also total 506,244,669, representing 99.75%[112]. - The company was informed of a winding-up order against Xiwang Investment on March 20, 2023, with joint liquidators appointed[113]. - As of June 30, 2023, no other directors or chief executives had any interest or short position in the shares of the company that required disclosure[106].
西王置业(02088) - 2023 - 中期财报