Financial Performance - The Group's revenue increased to approximately RMB195.9 million during the Reporting Period, up from approximately RMB121.2 million for the six months ended June 30, 2022, representing a growth of 61%[20] - Gross profit for the Reporting Period was approximately RMB6.6 million, with a gross profit margin of 3.4%, compared to a gross profit of approximately RMB3.7 million and a margin of 3.0% for the same period in 2022[13] - The Group recorded a loss of approximately RMB38.1 million, an improvement from a loss of RMB40.3 million in the previous year[13] - Revenue increased from approximately RMB121.7 million for the six months ended 30 June 2022 to approximately RMB195.9 million for the six months ended 31 December 2023, representing an increase of about 60.8%[22] - Gross profit for the food business was RMB6.59 million with a gross profit margin of 3.4% for the six months ended 31 December 2023, compared to a gross profit of RMB3.12 million and a margin of 2.6% for the same period in 2022[28] - Total comprehensive loss for the period was RMB 40,312,000, compared to RMB 44,631,000 for the same period last year, showing a reduction in overall losses[105] - Basic and diluted loss per share was RMB 0.310, an improvement from RMB 0.356 in the previous period[105] - The total revenue for the group for the six months ended December 31, 2023, was RMB 195,916,000, compared to RMB 121,737,000 for the same period in 2022, reflecting a growth of 60.9%[140] - The total loss before taxation for the six months ended December 31, 2023, was RMB 38,127,000, compared to a loss of RMB 40,297,000 for the same period in 2022, showing a slight improvement[149] Business Operations - The Group offers over 100 types of dried seafood, 30 types of algae and fungi, and 60 types of seafood snacks, aiming to differentiate itself through a diverse product portfolio[14] - Revenue from the food business specifically increased from approximately RMB121.2 million for the six months ended June 30, 2022, to approximately RMB195.9 million during the Reporting Period[20] - The Group's products are sold through various channels, including supermarkets, trading companies, convenience stores, and e-commerce retailers[19] - The Group has engaged in the procurement and sales of fast-moving consumer goods since early 2020, expanding its business scope[12] - The Group sources high-quality raw materials and sub-contracts processing to third parties, enhancing operational efficiency[12] - The Group's brand "Wofan" is used for selling packaged products, contributing to brand recognition in the market[12] Financial Position - The Group's net current assets increased from approximately RMB226.2 million as at 30 June 2023 to approximately RMB229.8 million as at 31 December 2023[39] - As at 31 December 2023, cash and cash equivalents were approximately RMB42.0 million, down from approximately RMB66.5 million as at 30 June 2023[40] - The gearing ratio as at 31 December 2023 was 0.121, a slight decrease from 0.127 as at 30 June 2023[47] - The Group did not pledge any assets as at 31 December 2023[49] - Current assets increased to RMB 266,855,000 from RMB 271,430,000, showing a decrease of about 1.7%[108] - Total equity decreased to RMB 217,472,000 from RMB 219,445,000, a decline of approximately 0.9%[109] - Cash and cash equivalents decreased to RMB 41,982,000 from RMB 66,481,000, a decline of approximately 36.8%[108] Investments and Financing - There were no significant investments, material acquisitions, or disposals of subsidiaries during the Reporting Period[50] - A placing agreement was entered into on November 20, 2023, for the placement of up to 24,000,000 shares at a price of HK$1.80 per share, with estimated net proceeds of approximately HK$42.3 million[60] - As of December 31, 2023, approximately HK$30.0 million of the net proceeds from the placing has been utilized for general working capital[61] - The company raised RMB 38,338,000 from the issuance of new shares during the six months ended 31 December 2023, compared to RMB 14,490,000 in the same period of the previous year, reflecting a growth of 164.5%[116] Employee and Management - The Group had 397 full-time employees as of December 31, 2023, down from 405 on June 30, 2023[58] - Short-term benefits for key management personnel increased to RMB 2,554,000 for the six months ended December 31, 2023, compared to RMB 1,943,000 for the same period in 2022, reflecting a growth of 31.5%[181] - The total remuneration for key management personnel for the six months ended December 31, 2023, was RMB 2,568,000, an increase from RMB 1,984,000 in the same period of 2022[181] Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with it, except for a deviation regarding meetings with Independent Non-executive Directors[94] - The Audit Committee has reviewed the interim results for the six months ended December 31, 2023, ensuring compliance and accuracy in financial reporting[98] Market and Industry Outlook - The Group expects a gradual recovery in industry demand and improvement in the operating environment of the food industry in 2024[68] - The Group plans to actively develop new business opportunities, particularly in the Internet sector, to diversify income sources[70] Inventory and Receivables - Trade payables rose significantly to RMB 20,736,000 from RMB 9,206,000, indicating an increase of approximately 125.5%[108] - Total inventories rose to RMB 92,524,000 as of December 31, 2023, from RMB 79,181,000 as of June 30, 2023, marking an increase of approximately 16.8%[164] - Trade receivables increased to RMB 114,971,000 as of December 31, 2023, up from RMB 105,833,000 as of June 30, 2023, representing an increase of approximately 8.5%[164] - The impairment loss on trade receivables decreased to RMB 250,000 as of December 31, 2023, compared to RMB 1,455,000 as of June 30, 2023, indicating an improvement in receivables quality[164]
中国升海集团(01676) - 2023 - 中期财报