Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 131,192,000, a decrease of 62.5% compared to RMB 349,490,000 for the same period in 2022[8] - The cost of sales for the same period was RMB 130,964,000, resulting in a gross profit of RMB 228,000, compared to a gross loss of RMB 5,978,000 in 2022[8] - The company incurred a loss before tax of RMB 13,491,000, slightly improved from a loss of RMB 14,523,000 in the previous year[8] - The net loss for the period was RMB 11,385,000, compared to RMB 12,984,000 in the same period last year, indicating a reduction in losses by approximately 12.3%[8] - Basic and diluted loss per share for the period was RMB 1.09, compared to RMB 1.31 for the same period in 2022[10] - Other income for the six months was RMB 1,153,000, down from RMB 12,763,000 in the previous year, reflecting a decline of 91%[8] - The company reported a total comprehensive loss of RMB 11,497,000 for the period, compared to RMB 12,954,000 in the same period last year[10] - The company reported a net loss of RMB 10,044,000 for the first half of 2023, compared to a loss of RMB 12,013,000 in the same period of 2022, indicating an improvement of approximately 16.4%[15] - The company reported a loss before income tax of approximately RMB 10,044,000 for the six months ended June 30, 2023, compared to a loss of RMB 12,013,000 for the same period in 2022, indicating a reduction in losses by about 8.1%[52] - The company recorded a loss attributable to owners of approximately RMB 10.0 million for the six months ended June 30, 2023, compared to a loss of RMB 12.0 million for the same period in 2022[85] Revenue Breakdown - For the six months ended June 30, 2023, the revenue from wire and cable production and sales was RMB 129,019 thousand, compared to RMB 113,224 thousand for the same period in 2022, representing a growth of approximately 14%[36] - The revenue from aluminum product sales for the six months ended June 30, 2023, was RMB 2,173 thousand, a significant decrease from RMB 236,266 thousand in the same period of 2022[36] - Total revenue for the six months ended June 30, 2023, was RMB 131,192 thousand, down from RMB 349,490 thousand in the same period of 2022, indicating a decline of approximately 62%[36] - Major customers contributing over 10% of total revenue included Customer A with RMB 48,070 thousand and Customer B with RMB 33,262 thousand for the six months ended June 30, 2023[33] - The revenue from aluminum wire and cable was RMB 57,678,000, down from RMB 66,178,000 in 2022, reflecting a decrease of approximately 13.5%[74] Expenses and Costs - Administrative and other expenses totaled RMB 10,187,000, remaining relatively stable compared to RMB 10,242,000 in 2022[8] - Financing costs for the six months ended June 30, 2023, were RMB 3,800 thousand, a decrease from RMB 7,983 thousand in the same period of 2022, reflecting a reduction of approximately 52%[42] - The cost of goods sold for the six months ended June 30, 2023, was RMB 130,628,000, down 63.3% from RMB 355,468,000 in the same period of 2022[45] - Selling and distribution expenses decreased by RMB 2.4 million or 72.7% for the six months ended June 30, 2023, due to reduced sales activities of aluminum rolled products[81] - Research and development costs (excluding amortization) were RMB 86,000 for the six months ended June 30, 2023, a decrease of 81.1% compared to RMB 455,000 in the same period of 2022[45] Assets and Liabilities - As of June 30, 2023, total assets decreased to RMB 348,848,000 from RMB 392,472,000 as of December 31, 2022, representing a decline of approximately 11.1%[12] - Non-current assets decreased from RMB 163,379,000 to RMB 155,471,000, a reduction of about 4.8%[12] - The company’s total liabilities decreased from RMB 251,703,000 to RMB 220,487,000, a decline of approximately 12.4%[12] - The company’s equity attributable to owners decreased from RMB 111,806,000 to RMB 101,650,000, a decline of approximately 9.1%[13] - The company’s borrowings increased to RMB 94,349,000 from RMB 113,702,000, a decrease of about 17%[12] - The company’s trade payables as of June 30, 2023, were RMB 59,540,000, an increase from RMB 53,900,000 as of December 31, 2022, reflecting an increase of 10.4%[58] Cash Flow - Cash and cash equivalents increased to RMB 1,864,000 from RMB 703,000, reflecting a growth of approximately 165.5%[17] - The net cash used in operating activities was RMB 358,000, a significant decrease from RMB 15,569,000 in the previous year[17] - As of June 30, 2023, the company's cash and cash equivalents amounted to approximately RMB 1.9 million, an increase from RMB 0.7 million as of December 31, 2022[87] Future Outlook - The company plans to continue its focus on the production and sales of wire and cable products, as well as aluminum products, in the Chinese market[18] - The company anticipates continued growth in demand for wires and cables driven by urbanization, infrastructure development, and technological advancements[72] - The Chinese government's ongoing investment in infrastructure is expected to be a significant driver for the industry, particularly in projects related to the power grid and 5G networks[72] - The company is focusing on domestic market development, which may help reduce reliance on external factors such as trade tensions and global market fluctuations[73] Corporate Governance - The company adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Dang Fei[98] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, and as of June 30, 2023, there are no undisclosed interests related to the compliance advisor[101] - The board of directors consists of experienced members, including three independent non-executive directors, ensuring a balance of power and authority[98] - The company has confirmed that there are no competing interests from its controlling shareholders or directors as of June 30, 2023[108] - The company has fully complied with the trading code for directors during the six-month period ending June 30, 2023[100] Shareholder Information - As of June 30, 2023, Mr. Dang Fei holds 351,280,000 shares, representing 38.18% of the company's equity, while Mr. Wang Xiaozhong holds 99,760,000 shares, representing 10.84%[103] - The company has a significant shareholder structure, with Red Fly Investment Limited holding 38.18% of the shares, controlled by Mr. Dang Fei and Mr. Dang Jun[106] - The company has not identified any other individuals with interests in shares that require disclosure under the Securities and Futures Ordinance as of June 30, 2023[107] Compliance and Audit - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and found them to comply with applicable accounting standards and GEM listing rules[112] - The company has maintained compliance with the necessary trading standards and regulations throughout the reporting period[100] Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[51] - The group did not adopt any new accounting standards that had a significant impact on the financial performance or position during the reporting period[25] - The group has not made any changes to its risk management policies since December 31, 2022[28] - The group operates primarily in China, with all revenue and non-current assets located in the region, indicating a focused market strategy[31] - The company has a stock option plan that allows for the grant of up to 80,000,000 shares as of January 1, 2023, and June 30, 2023, but no options have been granted, exercised, canceled, or lapsed since the listing date[109] - There have been no significant events requiring disclosure from June 30, 2023, to the report date[110]
中国蜀塔(08623) - 2023 - 中期财报