海纳智能(01645) - 2023 - 中期业绩

Company Overview and Performance Summary This section presents an overview of the company's interim financial performance, highlighting significant declines in revenue and gross profit, and an expanded loss attributable to owners Performance Highlights For the six months ended June 30, 2023, the Group experienced significant declines in revenue and gross profit, with an expanded loss attributable to owners compared to the prior period Key Financial Indicators for H1 2023 | Indicator | For the Six Months Ended June 30, 2023 (RMB Million) | For the Six Months Ended June 30, 2022 (RMB Million) | | :--- | :--- | :--- | | Revenue | 110.5 Million | 199.8 Million | | Gross Profit | 12.8 Million | 32.1 Million | | Gross Margin | 11.6% | 16.1% | | Loss Attributable to Owners of the Company | 15.4 Million | 4.3 Million | Consolidated Financial Statements This section provides the unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, and key notes Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue decreased by 44.7% year-on-year and gross profit by 60.2%, with the loss for the period expanding from RMB 4.4 Million to RMB 15.8 Million due to reduced revenue and gross profit Consolidated Statement Core Data | Item | H1 2023 (RMB Thousand) | H1 2022 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 110,535 | 199,809 | | Cost of Sales | (97,751) | (167,667) | | Gross Profit | 12,784 | 32,142 | | Administrative and Other Operating Expenses | (26,904) | (29,949) | | Loss Before Tax | (14,689) | (4,075) | | Loss for the Period | (15,819) | (4,401) | - Basic and diluted loss per share was RMB 2.72 cents, compared to a loss of RMB 0.77 cents in the prior period[8] Consolidated Statement of Financial Position As of June 30, 2023, the company's total assets increased, primarily driven by an increase in property, plant, and equipment within non-current assets, though a larger increase in current liabilities led to a decrease in net current assets and total equity Financial Position Core Data | Item | June 30, 2023 (RMB Thousand) | December 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 117,269 | 96,805 | | Current Assets | 499,710 | 454,858 | | Current Liabilities | 289,372 | 205,507 | | Net Current Assets | 210,338 | 249,351 | | Net Assets | 324,046 | 338,772 | | Interest-bearing Borrowings | 49,934 | 25,000 | | Bank Balances and Cash | 80,386 | 85,596 | Summary of Notes to Financial Statements The notes detail the company's principal business, accounting policies, segment information, and financial item specifics, including its primary engagement in designing and manufacturing automated machinery for disposable hygiene products in China, no interim dividend declaration, and key disclosures on trade receivables, debt instruments, bank borrowings, and significant post-period construction contracts - The Group primarily engages in the design and production of automated machinery for disposable hygiene products in China[11] - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2023[147] - Post-reporting period, on July 4, 2023, the company signed a construction contract valued at approximately RMB 176 Million for the construction of an R&D center and supporting facilities in Jinjiang, Fujian[62][223] - Some of the Group's Chinese subsidiaries are recognized as high-tech enterprises, enjoying a preferential income tax rate of 15%[146] - As of June 30, 2023, trade receivables included approximately RMB 25.52 Million in product quality assurance deposits, collectible after the 12-month warranty period[19] Management Discussion and Analysis This section offers a comprehensive review of the company's business operations, financial performance, liquidity, and strategic outlook for the reporting period Business Review and Outlook Impacted by macroeconomic conditions, the company's total machines sold decreased by 45% year-on-year, prompting strategic initiatives including new R&D centers and digital factories in Jinjiang and Hangzhou to boost capacity and efficiency, establishing subsidiaries for in-house core component production, expanding into overseas markets, and developing a '5G+ Smart Equipment Operation and Maintenance Service Platform' for digital transformation - During the period, the Group recorded total revenue of approximately RMB 110.5 Million, with 23 machines sold, a 45% decrease from the prior period[34] - The company is actively advancing major infrastructure projects: - Jinjiang R&D Center: Total investment no less than RMB 350 Million, with a construction contract of approximately RMB 176 Million signed, aiming to enhance R&D efficiency and intelligent manufacturing capabilities - Hangzhou Digital Factory: Total investment no less than RMB 600 Million, aiming to expand production capacity to meet market demand[35][37][64] - To enhance supply chain control and production flexibility, the Group has invested in establishing two subsidiaries for in-house production and processing of core components, replacing external procurement[36] - The company is deeply advancing its globalization strategy, actively exploring overseas markets beyond China, and has signed sales cooperation agreements with agents for the South American region[69][201] - The company is developing a '5G+ Smart Equipment Operation and Maintenance Service Platform,' leveraging 5G and AR technologies for equipment visualization and simulation, driving its transformation towards 'manufacturing + service' and accelerating digitalization[39][70][202] Financial Review Financial performance declined this period, with revenue decreasing 45% to RMB 110.5 Million, primarily due to lower sales of adult and baby diaper machines, and gross margin falling from 16.1% to 11.6% due to reduced high-margin product sales and rising costs, leading to an expanded loss attributable to owners of RMB 15.4 Million despite lower administrative and finance expenses Revenue Breakdown by Product Type (For the Six Months Ended June 30) | Product Type | 2023 (RMB Thousand) | 2022 (RMB Thousand) | | :--- | :--- | :--- | | Baby Diaper Machines | 45,390 | 51,232 | | Adult Diaper Machines | 25,744 | 118,985 | | Feminine Hygiene Napkin Machines | 13,592 | 8,912 | | Other Machines and Components | 25,859 | 20,680 | | Total | 110,535 | 199,809 | - Revenue decreased by 45% from approximately RMB 199.8 Million in the prior period to approximately RMB 110.5 Million, primarily due to lower sales of adult diaper machines (a decrease of approximately RMB 93.2 Million) and baby diaper machines (a decrease of approximately RMB 5.8 Million)[204] - Gross profit decreased from RMB 32.1 Million to RMB 12.8 Million, with gross margin falling from 16.1% to 11.6%, primarily due to reduced sales revenue from high-margin adult and baby diaper machines, and increased labor and imported component costs[205] - Loss attributable to owners of the company increased from RMB 4.3 Million in the prior period to RMB 15.4 Million, mainly due to a significant reduction in gross profit[75] Liquidity and Financial Resources The Group's liquidity tightened, with the current ratio decreasing from 2.2x to 1.7x, and its capital structure saw bank borrowings increase to RMB 49.9 Million, raising the gearing ratio from 12.1% to 19.0%, with operations primarily funded by internal cash flow and bank borrowings - The Group's current ratio (current assets/current liabilities) was approximately 1.7x as of June 30, 2023, lower than approximately 2.2x as of December 31, 2022[243] - The gearing ratio (total interest-bearing liabilities/total equity) increased from 12.1% at the end of last year to 19.0% at the end of the reporting period[103] - As of June 30, 2023, bank borrowings were approximately RMB 49.9 Million, a significant increase from RMB 25.0 Million at the end of last year[55][84] - The Group has significant capital commitments, primarily for construction in progress (approximately RMB 226 Million) and intangible asset development (approximately RMB 28 Million)[246] Use of Proceeds from Listing and Placing The report details the use of IPO and placing proceeds, with RMB 68.0 Million from the 2021 placing fully utilized for the Hangzhou production base, while approximately RMB 45.8 Million of IPO proceeds remain unutilized, reallocated for the new Jinjiang R&D center and manufacturing workshop by the end of 2025 IPO Net Proceeds Utilization (As of June 30, 2023) | Purpose | Allocated Amount (RMB Million) | Unutilized Amount (RMB Million) | Expected Utilization Timeline | | :--- | :--- | :--- | :--- | | Establishment of New R&D Center in Jinjiang | 24.1 | 23.6 | By December 31, 2025 | | Establishment of New Manufacturing Workshop and Other Office Buildings in Jinjiang | 22.2 | 22.2 | By December 31, 2025 | | Total | 46.3 | 45.8 | | - The net proceeds of approximately RMB 68.0 Million from the placing completed in June 2021 have been fully utilized for the development of the Group's Hangzhou production base[50][79][215] Other Information This section covers additional corporate details, including human resources, corporate governance practices, and compliance with listing rules Human Resources As of the reporting period, the Group's total number of employees increased to 467, with corresponding staff costs rising from RMB 21.2 Million in the prior period to RMB 24.8 Million - As of June 30, 2023, the Group employed approximately 467 employees, an increase from approximately 401 employees in the prior period[87] - During the period, staff costs (including directors' emoluments) were approximately RMB 24.8 Million, compared to approximately RMB 21.2 Million in the prior period[87] Corporate Governance The company is committed to maintaining high corporate governance standards, complying with most Listing Rules code provisions, with a key deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Hong Yiyuan, an arrangement the Board believes ensures leadership consistency and decision-making efficiency, and the Audit Committee has reviewed the unaudited financial information for the period - The company has one deviation from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Hong Yiyuan, an arrangement the Board believes contributes to leadership consistency and decision-making efficiency[94][112] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial information for the period and considers its preparation to be in compliance with applicable accounting standards and Listing Rules requirements[96] - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[97]