Financial Performance - The Group's total revenue for the first half of 2023 was approximately RMB708.08 million, representing a year-on-year increase of 11.25% from RMB636.43 million in the same period of 2022[41]. - The gross profit for the Group in the first half of 2023 was approximately RMB164.10 million, with a gross profit margin of 23.18%, compared to RMB143.45 million and a margin of 22.54% in the same period of 2022[41]. - Operating profit increased to RMB98,546,648 from RMB74,653,780, representing a growth of 32.0%[161]. - Profit attributable to owners of the Company for the period was RMB69,501,507, compared to RMB41,630,615 in the previous year, marking a significant increase of 67.0%[161]. - Total comprehensive income for the period was RMB68,390,164, up from RMB36,667,290, indicating strong overall performance[161]. Trade Receivables and Impairment - As of June 30, 2023, the provision for impairment loss for trade receivables was approximately RMB13.79 million, an increase from RMB8.14 million as of December 31, 2022[15]. - Approximately 97% of trade receivables were payable by HBIS and HBIS Group as of June 30, 2023, consistent with the figure from December 31, 2022[15]. - The management believes that the inherent credit risk of the Group's unsettled trade receivables balance is insignificant due to a sound history of receivables[15]. - The Group has made an impairment provision for trade receivables in accordance with the principle of prudence[15]. - The Group's management evaluated forward-looking information and concluded that there is no significant increase in credit risk[15]. Liquidity and Financial Position - As of June 30, 2023, the total cash and bank balances were approximately RMB301.39 million, down from RMB360.74 million as of December 31, 2022[136]. - The Group's bank and other borrowings amounted to approximately RMB618.72 million as of June 30, 2023, compared to RMB585.79 million as of December 31, 2022[136]. - The gearing ratio was approximately 42.55% as of June 30, 2023, slightly up from 42.27% as of December 31, 2022[136]. - The Group aims to maintain an appropriate level of current assets to satisfy its liquidity needs, with expected cash flow from operations to meet future demands[31]. - The Group's liquidity risk is managed through regular monitoring of cash flow and bank positions, ensuring it can meet short-term and long-term liquidity needs[31]. Investments and Capital Commitments - As of June 30, 2023, the Group's total capital commitments amounted to approximately RMB129.05 million, compared to RMB126.13 million as of December 31, 2022, primarily for the purchase of property, plant, and equipment[38]. - The Group has utilized RMB246,950,000 of the IPO proceeds, representing approximately 83.0% of the total, with RMB50,553,000 remaining unutilized, which is about 17.0%[26]. - There were no significant investments, acquisitions, or disposals during the reporting period[37]. - The Group plans to actively develop noble gas and special gas products to enhance its market share in electronic special gas products[43]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the Reporting Period[88]. - The Company is committed to maintaining high standards of corporate governance to safeguard the interests of shareholders[87]. - The Audit Committee has maintained thorough discussions with the Auditor regarding the Audit Qualifications and Review Qualifications, with no disagreements noted[79]. - The Company has adopted a code of conduct regarding directors' securities transactions that meets or exceeds the required standards[89]. Auditor's Opinion and Investigations - The Company acknowledged the qualified opinion issued by the Auditor regarding the write-off of three overdue loan receivables totaling RMB50,000,000, RMB53,522,000, and RMB14,478,000[59]. - The Auditor issued a qualified review conclusion on the Company's unaudited interim condensed consolidated financial statements for the six months ended 30 June 2023, affecting the comparability of figures with the previous year[70]. - The Independent Investigation was completed in March 2022, revealing key findings that impacted the financial statements preparation for the year ended December 31, 2020[185]. - The investigation included a review of internal control policies and procedures related to transactions, with interviews conducted with relevant personnel to assess the business rationale behind the transactions[183]. Future Outlook and Strategic Initiatives - The industrial gas industry in China is expected to grow steadily, driven by national policies and foreign investment, with a projected increase in industrial gas consumption over the next five years[43]. - The Group's future outlook includes potential expansions and investments in new technologies related to industrial gases[175]. - The Group is engaged in strategic initiatives to enhance its market presence and operational efficiency in the industrial gas sector[175]. Share Option Scheme - The Share Option Scheme was adopted on June 17, 2020, and is effective for a period of 10 years from December 29, 2020[115]. - The total number of shares that may be issued under the Share Option Scheme shall not exceed 10% of the shares in issue as at the Listing Date, which is capped at 120,000,000 shares[119]. - No options were granted under the Share Option Scheme since its adoption, and there were no outstanding share options as of June 30, 2022[126].
CGII HLDGS(01940) - 2023 - 中期财报