Revenue Performance - Revenue from sales of heavy truck decorative components decreased from approximately RMB104.8 million for the six months ended June 30, 2023, to approximately RMB90.9 million for the six months ended June 30, 2024, representing a decrease of approximately 13.2%[12] - Revenue from sales of passenger vehicle decorative components decreased from approximately RMB11.3 million for the six months ended June 30, 2023, to approximately RMB7.5 million for the six months ended June 30, 2024, representing a decrease of approximately 33.6%[13] - Revenue decreased from approximately RMB116.2 million for the six months ended 30 June 2023 to approximately RMB98.5 million for the six months ended 30 June 2024, representing a decrease of approximately 15.2%[17] - Total revenue from contracts with customers for the six months ended June 30, 2024, was RMB 98,461,000, down from RMB 116,154,000 in the same period of 2023, representing a decline of 15.2%[92] - Revenue from sales of heavy trucks' decorative components and parts for the six months ended June 30, 2024, was RMB 90,942,000, a decrease of 13.3% compared to RMB 104,832,000 for the same period in 2023[92] - Revenue from sales of passenger vehicles' decorative components and parts for the six months ended June 30, 2024, was RMB 7,519,000, a decrease of 33.3% compared to RMB 11,322,000 for the same period in 2023[92] Profitability and Margins - Gross profit decreased from approximately RMB23.8 million for the six months ended June 30, 2023, to approximately RMB15.8 million for the six months ended June 30, 2024, representing a decrease of approximately 33.5%[14] - Overall gross profit margin decreased from approximately 20.5% for the six months ended June 30, 2023, to approximately 16.0% for the six months ended June 30, 2024[14] - Loss from operations was RMB 1,609,000, compared to a profit of RMB 1,279,000 for the same period in 2023[71] - Loss attributable to equity shareholders for the period was RMB 3,676,000, an increase of 24.4% from RMB 2,956,000 in 2023[72] - Total comprehensive income for the period ended June 30, 2024, was RMB (3,608,000), reflecting a decrease from RMB (2,645,000) in the previous year[78] Operational Challenges - The decrease in revenue was attributed to a decrease in sales volume in the heavy truck engine market and a shift of customers from outsourcing production to self-production[13][15] - The company is facing significant operational pressure amidst keen industry competition and slowed domestic consumption growth[10] - The company has not yet achieved mass production of newly developed products, impacting revenue from passenger vehicle components[13] Expenses and Cost Management - Selling and distribution expenses decreased from approximately RMB4.5 million to approximately RMB1.7 million, a decrease of approximately 62.6%[21] - Administrative expenses decreased from approximately RMB17.4 million to approximately RMB15.2 million, representing a decrease of approximately 12.6%[23] - Finance costs decreased from approximately RMB4.7 million to approximately RMB3.4 million, a decrease of approximately 27.7%[24] - Research and development costs for the six months ended June 30, 2024, were RMB 3,328,000, down from RMB 6,373,000 in 2023, indicating a reduction of 47.8%[106] - Depreciation and amortization expenses for the six months ended June 30, 2024, were RMB 16,232,000, slightly down from RMB 16,820,000 in 2023[106] Financial Position - Cash and cash equivalents as of 30 June 2024 were approximately RMB50.3 million, down from RMB67.5 million as of 31 December 2023[29] - Current assets decreased to RMB 325,441,000 from RMB 345,782,000 as of December 31, 2023[74] - Current liabilities increased to RMB 246,349,000 from RMB 264,911,000 as of December 31, 2023[75] - Net assets as of June 30, 2024, were RMB 241,838,000, down from RMB 245,446,000 as of December 31, 2023[75] - The balance of equity attributable to shareholders at June 30, 2024, was RMB 241,838,000, a decrease from RMB 245,446,000 at the beginning of the year[76] Capital Expenditures and Investments - Capital expenditures for the six months ended 30 June 2024 were approximately RMB9.23 million, compared to approximately RMB7.06 million for the same period in 2023[36] - The Group's capital commitments for properties, plants, and equipment amounted to approximately RMB 23.7 million as of June 30, 2024, compared to RMB 22.4 million as of December 31, 2023[41] - The Group had no significant investments or material acquisitions and disposals during the six months ended June 30, 2024[45] Corporate Governance and Compliance - The Group has committed to maintaining a higher standard of corporate governance and has complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024[54] - The Company has adopted the Model Code for Securities Transactions, confirming compliance by all Directors and senior management for the six months ended June 30, 2024[57] - The audit committee reviewed the accounting principles and policies, as well as internal control and financial reporting matters for the interim results for the six months ended June 30, 2024[68] Shareholder Information - Mr. Hou Jianli holds a long position of 1,500,000,000 shares, representing 75% of the Company's shareholding[61] - H&C Group Holding Limited, controlled by Mr. Hou Jianli and Ms. Chen Bierui, has a beneficial ownership of 1,500,000,000 shares, also representing 75%[65] - The entire issued share capital of H&C Group Holding Limited is owned 60% by Mr. Hou Jianli and 40% by Ms. Chen Bierui[65] Taxation - The subsidiaries in the PRC are subject to a corporate income tax rate of 25% for the six months ended June 30, 2024, consistent with the previous year[108] - Certain subsidiaries in the PRC enjoy a preferential corporate income tax rate of 15% due to approvals received under the Third Phase of the Western Region Development Plan, applicable from 2021 to 2030[108] - The Group's subsidiary Xi'an Tianrui is qualified as a High and New Technology Enterprise, allowing it to benefit from a preferential income tax rate of 15% from 2022 to 2024[108]
天瑞汽车内饰(06162) - 2024 - 中期财报