Revenue Performance - The Group's revenue increased by 4% to RMB186.5 million for the six months ended June 30, 2024, compared to RMB179.4 million in the same period of 2023[7]. - Revenue from the manufacturing and sales of wooden products rose by 4.2% to RMB185.4 million, accounting for 99.4% of total revenue[11]. - Revenue from renewable energy products was RMB1.1 million, representing 0.6% of total revenue, down from RMB1.5 million in 2023[11]. - The Group's revenue from wooden products increased by 4.2% to RMB185.4 million, representing 99.4% of total sales for the Period[14]. - Revenue from the renewable energy business decreased by 31.2% to approximately RMB1.1 million due to reduced demand in the domestic market[15]. - The Group's revenue for the six months ended June 30, 2024, was RMB 186,491,000, an increase from RMB 179,417,000 in the same period of 2023, representing a growth of approximately 6.0%[97]. - Sales of outdoor wooden products amounted to RMB 185,431,000, while sales of renewable energy products were RMB 1,060,000 for the same period[97]. - The revenue from the primary geographical market of Australasia was RMB 135,804,000, contributing significantly to the overall revenue[100]. Profitability and Loss - The gross profit margin decreased to 7.2% in 2024 from 12.1% in 2023, resulting in a gross profit of RMB13.4 million, down from RMB21.7 million[7]. - The Group recorded a loss of approximately RMB1.7 million for the Period, compared to a profit of RMB2.7 million in the previous year[22]. - Loss for the period was RMB 1,715,000, a decline from a profit of RMB 2,733,000 in the same period last year[76]. - The consolidated loss after taxation for the first half of 2024 was RMB 1,715,000, compared to a profit of RMB 2,733,000 in the same period of 2023[108]. - Loss before taxation for the six months ended June 30, 2024, was RMB 8,804,000, compared to RMB 3,052,000 in 2023, indicating a significant increase in losses[120]. Expenses and Costs - Selling and distribution expenses rose by 24.1% to RMB10.8 million, mainly due to increased shipping and other selling expenses[18]. - Administrative expenses decreased to RMB18.0 million, attributed to increased research and development costs and corporate expenses[22]. - Finance costs increased to approximately RMB8.8 million, mainly representing interest payments for bank loans[22]. - The cost of inventories for the six months ended June 30, 2024, was RMB 173,110,000, up from RMB 157,681,000 in 2023, reflecting an increase of 9.8%[121]. - Research and development costs decreased to RMB 960,000 in 2024 from RMB 2,637,000 in 2023, a reduction of 63.6%[121]. Financial Position - As of June 30, 2024, the Group had current assets of RMB475.3 million, with cash and cash equivalents at RMB13.6 million[22]. - Total current liabilities rose to RMB 247,525,000 from RMB 165,199,000, indicating an increase of 49.7%[77]. - Current assets increased to RMB 722,837,000, compared to RMB 515,109,000 at the end of 2023, representing a growth of 40.3%[77]. - Total equity as of June 30, 2024, was RMB 876,674, a slight increase from RMB 872,372 at the end of 2023, reflecting a growth of approximately 0.3%[78]. - The company’s retained profits as of June 30, 2024, were RMB 55,538, compared to RMB 62,752 as of June 30, 2023, indicating a decrease of about 11.5%[80]. Shareholder Information - Mr. Wu Zheyan holds a total of 10,695,407 shares, representing approximately 11.61% of the company's shareholding interest[43]. - Green Seas Capital Limited, wholly owned by Mr. Wu Zheyan, holds 8,992,948 shares, accounting for 9.76% of the total shares[46]. - Hong Kong Cheng Kun Holdings Limited owns 8,472,000 shares, which is 9.19% of the company's total shares[46]. - Hong Kong Guoyuan Group Capital Holdings Limited has a significant holding of 14,035,000 shares, representing 15.23%[46]. - Ms. Han Hong holds 9,965,390 shares, which is approximately 10.82% of the company's shareholding[48]. Corporate Governance and Compliance - The interim financial report is unaudited, with detailed financial statements provided in the report[2]. - The Group has complied with the Corporate Governance Code, except for provisions C.5.1 and D.1.2[61]. - The auditor's report on the financial statements for the year ended December 31, 2023, was unqualified, indicating no significant issues were raised[92]. - The financial statements for the year ended December 31, 2023, have been delivered to the Registrar of Companies as required by law[92]. Market and Economic Environment - The Group's customers remained conservative in purchasing due to global economic instability, impacting overall sales performance[11]. - Global GDP growth is expected to be around 2.8% in 2024 and 2025, with risks tilted to the downside due to geopolitical uncertainties[31]. - The management discussion highlights challenges in the market environment affecting sales strategies and future outlook[7]. Future Outlook and Strategies - The Group's performance in the first half of 2024 shows a positive trend, indicating potential for future growth in both product categories[97]. - Future strategies include exploring new markets and potential acquisitions to drive growth in both segments[102]. - The Group is focusing on expanding its manufacturing capabilities in both wooden and renewable energy products to enhance market presence[102]. Share Option and Award Schemes - The Share Option Scheme allows the Board to grant options to eligible participants, with a maximum of 10% of the total shares issued (100,000,000 shares) post-Global Offering[50]. - The Share Award Scheme permits the issuance of up to 20% of the total issued shares (741,200,400 shares), with a maximum of 2% awarded to any selected individual[54]. - The Group granted 3,900,000 Award Shares to 7 employees, representing approximately 4.23% of the total shares in issue, with a vesting period of 12 months[164]. - The Board resolved not to declare any interim dividend for the Period[61].
中科生物(01237) - 2024 - 中期财报