Summary by Futu AI
Net Group (02147.HK) released the interim financial report for the six months ended June 30, 2024. The report shows that the company's revenue increased by 55.5% compared to the same period last year, reaching approximately RMB 298.1 million, but the gross margin dropped significantly by 98.3% to approximately RMB 1.1 million. The net loss for the period was approximately RMB 40.6 million, compared to the net profit of approximately RMB 29.7 million for the same period last year, with the gross margin also decreasing from 33.7% to 0.36%. The company stated that the increase in revenue was mainly due to higher sales of dried delicacies, seasonings, and other products, while the decrease in gross margin and gross margin rate was mainly due to an increase in direct material costs. In addition, the company completed a placement on May 14, 2024, issuing 160,000,000 new shares, with net proceeds of approximately HKD 20.8 million. As of June 30, 2024, the total number of issued shares by the company was 960,000,000 shares.
