Financial Performance - For the first half of 2021, China Kangda Food Company reported a loss attributable to shareholders of approximately RMB 39.8 million, compared to a loss of RMB 1.6 million in the same period of 2020[13]. - Revenue increased by 3.0% from approximately RMB 702.5 million in the first half of 2020 to approximately RMB 723.3 million in the first half of 2021, driven by a recovery in consumer demand[13]. - Gross profit margin decreased from 8.5% in the first half of 2020 to 4.8% in the first half of 2021, resulting in a gross profit reduction of RMB 25.7 million to RMB 34.4 million[13]. - The company reported a loss of RMB 40.6 million for the six months ended June 30, 2021, compared to a loss of RMB 1.7 million for the same period in 2020[38]. - Basic loss per share for the six months ended June 30, 2021, was RMB 9.2, compared to RMB 0.38 for the same period in 2020[38]. - The company reported a loss of RMB 39,841 thousand for the period, compared to a loss of RMB 1,624 thousand in the previous period, indicating a significant increase in losses[41]. - The total comprehensive loss for the period was RMB 39,920 thousand, compared to a total comprehensive loss of RMB 1,987 thousand in the previous period[41]. Revenue Breakdown - Revenue from processed foods increased by 17.7% to approximately RMB 347.5 million, contributing 48.0% of total revenue[16]. - Revenue from frozen chicken decreased by 30.4% to approximately RMB 158.5 million, primarily due to rising feed costs and market price fluctuations[17]. - Revenue from frozen rabbit meat surged by 47.6% to approximately RMB 103.9 million, attributed to the development of new customers[18]. - Revenue from other products, including pet food and by-products, increased by 4.0% to RMB 113.4 million, benefiting from new sales channels in Europe[19]. - Revenue from the Chinese market grew by 5.4% to RMB 472.9 million, while export revenue slightly decreased by 1.4% to RMB 250.4 million[20]. Cost and Expenses - Overall gross profit margin decreased from 8.5% to 4.8%, with processed foods' gross margin dropping to 6.3% due to rising raw material costs[23]. - The gross margin for frozen chicken plummeted by 10.5 percentage points to -4.5%, influenced by increased feed costs and production expenses[23]. - The gross margin for frozen rabbit meat improved to 6.0%, reflecting better sales performance[23]. - Administrative expenses increased by RMB 2.2 million due to higher foreign exchange losses and increased travel expenses in the first half of 2021[24]. - Other operating expenses rose to RMB 15.1 million, up RMB 11.2 million from RMB 3.9 million in the first half of 2020, primarily due to depreciation of investment properties[24]. - The total cost of goods sold for the six months ended June 30, 2021, was RMB 580,590,000, an increase from RMB 529,670,000 in the same period of 2020, reflecting a rise of approximately 9.6%[63]. Assets and Liabilities - As of June 30, 2021, property, plant, and equipment decreased by 5.9% to approximately RMB 398.2 million, attributed to depreciation and the sale of breeding farms[24]. - Trade receivables increased by RMB 57.8 million to approximately RMB 144.4 million, mainly due to the recovery of more trade receivables at the end of 2020[24]. - Trade payables increased by 20.1% to approximately RMB 178.4 million, primarily due to a slowdown in settling trade payables during the period[27]. - The company's cash and cash equivalents decreased to approximately RMB 123.1 million from RMB 208.8 million as of December 31, 2020[27]. - The asset-liability ratio as of June 30, 2021, was 69.2%, up from 67.8% as of December 31, 2020[27]. - The company's net assets decreased to RMB 594,575 thousand from RMB 635,249 thousand, a decline of about 6.4%[40]. Strategic Focus and Future Plans - The company plans to continue optimizing its product mix, enhancing cost management, and expanding new sales channels to strengthen its core capabilities and improve overall performance[13]. - The company is focused on high-value-added processed foods and aims to maintain strong relationships with key customers while actively developing new markets and clients[13]. - The company aims to maintain a robust capital structure to lower capital costs and support future business expansion[27]. - The company plans to continue its focus on the production and sale of food products, including poultry and rabbit meat, as part of its core business strategy[46]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions as of June 30, 2021, except for the separation of the roles of Chairman and CEO[32]. - The company has adopted the standard code for securities transactions by directors as per the listing rules[36]. - The company did not recommend any interim dividend for the first half of 2021, consistent with the same period in 2020[28]. Market and Industry Insights - The company believes that the demand for rabbit meat will steadily increase as living standards rise and more consumers prefer nutritious food options[13]. - The company has established a complete industry chain for rabbit meat, from breeding to processing, and is one of the eight companies in China authorized to export rabbit meat to overseas markets[13].

Financial Performance - For the fiscal year 2020, China Kangda Food Company Limited reported revenue of RMB 1,520.8 million, an increase of 7.8% from RMB 1,410.5 million in 2019[24] - The gross profit for the fiscal year 2020 was RMB 115.6 million, reflecting an increase of 8.4% compared to RMB 106.6 million in 2019[24] - The company recorded a net loss attributable to shareholders of RMB 36.1 million for the fiscal year 2020, a decline from a profit of RMB 4.4 million in 2019[25] - The basic loss per share for 2020 was RMB (8.33), compared to earnings of RMB 1.01 per share in 2019[8] - The gross margin for the fiscal year 2020 remained stable at 7.6%, consistent with the previous year[24] - Revenue for the fiscal year 2020 increased by 7.8% to approximately RMB 1,520.8 million from RMB 1,410.5 million in fiscal year 2019[47] - Gross profit rose by 8.4% to RMB 115.6 million, maintaining a gross margin of 7.6% for both fiscal years[47] - The company recorded a loss attributable to owners of RMB 36.1 million in fiscal year 2020, compared to a profit of RMB 4.4 million in fiscal year 2019, primarily due to a decline in chicken market prices and impairment losses[47] Revenue Sources - The company’s main revenue source in 2020 was processed foods, contributing RMB 649.8 million, which accounted for 42.73% of total revenue[12] - Revenue from processed foods decreased by 14.6% to approximately RMB 649.8 million, impacted by reduced demand in food service channels due to COVID-19[49] - Revenue from chilled and frozen chicken increased by 45.3% to approximately RMB 487.4 million, driven by increased demand as a substitute for pork[51] - Revenue from chilled and frozen rabbit meat rose by 5.7% to approximately RMB 166.5 million, benefiting from new customer development[52] - Revenue from other products increased by 38.7% to RMB 217.1 million, largely due to growth in pet food exports and new sales channels in Korea and Europe[53] - Domestic sales revenue increased by 13.8% to RMB 914.1 million, attributed to new product and customer development[54] Operational Challenges - The company faced challenges due to a decline in chicken market prices, resulting in a loss of RMB 4.2 million from the fair value adjustment of biological assets[25] - The COVID-19 pandemic has caused short-term operational impacts, including temporary transportation restrictions and raw material shortages, but the company has implemented strict control measures to ensure employee health and business continuity[27] Strategic Focus - The company focuses on high-value processed foods to maintain profitability and enhance competitiveness amid low growth rates and increased competition in the food industry[27] - The rabbit meat segment remains a core and competitive business, with the company being one of eight enterprises in China authorized to export rabbit meat[28] - The company anticipates a steady increase in demand for rabbit meat as consumer preferences shift towards healthier and more nutritious food options[28] - The company plans to optimize its product mix, strengthen cost management, and expand new sales channels to enhance overall performance[28] Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[40] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on expanding the product line in the health food sector[40] - Market expansion plans include entering two new provinces in China, targeting a potential market size of HKD 300 million[40] - The company is considering strategic acquisitions to enhance its market position, with a budget of HKD 100 million allocated for potential deals[40] - A new marketing strategy will be implemented, focusing on digital channels, with an expected increase in marketing spend by 25%[40] Governance and Management - The board of directors has approved a dividend payout of HKD 0.10 per share, reflecting a commitment to returning value to shareholders[40] - The board of directors meets at least four times a year to ensure proper governance and oversight of the company's operations[95] - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[97] - The roles of the chairman and CEO are distinct, although the current chairman also serves as CEO, which the board believes provides strong leadership[100] - The company has a shareholder communication policy to maintain effective communication with shareholders and encourage their participation in meetings[102] Risk Management and Internal Controls - The board is responsible for the risk management and internal control systems, which are regularly evaluated for effectiveness and compliance[143] - The internal audit function has been outsourced to an external firm, ensuring independent oversight of the company's internal controls[143] - The company has established a risk management framework to oversee financial, operational, and compliance risks[184] - The audit committee is tasked with monitoring the relationship with the external auditor and ensuring adequate resources are available to fulfill its responsibilities[154] Compensation and Remuneration - The remuneration committee has consulted the chairman regarding the compensation of other executive directors, ensuring compliance with governance standards[130] - The company has disclosed the remuneration details of senior management in its annual report, categorized by salary levels[130] - The compensation policy aims to provide appropriate rewards to directors to encourage performance improvement and fairly reward individual contributions to the company's success[192] - Total remuneration payable to senior management (excluding directors) amounted to RMB 2,680,000 for the fiscal year 2020[194] - No performance bonuses were recommended for the fiscal year 2020 as the target profit was not achieved[192]

Company Overview - China Kangda Food Company Limited is a major manufacturer and exporter of rabbit meat products, with significant exports to the European Union and operations in over 30 countries[5]. - The company has established a strong distribution network across 26 provinces in China and has expanded its product offerings to include processed foods such as instant soups and curry products[5]. - The company is recognized as one of the largest rabbit meat exporters in China and has received certification for rabbit breeding practices, enhancing its market position[5]. Financial Performance - The company reported a loss attributable to owners of approximately RMB 1.624 million for the first half of 2020, compared to a profit of approximately RMB 4.798 million for the same period in 2019, indicating a significant decline in performance[10]. - Revenue increased by 4.0% from approximately RMB 675.3 million in the first half of 2019 to approximately RMB 702.5 million in the first half of 2020, driven by growing export orders[10]. - Gross profit increased by RMB 7.1 million to RMB 60.1 million, with gross margin rising from 7.8% in the first half of 2019 to 8.5% in the first half of 2020[10]. - Revenue from processed foods decreased by 18.2% to approximately RMB 295.2 million due to negative impacts on demand from food service channels during COVID-19[15]. - Revenue from chilled and frozen chicken increased by 48.0% to approximately RMB 227.9 million, attributed to chicken being a staple food and a substitute for rising pork prices[17]. - Revenue from other products, mainly pet food and feed products, increased by 40.2% to RMB 109.0 million, largely due to new sales channels developed in Korea and Europe[18]. - Export sales revenue increased by 47.7% to RMB 254.0 million, as overseas customers shifted orders to China amid the pandemic[19]. - Revenue from China decreased by 10.9% to RMB 448.6 million, impacted by transportation restrictions during COVID-19[19]. Cost Management and Expenses - The company plans to optimize its product mix, strengthen cost management, and expand new sales channels to enhance overall performance[10]. - Administrative expenses decreased due to cost control measures and reduced travel expenses during the COVID-19 pandemic[21]. - Financing costs decreased by 26.1% to approximately RMB 10.5 million, primarily due to a reduction in the average balance of bank borrowings[21]. - Total employee costs, including director remuneration, were approximately RMB 94.1 million during the review period, down from RMB 101.2 million for the six months ended June 30, 2019[27]. - The financing costs for the six months ended June 30, 2020, were RMB 10,478,000, a decrease from RMB 14,185,000 in the same period of 2019, indicating a reduction of approximately 26.0%[60]. Assets and Liabilities - As of June 30, 2020, the company's net asset value was approximately RMB 668.6 million, a slight decrease from RMB 670.7 million as of December 31, 2019[24]. - Cash and cash equivalents increased to approximately RMB 220.7 million, up from RMB 159.5 million as of December 31, 2019, mainly due to increased revenue[24]. - Trade payables and notes increased by 18.0% to approximately RMB 242.6 million, attributed to a slowdown in settling trade payables during the period[24]. - The company's total interest-bearing bank borrowings decreased by RMB 19.0 million to approximately RMB 315.0 million as of June 30, 2020, with interest rates ranging from 4.79% to 5.655%[24]. - The company's asset-liability ratio was 68.6% as of June 30, 2020, compared to 69.7% as of December 31, 2019[24]. Shareholder Information - Major shareholder Dingxi Limited holds 324,708,066 shares, representing approximately 75.00% of the issued share capital as of June 30, 2020[33]. - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[35]. Corporate Governance - The company has complied with all corporate governance code provisions as of June 30, 2020, except for certain deviations noted during the period from June 18, 2020, to August 23, 2020[31]. - The company believes that the dual roles of Chairman and CEO held by Fang Yu provide strong and effective leadership for business planning and decision-making[31]. - The company aims to separate the roles of Chairman and CEO when suitable candidates are identified in the future[31]. Operational Highlights - The company operates primarily in the production and sale of food products, including poultry and rabbit meat, with a focus on the Chinese market[50]. - The company’s main business segments include processed food production, chilled and frozen chicken, chilled and frozen rabbit meat, and other products[55]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2020, was RMB 70,955 thousand, compared to a net cash used of RMB 47,178 thousand in the same period of 2019, representing a significant improvement[47]. - The company reported a decrease in cash flow from investment activities, with cash inflow of RMB 8,880 thousand compared to an outflow of RMB 7,548 thousand in the previous year[47]. - The total cash inflow from financing activities was RMB 1,332 thousand, a significant decrease from RMB 128,191 thousand in the same period of 2019[47]. Revenue Breakdown - The revenue from processed food segment was RMB 295,216,000, while the revenue from frozen chicken was RMB 227,941,000, and frozen rabbit meat was RMB 70,378,000 for the six months ended June 30, 2020[56]. - The company recognized a total of RMB 7,923,000 in other income for the six months ended June 30, 2020, compared to RMB 32,316,000 in the same period of 2019, indicating a significant decrease[58]. Accounts Receivable and Payable - Trade receivables increased by RMB 9.7 million to approximately RMB 124.3 million, in line with increased sales[21]. - The total accounts payable and notes payable reached RMB 242,622,000 as of June 30, 2020, an increase of 18.0% from RMB 205,545,000 as of December 31, 2019[70]. - Accounts payable within 60 days amounted to RMB 133,477,000, an increase of 11.9% from RMB 119,347,000 in the previous period[70].

KONDE康大 CHINA KANGDA FOOD COMPANY LIMITED 中國康大食品有限公司 | --- | --- | --- | |-------|--------------------------------------------------|-------| | | 中國康大食品有限公司 | | | | | | | | CHINA KANGDA FOOD COMPANY LIMITED | | | | (incorporated in Bermuda with limited liability) | | Singapore stock code : P74 Hong Kong stock code : 834 Annual Report 2019 Lawn to Table Eating The Whole Industry Chain Provide Safe and Healthy Lifestyle ANNUAL REPORT 2019 年報 中國康大食品有限公司 CHINA KANGDA FOOD COMPANY LIMITED （於百慕達註冊成立之有限公司） 新加坡股份代碼 ...

全產業鏈 從基地到餐桌 提供安全和健康的生活方式 Lawn To Table Eating Provide Safe and Healthy Lifestyle The Whole Industry Chain Singapore stock code : P74 Hong Kong stock code : 834 Interim Report 2019 KONDミ康大 中國康大食品有限公司 CHINA KANGDA FOOD COMPANY LIMITED （於百慕達註冊成立之有限公司） 中國康大食品有限公司 CHINA KANGDA FOOD COMPANY LIMITED (incorporated in Bermuda with limited liability) 新加坡股份代碼 : P74 香港股票代碼 : 834 中期報告2019 目錄 1 中國康大食品有限公司 二零一九年中期報告 目錄 | --- | --- | |-------|------------------------------| | | | | 2 | 公司簡介 | | 3 | 公司資料 | | 4 | 管理層討論與分析 | ...

Financial Performance - In the fiscal year 2018, the company recorded revenue of RMB 1,403.7 million, an increase of 5.1% from RMB 1,335.7 million in 2017[25]. - The gross profit for 2018 was RMB 121.4 million, representing a 10.1% increase compared to RMB 110.2 million in 2017[15]. - The net profit attributable to shareholders was RMB 5.7 million, a significant recovery from a loss of RMB 15.8 million in 2017[25]. - The basic earnings per share for 2018 was RMB 1.3, compared to a loss of RMB 3.7 per share in 2017[14]. - Total revenue for the fiscal year 2018 was RMB 1,403,673,000, reflecting a 5.1% increase compared to RMB 1,335,667,000 in 2017[52]. - Sales revenue increased by 5.1% from approximately RMB 1,335,700,000 to RMB 1,403,700,000 in fiscal year 2018[46]. - Gross profit rose by 10.1% to RMB 121,400,000, with the gross profit margin increasing from 8.3% in fiscal year 2017 to 8.6% in fiscal year 2018[46]. - The overall gross profit margin improved slightly from 8.3% in 2017 to 8.6% in 2018, driven by increased prices and demand for high-value processed chicken products[58]. Revenue Sources - Processed food remained the main source of profit, contributing RMB 807.2 million or 57.51% of total revenue in 2018[17]. - Revenue from the production and sale of frozen and chilled chicken products increased by 18.3% to RMB 318,100,000, driven by increased demand due to the swine fever epidemic[48]. - Revenue from processed food products rose by 16.8% to RMB 807,200,000, benefiting from higher demand for chicken and related products[48]. - Revenue from refrigerated and frozen chicken meat rose by 18.3% to RMB 318,053,000, driven by increased demand for chicken products due to the impact of swine fever[54]. - Revenue from sales in China grew by 5.2% to RMB 745,816,000 in the fiscal year 2018[57]. - Export sales revenue increased by 4.9% to RMB 657,857,000, mainly due to the depreciation of RMB and higher demand for chicken products from European and Japanese customers[56]. Operational Strategy - The company continues to adopt a prudent operating strategy to enhance performance and manage costs effectively[46]. - The company aims for sustainable growth and global leadership through a relentless pursuit of strategic initiatives[26]. - The company will focus on product differentiation and developing sales channels in the coming years[27]. - The R&D team will leverage its capabilities in high-value processed foods, health, and biological products[27]. - The company aims to reduce costs by divesting underperforming businesses to ensure sufficient cash resources for current and future cash flow needs[27]. - Resources will be reallocated to working capital or invested in projects that enhance overall profitability[27]. Financial Position - As of December 31, 2018, the group's property, plant, and equipment decreased by 9.4% to approximately RMB 677,600,000, primarily due to depreciation and the sale of assets[65]. - Inventory decreased by 27.0% to approximately RMB 124,900,000, attributed to improved market conditions and increased sales[69]. - Trade receivables increased by 25.1% to approximately RMB 122,700,000, mainly due to higher sales during the year[69]. - Cash and cash equivalents increased by approximately 57.7% to about RMB 588,000,000, with RMB 291,100,000 of bank deposits pledged against trade payables[69]. - Trade payables increased by 92.4% to approximately RMB 507,200,000, primarily due to the increase in pledged bank deposits[70]. - The group's net asset value as of December 31, 2018, was approximately RMB 665,100,000, with total assets of RMB 1,763,900,000[72]. - The current ratio improved, with current liabilities netting approximately RMB 178,200,000, down from RMB 232,900,000 in the previous year[72]. - The debt-to-asset ratio was 69.2%, a significant decrease from 93.7% in the previous year, indicating improved financial stability[75]. Governance and Management - The company has established a clear distinction between the roles of the Chairman and the CEO, with Mr. Fang Yu serving in both capacities to provide strong leadership and effective business decision-making[99]. - All directors are encouraged to actively participate in board matters, ensuring that diverse opinions are considered and discussed during meetings[107]. - The company has implemented a governance policy that requires all directors to be re-elected at least every three years, ensuring accountability and transparency[117]. - The company has maintained a balanced composition of executive and non-executive directors, including independent non-executive directors, to facilitate independent judgment[113]. - The company has established a shareholder communication policy to ensure effective engagement with shareholders and encourage their participation in meetings[107]. - The board has established written guidelines regarding employee trading of the company's securities, adhering to the standards set forth in the listing rules[126]. - The company has provided new directors with comprehensive onboarding materials regarding their responsibilities and relevant regulations[123]. - The board is committed to ensuring that all directors dedicate sufficient time and attention to the company's affairs[124]. Risk Management - The board evaluates and determines the nature and extent of risks acceptable to achieve strategic goals, ensuring effective risk management and internal control systems are in place[150]. - The board conducts an annual review of the risk management and internal control systems, covering all significant monitoring aspects, including financial, operational, and compliance controls[152]. - The company has established procedures for identifying, assessing, and managing significant risks, ensuring accountability at the board level[157]. - The internal control and risk management systems are deemed effective as of December 31, 2018[195]. - The company has outsourced its internal audit function to an external auditor, ensuring adequate resources for effective performance[159]. Audit and Compliance - The Audit Committee is responsible for specific duties as outlined in the corporate governance report, which includes reviewing financial reporting and internal controls[164]. - The audit committee's meeting records are maintained by the company secretary, ensuring transparency and proper documentation[162]. - All audit committee members during the review year were not former partners of the external auditor, maintaining independence[162]. - The company ensures compliance with financial reporting and listing rules, maintaining effective operational procedures[155]. - The company is committed to ensuring financial statements reflect a true and fair view of its condition according to International Financial Reporting Standards[200].