Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,654,039 thousand, an increase of 8.9% compared to RMB 2,436,545 thousand in 2023[4] - Net profit for the same period was RMB 60,094 thousand, down 26.8% from RMB 82,095 thousand in 2023[4] - Gross profit for the six months was RMB 237,414 thousand, down from RMB 282,227 thousand in 2023[4] - Basic earnings per share decreased to RMB 0.04 from RMB 0.06 in 2023[11] - The company reported a total comprehensive income of RMB 59,735 thousand for the period, down from RMB 81,969 thousand in 2023[11] - The consolidated net profit attributable to the parent company's ordinary shareholders for the six months ended June 30, 2024, was RMB 60,094,000, a decrease of 26.8% compared to RMB 82,095,000 for the same period in 2023[33] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.04, down from RMB 0.06 in the same period of 2023, reflecting a decline of 33.3%[33] - Gross profit decreased by 15.9% to RMB 237.4 million, with a gross margin of 8.9%, down from 11.6% in 2023[92] - Net profit fell by 26.8% to RMB 60.1 million, resulting in a net margin of 2.3%, down from 3.4% in the previous year[92] Revenue Breakdown - The revenue from processed chicken products was RMB 1,416,599 thousand, up 15.2% from RMB 1,229,476 thousand in 2023[20] - Revenue from external customers in mainland China was RMB 1,888,286 thousand, an increase of 5.0% from RMB 1,798,740 thousand in 2023[21] - Revenue from the sale of fresh chicken products grew by 6.3% to RMB 1,153.1 million, accounting for 43.4% of the total revenue[67] - The collective procurement business generated revenue of RMB 646.3 million, a 26.4% increase year-on-year, accounting for 24.4% of total revenue[75] - Export business revenue rose by 20.1% to RMB 765.8 million, representing 28.9% of total revenue[77] - Retail business revenue decreased by 12.6% to RMB 202.2 million, accounting for 7.6% of total revenue[80] Sales Volume - Sales volume of processed broiler chickens increased by 20.8% to 192.1 million kg from 159.0 million kg in 2023[2] - The sales volume of fresh chicken products rose by 23.6% to 131.5 million kg compared to 106.4 million kg in 2023[2] - The sales volume of chicks decreased significantly by 71.7% to 4.0 million from 14.2 million in 2023[2] - The company reported a 20.1% increase in sales volume of processed chicken products to 73.0 million kg for the six months ended June 30, 2024, compared to 60.8 million kg for the same period in 2023[66] - For the six months ending June 30, 2024, the sales volume of fresh chicken products increased by 23.6% to 131.5 million kg, compared to 106.4 million kg for the same period in 2023[67] - The sales volume of chicks decreased by 71.7% to 4.0 million, with revenue dropping 73.9% to RMB 9.7 million, representing 0.4% of total revenue[69] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 5,077,452 thousand, slightly up from RMB 5,057,066 thousand at the end of 2023[12] - The company's total liabilities decreased to RMB 1,989,310 thousand as of June 30, 2024, from RMB 2,025,170 thousand at the end of 2023, representing a reduction of 1.8%[20] - The total current liabilities as of June 30, 2024, were RMB 1,455,965 thousand, a slight decrease of 2.4% from RMB 1,492,166 thousand at the end of 2023[20] - The total borrowings as of June 30, 2024, increased to RMB 1,142,039 thousand from RMB 984,045 thousand as of December 31, 2023[57] - The capital debt ratio was 37.0% and the asset-liability ratio was 39.2% as of June 30, 2024, compared to 38.7% and 40.0% respectively as of December 31, 2023[103] Operational Efficiency - The company continues to focus on refined management and efficiency improvements across all segments to enhance operational performance[82] - The company aims to enhance operational efficiency and achieve stable, high-quality growth through refined management practices and market expansion strategies[84] - The focus for the second half of 2024 includes leveraging digital tools for effective tracking and analysis of operational indicators[88] - The company plans to strengthen its channel layout and expand market share by enhancing its comprehensive business capabilities with key customers[88] - Management expenses increased by 17.1% to RMB 62.0 million, attributed to the implementation of incentive mechanisms and rising employee compensation[96] - Sales expenses decreased by 6.8% to RMB 79.0 million, reflecting improved efficiency in new retail business investments[97] - R&D expenses declined by 6.3% to RMB 12.3 million, due to optimization of product development structure and integration of projects[98] Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code as of June 30, 2024[132] - The audit committee, consisting of independent non-executive directors, reviewed the interim results and confirmed compliance with applicable accounting standards[138] - The company will continue to review and monitor its corporate governance practices to ensure compliance[132] - The company has not entered into any related party transactions requiring disclosure under Chapter 14A of the Listing Rules during the reporting period[131] Future Plans and Developments - The company is in the preparatory stage for its proposed initial public offering of A-shares, having appointed Huatai United Securities as the pre-listing advisory firm[112] - The company aims to ensure compliance with the public float requirements to facilitate the resumption of trading of its H-shares, effective July 31, 2024[120] - The company has taken appropriate measures to restore its public float in a practical manner to expedite the resumption of H-share trading[118] - The company plans to amend its articles of association to reflect changes in its business scope and comply with the latest amendments to the Company Law of the People's Republic of China, effective July 1, 2024[122] - The company proposed amendments to the 2021 and 2023 share incentive plans, including allowing rewards to be granted in new H-shares and/or existing H-shares[125] - A total of 2,955,968 reward shares were newly granted under the 2023 share incentive plan, replacing unvested shares from the 2021 plan, which will partially be satisfied through the issuance of 730,000 new H-shares[127] Market Conditions - The domestic pork price increase trend is expected to create space for a rebound in chicken prices[108]
凤祥股份(09977) - 2024 - 中期业绩