Financial Performance - Revenue for the six months ended December 31, 2021, was approximately RMB 90.6 million, a decrease of 24.6% compared to RMB 120.2 million for the same period in 2020[5] - Profit before tax dropped to RMB 2.7 million, down 68.6% from RMB 8.6 million in the previous year[5] - Shareholders' profit decreased by 77.8% to RMB 1.4 million from RMB 6.3 million year-on-year[5] - The operating profit for the group was approximately RMB 1,400,000, a decrease of about 88.0% compared to RMB 6,300,000 for the six months ended December 31, 2020, primarily due to increased distribution and operational costs[37] - The net profit attributable to the owners of the company for the six months ended December 31, 2021, was RMB 1,423,000, down 77.4% from RMB 6,307,000 in the same period of 2020[53] - Basic and diluted earnings per share for the six months ended December 31, 2021, were 0.06 cents, compared to 0.50 cents for the same period in 2020[53] - The segment performance for the planting business showed a profit of RMB 2,741,000, down 41.0% from RMB 4,653,000 in the previous year[78] - The fruit distribution business reported a segment profit of RMB 3,397,000, a decline of 55.1% from RMB 7,546,000 in the prior year[78] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 231.2 million, a decline of 13.2% from RMB 266.3 million as of June 30, 2021[6] - The total liabilities decreased significantly from RMB 51,797,000 to RMB 15,667,000, a reduction of 69.8%[78] - The company reported a total equity of RMB 215,543,000 as of December 31, 2021, slightly up from RMB 214,528,000 as of June 30, 2021[61] - Non-current assets increased to RMB 134,167,000 as of December 31, 2021, from RMB 72,886,000 as of June 30, 2021[59] - Current assets decreased to RMB 97,043,000 as of December 31, 2021, from RMB 193,439,000 as of June 30, 2021[59] Cash Flow and Expenditures - The net cash used in operating activities for the six months ended December 31, 2021, was RMB 39,685,000, compared to RMB 11,792,000 for the same period in 2020, indicating a significant increase in cash outflow[66] - Cash used in investing activities amounted to RMB 63,753,000 for the six months ended December 31, 2021, compared to RMB 4,946,000 in the previous year, reflecting increased investment expenditures[66] - The net decrease in cash and cash equivalents was RMB 103,438,000 for the six months ended December 31, 2021, compared to RMB 17,300,000 for the same period in 2020, highlighting a substantial decline in liquidity[66] - The company incurred RMB 51,171,000 in capital expenditures for property, plant, and equipment during the reporting period, a significant increase from RMB 215,000 in the previous year[66] Business Strategy and Market Outlook - The company is exploring strategies to expand its business by sourcing new fruit varieties from overseas to import into China[11] - The establishment of a fruit distribution center is planned to enhance distribution processing and storage capacity following the acquisition of land and properties[13] - The company remains optimistic about the market penetration of its brand "Royalstar" despite ongoing challenges from the COVID-19 pandemic and global logistics issues[11] - The current economic environment is expected to continue affecting consumer demand for quality fruits, leading to potential temporary declines[11] - The company aims to implement cost control and productivity management processes to improve its planting techniques and operations[11] - The company aims to expand its fruit distribution network by acquiring new customers and establishing more supply agreements[22] - The company anticipates that the fruit planting and trading industry in China will recover in the second half of 2022 as the pandemic is expected to be controlled[18] Challenges and Risks - The ongoing COVID-19 pandemic continues to pose challenges, including increased cross-border import costs and unpredictable import regulations[20] - The group faces unprecedented challenges in the fruit distribution business due to the COVID-19 pandemic and global logistics issues[36] - The current economic environment is expected to continue affecting consumer demand for quality fruits, leading to potential temporary declines[11] Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules, with a deviation regarding the absence of a nomination committee due to the group's size and current development stage[151] - The company holds 7.17% of its issued share capital through a subsidiary owned by its chairman and CEO, Ng Ong Nee[133] - As of December 31, 2021, major shareholders include Mr. Gong Zemin with 419,298,000 shares (16.77%), Mr. Xu Guodian with 276,243,000 shares (11.05%), and Mr. Liu Peng with 221,981,000 shares (8.88%)[137] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors for the six months ending December 31, 2021[156] - Following the resignation of independent non-executive directors on December 30, 2021, the board is seeking suitable candidates to fill the vacancies within three months[158] Employee and Management Information - Employee costs decreased by approximately 21.6% to RMB 3,500,000, primarily due to a voluntary waiver of director remuneration and reduced accommodation expenses[29] - The remuneration for key management personnel for the six months ended December 31, 2021, was RMB 1,273,000, a decrease from RMB 1,963,000 in the same period of 2020[120] - The group has adopted a competitive compensation scheme to attract and retain talent, with 29 long-term employees as of December 31, 2021[46]
亚洲果业(00073) - 2022 - 中期财报