Financial Performance - For the six months ended June 30, 2023, the company reported a loss attributable to owners of approximately RMB 65 million, consistent with the loss of RMB 65 million for the same period in 2022[10]. - Revenue decreased by 2.3% from approximately RMB 809 million in the first half of 2022 to approximately RMB 791 million in the first half of 2023[10]. - For the six months ended June 30, 2023, total revenue decreased by 2.3% to RMB 790.6 million compared to RMB 809.0 million in the same period of 2022[21]. - Revenue for the six months ended June 30, 2023, was RMB 790,603 thousand, a decrease of 2.5% compared to RMB 809,010 thousand in the same period of 2022[66]. - The company reported a basic and diluted loss per share of RMB 1.5, unchanged from the previous year[66]. - The total comprehensive income for the period ended June 30, 2023, was a loss of RMB 6,623 thousand, compared to a loss of RMB 6,816 thousand for the same period in 2022[71]. Revenue Breakdown - Revenue from processed food increased by 14.1% to approximately RMB 387.9 million, contributing 49.1% of total revenue[14]. - Revenue from chilled and frozen chicken increased by 10.3% to approximately RMB 290.3 million, driven by increased market demand and higher chicken prices[16]. - Revenue from chilled and frozen rabbit meat surged by 31.2% to approximately RMB 100.7 million, reflecting a focus on processing to meet growing overseas market demand[19]. - Revenue from other products decreased significantly by 91.0% to RMB 11.7 million due to rising raw material prices and a reduction in production[20]. Cost and Profitability - Gross margin improved from 3.8% in the first half of 2022 to 6.0% in the first half of 2023 due to an increase in product selling prices[10]. - Overall gross profit increased by 55.6% to RMB 47.4 million, with gross margin rising from 3.8% to 6.0%[23]. - The gross margin for processed food decreased by 1.9 percentage points to 9.7% due to growth in low-margin domestic sales[24]. - The gross margin for frozen rabbit meat increased from 3.7% to 8.9%, benefiting from reduced transportation costs and a focus on processed rabbit meat[26]. - The cost of goods sold for the six months ended June 30, 2023, was RMB 647,819,000, down from RMB 677,029,000 in the same period of 2022[86]. Expenses and Liabilities - Selling and distribution expenses increased by RMB 5.8 million to approximately RMB 23.0 million, driven by higher advertising and promotional costs[29]. - Total administrative expenses increased to RMB 34,388,000 for the six months ended June 30, 2023, compared to RMB 31,148,000 in the same period of 2022[84]. - The company's total liabilities increased to approximately RMB 474.4 million as of June 30, 2023, compared to RMB 428.2 million as of December 31, 2022, reflecting a rise of about 10.5%[43]. - Current liabilities increased to RMB 889,022 thousand from RMB 713,173 thousand at the end of 2022, indicating a rise in short-term financial obligations[70]. Assets and Cash Flow - As of June 30, 2023, total property, plant, and equipment decreased by 13.7% to approximately RMB 288.6 million[34]. - The company's cash and cash equivalents increased to approximately RMB 215.5 million, up from RMB 197.9 million as of December 31, 2022, representing a growth of about 8.1%[42]. - The company reported an increase in cash and cash equivalents to RMB 215,476 thousand as of June 30, 2023, up from RMB 152,495 thousand at the end of June 2022, representing an increase of approximately 41.3%[73]. - The net cash generated from operating activities was RMB 172,915 thousand, compared to a net cash used of RMB 141,177 thousand in the same period of 2022[73]. Corporate Governance and Shareholder Information - The company did not declare any interim dividend for the first half of 2023, consistent with the previous year[49]. - As of June 30, 2023, the major shareholder, Dingxi Limited, held approximately 75.00% of the issued share capital, totaling 324,708,066 shares[56]. - The company has complied with all corporate governance code provisions as per the Hong Kong Stock Exchange rules, except for the separation of the roles of Chairman and CEO[54]. Market Environment and Future Plans - The external environment remains challenging due to trade protectionism and global economic downturn, but the company believes the impact on its essential consumer products will be limited[11]. - The company plans to increase investment in new product development, focusing on high-value-added processed foods to enhance competitiveness and market resilience[12]. - The company aims to optimize its product mix, strengthen cost management, and expand new sales channels to improve overall performance[12]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[66].
康大食品(00834) - 2023 - 中期财报