Financial Performance - Sales for the six months ended June 30, 2022, reached RMB 13,592,789, an increase of 19.5% compared to RMB 11,368,606 in the same period of 2021[12]. - Gross profit for the same period was RMB 3,065,607, resulting in a gross profit margin of 22.6%, down from 29.7% in 2021[12]. - Profit before tax increased to RMB 2,768,408, representing a growth of 9.4% from RMB 2,530,164 in the previous year[12]. - Profit attributable to owners of the parent was RMB 2,366,616, up from RMB 2,226,278, marking an increase of 6.3%[12]. - For the first half of 2022, the Group achieved sales revenue of approximately RMB 13.59 billion, representing a growth of 19.6% compared to the same period last year[27]. - Gross profit decreased by approximately 9.1% to about RMB 3.07 billion, primarily due to significant increases in production costs that could not be offset by sales price adjustments[27]. - The profit attributable to the owners of the parent company was approximately RMB 2.37 billion, an increase of 6.3% year-on-year[27]. - The profit for the period increased to RMB 2,367,684, representing a growth of 6.4% compared to RMB 2,225,838 in the same period last year[75]. - Total comprehensive income for the period reached RMB 2,701,830, up from RMB 2,170,698, indicating a year-over-year increase of 24.4%[75]. Assets and Equity - Total assets as of June 30, 2022, were RMB 43,461,466, compared to RMB 42,131,906 at the end of 2021[13]. - Total equity increased to RMB 29,784,343 from RMB 27,783,063, reflecting a growth of 7.2%[13]. - The Group's equity attributable to owners amounted to approximately RMB 29,770,791,000 as of 30 June 2022, an increase from RMB 27,770,579,000 as of 31 December 2021[46]. - As of June 30, 2022, equity attributable to owners of the parent was approximately RMB 29,770,791,000, an increase from approximately RMB 27,770,579,000 as of December 31, 2021[47]. Cash Flow and Liquidity - Cash and cash equivalents stood at RMB 6,809,218, slightly up from RMB 6,687,623 at the end of 2021[13]. - For the six months ended June 30, 2022, net cash generated from operating activities was approximately RMB 546,198,000, a decrease from approximately RMB 1,720,608,000 for the same period in 2021[51]. - The cash generated from operations was RMB 797,481, with interest paid amounting to RMB 103,391 for the first half of 2022[89]. - The cash and cash equivalents at the end of the period were RMB 6,809,218,000, down from RMB 10,294,661,000 at the end of June 2021[90]. Debt and Financing - The gearing ratio improved to 33.5% from 38.1% in the previous period, indicating a reduction in financial leverage[13]. - The debt to equity ratio was approximately 33.5% as of June 30, 2022, down from 38.1% at the end of the previous year, representing a decrease of 4.6 percentage points[52]. - Net borrowings as of June 30, 2022, were approximately RMB 3,153,454,000, a decrease of approximately RMB 747,602,000 from approximately RMB 3,901,056,000 as of December 31, 2021[51]. - Finance costs for the six months ended June 30, 2022, increased to approximately RMB 103,557,000 from approximately RMB 51,501,000 for the same period in 2021, primarily due to increased borrowings and rising USD loan interest rates[54]. Operational Performance - The Group's sportswear sales reached approximately RMB 10,687,190,000, a 32.4% increase from RMB 8,069,966,000, driven by higher demand in Europe and the US[36]. - Casual wear sales decreased by approximately RMB 118,512,000 or 5.4%, primarily due to reduced demand in China and Japan[38]. - Lingerie sales fell by approximately RMB 171,964,000 or 22.0%, attributed to decreased procurement demand from Japan[38]. - The daily production capacity of the Vietnam fabric factory increased to 400 tons after expansion, enhancing fabric supply to overseas garment factories[30]. Market Conditions - The total export value of China's textile and clothing from January to June 2022 was approximately US19.30 billion and US$15.90 billion respectively[20]. - Domestic retail sales of apparel amounted to approximately RMB 446.26 billion, a decrease of 8.0% compared to the same period last year[20]. - Future export conditions for China's textile and apparel industry are uncertain, with inflation and supply chain issues potentially impacting demand and procurement plans[63]. Corporate Governance and Shareholding - The Company has complied with all code provisions of the Corporate Governance Code throughout the six months ended 30 June 2022[200]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of shareholdings[182]. - The total number of shares held by substantial shareholders (5% or more) includes Keep Glory and JPMorgan Chase & Co.[184]. - As of June 30, 2022, Keep Glory Limited holds 639,328,200 shares, representing 42.53% of the issued share capital of the Company[186]. Environmental and Social Responsibility - The Group is focusing on enhancing its industry competitiveness through green low-carbon initiatives and increased investment in clean energy[27]. - The Group's reclaimed water recycling project in Vietnam has a daily processing capability of 5,000 tons, promoting resource recycling and reducing sewage discharge[30]. - Self-supplied electricity from the rooftop solar power project in Ningbo reached approximately 3,000 MWh, an increase of 72% year-on-year[30].
申洲国际(02313) - 2022 - 中期财报