Financial Performance - For the six months ended June 30, 2023, the Group achieved sales revenue of RMB 2,436.5 million, remaining stable compared to the same period last year[90]. - The Group recorded a net profit of RMB 82.1 million, a significant improvement from a loss in the corresponding period in 2022[90]. - For the six months ended June 30, 2023, revenue was RMB 2,436,545,000, a slight decrease of 0.3% from RMB 2,443,273,000 in the same period of 2022[128]. - Gross profit increased to RMB 282,227,000, up 27% from RMB 222,336,000 year-on-year[128]. - Net profit attributable to shareholders was RMB 82,095,000, compared to a net loss of RMB 70,937,000 in the same period last year[128]. Sales and Market Performance - The sales volume of raw chicken meat products decreased by 12.1% to 106.4 million kg compared to 121.0 million kg in the same period last year[99]. - Revenue from external sales of raw chicken meat products decreased by 9.9% to RMB 1,085.1 million, representing 44.5% of the Group's total revenue[99]. - The sales volume of processed chicken meat products increased by 11.1% to 60.8 million kg, compared to 54.7 million kg for the same period in 2022[145]. - Revenue from the sale of processed chicken meat products grew by 7.7% to RMB 1,229.5 million, representing 50.5% of the Group's total revenue[145]. - The Group became the largest export supplier in the white-feathered chicken industry in China, with its share of national exports increasing year-on-year[102]. Share Award Schemes - Under the 2020 Share Award Scheme, a total of 2,050,000 shares have been granted, representing approximately 0.15% of the total shares issued at the time of adoption[27]. - The maximum number of new H Shares that can be issued under the 2020 Share Award Scheme in any fiscal year is capped at 3% of the total issued H Shares, equating to 10,650,000 shares[43]. - The total number of shares that can be awarded under the 2020 Share Award Scheme, excluding vested and cancelled shares, is 8,600,000 shares, accounting for 0.61% of the total issued share capital[43]. - The Board of Directors granted 2,050,000 shares under the 2020 Share Award Scheme, with 89.8% vested by June 30, 2023[45]. - No H Shares under the 2020 Share Award Scheme were granted during the six months ended June 30, 2023[64]. Corporate Governance and Strategy - The company aims to improve corporate governance transparency to protect shareholder interests and enhance corporate value since the listing of H Shares on the Main Board of the Stock Exchange[18]. - The Group's strategy included upgrading production capacity and promoting a low-cost approach, which improved overall manpower efficiency and processing fees per ton[154]. - The Group plans to optimize raw material allocation and reduce processing costs through energy management in factories[194][197]. - The integration of operations aims to reduce warehousing and distribution costs, maximizing product output value[195][198]. Product Development and Marketing - The company launched new products including Jiaoma Chicken Nuggets in April, which combines Sichuan peppercorns with chicken[119]. - The iShape brand underwent a visual refresh and was recognized as a top brand in the "2023 National Trendy Food Top 100" list in May[136]. - The Group's marketing strategy included reducing discount promotions to enhance brand image and improve cash flow[92]. - New product development and diversification were emphasized to meet customer demands and market trends[154]. Borrowings and Financial Agreements - As of June 30, 2023, the total borrowings of the group amounted to RMB 1,512.0 million, an increase of 1.5% compared to December 31, 2022, primarily due to the use of self-owned funds for breeding transformation projects and increased borrowings from the controlling shareholder to enhance risk resistance[1]. - The borrowings from the controlling shareholder as of June 30, 2023, were secured against inventory valued at RMB 111.2 million[2]. - The company has established a loan framework agreement with Falcon Holding LP, which provides a revolving loan facility with a maximum daily loan balance of USD 13,591,000 for the years ending December 31, 2023, and December 31, 2024[19]. Customer and Export Business - The major customer business under the new centralized procurement achieved revenue of RMB 375.7 million, a 25.8% increase year-on-year, marking a record high since its listing[156]. - The Group recorded significant growth in overseas markets, particularly in Europe, the Middle East, South Korea, and Mongolia, enhancing its market share through targeted marketing strategies[158]. - The Group maintains a strong export business, supplying premium chicken meat products to markets including Japan, Malaysia, and Europe[140]. - The company received high praise from European clients for its achievements in food safety and ESG management systems[118].
凤祥股份(09977) - 2023 - 中期财报