Financial Performance - In the first half of 2023, the company's revenue decreased by 0.3% compared to the same period in 2022, while gross profit increased by 26.9%, resulting in a net profit of RMB 82 million, compared to a loss in the previous year[5]. - For the six months ended June 30, 2023, the company reported revenue of RMB 2,436,545 thousand, a slight decrease of 0.3% compared to RMB 2,443,273 thousand for the same period in 2022[40]. - The gross profit increased to RMB 282,227 thousand, up 27% from RMB 222,336 thousand in the previous year[40]. - The net profit for the period was RMB 82,095 thousand, a significant recovery from a net loss of RMB 70,937 thousand in the same period last year[40]. - Basic earnings per share improved to RMB 0.06, compared to a loss of RMB 0.05 per share in the prior year[40]. - The total comprehensive income for the period was RMB 81,969 thousand, a significant increase from a loss of RMB 71,487 thousand in the previous year[1]. - The company reported a net profit attributable to ordinary shareholders of RMB 82,095 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 70,937 thousand in the same period of 2022, indicating a significant turnaround[97]. - Basic earnings per share for the period was RMB 0.06, recovering from a loss of RMB 0.05 in the previous year[97]. Revenue Breakdown - Revenue from the mainland China market reached RMB 1,798,740 thousand, up 4.7% from RMB 1,718,124 thousand in 2022[66]. - Revenue from deep-processed chicken products was RMB 1,229,476 thousand, an increase of 7.7% from RMB 1,141,297 thousand in 2022[89]. - Revenue from the sale of fresh chicken products fell by 9.9% to RMB 1,085.1 million, accounting for 44.5% of the total revenue[140]. - Revenue from the sale of chicks increased by 54.0% to RMB 37.4 million, representing 1.5% of total revenue[141]. - Revenue from other products increased by 15.8% to RMB 84.6 million, accounting for 3.5% of total revenue[141]. - Revenue from key customer business reached RMB 375.7 million, a year-on-year increase of 25.8%[143]. - New procurement business generated revenue of RMB 511.2 million, up 23.1% year-on-year[143]. - New export business revenue decreased by 12.0% to RMB 637.8 million due to international market conditions[143]. Cost Management - Sales expenses decreased by 51.0% to RMB 84.8 million, down from RMB 173.0 million in the same period last year, due to improved efficiency in the new retail business[7]. - The group's operating costs decreased by 3.0% to RMB 2,154 million for the six months ended June 30, 2023, compared to RMB 2,221 million for the same period in 2022, mainly due to improved production efficiency in breeding and processing[191]. - The company aims to accelerate inventory turnover and implement cost-reduction measures to improve operational cash flow[84]. Financial Stability - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 370,043 thousand, an increase from RMB 332,156 thousand at the end of 2022[56]. - The total liabilities decreased to RMB 2,440,097 thousand from RMB 2,616,359 thousand year-over-year, indicating improved financial stability[57]. - The company's total assets as of June 30, 2023, were RMB 5,138,009 thousand, down from RMB 5,228,334 thousand at the end of 2022[57]. - The company plans to enhance its financial risk management capabilities and optimize its debt structure by reducing short-term liabilities and increasing long-term debt[50]. - The company is actively negotiating with financial institutions to secure new loans at reasonable costs, with some institutions already expressing interest[49]. - The company aims to ensure sufficient operating funds for the next twelve months through various measures, including obtaining new financing[61]. - The total amount of loans from the controlling shareholder as of June 30, 2023, was RMB 322.2 million, with RMB 87.96 million secured and RMB 234.21 million unsecured[112]. - The capital debt ratio was 56.0% as of June 30, 2023, down from 57.0% on December 31, 2022, while the asset liability ratio decreased to 47.5% from 50.0%[196]. Operational Insights - The company has 7,040 employees, with 7,037 based in China and 3 in Japan, and provides continuous education and training programs for skill enhancement[13]. - The company aims to enhance its breeding capacity further, indicating a focus on operational growth[16]. - The company has invested in five new chicken breeding facilities during the reporting period, contributing to future production capacity[101]. - The company is focusing on developing pre-prepared poultry products, which are expected to become a new growth point due to the increasing market demand[176]. - The group operates under a "farm-to-table" model, allowing effective management of the entire process from poultry farming to distribution and sales[138]. - The company is the largest exporter of white feather broilers in China and a leading retailer of chicken products[114]. - The group has maintained a stable supply of raw chicken through its own supply and independent third-party suppliers[116]. Market Conditions - The domestic consumption market is not meeting expectations, and there are risks associated with product price fluctuations[14]. - The global Western fast-food sector is rapidly recovering, with an increasing market share[199]. - The company is leveraging the experience and resources of its alliance group to explore more business and development opportunities[14]. - The company has expanded its market share in the Tmall platform, with a 2.4 percentage point increase in market share compared to the previous year[183]. - The company’s production biological assets are subject to risks from climate change and diseases, and it has implemented extensive measures to mitigate these risks[106]. Governance and Compliance - The company has complied with all applicable corporate governance codes as of June 30, 2023[36]. - The audit committee, consisting of independent non-executive directors, reviewed the interim results and confirmed compliance with applicable accounting standards[37]. - The company has not declared or proposed any dividends for the first half of 2023, consistent with the previous year[73]. - The company’s effective tax rate remains stable at 25% for the first half of 2023, consistent with the previous year[96].
凤祥股份(09977) - 2023 - 中期业绩