Financial Performance - Revenue for the six months ended June 30, 2021, increased by 15.8% to RMB 886,526,000 compared to RMB 765,856,000 in the same period of 2020[12]. - Gross profit rose by 15.7% to RMB 661,240,000, maintaining a gross profit margin of 74.6%[12]. - Profit before taxation increased by 25.1% to RMB 307,691,000, up from RMB 245,917,000 in the previous year[12]. - Profit attributable to equity shareholders for the period was RMB 250,644,000, representing a 20.0% increase from RMB 208,886,000[12]. - Basic earnings per share rose by 23.9% to RMB 0.3132, while diluted earnings per share increased by 23.3% to RMB 0.3117[12]. - Total comprehensive income for the period was RMB 244,748,000, compared to RMB 197,254,000 in 2020, showing a significant increase[58]. - The company declared an interim dividend of HKD 0.1 per share, up from HKD 0.08 per share in 2020, amounting to approximately RMB 66,874,000[54]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 4,014,194,000, reflecting a 1.6% increase from RMB 3,950,253,000 at the end of 2020[12]. - Total equity attributable to equity shareholders increased by 6.4% to RMB 2,361,737,000 from RMB 2,220,367,000[12]. - Net assets per share improved by 5.9% to RMB 2.87, compared to RMB 2.71 at the end of 2020[12]. - The balance of trade debtors and bills receivable was RMB 374,666,000, a decrease of approximately 16.5% compared to RMB 448,540,000 as of December 31, 2020[24]. - As of June 30, 2021, trade payables decreased by approximately 26.7% to RMB 37,305,000 from RMB 50,889,000 as of December 31, 2020, with turnover days reduced by 9.8 days to 35.2 days[29]. - Total non-current assets increased to RMB 1,302,852,000 as of June 30, 2021, up from RMB 1,291,556,000 at December 31, 2020, representing a growth of 0.9%[59]. Cash Flow and Financing - The net cash generated from operating activities was RMB 193,722,000, representing a decrease of approximately 40.2% compared to RMB 323,758,000 for the same period in 2020[29]. - Cash and bank balances decreased by approximately 11.6% to RMB 1,715,482,000 from RMB 1,940,273,000 as of December 31, 2020[29]. - Bank borrowings increased by approximately 5.1% to RMB 577,551,000 from RMB 549,414,000 as of December 31, 2020[29]. - The total cash flow for the six months ended June 30, 2021, is detailed in the condensed consolidated cash flow statement[67]. - Net cash used in investing activities was RMB 321,584 for the six months ended June 30, 2021, compared to RMB 19,070 for the same period in 2020, indicating a significant increase in investment outflows[68]. - The company paid RMB 133,950 in dividends to equity shareholders during the six months ended June 30, 2021, compared to RMB 73,856 in the same period in 2020, indicating an increase in shareholder returns[68]. Operational Highlights - The company is focused on expanding its product offerings in hepatobiliary, dermatologic, gastroenterology, and orthopedics medicines[6]. - The Group is actively responding to the centralized quantity procurement policy, which has organized five rounds of procurement as of June 2021[49]. - The implementation of the new Drug Administration Law is expected to enhance the Group's resource consolidation and reduce R&D risks[45]. - The company plans to enhance its prescription drug business coverage and maintain its leading position through aggressive and defensive strategies[52]. - In the OTC business, the focus will be on brand promotion and terminal marketing to achieve steady revenue and profit growth[52]. - The company aims to accelerate product upgrades through strategic cooperation with WuXi AppTec and Chengdu Brilliant, optimizing its R&D model[52]. Employee and Management - The total number of employees increased to 2,662 as of June 30, 2021, from 2,583 as of December 31, 2020[31]. - Total staff costs for the six months ended June 30, 2021, were RMB 181,368,000, compared to RMB 130,770,000 for the same period in 2020[31]. - Total remuneration for key management personnel for the six months ended June 30, 2021, was RMB 20,260,000, up from RMB 19,327,000 for the same period in 2020, representing an increase of 4.8%[145]. Corporate Governance - The Company has adopted and complied with the Corporate Governance Code during the six months ended June 30, 2021[189]. - The Audit Committee consists of three independent non-executive Directors, ensuring compliance with financial reporting and internal control procedures[192]. - The Company emphasizes the importance of diversity in Board appointments, considering various perspectives such as gender and cultural background[190]. - The Company has established measurable objectives for Board diversity, including at least 40% non-executive Directors and at least 1/3 independent non-executive Directors[190]. Shareholder Information - As of June 30, 2021, AN Yubao holds a total of 222,348,817 shares, representing approximately 27.03% of the company's shareholding[178]. - The interim dividend declared after the interim period ended June 30, 2021, was HKD 0.1 per share, up from HKD 0.08 per share for the same period in 2020[133]. - The final dividends for the previous financial year were approved and paid during the interim period ended 30 June 2021 at HKD0.2 per share, compared to HKD0.1 per share for the same period in 2020, resulting in a total of RMB133,950,000 for 2021 versus RMB73,856,000 for 2020[134].
康臣药业(01681) - 2021 - 中期财报