Financial Performance - Revenue for the six-month period ended June 30, 2021, reached HK$8,453,208,000, representing a year-on-year increase of approximately 89%[6] - Profit attributable to owners of the Company was HK$299,824,000, a significant increase of 410% compared to the same period last year[6] - Sales volume increased to 767,000 metric tons, reflecting a growth of 16% year-on-year[6] - Earnings per share rose to HK$0.539, marking an increase of 418% compared to the previous year[7] - The Group recorded a sales revenue of HK$8.45 billion, increasing by nearly 90% year-on-year, with a sales volume of 767,000 metric tons, up 16% from the previous year[16] - Profit attributable to owners surged by 410% to approximately HK$300 million, driven by a record operating profit of HK$436 million in the solvents business, which increased by 190% year-on-year[24] - Gross profit for the same period was HK$1,099,345,000, up 68.8% from HK$650,854,000 year-on-year[117] - Profit before taxation increased significantly to HK$477,036,000, compared to HK$132,888,000 in the previous year, marking a 258.5% rise[117] - Total comprehensive income for the period was HK$438,439,000, a notable increase from HK$1,104,000 in the previous year[118] Dividends - The Company declared an interim dividend of HK$0.12 per share, doubling the previous year's dividend of HK$0.06[14] - A special dividend of HK$0.10 per share was also announced to celebrate the Company's 50th anniversary[14] - The total dividend declared is HK$22 cents per share, including an interim dividend of HK$0.12 and a special dividend of HK$0.10, doubling last year's interim dividend[16] - The company will provide a scrip dividend alternative for shareholders to receive dividends in the form of shares instead of cash[84] - A circular with details of the scrip dividend scheme will be sent to eligible shareholders on or around September 14, 2021[84] Business Segments - The solvents business demonstrated strong performance, fully offsetting negative impacts from other segments such as coatings[13] - The solvents business achieved a sales revenue of HK$6.63 billion, up 106% year-on-year, with sales volume increasing by approximately 70,000 metric tons to 610,000 metric tons[27] - Coatings business sales revenue reached HK$980 million, a growth of 56% compared to the same period last year, with a gross profit margin of 23.5%[32] - Lubricants sales revenue grew 132% year-on-year to HK$190 million, with operating profit turning around to HK$11.3 million from a loss of HK$9.3 million in the previous year[34][36] - The segment revenue breakdown includes solvents at HK$6,630,281,000, coatings at HK$978,604,000, inks at HK$682,829,000, lubricants at HK$188,502,000, and properties at HK$4,914,000[170] Gearing and Borrowings - The gearing ratio stood at 51.7%, an increase of 22.5 percentage points from the previous year[6] - The gearing ratio rose to 51.7%, an increase of 22.5 percentage points year-on-year, primarily due to an investment of approximately HK$140 million in a new plant in Zhuhai[16] - Gross bank borrowings amounted to HK$2,251,721,000, an increase from HK$1,624,487,000 as of December 31, 2020[48] - Net bank borrowings reached HK$1,887,102,000, compared to HK$1,059,185,000 at the end of 2020[48] - The Group entered into a four-year sustainability-linked loan agreement for HK$600,000,000 with six banks, allowing for interest rate discounts upon meeting ESG performance targets[48] Cash Flow and Assets - The Group recorded a net cash outflow of HK$394,198,000 for the period, contrasting with a net cash inflow of HK$251,760,000 in the same period last year[46] - Cash and bank balances decreased to HK$357,175 from HK$530,408 as of December 31, 2020[121] - The company reported a net cash used in operating activities of HK$394,198,000 for the six months ended June 30, 2021, compared to a net cash generated of HK$251,760,000 in the same period of 2020[136] - The company experienced a net cash outflow of HK$327,295,000 from financing activities during the six months ended June 30, 2021[136] Management and Governance - The Company has complied with the Corporate Governance Code except for the absence of a nomination committee during the six months ended 30 June 2021[97] - The Audit Committee reviewed the Group's unaudited interim financial statements for the six months ended 30 June 2021 on 16 August 2021[100] - The Group aims for sustainable development with a vision of becoming a respected century-old corporation[105] - The Group emphasizes the management and development of human capital, providing training programs and educational subsidies to enhance employee skills[52] Market Performance - Revenue from the PRC market was HK$6,178,810,000, up from HK$3,611,626,000 in 2020, indicating a growth of about 71.5%[158] - Revenue from Hong Kong and overseas markets totaled HK$2,238,080,000, compared to HK$822,213,000 in 2020, reflecting an increase of approximately 172.0%[158] - The Group's performance in the first half of 2021 demonstrates strong recovery and growth compared to the previous year, driven by increased demand in key markets[158] Employee Information - The Group employs a total of 3,393 employees, with 83 from Hong Kong, 3,303 from Mainland China, and 7 from Vietnam as of June 30, 2021[51] - The Group regularly reviews its remuneration and reward policy to ensure competitive compensation and benefits for employees[52] Shareholder Information - Mr. Ip Chi Shing holds a total of 188,624,532 shares, representing 34.06% of the company's share capital as of June 30, 2021[59] - The company has no other interests or short positions in the securities of any associated corporations as of June 30, 2021[69] - The company repurchased a total of 2,780,000 shares at an aggregate consideration of HK$10,309,040, which were subsequently cancelled[88] Future Outlook - The management is cautiously optimistic about the second half of 2021, expecting a slight drop in raw material prices and a more balanced performance across business segments[17] - The management anticipates that the profitability of the solvents business will be affected in the second half of 2021 due to a drop in selling prices, while coatings and inks businesses are expected to benefit[40][41]
叶氏化工集团(00408) - 2021 - 中期财报