Financial Performance - Revenue for the six months ended June 30, 2021, was HK$403,141,000, an increase of 4.1% compared to HK$387,346,000 in the same period of 2020[10]. - Gross profit for the period was HK$74,672,000, up from HK$72,613,000, reflecting a gross margin improvement[11]. - The company reported a loss before tax of HK$6,057,000, compared to a profit of HK$816,000 in the prior year[13]. - Total comprehensive income for the period was HK$8,602,000, compared to a loss of HK$7,913,000 in the same period last year[19]. - The profit attributable to equity holders of the Company for the six months ended June 30, 2021, was HK$570,000, a decrease of 93% from HK$8,103,000 in 2020[99]. - The Group reported a net loss of approximately HK$4.45 million, a decline from a profit of HK$2.04 million in 2020, primarily due to the absence of substantial fair value gains and increased allowances for expected credit losses[167]. Expenses and Costs - Administrative expenses increased to HK$52,574,000 from HK$39,085,000, indicating a rise of 34.5% year-on-year[12]. - Selling and distribution expenses rose to HK$9,615,000, up from HK$7,004,000, marking a 37.4% increase[12]. - Cost of inventories sold increased to HK$182,308,000, up 47% from HK$123,712,000 in 2020[91]. - Depreciation of right-of-use assets for the period was HK$79,162,000, an increase from HK$70,259,000 in 2020[91]. - Corporate and other unallocated expenses amounted to HK$30,059,000, while finance costs were HK$51,129,000, affecting the overall profitability[76]. Assets and Liabilities - Total non-current assets decreased from HK$1,611,014,000 to HK$1,535,502,000, a reduction of approximately 4.7%[21]. - Current assets increased from HK$1,383,516,000 to HK$1,406,852,000, reflecting a growth of about 1.7%[24]. - Total non-current liabilities decreased from HK$710,824,000 to HK$653,545,000, a reduction of about 8.1%[25]. - Trade and bills payables decreased significantly from HK$105,668,000 to HK$60,518,000, a decline of approximately 42.7%[25]. - The total amount of bank and other borrowings was HK$385,279,000 as of June 30, 2021, down from HK$393,024,000 as of December 31, 2020, representing a decrease of 2.0%[148]. Cash Flow and Liquidity - Net cash flows generated from operating activities improved to HK$122,271,000 compared to HK$71,019,000, an increase of approximately 72.3%[40]. - Cash and cash equivalents at the end of the period decreased to HK$24,495,000 from HK$26,115,000, a decline of approximately 6.2%[41]. - The company reported a net decrease in cash and cash equivalents of HK$5,558,000 for the period[41]. - As of June 30, 2021, the Group had cash and cash equivalents of approximately HK$24,495,000, which may not be sufficient to repay default secured bonds of approximately HK$109,000,000 and default unsecured bonds of HK$18,100,000[55]. - The Group is actively negotiating for further financing, including equity financing and bank borrowing, to improve liquidity[62]. Revenue Segmentation - Segment revenue for the wine and liquor segment was HK$136,952,000, while the trading of food products segment generated HK$116,295,000, and the construction and development segment contributed HK$132,197,000, totaling HK$403,141,000 in external sales[78]. - Revenue from trading of food products decreased to HK$136,952,000, down 24% from HK$181,281,000 in 2020[85]. - Revenue from mineral products increased significantly to HK$116,295,000, up 43% from HK$81,243,000 in 2020[85]. - The rental business generated revenue of approximately HK$132.20 million, representing 32.79% of total revenue, an increase from 29.54% in 2020[177]. - The financial leasing business recorded revenue of HK$17.70 million, accounting for 4.39% of total revenue, up from 2.68% in 2020[182]. Future Outlook and Strategy - The company has not provided specific guidance for future performance but indicated ongoing efforts in market expansion and product development[14]. - The Group plans to continue controlling costs and focus on organic growth and acquisitions when appropriate opportunities arise[169]. - A strategic cooperation agreement was established for global procurement of feed ingredients, effective from March 1, 2021, to December 31, 2022[188]. - A framework agreement was signed to establish an e-commerce platform with a target annual sales amount of RMB4 billion[192].
中国北大荒(00039) - 2021 - 中期财报