Financial Performance - Revenue for the six months ended June 30, 2021, was $334,206 thousand, a slight increase from $331,687 thousand in the same period of 2020, representing a growth of 0.5%[10] - Gross profit for the same period was $49,411 thousand, compared to $37,474 thousand in 2020, indicating a significant increase of 32%[10] - Operating profit improved to $5,423 thousand from a loss of $15,105 thousand in the previous year, marking a turnaround in performance[10] - The company reported a net profit of $947 thousand for the period, a significant recovery from a loss of $19,065 thousand in the same period last year[10] - The total comprehensive income for the six months ended June 30, 2021, was $2,472 thousand, compared to a loss of $(18,971) thousand for the same period in 2020[14] - The profit attributable to the owners of the company for the six months ended June 30, 2021, was $2,483 thousand, a significant improvement from a loss of $(18,593) thousand in the prior year[14] - Basic and diluted earnings per share for the period were $0.09, compared to a loss of $1.81 per share in the previous year[9] Assets and Liabilities - The total assets as of June 30, 2021, were $566,198 thousand, up from $538,616 thousand at the end of 2020, reflecting a growth of 5.2%[8] - Current assets increased to $343,189 thousand from $315,193 thousand, showing a rise of 8.9%[8] - Total liabilities increased to $375,132 thousand from $350,022 thousand, representing a growth of 7.2%[8] - The total equity attributable to the owners of the company as of June 30, 2021, was $188,587 thousand, an increase from $200,100 thousand at the end of the previous year[15] - The company’s total assets as of June 30, 2021, were $178,680 thousand, a decrease from $183,315 thousand as of January 1, 2021[38] Cash Flow and Investments - The net cash inflow from operating activities for the six months ended June 30, 2021, was $19,455 thousand, down from $23,754 thousand in the same period of 2020[17] - The company had a net cash outflow from investing activities of $(4,068) thousand for the six months ended June 30, 2021, compared to $(18,136) thousand in the same period of 2020[17] - The cash and bank balances at the end of the period were $72,857 thousand, compared to $69,474 thousand at the end of the previous year[17] Inventory and Receivables - Inventory levels rose significantly to $102,423 thousand from $71,456 thousand, an increase of 43.3%[7] - Trade receivables as of June 30, 2021, were $68,354 thousand, down from $97,125 thousand as of December 31, 2020, indicating a decrease of about 29.8%[42] - The company recorded a total of $106,966 thousand in inventory as of June 30, 2021, which includes raw materials, work in progress, and finished goods[41] Revenue Segmentation - The revenue from garment sales was $330,886 thousand, compared to $325,980 thousand in the previous year, indicating a growth in this segment[37] - The apparel and accessories business accounted for approximately 60.7% and 39.3% of total revenue during the review period, respectively[83] - The apparel segment's revenue increased by approximately $15,045,000 or 8.0% to about $202,745,000 for the six months ended June 30, 2021, compared to $187,700,000 for the same period in 2020[84] - The accessories segment's revenue decreased by approximately 8.7% to about $131,461,000 for the six months ended June 30, 2021, while achieving a profit of approximately $2,612,000, compared to a loss of about $5,100,000 in the same period last year[85] Corporate Governance - The company maintained compliance with the corporate governance code as per the listing rules during the six months ended June 30, 2021[108] - The Audit Committee was established to provide recommendations to the board, consisting of independent non-executive directors[108] - The Remuneration Committee was formed to advise on the remuneration policies for all directors and senior management[108] - The company established a Nomination Committee responsible for recommending the appointment or reappointment of directors, chaired by Mr. Qu Zhiming[109] - The Financing and Banking Committee was formed to review and approve the group's bank financing, ensuring alignment with the overall best business interests[109] Risk Management and Outlook - The financial risk management policies have not changed since the year-end, maintaining consistency in managing market, credit, and liquidity risks[26][31] - The management anticipates a cautious outlook for the second half of 2021, with potential risks including the spread of the COVID-19 Delta variant and rising raw material prices[90] - The company continues to focus on its core business of garment and apparel manufacturing and trading, with strategic decisions made by the executive directors[32] Employee and Health Measures - Over 60% of the group's employees had received at least one dose of the COVID-19 vaccine as of August 18, 2021, with a target of achieving a 75% vaccination rate by the end of 2021[91]
联泰控股(00311) - 2021 - 中期财报