TINGYI(HK:00322)2021-08-26 04:10Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 35,395,833 thousand, an increase of 7.47% compared to RMB 32,934,421 thousand for the same period in 2020[2]. - Gross profit margin decreased to 31.05%, down 2.38 percentage points from 33.43% in the previous year[2]. - EBITDA for the period was RMB 4,517,006 thousand, reflecting a decrease of 12.57% from RMB 5,166,659 thousand in 2020[2]. - Net profit attributable to shareholders was RMB 2,035,214 thousand, a decline of 14.50% compared to RMB 2,380,431 thousand in the same period last year[2]. - Basic earnings per share decreased to 36.18 cents, down 6.15 cents from 42.33 cents in 2020[2]. - The company reported a net profit of RMB 2,035,214 thousand for the first half of 2021, compared to RMB 2,380,431 thousand for the same period in 2020, indicating a decline of about 14.5%[9]. - The company declared a special dividend of RMB 4,062,263 thousand, impacting the equity attributable to shareholders significantly[9]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2021, were RMB 23,096,761 thousand, an increase of RMB 1,665,608 thousand compared to December 31, 2020[2]. - For the first half of 2021, the operating cash flow net amount was RMB 2,691,554 thousand, a decrease of 52.7% compared to RMB 5,695,644 thousand in the same period of 2020[10]. - The net cash from investing activities was RMB (2,237,201) thousand, compared to RMB (1,719,750) thousand in the first half of 2020, indicating an increase in cash outflow[10]. - The financing activities generated a net cash inflow of RMB 1,215,880 thousand, down from RMB 1,894,427 thousand in the same period last year[10]. - The company reported a total cash and cash equivalents balance of RMB 23,096,761 thousand as of June 30, 2021, slightly down from RMB 23,307,312 thousand at the end of the previous year[10]. Assets and Liabilities - Total assets increased to RMB 66,238,155 thousand as of June 30, 2021, compared to RMB 61,531,398 thousand at the end of 2020[6]. - Total liabilities increased to RMB 43,432,564 thousand as of June 30, 2021, from RMB 36,792,015 thousand at the end of 2020, reflecting a rise of approximately 18.1%[7]. - The company's long-term interest-bearing loans rose to RMB 8,815,621 thousand, up from RMB 7,805,122 thousand, marking an increase of about 12.9%[7]. - The net debt to equity ratio was -40.39% as of June 30, 2021[2]. - The total equity attributable to shareholders was RMB 19,250,954 thousand, down from RMB 21,112,724 thousand as of December 31, 2020, representing a decrease of approximately 8.8%[7]. Segment Performance - Total revenue for the first half of 2021 reached RMB 35,356,104 thousand, with instant noodles contributing RMB 12,717,429 thousand and beverages contributing RMB 22,274,328 thousand[12]. - The beverage segment's profit before tax was RMB 2,040,897 thousand, while the instant noodle segment reported a profit before tax of RMB 1,194,018 thousand[12]. - The instant noodle business's profit attributable to shareholders declined by 47.13% to RMB 896 million due to decreased revenue and gross margin[41]. - The beverage business achieved a total revenue of RMB 22.276 billion in the first half of 2021, representing a year-on-year growth of 26.45% and accounting for 62.93% of the group's total revenue[45]. Market and Economic Environment - The overall economic environment presents both opportunities and challenges, with a 12.7% year-on-year GDP growth and a 23% increase in retail sales of consumer goods in the first half of 2021[39]. - The ready-to-drink coffee market saw a sales volume increase of 29.6% and a revenue increase of 31.3% in the first half of 2021[50]. Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11]. - The group aims to strengthen its brand image through collaborations with popular IPs and innovative marketing strategies targeting younger consumers[42]. - The group is committed to sustainable development, focusing on energy saving, water conservation, and reducing carbon emissions[54]. - The group emphasizes food safety as a core principle, continuously enhancing its food safety management system[55]. Risk Management and Governance - The audit committee consists of three independent non-executive directors, with Mr. Li Changfu as the chairman, overseeing the group's performance during the period[61]. - The group has established a risk management framework based on the COSO model, aiming to keep overall risk at an acceptable level to support long-term development[62]. - As of June 30, 2021, the group has implemented a comprehensive self-assessment system for internal controls, ensuring full coverage of management cycles[62]. - No significant deficiencies were found in risk management and internal controls according to the internal audit department, indicating the effectiveness of the group's systems[62].