Financial Performance - Revenue for the six months ended June 30, 2021, was HK$3,218,999,000, an increase from HK$2,099,734,000 in the same period of 2020, representing a growth of approximately 53.4%[17] - Gross profit for the same period was HK$454,662,000, compared to HK$213,644,000 in 2020, indicating a significant increase of about 112.5%[17] - Profit for the period attributable to owners of the Company was HK$136,248,000, a turnaround from a loss of HK$15,154,000 in the previous year[17] - Basic earnings per share for the period was 11.1 HK cents, compared to a loss of 1.2 HK cents per share in the same period of 2020[17] - Other revenue and gains amounted to HK$40,408,000, up from HK$31,959,000 in the previous year, reflecting an increase of approximately 26.5%[17] - The company reported a profit for the period of HK$151,721,000, a significant increase from a loss of HK$16,432,000 in the previous year[20] - Total comprehensive income for the period was HK$156,546,000, compared to a loss of HK$24,673,000 in 2020[20] - EBITDA for the six months ended June 30, 2021, was HK$285,092,000, significantly up from HK$101,657,000 in the prior year[142] - The gross profit margin improved to 14.1% for the six months ended June 30, 2021, compared to 10.2% in the same period of 2020[142] Assets and Liabilities - Non-current assets decreased slightly to HK$1,706,372,000 from HK$1,746,822,000 at the end of 2020[21] - Current assets increased to HK$4,051,037,000, up from HK$3,678,889,000 at the end of 2020, driven by higher inventories and trade receivables[21] - Net current assets improved to HK$2,142,635,000 from HK$2,059,253,000[21] - The company’s total equity increased to HK$3,631,960,000 from HK$3,579,789,000[22] - Trade and bills receivables rose to HK$1,215,085,000 from HK$1,027,493,000, indicating improved collection efficiency[21] - The company’s bank borrowings due within one year increased to HK$456,612,000 from HK$229,606,000, reflecting increased short-term financing needs[21] - Total assets as of June 30, 2021, were approximately HK$5,757,409,000, compared to HK$5,425,711,000 at the end of 2020[154] - The Group's consolidated tangible net worth was HK$3,330,680,000, an increase from HK$3,195,548,000 as of December 31, 2020[163] Cash Flow and Financing - For the six months ended June 30, 2021, net cash used in operating activities was HK$175,903,000, compared to HK$2,608,000 in the same period of 2020, indicating a significant increase in cash outflow[28] - New bank borrowings raised amounted to HK$692,703,000, an increase from HK$432,426,000 in the previous year[28] - The average effective interest rate of bank borrowings decreased to 1.62% as of June 30, 2021, down from 2.46% at the end of 2020[92] - The Group's total bank debt to consolidated tangible net worth ratio remained stable at 0.1 for both periods[163] Expenses and Cost Management - Distribution and selling expenses decreased to HK$68,334,000 from HK$52,896,000, showing a reduction in costs[17] - Finance costs were HK$7,850,000, down from HK$10,800,000 in the previous year, indicating improved financial management[17] - The Group successfully reduced distribution and selling expenses, administrative expenses, and finance costs to 9.3% of total revenue in 1H2021, down from 11.2% in 1H2020[121] - Administrative expenses represented 7.0% of total revenue, a decrease from 8.2% year-on-year[149] Market and Operational Insights - The Group operates 8 production facilities across China, Sri Lanka, and Indonesia, with a global workforce of nearly 7,900 employees[4] - The Group's revenue from the production and sales of dyed fabrics and yarns was HK$2,867,089, up from HK$1,851,603, indicating a growth of about 55%[52] - Revenue from the production and sales of garments was approximately HK$351,900,000, accounting for 10.9% of the Group's total revenue[125] - The total sales volume of fabric increased by approximately 46.1% compared to 1H2020[119] - The Group maintains an optimistic outlook for business and financial performance in the second half of 2021, supported by active orders from global clients[132] Governance and Compliance - The interim financial statements were prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards[14] - The Group's financial statements have been prepared under the historical cost basis, consistent with the accounting policies adopted in the 2020 annual financial statements[31] - The Board has complied with all applicable code provisions of the Corporate Governance Code, except for code provision A.2.1, which stipulates the separation of roles between the chairman and chief executive officer[186] Shareholder Information - The number of ordinary shares issued and fully paid increased to 1,225,026,960 as of June 30, 2021, from 889,810,000 at the end of 2020, reflecting a significant increase in share capital[94] - COFCO Corporation and Chinatex Corporation Limited each hold 465,262,000 shares, representing approximately 37.98% of the issued shares[182] - The ownership structure indicates that COFCO, Chinatex, and their subsidiaries are interconnected, with shared interests in the shares held[183] Sustainability and Future Outlook - The Group has received the Global Recycled Standard (GRS) 4.0 certification in May 2021, highlighting its commitment to sustainability[129] - The implementation of China's three-child policy is anticipated to boost the children's clothing market, providing new sales opportunities for the Group[136] - The Group's performance in 2021 is expected to be among the best in its recent history if no unexpected negative circumstances arise in the second half of the year[132]
福田实业(00420) - 2021 - 中期财报