Financial Performance - Revenue for the six months ended June 30, 2021, was $4,807,087 thousand, representing a 17.66% increase from $4,085,633 thousand in the same period of 2020[9]. - The profit attributable to owners of the company for the same period was $170,255 thousand, compared to a loss of $136,758 thousand in 2020, indicating a significant turnaround[9]. - Basic earnings per share for the period was 10.57 cents, compared to a loss of 8.49 cents per share in the previous year[9]. - Gross profit for the six months was $1,238,414 thousand, up from $833,081 thousand in the prior year, reflecting improved operational efficiency[14]. - Other income increased to $64,670 thousand from $46,839 thousand, contributing positively to overall financial performance[14]. - Financing costs decreased to $27,312 thousand from $37,866 thousand, indicating better management of financial expenses[14]. - The company reported a pre-tax profit of $272,057 thousand, a significant recovery from a pre-tax loss of $137,128 thousand in the previous year[14]. - Non-controlling interests contributed $40,362 thousand to the profit, compared to $11 thousand in the same period last year, showing growth in subsidiary performance[14]. - The company reported a profit of $210,617 thousand for the six months ended June 30, 2021, compared to a loss of $136,747 thousand in the same period of 2020, representing a significant turnaround[15]. - Total comprehensive income for the period amounted to $233,413 thousand, compared to a loss of $173,559 thousand in the previous year, indicating a strong recovery[15]. Assets and Liabilities - Non-current assets totaled $4,204,126 thousand as of June 30, 2021, slightly down from $4,286,969 thousand at the end of 2020[16]. - Current assets increased to $4,405,352 thousand from $4,213,750 thousand, reflecting improved liquidity[16]. - Current liabilities decreased to $2,216,230 thousand from $2,337,869 thousand, indicating better management of short-term obligations[17]. - The company's net asset value rose to $4,603,098 thousand from $4,374,142 thousand, showcasing growth in shareholder equity[17]. - Inventory levels increased to $1,623,307 thousand from $1,584,934 thousand, suggesting a strategic buildup in stock[16]. - The company’s cash and cash equivalents stood at $926,855 thousand, up from $896,977 thousand, enhancing its cash position[16]. - The equity attributable to owners of the company increased to $4,084,393 thousand from $3,895,854 thousand, indicating a solid growth in equity base[17]. - The total equity as of June 30, 2021, was $4,603,098,000, reflecting an increase from $4,374,142,000 as of January 1, 2021[18]. Cash Flow and Investments - For the six months ended June 30, 2021, the net cash generated from operating activities was $225,950,000, a decrease of 19.5% compared to $280,769,000 for the same period in 2020[20]. - The net cash used in investing activities was $(109,454,000), down from $(132,621,000) in the previous year, indicating a reduction in investment outflows[21]. - The net cash generated from financing activities was $(88,464,000), compared to $(16,992,000) in the prior year, reflecting increased financing costs[22]. - The total cash and cash equivalents at the end of the period were $926,855,000, down from $1,107,385,000 at the end of the previous year[22]. Revenue Breakdown - Revenue from the manufacturing business was $2,786,584 thousand, up 15.2% from $2,418,465 thousand in 2020, while retail business revenue increased by 21.2% to $2,020,503 thousand from $1,667,168 thousand[30]. - Revenue from the US market was $969,793 thousand, a significant increase of 42.7% from $679,269 thousand in 2020, while revenue from China rose to $2,483,138 thousand, up 18.4% from $2,098,407 thousand[33]. - Revenue from footwear activities increased by 11.8% to $2,505.5 million, driven by a recovery in demand and an increase in shipment volume by 5.0% to 136.4 million pairs[65]. Operational Efficiency and Future Plans - The company plans to continue expanding its market presence and investing in new product development to sustain growth momentum[13]. - Future guidance indicates a focus on enhancing operational efficiencies and exploring strategic acquisitions to bolster market position[13]. - The company plans to continue evaluating the potential impacts of accounting policy changes related to inventory sales costs, which may affect future financial statements[27]. - The company is implementing the third phase of the SAP ERP system as part of its digital transformation strategy to enhance manufacturing excellence[85]. - The company aims to optimize its manufacturing capacity and production capabilities to adapt to rapidly changing market demands, including shorter production lead times and improved order fulfillment capabilities[85]. Employee and Cost Management - The total employee costs for the first half of 2021 were $1,117,413 thousand, a slight decrease from $1,167,005 thousand in 2020[36]. - The group employed approximately 303,800 employees as of June 30, 2021, a decrease of 4.7% from about 318,800 employees a year earlier[82]. - The manufacturing cost of goods sold increased to $2,278.0 million, up from $2,085.2 million in the previous year, reflecting higher material and labor costs[70]. Shareholder and Governance - The company did not declare an interim dividend for the first half of 2021, consistent with the decision made in 2020[37]. - The company has adopted a share option plan effective from May 31, 2019, allowing the board to grant options to eligible participants, with a total of 161,449,998 shares available for issuance under this plan, representing approximately 10.01% of the issued shares[92]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[113]. - Deloitte has issued a review report without reservation for the interim financial information for the six months ended June 30, 2021[111]. Market Outlook - The company maintains a cautious optimism regarding the recovery of demand for its manufacturing business, despite operational risks due to COVID-19 in Southeast Asia[84]. - The retail business is cautiously optimistic about long-term growth prospects driven by digital transformation and multi-channel integration, despite short-term market volatility[85].
裕元集团(00551) - 2021 - 中期财报