Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 506.0 million, representing a 39.0% increase compared to RMB 364.1 million in the same period of 2020[8]. - Profit attributable to owners of the company for the same period was RMB 61.2 million, a significant increase of 125.6% from RMB 27.1 million in 2020[8]. - Basic earnings per share for the first half of 2021 was RMB 1.9, up 126.2% from RMB 0.84 in the previous year[8]. - Gross profit rose by approximately 46.9% from RMB 96,300,000 to RMB 141,500,000, with gross margin improving from approximately 26.5% to 28.0%[30]. - Profit before tax increased to RMB 76,370 thousand, a 134% rise compared to RMB 32,506 thousand in the previous year[89]. - Net profit for the period was RMB 60,506 thousand, which is a 165% increase from RMB 22,825 thousand in the prior year[89]. - The total tax expense for the period was RMB 15,864,000, an increase of 64.1% compared to RMB 9,681,000 in the previous year[121]. Assets and Liabilities - The total assets as of June 30, 2021, amounted to RMB 3,216.4 million, compared to RMB 3,130.2 million at the end of 2020[8]. - Total equity as of June 30, 2021, is RMB 2,582,953, a decrease from RMB 2,688,718 as of December 31, 2020, representing a decline of approximately 3.93%[95]. - Current liabilities increased to RMB 596,509 thousand from RMB 403,237 thousand at the end of the previous year[93]. - The company’s total liabilities decreased to RMB 1,193,474 as of June 30, 2021, from RMB 1,215,000 as of December 31, 2020, reflecting a decrease of approximately 1.77%[97]. - The company has maintained its issued share capital at RMB 27,807 as of June 30, 2021, consistent with the previous reporting period[97]. Market and Product Development - The company has focused on product diversification and quality improvement in collagen casings, leading to a significant increase in sales volume compared to the previous year[14]. - The company has actively expanded its market for collagen casings and initiated new product sales, enhancing production efficiency through automation[14]. - The company is committed to developing new products, with positive customer feedback on its newly developed high-grade natural casing products[14]. - The company launched new collagen products, including collagen rice noodles and beverages, which have begun initial market development and promotion[18]. - The group expects to continue expanding its market presence and product offerings in the edible collagen sector[108]. Operational Efficiency - Sales cost increased by approximately 36.1% from RMB 267,800,000 to RMB 364,500,000, with raw material costs rising by approximately 53.1% to RMB 162,700,000[29]. - Sales and distribution expenses increased by approximately 22.1% from RMB 12,100,000 to RMB 14,700,000, while the ratio of these expenses to revenue decreased from approximately 3.3% to 2.9%[34]. - The company has implemented strict management and supervision in food production to ensure product quality and safety during the pandemic[14]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB (155,595), compared to RMB 109,305 for the same period in 2020, indicating a significant decrease in cash flow[99]. - Cash and cash equivalents at the end of June 30, 2021, amounted to RMB 183,792, down from RMB 315,281 at the end of June 30, 2020, reflecting a decrease of approximately 41.8%[101]. - New bank borrowings for the six months ended June 30, 2021, totaled RMB 426,235, an increase from RMB 154,878 in the same period of 2020, indicating a rise in financing activities[99]. - Total bank borrowings increased by approximately RMB 277.7 million to RMB 426.1 million, with a debt-to-equity ratio of 16.6%[44]. Corporate Governance - The company has complied with all corporate governance codes as per the listing rules during the reporting period[78]. - The company is considering the feasibility of appointing a separate CEO to enhance governance structure[78]. - The audit committee reviewed the interim results and confirmed adherence to the relevant accounting standards[82]. Shareholder Information - As of June 30, 2021, the major shareholder, Ms. Zhou, holds 2,257,628,000 shares, representing 69.89% of the issued share capital[69]. - The company’s major shareholder, Fortune Holdings, owns 1,936,434,000 shares, which is 59.94% of the issued share capital[74]. - The company has a total of 3,230,480,000 issued shares, unchanged from the previous year[135].
神冠控股(00829) - 2021 - 中期财报