Company Overview - China Kangda Food Company Limited is a major manufacturer and exporter of rabbit meat products, with significant exports to the European Union and operations in over 30 countries[5]. - The company has established a strong distribution network across 26 provinces in China and has expanded its product offerings to include processed foods such as instant soups and curry products[5]. - The company is recognized as one of the largest rabbit meat exporters in China and has received certification for rabbit breeding practices, enhancing its market position[5]. Financial Performance - The company reported a loss attributable to owners of approximately RMB 1.624 million for the first half of 2020, compared to a profit of approximately RMB 4.798 million for the same period in 2019, indicating a significant decline in performance[10]. - Revenue increased by 4.0% from approximately RMB 675.3 million in the first half of 2019 to approximately RMB 702.5 million in the first half of 2020, driven by growing export orders[10]. - Gross profit increased by RMB 7.1 million to RMB 60.1 million, with gross margin rising from 7.8% in the first half of 2019 to 8.5% in the first half of 2020[10]. - Revenue from processed foods decreased by 18.2% to approximately RMB 295.2 million due to negative impacts on demand from food service channels during COVID-19[15]. - Revenue from chilled and frozen chicken increased by 48.0% to approximately RMB 227.9 million, attributed to chicken being a staple food and a substitute for rising pork prices[17]. - Revenue from other products, mainly pet food and feed products, increased by 40.2% to RMB 109.0 million, largely due to new sales channels developed in Korea and Europe[18]. - Export sales revenue increased by 47.7% to RMB 254.0 million, as overseas customers shifted orders to China amid the pandemic[19]. - Revenue from China decreased by 10.9% to RMB 448.6 million, impacted by transportation restrictions during COVID-19[19]. Cost Management and Expenses - The company plans to optimize its product mix, strengthen cost management, and expand new sales channels to enhance overall performance[10]. - Administrative expenses decreased due to cost control measures and reduced travel expenses during the COVID-19 pandemic[21]. - Financing costs decreased by 26.1% to approximately RMB 10.5 million, primarily due to a reduction in the average balance of bank borrowings[21]. - Total employee costs, including director remuneration, were approximately RMB 94.1 million during the review period, down from RMB 101.2 million for the six months ended June 30, 2019[27]. - The financing costs for the six months ended June 30, 2020, were RMB 10,478,000, a decrease from RMB 14,185,000 in the same period of 2019, indicating a reduction of approximately 26.0%[60]. Assets and Liabilities - As of June 30, 2020, the company's net asset value was approximately RMB 668.6 million, a slight decrease from RMB 670.7 million as of December 31, 2019[24]. - Cash and cash equivalents increased to approximately RMB 220.7 million, up from RMB 159.5 million as of December 31, 2019, mainly due to increased revenue[24]. - Trade payables and notes increased by 18.0% to approximately RMB 242.6 million, attributed to a slowdown in settling trade payables during the period[24]. - The company's total interest-bearing bank borrowings decreased by RMB 19.0 million to approximately RMB 315.0 million as of June 30, 2020, with interest rates ranging from 4.79% to 5.655%[24]. - The company's asset-liability ratio was 68.6% as of June 30, 2020, compared to 69.7% as of December 31, 2019[24]. Shareholder Information - Major shareholder Dingxi Limited holds 324,708,066 shares, representing approximately 75.00% of the issued share capital as of June 30, 2020[33]. - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[35]. Corporate Governance - The company has complied with all corporate governance code provisions as of June 30, 2020, except for certain deviations noted during the period from June 18, 2020, to August 23, 2020[31]. - The company believes that the dual roles of Chairman and CEO held by Fang Yu provide strong and effective leadership for business planning and decision-making[31]. - The company aims to separate the roles of Chairman and CEO when suitable candidates are identified in the future[31]. Operational Highlights - The company operates primarily in the production and sale of food products, including poultry and rabbit meat, with a focus on the Chinese market[50]. - The company’s main business segments include processed food production, chilled and frozen chicken, chilled and frozen rabbit meat, and other products[55]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2020, was RMB 70,955 thousand, compared to a net cash used of RMB 47,178 thousand in the same period of 2019, representing a significant improvement[47]. - The company reported a decrease in cash flow from investment activities, with cash inflow of RMB 8,880 thousand compared to an outflow of RMB 7,548 thousand in the previous year[47]. - The total cash inflow from financing activities was RMB 1,332 thousand, a significant decrease from RMB 128,191 thousand in the same period of 2019[47]. Revenue Breakdown - The revenue from processed food segment was RMB 295,216,000, while the revenue from frozen chicken was RMB 227,941,000, and frozen rabbit meat was RMB 70,378,000 for the six months ended June 30, 2020[56]. - The company recognized a total of RMB 7,923,000 in other income for the six months ended June 30, 2020, compared to RMB 32,316,000 in the same period of 2019, indicating a significant decrease[58]. Accounts Receivable and Payable - Trade receivables increased by RMB 9.7 million to approximately RMB 124.3 million, in line with increased sales[21]. - The total accounts payable and notes payable reached RMB 242,622,000 as of June 30, 2020, an increase of 18.0% from RMB 205,545,000 as of December 31, 2019[70]. - Accounts payable within 60 days amounted to RMB 133,477,000, an increase of 11.9% from RMB 119,347,000 in the previous period[70].
康大食品(00834) - 2020 - 中期财报