Financial Performance - For the first half of 2021, China Kangda Food Company reported a loss attributable to shareholders of approximately RMB 39.8 million, compared to a loss of RMB 1.6 million in the same period of 2020[13]. - Revenue increased by 3.0% from approximately RMB 702.5 million in the first half of 2020 to approximately RMB 723.3 million in the first half of 2021, driven by a recovery in consumer demand[13]. - Gross profit margin decreased from 8.5% in the first half of 2020 to 4.8% in the first half of 2021, resulting in a gross profit reduction of RMB 25.7 million to RMB 34.4 million[13]. - The company reported a loss of RMB 40.6 million for the six months ended June 30, 2021, compared to a loss of RMB 1.7 million for the same period in 2020[38]. - Basic loss per share for the six months ended June 30, 2021, was RMB 9.2, compared to RMB 0.38 for the same period in 2020[38]. - The company reported a loss of RMB 39,841 thousand for the period, compared to a loss of RMB 1,624 thousand in the previous period, indicating a significant increase in losses[41]. - The total comprehensive loss for the period was RMB 39,920 thousand, compared to a total comprehensive loss of RMB 1,987 thousand in the previous period[41]. Revenue Breakdown - Revenue from processed foods increased by 17.7% to approximately RMB 347.5 million, contributing 48.0% of total revenue[16]. - Revenue from frozen chicken decreased by 30.4% to approximately RMB 158.5 million, primarily due to rising feed costs and market price fluctuations[17]. - Revenue from frozen rabbit meat surged by 47.6% to approximately RMB 103.9 million, attributed to the development of new customers[18]. - Revenue from other products, including pet food and by-products, increased by 4.0% to RMB 113.4 million, benefiting from new sales channels in Europe[19]. - Revenue from the Chinese market grew by 5.4% to RMB 472.9 million, while export revenue slightly decreased by 1.4% to RMB 250.4 million[20]. Cost and Expenses - Overall gross profit margin decreased from 8.5% to 4.8%, with processed foods' gross margin dropping to 6.3% due to rising raw material costs[23]. - The gross margin for frozen chicken plummeted by 10.5 percentage points to -4.5%, influenced by increased feed costs and production expenses[23]. - The gross margin for frozen rabbit meat improved to 6.0%, reflecting better sales performance[23]. - Administrative expenses increased by RMB 2.2 million due to higher foreign exchange losses and increased travel expenses in the first half of 2021[24]. - Other operating expenses rose to RMB 15.1 million, up RMB 11.2 million from RMB 3.9 million in the first half of 2020, primarily due to depreciation of investment properties[24]. - The total cost of goods sold for the six months ended June 30, 2021, was RMB 580,590,000, an increase from RMB 529,670,000 in the same period of 2020, reflecting a rise of approximately 9.6%[63]. Assets and Liabilities - As of June 30, 2021, property, plant, and equipment decreased by 5.9% to approximately RMB 398.2 million, attributed to depreciation and the sale of breeding farms[24]. - Trade receivables increased by RMB 57.8 million to approximately RMB 144.4 million, mainly due to the recovery of more trade receivables at the end of 2020[24]. - Trade payables increased by 20.1% to approximately RMB 178.4 million, primarily due to a slowdown in settling trade payables during the period[27]. - The company's cash and cash equivalents decreased to approximately RMB 123.1 million from RMB 208.8 million as of December 31, 2020[27]. - The asset-liability ratio as of June 30, 2021, was 69.2%, up from 67.8% as of December 31, 2020[27]. - The company's net assets decreased to RMB 594,575 thousand from RMB 635,249 thousand, a decline of about 6.4%[40]. Strategic Focus and Future Plans - The company plans to continue optimizing its product mix, enhancing cost management, and expanding new sales channels to strengthen its core capabilities and improve overall performance[13]. - The company is focused on high-value-added processed foods and aims to maintain strong relationships with key customers while actively developing new markets and clients[13]. - The company aims to maintain a robust capital structure to lower capital costs and support future business expansion[27]. - The company plans to continue its focus on the production and sale of food products, including poultry and rabbit meat, as part of its core business strategy[46]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions as of June 30, 2021, except for the separation of the roles of Chairman and CEO[32]. - The company has adopted the standard code for securities transactions by directors as per the listing rules[36]. - The company did not recommend any interim dividend for the first half of 2021, consistent with the same period in 2020[28]. Market and Industry Insights - The company believes that the demand for rabbit meat will steadily increase as living standards rise and more consumers prefer nutritious food options[13]. - The company has established a complete industry chain for rabbit meat, from breeding to processing, and is one of the eight companies in China authorized to export rabbit meat to overseas markets[13].
康大食品(00834) - 2021 - 中期财报