Financial Performance - Revenue for the six months ended June 30, 2021, was approximately RMB 190.4 million, a decrease of about 1.5% compared to RMB 193.3 million in the same period of 2020[11] - Gross profit for the same period was RMB 42.6 million, resulting in a gross margin of 22.4%, down from 24.8% in 2020[5][7] - The company recorded a loss of RMB 1.0 million for the period, an improvement from a loss of RMB 1.7 million in the previous year[11] - For the six months ended June 30, 2021, the total revenue of the group was approximately RMB 190.4 million, a decrease of about RMB 2.9 million or approximately 1.5% compared to RMB 193.3 million for the same period in 2020[16] - The gross profit decreased by approximately RMB 5.3 million or about 11.1% to approximately RMB 42.6 million, resulting in a slight decline in gross margin from approximately 24.8% in 2020 to about 22.4% in 2021[21] - The group recorded a loss before tax of approximately RMB 1.7 million, a decrease of about RMB 0.7 million from a loss of RMB 1.0 million in the same period of 2020[30] - The company reported a basic and diluted loss per share of RMB 0.2, an improvement from RMB 0.3 in the previous year[75] - The net profit attributable to the owners for the six months ended June 30, 2021, was RMB 1,008,000, compared to a loss of RMB 1,688,000 for the same period in 2020[114] Revenue Breakdown - The company’s knitted fabric revenue was approximately RMB 49.4 million, while lingerie products generated about RMB 141.1 million in revenue during the review period[11] - The revenue from knitted fabrics was approximately RMB 49.4 million, an increase of about RMB 15.1 million or 44.0% compared to RMB 34.3 million in 2020, accounting for approximately 25.9% of total revenue[18] - The revenue from underwear products was approximately RMB 141.1 million, a decrease of RMB 18.0 million or approximately 11.3% compared to RMB 159.1 million in 2020, accounting for approximately 74.1% of total revenue[19] - The external sales for lingerie products amounted to RMB 141,069 thousand, while knitted fabric sales were RMB 49,351 thousand[100] Assets and Liabilities - Total assets amounted to RMB 482.7 million, with total liabilities of RMB 195.8 million, resulting in total equity of RMB 287.7 million[5] - Non-current assets as of June 30, 2021, were RMB 195.7 million, compared to RMB 212.2 million at the end of 2020[5] - Trade receivables and bills receivable rose to approximately RMB 80.3 million as of June 30, 2021, compared to RMB 56.6 million as of December 31, 2020, primarily due to increased sales activities and extended credit terms to domestic customers[34] - Trade payables increased to approximately RMB 47.8 million as of June 30, 2021, from RMB 44.3 million as of December 31, 2020, driven by higher raw material purchases in anticipation of increased sales orders[35] - The net asset value decreased to RMB 287,667 thousand from RMB 298,227 thousand, reflecting the overall loss during the period[79] Inventory and Receivables - The company’s inventory turnover days increased to 87 days from 80 days in the previous year[7] - As of June 30, 2021, inventory balance increased to approximately RMB 81.0 million, up from RMB 59.1 million as of December 31, 2020, reflecting an increase in raw material purchases and finished goods due to anticipated sales growth in the second half of 2021[33] - Trade receivables as of June 30, 2021, totaled RMB 80,326,000, compared to RMB 51,600,000 as of December 31, 2020[122] Expenses - The selling and distribution expenses increased by approximately RMB 0.6 million to about RMB 6.0 million, primarily due to increased sales volume and distribution costs of fabric products[26] - The administrative expenses decreased by approximately 14.6% to about RMB 33.1 million, mainly due to reduced rental expenses as the group no longer rented certain office properties[27] - The total employee costs, including director remuneration, amounted to RMB 58,583,000 for the six months ended June 30, 2021, compared to RMB 54,548,000 in the previous year[111] Financing and Cash Flow - The financing costs remained stable at approximately RMB 2.6 million, with actual bank borrowing rates ranging from 4.38% to 5.22%[28] - The company incurred financing costs of RMB (2,542) thousand during the reporting period[100] - Cash and cash equivalents decreased by RMB (22,425) thousand, with a balance of RMB 114,693 thousand as of June 30, 2021[92] - The net cash used in operating activities was RMB (19,058) thousand, a significant decrease from RMB 472 thousand in the previous year[92] Market Outlook - The textile export value decreased by 7.38% year-on-year in the first half of 2021, reflecting challenges in the international market[10] - The company anticipates a gradual recovery in garment export orders, which is expected to positively impact lingerie product revenue[12] - Demand for Chinese textiles is expected to remain stable in the second half of the year due to economic recovery and vaccination efforts[49] Corporate Governance - The company adheres to corporate governance codes and has maintained compliance throughout the reporting period[54] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2021[69] - The company has a Compensation Committee responsible for determining the remuneration policies for directors and senior management[70] - The Nomination Committee is tasked with reviewing the board's structure and proposing changes to align with the company's strategy[72] Shareholder Information - As of June 30, 2021, the major shareholder, Junfeng Investment Limited, holds 260,661,501 shares, representing 52.73% of the total shares[64] - Junfeng International Limited is wholly owned by Junfeng Investment Limited, which is 98.48% owned by Yongtai Group[65] Other Information - The company has not conducted any significant acquisitions or sales in the six months ending June 30, 2021[51] - There have been no major events affecting the company's operations or financial performance after June 30, 2021[52] - The company has not established any arrangements for directors or their family members to benefit from purchasing the company's shares or debt securities as of June 30, 2021[62] - No interim dividend was declared for the six months ended June 30, 2021, consistent with the previous year[46]
广泰国际控股(00844) - 2021 - 中期财报