Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 9,973,914 thousand, a decrease of 8.7% compared to RMB 10,927,862 thousand in 2020[8]. - Gross profit margin decreased to 39.4% from 44.1% in the previous year[8]. - Operating profit for the period was RMB 2,540,583 thousand, down 20.2% from RMB 3,185,111 thousand in 2020[8]. - Profit attributable to equity holders of the company was RMB 1,860,292 thousand, a decline of 17.7% compared to RMB 2,259,528 thousand in the same period last year[8]. - Basic and diluted earnings per share were RMB 1.574, down from RMB 1.899 in 2020[11]. - Total comprehensive income for the period was RMB 1,851,142 thousand, compared to RMB 2,259,482 thousand in the previous year[12]. - The company reported a decrease in annualized return on equity to 19.2% from 24.2% in the previous year[128]. - The total revenue for the six months ended June 30, 2021, was RMB 1,860,292 thousand, compared to RMB 2,259,528 thousand for the same period in 2020, representing a decrease of approximately 17.6%[135]. - The overall gross profit dropped by approximately 18.4% to about RMB 3,930,671,000, with a gross profit margin declining to approximately 39.4% from 44.1% in the previous year[197]. - Operating profit fell by approximately 20.2% to about RMB 2,540,583,000, while profit attributable to equity holders decreased by approximately 17.7% to RMB 1,860,292,000[197]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 46,848,146 thousand, an increase from RMB 44,440,925 thousand at the end of 2020[13]. - The company's total liabilities increased to RMB 27,249,770 thousand from RMB 24,779,451 thousand, indicating a rise of approximately 10%[14]. - The total financial liabilities as of June 30, 2021, were RMB 26,328,339 thousand, compared to RMB 23,753,647 thousand as of December 31, 2020, indicating an increase[27]. - The group’s borrowings as of June 30, 2021, were RMB 23,713,581 thousand, compared to RMB 20,837,362 thousand at the end of 2020, indicating a rise of about 13.5%[147][152]. - The total amount of accounts payable and notes payable aged within 30 days was RMB 769,928,000 as of June 30, 2021, compared to RMB 1,209,694,000 as of December 31, 2020, indicating a decrease of approximately 36%[60]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2021, was RMB 2,214,898 thousand, down from RMB 2,915,482 thousand in the same period of 2020, representing a decrease of about 24%[16]. - The net cash used in investing activities was RMB 2,727,007 thousand for the first half of 2021, a significant improvement compared to a net cash outflow of RMB 4,108,873 thousand in the same period of 2020[136]. - Cash and cash equivalents as of June 30, 2021, totaled RMB 17,377,234 thousand, an increase from RMB 13,832,944 thousand at the end of the previous year[16]. - Cash and bank deposits increased to RMB 23,347,392 thousand from RMB 20,483,739 thousand at the end of 2020[13]. - Total cash and bank deposits reached RMB 27,284,746,000 as of June 30, 2021, up from RMB 23,970,698,000 as of December 31, 2020, reflecting a growth of approximately 13.0%[176]. Dividends and Shareholder Returns - The company declared a final dividend of RMB 1,530,799 thousand for the previous year, which was paid during the current period[15]. - The company proposed an interim dividend of RMB 1.00 per share, down from RMB 1.20 per share in the previous year, totaling RMB 1,175,121 thousand[47]. - The company plans to continue its strategy of enhancing shareholder value through share repurchases and dividends[112]. - The company repurchased a total of 8,800,000 ordinary shares at a total cost of approximately HKD 452,354,000 during the six months ended June 30, 2021[112]. Market and Product Performance - The group generated revenue of RMB 3,029,970 thousand from sanitary napkin products, contributing a profit of RMB 1,447,375 thousand[38]. - Disposable diaper products generated revenue of RMB 619,668 thousand, with a profit of RMB 97,856 thousand[38]. - The sales revenue from the sanitary napkin business recorded a decline of about 6.0% to approximately RMB 3,029,970,000, accounting for nearly 30.4% of the group's total revenue[78]. - The group’s revenue from tissue products was RMB 4,696,522 thousand, contributing significantly to overall performance[158]. - The group plans to continue developing high-end products, with the new product "Space 7" expected to become a major growth driver in the sanitary napkin market[199]. Strategic Initiatives - The company aims to enhance its brand image and establish itself as a leading fast-moving consumer goods producer and distributor in China[6]. - The group is actively researching opportunities to expand its sanitary napkin products into overseas markets as part of its growth strategy[79]. - The group plans to continue developing various household products to meet market demand and enhance competitiveness[84]. - The group aims to leverage new retail channels and digital economy trends to increase market share in e-commerce and new retail sectors[86]. - The group plans to increase the proportion of high-end products in its portfolio to maintain its market leadership amid intensified competition from international brands[79]. Risk Management - The group reported a liquidity risk with no significant changes in the contractual undiscounted cash flows of financial liabilities compared to the end of the previous year[25]. - The group has identified various financial risks, including market risk, credit risk, and liquidity risk, which are inherent in its operations[144]. - The financial risk management policies of the group have remained unchanged since the end of last year[144]. Sustainability and Corporate Governance - The group is committed to developing green products and sustainable production technologies to meet consumer demands for environmentally friendly products[92]. - All production facilities have obtained ISO 14001 environmental management system certification, demonstrating the group's commitment to sustainable development[95]. - The company has complied with all applicable provisions of the Corporate Governance Code as per the Stock Exchange's listing rules during the six months ended June 30, 2021[120].
恒安国际(01044) - 2021 - 中期财报