Financial Performance - Revenue for the first half of 2021 decreased by 4.5% to approximately RMB 707.8 million compared to RMB 741.2 million in the same period of 2020[5] - Gross profit fell by 12.5% to approximately RMB 219.5 million, resulting in a gross margin of 31.0%, down 2.8 percentage points year-on-year[15] - Profit attributable to owners of the company increased by 57.7% to approximately RMB 104.2 million, up from RMB 66.1 million in the previous year[5] - The company reported a significant increase in EBITDA, rising by 30.5% to RMB 159.4 million compared to RMB 122.1 million in the same period last year[5] - The overall net profit after tax increased by 51.7% to approximately RMB 101.9 million, driven by the reversal of impairment provisions[15] - The net profit for the period was RMB 101,856,000, representing an increase of 51.6% compared to RMB 67,154,000 in the previous year[63] - Basic and diluted earnings per share for the period were RMB 25.12, up from RMB 15.93 in the same period last year, reflecting a growth of 57.5%[63] Revenue Breakdown - Revenue from breakfast cookies decreased by 17.2% to approximately RMB 160.2 million, primarily due to changes in consumer habits during the COVID-19 pandemic[18] - Revenue from crispy cookies increased by 11.7% to approximately RMB 128.2 million, attributed to strong brand recognition and effective pricing and promotional strategies[19] - Revenue from sandwich cookies slightly increased by 1.1% to approximately RMB 204.8 million, supported by relaxed social distancing measures and effective online promotions[21] Assets and Liabilities - Total assets increased by 21.6% to RMB 2,157.0 million, while total liabilities rose by 33.8% to RMB 1,145.7 million[5] - Non-current assets increased to RMB 981,834 thousand as of June 30, 2021, up from RMB 880,129 thousand as of December 31, 2020, representing an increase of 11.5%[66] - Current liabilities rose to RMB 925,619 thousand as of June 30, 2021, compared to RMB 788,299 thousand as of December 31, 2020, reflecting an increase of 17.4%[69] - The total capital debt ratio was 53.1%, up from 48.3% at the end of the previous year[35] Employee and Operational Metrics - As of June 30, 2021, the group had a total of 2,622 employees, a decrease from 2,738 employees as of June 30, 2020[38] - Total employee benefits expenses for the six months ended June 30, 2021, were approximately RMB 106.3 million, slightly down from RMB 106.8 million for the same period in 2020[38] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance with high standards of corporate governance[39] - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure is effective for operational stability[40] Dividends - The board has proposed an interim dividend of HKD 0.10 per share, with the record date set for October 22, 2021[9] - The board has declared an interim dividend of HKD 0.10 per ordinary share for the period, compared to no dividend for the same period in 2020[45] - The expected payment date for the interim dividend is November 26, 2021[46] Strategic Initiatives - The company plans to enhance market share by exploring different distribution channels and increasing advertising and marketing expenses[13] - The company plans to enhance product competitiveness and increase market share to improve its strategic position in the industry[36] Impact of COVID-19 - The company continues to monitor the impact of the COVID-19 pandemic on its operations and is prepared to adjust its strategies accordingly[14] - The company remains cautiously optimistic about the cookie industry despite challenges and uncertainties in the second half of 2021[36] Financial Costs and Income - The company reported a decrease in sales and distribution expenses to RMB 94,610,000 from RMB 100,206,000, a reduction of 5.6%[63] - Financial costs for the six months ended June 30, 2021, were RMB 13,133,000, compared to RMB 11,997,000 in 2020, reflecting an increase of approximately 9.5%[100] - Corporate income tax expenses for the first half of 2021 were RMB 10,871,000, down from RMB 13,313,000 in the first half of 2020, a decrease of about 18.3%[18] Investments and Acquisitions - The acquisition of Guangdong Kailan Flour Co., Ltd. is expected to provide a stable supply of high-quality flour at a lower procurement and transportation cost[8] - The company invested approximately RMB 99,827,000 in property, plant, and equipment in the first half of 2021, a substantial increase from RMB 27,589,000 in the same period of 2020[129] Impairment and Credit Losses - The expected credit loss recognized during the period was RMB 15,152,000, compared to RMB 10,376,000 in the same period last year, indicating a rise of 45.5%[63] - The group has recognized an expected credit loss of RMB 8,580,000 on loans to independent third parties, up from RMB 2,749,000[161] Related Party Transactions - Related party transactions for the six months ended June 30, 2021, included sales of goods to Guangdong Swiss乐 of RMB 869 thousand, down from RMB 953 thousand in the previous year[185] - The group purchased goods from Guangdong Swiss乐 for RMB 15,126 thousand, an increase from RMB 9,519 thousand year-on-year[185]
嘉士利集团(01285) - 2021 - 中期财报