Financial Performance - Distribution business revenue decreased by 95.1% to HKD 1.9 million from HKD 38.4 million in the same period last year due to the impact of COVID-19[7]. - Supply chain business generated revenue of HKD 17.4 million in the first half of 2021, contributing to total revenue of HKD 19.3 million, a decrease of 49.7% from HKD 38.4 million in the previous year[10]. - Revenue for the first half of 2021 decreased by 49.7% to HKD 19.3 million from HKD 38.4 million in the same period of 2020, primarily due to a decline in orders from the distribution business[15]. - Gross profit for the first half of 2021 decreased by 39.0% to HKD 3.1 million from HKD 5.0 million in the same period of 2020, with a gross margin of 15.8% compared to 13.1% in the previous year[17]. - The company's loss increased by 317.5% to HKD 29.5 million in the first half of 2021, compared to a loss of HKD 7.1 million in the same period last year, primarily due to prolonged economic impacts of COVID-19 and increased inventory impairment losses[10]. - The net loss for the first half of 2021 increased by 317.5% to HKD 29.5 million from HKD 7.1 million in the same period of 2020[24]. - Total comprehensive loss for the first half of 2021 was HKD 29,214,000, compared to HKD 11,747,000 in the first half of 2020, reflecting a rise of 148.5%[68]. - The company reported a loss before tax of HKD 29,532,000 for the first half of 2021, compared to a loss of HKD 7,073,000 in the same period of 2020, indicating a significant increase in losses[68]. - The basic and diluted loss per share for the first half of 2021 was HKD (10.72 cents), compared to HKD (2.57 cents) in the same period of 2020, indicating a worsening loss per share[68]. Revenue Breakdown - The distribution business segment generated revenue of HKD 1,907,000, while the supply chain business segment contributed HKD 17,407,000, with the latter accounting for 90.2% of total revenue[93]. - One major customer in the supply chain business accounted for over 10% of the group's revenue, with sales to this customer amounting to HKD 17,407,000[97]. - The group’s revenue from customers in China (including Hong Kong and Macau) was HKD 1,907,000, while revenue from other Asian markets was HKD 17,407,000, showing a shift in market focus[95]. Cost and Expenses - Sales cost for the first half of 2021 decreased by 51.3% to HKD 16.3 million from HKD 33.4 million in the same period of 2020, attributed to the drop in revenue from the distribution business and lower material costs[16]. - Other income for the first half of 2021 decreased by 44.1% to HKD 0.2 million from HKD 0.4 million in the same period of 2020, mainly due to the absence of gains from revised lease agreements[18]. - Selling and distribution expenses for the first half of 2021 decreased by 58.0% to HKD 0.9 million from HKD 2.2 million in the same period of 2020, due to a reduction in sales personnel and decreased sales activities[19]. - Administrative expenses for the first half of 2021 decreased by 37.6% to HKD 5.8 million from HKD 9.3 million in the same period of 2020, primarily due to cost control measures[20]. - The cost of goods sold for the six months ended June 30, 2021, was HKD 16,254,000, down from HKD 33,357,000 in the same period of 2020, showing a reduction of approximately 51%[106]. Assets and Liabilities - Inventory decreased by 86.5% to HKD 2.9 million as of June 30, 2021, from HKD 21.4 million as of December 31, 2020, due to a reduction in overall inventory levels[25]. - Trade receivables decreased by 47.5% to HKD 19.4 million as of June 30, 2021, from HKD 36.5 million as of December 31, 2020, primarily due to a decline in revenue from the distribution business[26]. - The company's net assets decreased to HKD 187,277,000 as of June 30, 2021, from HKD 216,491,000 at the end of 2020, a decline of 13.5%[73]. - The company's total assets less current liabilities as of June 30, 2021, were HKD 188,163,000, down from HKD 217,498,000 at the end of 2020[74]. - The total trade receivables as of June 30, 2021, amounted to HKD 19,364,000, down from HKD 36,460,000 as of December 31, 2020, indicating a reduction of about 46.8%[121]. Corporate Governance and Compliance - The audit committee has reviewed the company's unaudited interim results for the first half of 2021, confirming no objections to the accounting principles adopted[58]. - The company has adhered to the applicable provisions of the Hong Kong Corporate Governance Code during the first half of 2021[60]. - The company will continue to review its corporate governance structure to comply with the principles and guidelines of the Corporate Governance Code[59]. Future Plans and Strategies - The company plans to expand its distribution business in Southwest China, leveraging the resources and marketing network of Yunnan Energy Investment Group[38]. - The company aims to increase sales activities in Southwest China, particularly in Yunnan Province, by hiring additional sales and technical support staff[38]. - The company is focusing on developing international supply chain opportunities, particularly in construction materials, medical devices, and energy[42]. - The company plans to utilize Yunnan Energy Investment Group's overseas network to build a global supply chain network[43]. - Despite a decline in financial performance, the company expects to improve operational efficiency and create value for shareholders through the implementation of its business plan[45]. Shareholder Information - As of June 30, 2021, Baodi International Investment Limited holds 201,196,995 shares, representing approximately 73.05% of the company's issued share capital[54]. - The company did not grant, exercise, expire, or cancel any share options under its share option plans during the first half of 2021[49]. - No share rewards were granted under the share reward plan during the first half of 2021[50]. - The average number of ordinary shares issued during the period was 275,437,000, unchanged from the same period in 2020[112]. Cash Flow and Financing - The company's cash and cash equivalents at the end of June 2021 were HKD 87,425,000, a decrease from HKD 115,736,000 at the beginning of the period[81]. - The net cash flow used in operating activities for the first half of 2021 was HKD (29,804,000), compared to HKD (23,487,000) in the same period of 2020, indicating worsening cash flow[81]. - The group did not declare any interim dividends for the six months ended June 30, 2021, consistent with the same period in 2020[111]. - The company had a loan financing total of HKD 936,000,000 from the immediate holding company, which was fully repaid by December 30, 2020[145].
云能国际(01298) - 2021 - 中期财报