Financial Performance - For the six months ended June 30, 2021, the company's revenue was HKD 302.8 million, an increase of HKD 22.3 million or 8.0% compared to the same period last year[8]. - The net profit for the same period was HKD 12.0 million, up from HKD 11.4 million in the previous year, driven by a rebound in sales of concentrated Chinese medicine granules and government subsidies[8]. - The group's revenue for the first half of 2021 was HKD 302.8 million, an increase of HKD 22.3 million or 8.0% compared to HKD 280.4 million in the same period last year[24]. - The net profit for the first half of 2021 was HKD 12.0 million, up from HKD 11.4 million in the same period last year, primarily due to a rebound in sales of concentrated Chinese medicine granules and government subsidies received[24]. - The gross profit margin for the first half of 2021 was 64.9%, an increase of 6.1% from 58.8% in the same period last year, attributed to a higher proportion of revenue from concentrated Chinese medicine granules[36]. - The company reported a profit of HKD 11,974,000 for the period, contributing to a total comprehensive income of HKD 12,813,000 for the six months ended June 30, 2021[105]. - The profit before tax increased to HKD 17,386,000, representing a growth of 6.1% compared to HKD 16,388,000 in the previous year[99]. - The company reported a decrease in the fair value of harvested biological assets to HKD 8,500,000 in 2021 from HKD 12,641,000 in 2020, a decline of approximately 32.5%[171]. Revenue Breakdown - Revenue from concentrated Chinese medicine granules in China was HKD 156.9 million, accounting for 51.8% of total revenue, a 29.1% increase from HKD 121.5 million in the previous year[18]. - Revenue from Hong Kong concentrated Chinese medicine granules was HKD 72.7 million, representing 24.0% of total revenue, a 6.4% increase from HKD 68.3 million in the previous year[19]. - Sales of concentrated Chinese medicine granules in China reached HKD 156.9 million, an increase of HKD 35.4 million or 29.1% compared to HKD 121.5 million in the same period last year[26]. - Direct sales of concentrated Chinese medicine granules in Hong Kong amounted to HKD 72.7 million, an increase of HKD 4.4 million or 6.4% from HKD 68.3 million in the same period last year[27]. - The revenue from the sale of concentrated Chinese medicine granules was HKD 247,311,000, up from HKD 207,885,000 in the previous year, indicating a growth of about 18.9%[131]. - The revenue from Chinese medicine health products decreased to HKD 39,358,000 from HKD 45,097,000, reflecting a decline of approximately 12.7%[131]. - The revenue from providing Chinese medicine outpatient services dropped significantly to HKD 9,925,000 from HKD 21,537,000, a decrease of about 53.8%[131]. Expenses and Costs - Sales and distribution expenses for the first half of 2021 were HKD 92.4 million, a decrease of HKD 4.4 million or 4.5% compared to HKD 96.8 million in the same period last year[39]. - The percentage of sales and distribution expenses to revenue decreased from 34.5% in the previous year to 30.5% in the first half of 2021[39]. - R&D costs increased by HKD 3.9 million or 48.3%, primarily due to an increase in the number of R&D personnel[41]. - General administrative expenses rose by HKD 3.4 million or 7.0%, mainly due to increased depreciation from a new production facility and higher director remuneration[41]. - Other expenses decreased to HKD 2.3 million, down HKD 4.2 million or 64.6% from HKD 6.5 million in the previous year, mainly due to reduced charitable donations[43]. - Financing costs increased by HKD 2.3 million or 20.8%, attributed to a rise in the average outstanding bank and other borrowings[44]. - The cost of goods sold was HKD 102,954,000, a decrease from HKD 109,412,000 in 2020, reflecting a reduction of 5.0%[139]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 1,360,945,000, compared to HKD 1,374,577,000 as of December 31, 2020[101]. - Non-current assets increased to HKD 780,925,000 from HKD 766,899,000 at the end of 2020[101]. - Current assets decreased to HKD 580,020,000 from HKD 607,678,000 at the end of the previous year[101]. - The company's total equity amounted to HKD 526,995,000 as of June 30, 2021, compared to HKD 511,658,000 at the end of 2020, representing a growth of 3.0%[105]. - Non-current liabilities decreased to HKD 260,389,000 as of June 30, 2021, down from HKD 271,032,000 as of December 31, 2020, reflecting a decline of 3.9%[103]. - The company's interest-bearing bank and other borrowings stood at HKD 172,137,000 as of June 30, 2021, compared to HKD 178,992,000 as of December 31, 2020, a decrease of 3.0%[103]. - The total amount of bank loans and other borrowings with collateral was HKD 172,137,000 as of June 30, 2021[198]. Strategic Initiatives - The company expects continued strong growth in the Chinese economy in the second half of 2021, supported by favorable policies in the traditional Chinese medicine sector[10]. - The company plans to focus on the modernization of traditional Chinese medicine and the development of innovative health products featuring natural ingredients[10]. - The company aims to seek strategic partnerships to advance the modernization of traditional Chinese medicine, particularly in the Greater Bay Area[11]. - The company has allocated a budget to upgrade existing mobile applications, online stores, diagnostic software, and customer management systems[10]. Shareholder Information - As of June 30, 2021, Mr. Chen Yuling holds a 45.29% equity interest in the company, with additional holdings by other directors and executives, indicating significant insider ownership[67]. - PuraPharm Corp holds 77,349,750 shares, representing 19.59% of the company's issued share capital[73]. - Fullgold Development owns 81,929,000 shares, accounting for 20.75% of the company's issued share capital[73]. - The stock option plan allows for the issuance of up to 39,489,294 shares, equivalent to 10% of the issued shares as of the resolution date[76]. - The company recognized a net expense of HKD 169,000 for share incentives during the reporting period, compared to HKD 354,000 for the six months ending June 30, 2020[83]. Governance and Compliance - The company has complied with all applicable corporate governance code provisions during the reporting period, except for the separation of roles between the Chairman and CEO[85]. - The audit committee, established on June 12, 2015, consists of three independent non-executive directors and is responsible for overseeing financial reporting and internal controls[86].
培力农本方(01498) - 2021 - 中期财报