Financial Performance - The company recorded revenue of RMB 369.5 million for the six months ended June 30, 2021, representing a 33.1% increase from RMB 277.7 million in the same period last year[14]. - Profit for the period increased by RMB 34.8 million or 419.3% to RMB 43.1 million, compared to RMB 8.3 million in the previous year[14]. - Basic earnings per share rose to RMB 0.06, up from RMB 0.01 in the previous year, an increase of RMB 0.05[14]. - Revenue for the first half of 2021 reached RMB 369.5 million, an increase of 33.0% compared to RMB 277.7 million in the same period of 2020[28]. - Gross profit rose by RMB 29.9 million to RMB 69.5 million, with a gross margin increase to 18.8% from 14.3% in the previous year[30]. - Profit before tax from continuing operations increased to RMB 55,764,000, a significant rise from RMB 11,819,000 in the previous year, marking a 371% increase[77]. - Net profit for the period was RMB 43,077,000, compared to RMB 8,292,000 in the prior year, reflecting a 419% growth[77]. - Total comprehensive income for the period was RMB 42,911,000, compared to RMB 8,713,000 in the previous year, indicating a 392% increase[80]. Business Development - The growth was primarily driven by the recovery of the Chinese economy, the company's comprehensive one-stop food raw material solutions, and stable development across all major business segments[15]. - The company established six new subsidiaries in China to enhance market penetration and expand product sales and distribution coverage[16]. - Four new agency rights were obtained in 2021, focusing on the food service and nutrition sectors, including exclusive rights for various food additive products from South Korea's Samyang and Cargill's food raw materials[19]. - The company plans to continue increasing product sales through existing and new agency rights, targeting unique brand collaborations[23]. - Future development plans include enhancing proprietary brand strength through self-developed formulas and potential food raw materials[23]. - The company aims to explore strategic investment opportunities and seek acquisitions of quality target businesses and assets to create synergies[24]. Financial Position - The company's cash and cash equivalents decreased to RMB 143.4 million from RMB 223.4 million, primarily due to investments in joint ventures[48]. - The debt-to-asset ratio increased to 23.1% from 20.0% as of December 31, 2020, reflecting the increase in borrowings[48]. - Non-current assets totaled RMB 103,067,000 as of June 30, 2021, compared to RMB 9,762,000 at the end of 2020[83]. - Current assets decreased to RMB 380,179,000 from RMB 411,811,000 at the end of 2020, a decline of 8%[83]. - Total liabilities increased to RMB 107,653,000 from RMB 78,546,000 at the end of 2020, representing a 37% increase[83]. - The company's equity attributable to owners of the parent was RMB 371,705,000, up from RMB 337,281,000 at the end of 2020, reflecting a growth of 10%[86]. Cash Flow and Investments - The company experienced a net cash outflow from operating activities of RMB 19,704,000 for the first half of 2021, compared to a net inflow of RMB 20,066,000 in the same period of 2020[95]. - Cash and cash equivalents at the end of June 30, 2021, were RMB 143,381,000, down from RMB 198,539,000 at the end of June 30, 2020, reflecting a decrease of approximately 28%[98]. - The company incurred a cash outflow of RMB 78,239,000 from investing activities in the first half of 2021, compared to a cash inflow of RMB 1,513,000 in the same period of 2020[98]. - New bank loans amounted to RMB 20,000,000 during the first half of 2021, contributing to a net cash inflow from financing activities of RMB 18,122,000[98]. Corporate Governance - The board does not recommend any dividend payment for the review period, considering the overall operating performance and financial condition[73]. - The company has adopted a share option scheme to incentivize and reward eligible participants for their contributions[63]. - The audit committee has reviewed the interim performance and confirmed compliance with applicable accounting standards and listing rules[75]. - The company maintains high standards of corporate governance to protect shareholder interests and enhance accountability[69]. Operational Challenges - Despite challenges from COVID-19, the company remains confident in achieving strong revenue growth and creating value for shareholders[22]. - The company reported a trade receivables impairment of RMB 422 thousand as of June 30, 2021, significantly reduced from RMB 1,539 thousand as of December 31, 2020, indicating improved credit control[148]. - The company maintained a strict control over overdue balances in trade receivables to minimize credit risk, with management regularly reviewing overdue amounts[148].
欣融国际(01587) - 2021 - 中期财报