Financial Performance - For the six months ended June 30, 2021, China Putian Food Holding Limited recorded revenue of approximately RMB 325,694,000, an increase of about 0.7% compared to RMB 323,530,000 for the same period in 2020[9]. - The group's gross profit for the same period was approximately RMB 43,771,000, a decrease of about 13.6% year-on-year[9]. - The company reported a net loss of approximately RMB 54,716,000, down from a net profit of RMB 8,826,000 in the same period last year, reflecting a decline of RMB 63,542,000[9]. - The group reported a loss before tax of RMB 54,716,000 for the six months ended June 30, 2021, compared to a profit of RMB 8,826,000 in the previous year[54]. - The company reported a total comprehensive income of RMB 1,381,000 for the six months ended June 30, 2021, compared to a total comprehensive loss of RMB 54,716,000 for the same period in 2020[63]. - The company reported a total loss of RMB 12,068,000 for the six months ended June 30, 2021, compared to a loss of RMB 4,315,000 in the same period of 2020[81]. Revenue Breakdown - Retail pork revenue increased by approximately 3.0% to RMB 209,746,000 from RMB 203,627,000 in the previous year, accounting for 64.4% of total revenue[16]. - Wholesale pork revenue decreased by approximately 0.3% to about RMB 103,208,000 from RMB 103,509,000 in the same period last year[19]. - Retail frozen meat revenue decreased by approximately 22.8% to about RMB 10,038,000 from RMB 12,999,000 in the same period last year[20]. - Wholesale commodity pork revenue decreased by approximately 20.4% to about RMB 2,702,000 from RMB 3,395,000 in the same period last year, accounting for about 0.8% of total revenue[21]. - Total revenue for the six months ended June 30, 2021, was RMB 325,694,000, a slight increase of 0.67% compared to RMB 323,530,000 for the same period in 2020[77]. Cost and Profit Margins - Overall unaudited gross profit decreased to approximately RMB 43,771,000 from RMB 50,638,000 in the same period last year, with a gross profit margin decline from 15.7% to 13.4%[26]. - Retail pork gross profit decreased to approximately RMB 33,467,000 from RMB 33,601,000, with a gross profit margin decline from 16.5% to 16.0%[27]. - Wholesale pork gross profit decreased to approximately RMB 9,179,000 from RMB 15,234,000, with a gross profit margin decline from 14.7% to 8.9%[28]. - Retail frozen meat gross profit decreased to approximately RMB 500,000 from RMB 1,336,000, with a gross profit margin decline from 10.3% to 5.0%[29]. Market and Sales Strategy - The overall retail market for food products in China saw a year-on-year increase of 10.5% in the first half of 2021, contributing to improved consumer sentiment[8]. - The company’s sales strategy includes a combination of online and offline channels, which has been effective in enhancing market share and brand recognition[16]. - The company plans to develop high-end pork products and expand product variety and sales channels to meet consumer demand for quality products[22]. - The company plans to open approximately 15 new retail points in high-consumption areas such as Beijing, including 5 stores each for Huashang Supermarket, Huatang Supermarket, and T11 Supermarket[48]. - The group aims to enhance its high-end product sales, particularly focusing on the "Putian Black Pearl" brand to capture market opportunities in the premium pork segment[50]. Assets and Liabilities - As of June 30, 2021, the company's total equity was RMB 639,872,000, a decrease of 7.6% from RMB 692,426,000 as of December 31, 2020[59]. - The total assets less current liabilities as of June 30, 2021, were RMB 668,246,000, a decrease from RMB 716,976,000 as of December 31, 2020[56]. - The company’s total liabilities as of June 30, 2021, were RMB 28,374,000, an increase from RMB 24,550,000 as of December 31, 2020[59]. - The company’s borrowings amounted to RMB 338,853,000 as of June 30, 2021, a decrease of 7.2% from RMB 365,035,000 as of December 31, 2020[125]. - The company’s secured borrowings were RMB 327,479,000 as of June 30, 2021, compared to RMB 355,410,000 as of December 31, 2020, indicating a reduction of 7.8%[125]. Employee and Operational Costs - The group has 483 employees as of June 30, 2021, down from 494 employees a year earlier, with employee costs amounting to RMB 9,402,000[45]. - Employee costs totaled RMB 9,496,000, which includes salaries and other compensations, reflecting an increase from the previous year[91]. - The company has taken measures to strictly control costs to achieve profitability and positive cash flow[68]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules appendix 14, with no known violations reported for the six months ending June 30, 2021[200]. - The roles of Chairman and CEO are held by the same individual, Mr. Cai Chen Yang, which the board believes will not harm the balance of power and authority within the company[200]. - The board expresses full confidence in Mr. Cai Chen Yang's leadership and believes it will greatly benefit the company's business prospects[200]. Shareholder Information - The major shareholder, Cai Chenyang, holds 1,078,440,000 shares, representing 57.09% of the company's issued shares[184]. - The total number of shares held by major shareholders in the company is significant, with the top three shareholders controlling over 62% of the shares[192]. - The company has pledged 816,000,000 shares to Vandi Investments Limited, which accounts for 43.20% of the issued shares[192]. Future Plans and Investments - The company plans to invest more in emerging retail channels and develop a new generation of sales models to increase online sales and group purchasing[49]. - The group intends to expand its production line at the Hebei Xuankua breeding base to increase the output of live pigs[48].
普甜食品(01699) - 2021 - 中期财报