Financial Performance - For the six months ended June 30, 2021, the company reported revenue of $81,432,000, a decrease of 17.3% compared to $98,493,000 for the same period in 2020[7]. - Gross profit for the same period was $19,061,000, down from $20,544,000, reflecting a gross margin of 23.4%[7]. - The net profit attributable to shareholders for the six months was $4,279,000, a decline of 15% from $5,030,000 in the prior year[7]. - The company reported total comprehensive income of $4,507,000, compared to $8,193,000 in the same period last year, indicating a significant decrease[10]. - Total revenue for the six months ended June 30, 2021, was $81,432,000, compared to $98,493,000 for the same period in 2020, representing a decrease of approximately 17.3%[34]. - Revenue from the United States market was $29,000,000 for the six months ended June 30, 2021, down from $35,405,000 in 2020, a decline of about 18.5%[36]. - Other income and net gains totaled $1,041,000 for the six months ended June 30, 2021, compared to $1,129,000 in 2020, reflecting a decrease of approximately 7.8%[38]. - The cost of goods sold for the six months ended June 30, 2021, was $60,394,000, down from $75,674,000 in 2020, indicating a reduction of about 20.1%[41]. - The group reported a total tax expense of $918,000 for the six months ended June 30, 2021, compared to $712,000 in 2020, an increase of approximately 28.9%[44]. - The company's net profit attributable to shareholders decreased by approximately $0.7 million or 14.9% to about $4.3 million[70]. Cash Flow and Assets - Current assets as of June 30, 2021, totaled $128,874,000, down from $139,434,000 at the end of 2020[12]. - The company's cash and bank balances decreased to $64,938,000 from $82,523,000, reflecting a reduction of 21.4%[12]. - The net cash flow from operating activities for the six months ended June 30, 2021, was $(5,933,000), compared to $7,974,000 for the same period in 2020, indicating a significant decrease in cash flow[21]. - The net cash flow from investing activities was $8,438,000 for the six months ended June 30, 2021, down from $12,720,000 in the previous year, reflecting a decrease of approximately 33.5%[21]. - The company reported a total cash and cash equivalents balance of $31,454,000 as of June 30, 2021, compared to $56,770,000 at the end of June 2020, showing a decline of about 44.2%[21]. - The company’s retained earnings as of June 30, 2021, were $82,311,000, down from $90,198,000 as of June 30, 2020, indicating a decrease of approximately 8.8%[17]. - Cash and cash equivalents amounted to approximately $64.9 million as of June 30, 2021, with no external borrowings, resulting in a capital debt ratio of zero[71]. Equity and Liabilities - As of June 30, 2021, the total equity attributable to shareholders was $139,214,000, a decrease from $144,805,000 as of December 31, 2020, representing a decline of approximately 3.7%[16]. - Total liabilities decreased to $33,197,000 from $39,951,000, indicating a reduction of 16.8%[12]. - The company’s total liabilities as of June 30, 2021, were not explicitly stated but can be inferred to have increased given the decrease in total equity[16]. Operational Focus and Strategy - The company plans to focus on market expansion and new product development to drive future growth[6]. - The company continues to focus on optimizing existing capacity and streamlining production processes to enhance profitability amid slow sales growth[64]. - The group operates a single business segment focused on the production and sale of sports bags, handbags, and luggage, with no separate segment reporting[31]. - The company is primarily engaged in the manufacturing and sale of sports bags, handbags, and luggage, indicating a focus on consumer goods[23]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial results for the six months ending June 30, 2021[106]. - The audit committee confirmed that the financial statements comply with applicable accounting standards and have made adequate disclosures[106]. - The company has established an audit committee to enhance corporate governance and protect group assets[106]. - The chairman of the audit committee is Mr. Gao Shaode, who oversees the independent review of the group's financial reporting processes[106]. Shareholder Information - The major shareholder, Prosperous BVI, holds 588 million shares, representing approximately 52.5% of the company's equity[99]. - Prosperous BVI holds 588,000,000 shares of the company, with ownership percentages distributed among various individuals[101]. - Great Pacific, a wholly-owned subsidiary of the company, owns 252,000,000 shares, making the company the beneficial owner of these shares[102]. - 宝成工业股份有限公司 holds a 51.11% stake in the company through its subsidiaries, indicating significant ownership influence[102]. Market Conditions and Risks - The company faced foreign exchange risk as procurement and operating costs were mainly denominated in RMB and VND, while most sales were in USD[79]. - The group expects to continue monitoring the impact of market conditions and regulatory changes on its financial performance moving forward[30].
其利工业集团(01731) - 2021 - 中期财报