Revenue and Profitability - The company recorded a total revenue of HKD 12,127 million in the first half of 2021, a decrease of 5.47% compared to HKD 12,829 million in the same period of 2020, primarily due to a reduction in coking coal trading volume [12]. - The sales revenue from supply chain integrated services was HKD 419 million, an increase of 22.87% from approximately HKD 341 million in the first half of 2020, driven by increased cross-border logistics business related to Mongolian coal [12]. - The gross profit for the first half of 2021 was HKD 1,341 million, up from HKD 764 million in the same period of 2020, mainly due to strong demand and rising prices in the coal market [20]. - The net profit for the first half of 2021 was HKD 787 million, compared to HKD 248 million in the first half of 2020 [25]. - The operating profit for the period was HKD 890,048 thousand, significantly up from HKD 397,885 thousand in the previous year, indicating an increase of approximately 123.7% [92]. - The net profit attributable to equity shareholders was HKD 777,526 thousand, compared to HKD 255,043 thousand in the prior year, reflecting a growth of approximately 205.5% [92]. - Total comprehensive income for the period was HKD 848,521 thousand, compared to HKD 197,976 thousand in the previous year, an increase of approximately 328.5% [94]. Costs and Expenses - Distribution costs increased to HKD 48 million, up 11.63% from HKD 43 million in the first half of 2020, primarily due to increased demand for home delivery of coal [21]. - Administrative expenses rose to HKD 352 million, a 19.32% increase from HKD 295 million in the first half of 2020, mainly due to increased bonuses for the business team [22]. - Employee costs for the first half of 2021 amounted to HKD 303,659,000, an increase of 58.9% compared to HKD 191,103,000 in the same period of 2020 [126]. - Interest expenses decreased to HKD 56,285,000 in 2021 from HKD 113,093,000 in 2020, a reduction of about 50% [109]. Inventory and Procurement - As of June 30, 2021, the inventory was HKD 1,240 million, an increase of 81.82% from HKD 682 million as of December 31, 2020 [32]. - Total procurement amounted to HKD 10,688 million, with the top five suppliers accounting for 32.57% of the procurement amount, primarily from leading global coking coal suppliers [19]. - The total inventory as of June 30, 2021, was HKD 1,239,502,000, significantly up from HKD 681,533,000 as of December 31, 2020, with coal inventory increasing from HKD 659,597,000 to HKD 1,175,033,000 [142]. Financing and Cash Flow - The net financing cost for the first half of 2021 was HKD 61 million, a decrease of 45.54% compared to HKD 112 million in the first half of 2020 [23]. - The company’s cash turnover period was approximately 19 days, consistent with the same period in 2020 [37]. - The net cash inflow from financing activities in the first half of 2021 was HKD 632 million, compared to an outflow of HKD 1,642 million in the same period last year [41]. - The company’s net cash used in operating activities was HKD (462,140,000) for the first half of 2021, compared to HKD 2,304,905,000 generated in the same period of 2020, indicating a significant decline [109]. Market and Business Expansion - The company expanded its business scope to countries such as Ukraine, Vietnam, and Indonesia, generating approximately HKD 1,816 million in sales revenue from outside China, reflecting significant efforts in global market expansion [13]. - The company anticipates continued tight supply of coking coal in the second half of 2021 due to the ongoing impact of the COVID-19 pandemic and related control measures [17]. - The company will continue to monitor the development of COVID-19 and its impact on coal imports from Mongolia, taking measures to mitigate any negative effects on operations [53]. Shareholder and Equity Information - The company declared a special cash dividend of HKD 0.064 per share, expected to be paid around January 10, 2022 [63]. - The total number of shares issued by the company was 3,026,882,356 [67]. - The major shareholder, Wang Yihan, holds 1,500,080,608 shares, representing approximately 49.56% of the company [73]. - The total equity held by Wang Xinchun and related entities amounts to 1,556,493,113 shares, which is approximately 51.42% of the company [73]. Risk Management - Commodity price fluctuations pose a significant risk to the group's financial condition, as they are influenced by various uncontrollable factors [47]. - The group has implemented foreign exchange derivative tools to hedge against currency risk, particularly concerning USD and RMB fluctuations [51]. Employee and Training Information - As of June 30, 2021, the company had a total of 1,488 full-time employees, with 1,068 being truck drivers in Mongolia [55]. - The company conducted a total of 264.5 hours of training in the first half of 2021, with 1,091 participants across various training programs [58]. - No major accidents or environmental incidents occurred in the first half of 2021, indicating a strong commitment to employee health and safety [61].
易大宗(01733) - 2021 - 中期财报