Financial Performance - Revenue for the six months ended June 30, 2020, was S$31,928,532, representing a 12.4% increase from S$28,417,231 in 2019[19] - Gross profit increased by 20.7% to S$9,143,922 compared to S$7,572,806 in the previous year[19] - Profit for the period surged by 143.2% to S$6,171,126 from S$2,537,563 in 2019[19] - The Group's revenue increased by approximately S$3.5 million or 12.4% from approximately S$28.4 million for the six months ended 30 June 2019 to approximately S$31.9 million for the six months ended 30 June 2020[28] - Profit for the period increased by approximately S$3.4 million or 200.9% from approximately S$1.7 million for the six months ended 30 June 2019 to approximately S$5.1 million for the six months ended 30 June 2020[93] - The Group's profit before taxation was S$6,171,126, compared to S$2,537,563 in the previous year, indicating a growth of 143.5%[196] Profitability Metrics - Gross profit margin for the period was 28.6%, up from 26.6% in 2019[23] - Profit margin for the period was 15.9%, compared to 5.9% in the previous year[23] - The Group's gross profit margin improved from approximately 26.6% for the six months ended 30 June 2019 to approximately 28.6% for the six months ended 30 June 2020[67] - The gross profit margin for nuts increased from approximately 25.5% to approximately 28.4% due to lower average costs of certain raw nuts[68] - The gross profit margin for chips decreased from approximately 31.0% to approximately 28.8% primarily due to rising raw potato prices[69] Assets and Equity - Total equity rose by 9.8% to S$56,660,260 as of June 30, 2020, compared to S$51,583,887 at the end of 2019[21] - Current assets increased by 10.6% to S$46,139,626 from S$41,724,508 in December 2019[21] - Total assets as of June 30, 2020, were S$83,109,428, a slight decrease from S$83,323,783 as of December 31, 2019[148] - Net current assets increased to S$38,492,474 from S$33,476,767 at the end of 2019[148] - Accumulated profits rose to S$31,316,982, up from S$26,241,091 at the end of 2019[150] Cash Flow and Expenses - Cash generated from operations was S$6,173,167, compared to S$4,726,263 in the same period last year, indicating a year-over-year increase of about 30%[165] - The net cash from operating activities was S$5,728,673, an increase from S$4,328,636 in the prior year, reflecting a growth of approximately 32%[165] - The Group's cost of sales increased by approximately S$2.0 million or 9.3% from approximately S$20.8 million for the six months ended 30 June 2019 to approximately S$22.8 million for the six months ended 30 June 2020[87] - Administrative expenses decreased by approximately S$0.3 million or approximately 11.8% from approximately S$2.8 million for the six months ended 30 June 2019 to approximately S$2.5 million for the six months ended 30 June 2020[90] - Selling and distribution expenses were S$1,321,921, slightly higher than S$1,306,712 in 2019[196] Market and Economic Context - The global snack food market is projected to grow from USD 210.4 billion in 2019 to USD 215.9 billion in 2020, with a compound annual growth rate (CAGR) of 2.7%[79] - The market is expected to recover and grow at a CAGR of 7% from 2021, reaching USD 264.8 billion by 2023[79] - The Ministry of Trade and Industry of Singapore forecasts GDP growth for 2020 to be between -7.0% to -5.0% due to the economic impact of Covid-19 measures[75] Operational Insights - The sale of nuts accounted for approximately 73.8% of total revenue, while chips accounted for approximately 23.3% for the six months ended 30 June 2020[42] - Sales from the PRC increased from approximately 6.8% to approximately 16.4% of total revenue, driven by a large order from an OEM customer in Hong Kong[56] - Sales from Malaysia declined from approximately 24.4% to approximately 19.0% due to the Movement Control Order imposed by the Malaysian government[56] - The Group's products are sold and distributed to over 10 countries, including Singapore, Malaysia, the PRC, India, the UK, and Indonesia[28] Corporate Governance and Compliance - The Group has been accredited with various certifications related to quality management and food safety, ensuring compliance with legal requirements[27] - The interim consolidated financial statements are presented in Singapore dollars (S$), which is also the functional currency of the Company[188] - The interim financial statements comply with all applicable International Financial Reporting Standards (IFRS) and the disclosure requirements of the Companies Ordinance[189] - The Group does not expect the adoption of new IFRS standards to have a material impact on future financial statements[195] Future Outlook and Strategic Plans - Despite favorable results in the first half of 2020, the Group acknowledges that these may not be sustainable due to ongoing macroeconomic uncertainties[81] - The Group plans to revise the expected timeline for implementing its business strategies due to adverse impacts from the US-PRC trade tension, Brexit, and the Covid-19 pandemic[125] - The Group will continue to monitor the impact of the Covid-19 outbreak on its operations, considering the unpredictability of the situation[115]
TS WONDERS(01767) - 2020 - 中期财报