Financial Performance - Revenue for the six months ended June 30, 2021, was S$31,098,399, a decrease of 2.6% compared to S$31,928,532 in 2020[13] - Gross profit for the same period was S$8,702,815, down 4.8% from S$9,143,922 in 2020[13] - Profit before taxation decreased by 17.2% to S$5,110,138 from S$6,171,126 in the previous year[13] - Profit for the period was S$4,131,468, reflecting an 18.6% decline from S$5,075,891 in 2020[13] - The Group's revenue decreased by approximately S$0.8 million or 2.6% from approximately S$31.9 million for the six months ended 30 June 2020 to approximately S$31.1 million for the six months ended 30 June 2021[24] - Profit for the period decreased by approximately S$1.0 million or 18.6% from approximately S$5.1 million for the six months ended June 30, 2020, to approximately S$4.1 million for the six months ended June 30, 2021[85] - Other income decreased by approximately S$370,000 or 64.3% from approximately S$574,000 for the six months ended June 30, 2020 to approximately S$204,000 for the six months ended June 30, 2021[101] - Other gains decreased by approximately S$279,000 or 77.5% from approximately S$360,000 for the six months ended June 30, 2020 to approximately S$81,000 for the six months ended June 30, 2021[101] Assets and Liabilities - Non-current assets increased by 5.8% to S$24,130,117 as of June 30, 2021, compared to S$22,806,990 at the end of 2020[15] - Current liabilities decreased significantly by 32.5% to S$6,556,066 from S$9,711,289 in December 2020[15] - Total equity rose by 6.9% to S$62,371,184 from S$58,340,360 at the end of 2020[15] - As of June 30, 2021, total assets amounted to S$48,155,551, a decrease of 1.86% from S$49,070,803 as of December 31, 2020[149] - Net current assets increased to S$41,599,485, reflecting a growth of 5.3% from S$39,359,514 as of December 31, 2020[149] - Trade receivables decreased to S$7,999,972, down 39.5% from S$13,156,360 as of December 31, 2020[149] - Cash and bank balances increased to S$27,303,525, a rise of 11.8% from S$24,400,875 as of December 31, 2020[149] Profitability Ratios - Return on total assets was 5.7% as of June 30, 2021, down from 9.5% in December 2020[17] - Return on equity decreased to 6.6% from 11.7% in the previous period[17] - The gross profit margin decreased from approximately 28.6% for the six months ended June 30, 2020 to approximately 28.0% for the six months ended June 30, 2021[60] - The gross margin declined from approximately 28.6% for the six months ended June 30, 2020, to about 28.0% for the same period in 2021, primarily due to lower margins in nuts and chips[62] Market and Economic Conditions - Singapore's economy expanded by 14.7% year-on-year in Q2 2021, significantly higher than the 1.5% growth in Q1 2021, largely due to a low base effect from the previous year[65] - The Ministry of Trade and Industry, Singapore, upgraded the GDP growth forecast for 2021 to 6.0% to 7.0%, from the previous forecast of 4.0% to 6.0%[68] - The economic recovery in key Southeast Asian economies is likely to be slower than earlier projected due to tightened restrictions to contain Covid-19 infections[73] - Downside risks in the global economy include uncertainty surrounding the Covid-19 pandemic and potential inflationary pressures that could lead to earlier interest rate increases[77] - The performance of the Singapore economy in the first half of 2021 was stronger than expected, with the vaccination program making good progress[78] Segment Performance - Sales of nuts accounted for approximately 71.4% of total revenue, while chips accounted for approximately 25.8% for the six months ended 30 June 2021[35] - Revenue from Singapore and Malaysia accounted for approximately 63.4% and 20.8% of total revenue respectively for the six months ended 30 June 2021[49] - Revenue from the "Nuts" segment was S$22,195,286, down 5.8% from S$23,572,724 in the previous year[181] - The "Chips" segment generated revenue of S$8,023,512, an increase of 7.9% compared to S$7,433,591 in 2020[181] - Revenue from the People's Republic of China (including Hong Kong) decreased significantly to S$3,570,939 from S$5,236,536, a decline of 31.8%[185] Operational Challenges - The Group temporarily shut down its production facilities in Malaysia from May 24, 2021, until June 2, 2021, due to positive Covid-19 cases among workers[88] - The Group noted an increase in sales to end customers in Singapore and Malaysia, but a decline in sales to end customers in the PRC due to a nonrecurring large order from an OEM customer based in Hong Kong in the first half of 2020[85] - The Group received a relatively lower amount of government assistance in the first half of 2021 compared to the same period in 2020[85] - The Group continues to focus on government support measures to mitigate challenges arising from the Covid-19 pandemic[189] Cash Flow and Investments - Operating cash flows before movement in working capital amounted to S$5,710,455, down from S$7,038,555 in the previous year, reflecting a decline of 18.8%[157] - Net cash from operating activities decreased to S$4,592,205, compared to S$5,728,673 in the prior year, representing a decline of 19.9%[157] - Net cash used in investing activities was S$7,068,293, significantly higher than S$367,576 in the previous year, indicating increased investment activity[159] - The company reported a significant increase in inventories, which rose by S$366,004, compared to a larger increase of S$672,540 in the previous year[157] Corporate Governance - The Board resolved not to recommend any interim dividend for the six months ended June 30, 2021, despite the Group being profitable[131] - No share options have been granted or exercised under the Share Option Scheme since its adoption on December 20, 2018[138] - The Group maintained sufficient public float as required under the Listing Rules throughout the six months ended June 30, 2021[139]
TS WONDERS(01767) - 2021 - 中期财报