Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately RMB 409.5 million, an increase of about 27.4% compared to RMB 321.4 million for the same period in 2020[19]. - The company's profit for the same period was approximately RMB 26.5 million, representing a significant increase of about 63.6% compared to the previous year's profit[16]. - The group's gross profit increased by approximately RMB 12.5 million or about 24.5% from RMB 51.0 million for the six months ended June 30, 2020, to RMB 63.5 million for the six months ended June 30, 2021[21]. - Gross profit for the same period was RMB 63,536 thousand, up 24.7% from RMB 50,985 thousand year-on-year[53]. - Net profit for the six months ended June 30, 2021, was RMB 26,531 thousand, an increase of 63.7% compared to RMB 16,237 thousand in the prior year[53]. - Basic and diluted earnings per share increased to RMB 4.42 from RMB 3.61, reflecting a 22.4% growth[53]. Revenue and Sales - Revenue for the six months ended June 30, 2021, was RMB 409,508 thousand, representing a 27.4% increase from RMB 321,433 thousand in the same period of 2020[62]. - Sales of plain fabric amounted to RMB 261,701,000, while sales of corduroy fabric were RMB 130,077,000, reflecting significant contributions to overall revenue[63]. - Revenue from external customers in China was RMB 276,589,000, up from RMB 247,221,000 in 2020, indicating a growth of 11.5%[66]. Costs and Expenses - The sales cost for the six months ended June 30, 2021, increased to approximately RMB 270.4 million, consistent with the revenue growth[20]. - Sales and distribution expenses increased from approximately RMB 8.7 million to RMB 11.9 million, mainly due to a significant rise in transportation costs[23]. - Administrative expenses increased from approximately RMB 17.7 million to RMB 19.7 million, largely due to the purchase of management software valued at approximately RMB 2.8 million[24]. - Total employee costs for the period amounted to RMB 22,476,000, up from RMB 17,332,000 in the previous year, indicating a rise of about 29.4%[73]. - The group’s total inventory recognized as expenses during the period was RMB 330,479,000, compared to RMB 255,691,000 in the previous year, indicating an increase of approximately 29.3%[73]. Government Support and Other Income - Other income rose from approximately RMB 2.2 million to RMB 6.4 million, primarily due to government subsidies increasing from RMB 0.3 million to RMB 5.2 million[22]. - The company received government subsidies totaling RMB 5,202,000 during the period, a substantial increase from RMB 289,000 in the previous year[68]. - The total other income for the period was RMB 6,407,000, significantly higher than RMB 2,219,000 in 2020, marking an increase of 189.5%[68]. Debt and Financing - The debt-to-equity ratio increased to approximately 81.1% as of June 30, 2021, compared to approximately 46.7% as of December 31, 2020, primarily due to increased borrowings[31]. - The total interest-bearing bank borrowings amounted to approximately RMB 178.3 million as of June 30, 2021, up from approximately RMB 95.6 million as of December 31, 2020[33]. - The company raised new borrowings amounting to RMB 178,300 thousand during the financing activities[58]. - The weighted average effective interest rate on borrowings decreased to 4.2% for the six months ended June 30, 2021, down from 6.1% for the same period in 2020[91]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the six-month period ended June 30, 2021, except for a deviation regarding the separation of the roles of Chairman and CEO[42][43]. - As of June 30, 2021, the major shareholder, Dongyong Holdings Limited, holds 450,000,000 shares, representing 75% of the company's equity[49]. - There have been no changes in the interests of directors and senior management in shares or related securities as of June 30, 2021[45]. Future Plans and Investments - The company aims to enhance its market share and explore new opportunities while focusing on quality and efficiency improvements[18]. - The company plans to expand production capacity to meet the demands of its core customer base in the future[18]. - The company plans to utilize approximately RMB 81.9 million of net proceeds from its listing for future projects and general corporate purposes[39]. - As of June 30, 2021, the net proceeds from the fundraising have not been utilized, and the company has no significant future investment plans beyond those disclosed in the prospectus[40]. Miscellaneous - The company reported a net cash outflow from operating activities of RMB (52,277) thousand, compared to RMB (21,605) thousand in the same period of 2020[58]. - The company has not declared any dividends for the six months ended June 30, 2021, compared to RMB 12,000,000 declared in 2020[86]. - The company has not granted, exercised, or cancelled any share options under the share option scheme since its adoption on October 21, 2020[50].
亚东集团(01795) - 2021 - 中期财报