HAITIAN INT'L(HK:01882)2021-09-07 10:08Financial Performance - The company's revenue for the six months ended June 30, 2021, reached RMB 8,225.8 million, an increase of 64.0% compared to RMB 5,015.7 million in the same period of 2020[3]. - Gross profit for the same period was RMB 2,659.2 million, up 57.7% from RMB 1,686.1 million, resulting in a gross margin of 32.3%, down from 33.6% in the previous year[4]. - Net profit attributable to shareholders increased to RMB 1,583.8 million, a 54.1% rise from RMB 1,028.0 million in the first half of 2020, with a net profit margin of 19.3%[4]. - Basic earnings per share for the period were RMB 0.99, reflecting a 54.1% increase from RMB 0.64 in the same period last year[4]. - The total comprehensive income for the six months ended June 30, 2021, was RMB 1,563,777, compared to RMB 1,018,331 for the same period in 2020, indicating a significant increase of approximately 53.6%[41]. Sales and Market Performance - Domestic sales reached RMB 5,720.3 million, a year-on-year increase of 67.7%, while overseas sales increased by 56.1% to RMB 2,505.5 million[10]. - The Mars series of energy-saving injection molding machines accounted for 70.4% of total sales, with sales increasing by 58.3% to RMB 5,787.7 million[11]. - Sales in mainland China amounted to RMB 5,720,252,000, up 67.8% from RMB 3,410,337,000, while sales in Hong Kong and overseas countries increased by 56.1% to RMB 2,505,543,000 from RMB 1,605,338,000[48]. Operational Efficiency - The company emphasized its strong operational flexibility and efficient working capital management capabilities[4]. - Sales and administrative expenses rose by 59.5% to RMB 1,041.4 million, primarily due to increased sales commissions and labor costs[17]. - The company plans to enhance its digital transformation and optimize management processes to improve efficiency and reduce costs in 2021[79]. Cash Flow and Investments - The company reported a net cash inflow from operating activities of RMB 1,478.8 million, compared to RMB 1,224.7 million in the first half of 2020[4]. - The net cash used in investing activities for the six months ended June 30, 2021, was RMB 628,151, compared to a net cash inflow of RMB 157,224 in the same period of 2020, indicating a significant shift in cash flow[42]. - Capital expenditures for the first half of 2021 amounted to RMB 456.4 million, significantly higher than RMB 177.8 million in the same period of 2020, indicating an increase of approximately 156%[22]. Challenges and Economic Environment - The company faced challenges due to rising raw material prices and supply shortages, impacting the manufacturing sector globally[9]. - The geopolitical landscape and ongoing pandemic developments present uncertainties for future economic growth, particularly in China[14]. - The overall economic environment in China has shown signs of stable development, supported by various policies aimed at stabilizing investment and exports[9]. Dividend and Shareholder Information - The board decided not to declare an interim dividend for the reporting period, with a review of the full-year results to consider dividend distribution later[4]. - The company paid dividends totaling RMB 1,871,243 during the six months ended June 30, 2021, compared to RMB 273,571 in the same period of 2020, reflecting a substantial increase in dividend payouts[42]. - The total issued shares as of June 30, 2021, were 1,596,000,000, with a market capitalization of HKD 41,576 million[74]. Employee and Compensation - The company employed approximately 6,800 people as of June 30, 2021, with a focus on competitive compensation plans and performance-based bonuses[25]. - Salary and bonuses increased to RMB 4,619,000 in H1 2021 from RMB 3,759,000 in H1 2020, representing a growth of 22.8%[131]. - Total employee-related expenses reached RMB 4,785,000 in H1 2021, up from RMB 3,895,000 in H1 2020, marking a rise of 22.9%[131].