Financial Performance - For the first half of 2021, Huisen Group reported revenue of approximately RMB 2.4 billion, representing a year-on-year growth of about 47.3%[12]. - The net profit for the same period was approximately RMB 420.8 million, reflecting a year-on-year increase of about 75.9%[12]. - Total revenue for the first half of 2021 was RMB 2.4 billion, up 47.3% from RMB 1.63 billion in the same period of 2020[17]. - Revenue for the six months ended June 30, 2021, was RMB 2,402,415 thousand, representing a 47.2% increase from RMB 1,630,742 thousand in the same period of 2020[63]. - Gross profit for the same period was RMB 630,489 thousand, up 72.0% from RMB 366,288 thousand year-over-year[63]. - The operating profit before income tax for the six months ended June 30, 2021, was RMB 488,585 thousand, compared to RMB 282,034 thousand for the same period in 2020, reflecting a 73.2% increase[108]. - Basic and diluted earnings per share increased to RMB 0.14 from RMB 0.11, reflecting a 27.3% growth[63]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2021, was RMB 420,772,000, up from RMB 239,195,000 in the same period of 2020, indicating a growth of 76%[116]. Revenue Breakdown - Revenue from panel furniture accounted for 94.0% of total revenue, with a significant increase of 50.5% compared to the same period in 2020[13]. - Panel furniture revenue increased from RMB 1.5 billion to approximately RMB 2.3 billion, a rise of about 50.5%[14]. - Upholstered furniture revenue grew by approximately 27.3% compared to the same period in 2020[15]. - Revenue from the furniture segment was RMB 2,257,760 thousand, a significant increase from RMB 1,499,899 thousand in the previous year[105]. - Revenue contribution from original design manufacturing products increased to approximately 82.5%, up from 79.0% in the previous year[10]. - Sales to the US accounted for 66.8% of total revenue, despite a 39.5% increase in sales compared to 2020, indicating a decrease in market share from 70.5%[17]. - Revenue from the United States was RMB 1,603,946 thousand, up 39.4% from RMB 1,150,142 thousand in the previous year[102]. Cost and Expenses - Total sales costs rose by 40.1% to approximately RMB 1.77 billion, consistent with revenue growth trends[21]. - The cost of goods sold for the six months ended June 30, 2021, was RMB 1,771,926 thousand, an increase from RMB 1,264,454 thousand in 2020[106]. - The company reported a tax expense of RMB 67,813 thousand for the six months ended June 30, 2021, compared to RMB 42,839 thousand for the same period in 2020[106]. - The company’s interest expenses on bank and other borrowings decreased to RMB 19,012 thousand from RMB 21,613 thousand in the previous year[105]. Cash Flow and Liquidity - Net cash generated from operating activities decreased by 23.9% to RMB 399,390,000, down from RMB 524,696,000 year-on-year[24]. - Cash and cash equivalents rose significantly to RMB 3,060,225 thousand from RMB 2,647,848 thousand, marking a 15.5% increase[66]. - The company’s financing activities generated a net cash inflow of RMB 71,560 thousand, contrasting with a net outflow of RMB 63,622 thousand in the same period last year[72]. - The company raised RMB 101,249 thousand through the exercise of over-allotment options related to its IPO, contributing to financing activities[72]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 5,467,185 thousand, compared to RMB 4,983,659 thousand at the end of 2020, indicating a 9.7% increase[66]. - Current assets increased to RMB 4,514,673 thousand from RMB 4,036,661 thousand, a rise of 11.8%[66]. - Total liabilities decreased to RMB 1,221,088 thousand from RMB 1,043,310 thousand, a reduction of 17.1%[67]. - The company reported a significant increase in inventory, which rose to RMB 240,240 thousand from RMB 150,361 thousand, a 59.8% increase[66]. - Trade receivables (net of impairment) amounted to approximately RMB 1.2 billion as of June 30, 2021, with an impairment provision of approximately RMB 11.8 million during the reporting period[27]. Strategic Initiatives - The company ceased production of outdoor leisure equipment to optimize production space for panel and soft furniture[10]. - Huisen Group has established a strategic cooperation agreement with Jiangxi University of Science and Technology to enhance research and development in smart furniture[11]. - The company has entered into a land use rights agreement for RMB 20.8 million to acquire land for a new manufacturing facility focused on panel and soft furniture[11]. - The group plans to continue expanding its market presence outside the U.S. and enhance its original design manufacturing capabilities in response to potential risks in the real estate market[36]. - The group aims to invest in smart home product development to achieve better growth and expand its business coverage[37]. Corporate Governance - The board did not recommend any interim dividend for the six months ended June 30, 2021[38]. - The company has established an audit committee consisting of three independent non-executive directors, with Mr. Sun Duo Wei as the chairman[52]. - The company's auditor, Hong Kong Lixin Dehao CPA Limited, reviewed the interim financial statements for the six months ending June 30, 2021, confirming compliance with applicable accounting standards and regulations[53]. - The company has adopted a share option scheme effective from December 2, 2020, aimed at rewarding selected participants contributing to the group's success[55]. - The total number of shares available for issuance under the share option scheme is 300,000,000 shares, representing 9.77% of the company's issued share capital[56]. Market Conditions - The demand for furniture products surged due to the recovery of the real estate market in Europe and the United States, as well as the growth of the "stay-at-home economy"[8]. - The company plans to continue leveraging its operational efficiencies and market expansion strategies to drive future growth[99].
汇森股份(02127) - 2021 - 中期财报