Financial Performance - Sales for the six months ended June 30, 2021, reached RMB 11,368,606, an increase of 11.1% compared to RMB 10,233,778 in the same period of 2020[14]. - Gross profit for the same period was RMB 3,372,167, reflecting a gross profit margin of 29.7%, down from 30.9% in 2020[14]. - Profit before tax decreased to RMB 2,530,164, compared to RMB 2,777,939 in the prior year[14]. - Profit attributable to owners of the parent was RMB 2,226,278, a decline from RMB 2,512,399 in 2020[14]. - Earnings per share for the period was RMB 1.48, down from RMB 1.67 in the previous year[14]. - Net profit margin for the reporting period was 19.6%, compared to 24.6% in 2020[14]. - For the six months ended June 30, 2021, the profit before tax was RMB 2,530,164, a decrease of 8.9% compared to RMB 2,777,939 in the same period of 2020[89]. - The Group's profit for the period was RMB 2,225,838, down from RMB 2,488,979 in the previous year[72]. - Total comprehensive income for the period was RMB 2,170,698, a decline of 15.6% compared to RMB 2,570,664 in the previous year[75]. Market Expansion and Strategy - The company continues to focus on expanding its market presence and enhancing product offerings[13]. - Future outlook includes potential investments in new technologies and product development to drive growth[13]. - The company is exploring strategic partnerships and acquisitions to enhance its competitive position in the market[13]. - Management remains committed to improving operational efficiency and cost management strategies[13]. - The Group will focus on enhancing competitiveness and expanding production capacity to capture a larger market share amid industry consolidation[69]. - The Group aims to expand its product variety, particularly in high-functionality indoor sports products, to enhance service capabilities for existing customers[66]. - The Group plans to further optimize supply chain processes to ensure stability and responsiveness to customer orders[66]. Financial Position and Assets - Total assets increased to RMB 38,712,464 thousand as of June 30, 2021, up from RMB 36,851,761 thousand as of December 31, 2020, representing a growth of approximately 5.0%[15]. - Total equity rose to RMB 28,049,905 thousand, compared to RMB 27,270,830 thousand, reflecting an increase of about 2.9%[15]. - Cash and cash equivalents reached RMB 10,294,661 thousand, a significant increase from RMB 8,227,060 thousand, marking a growth of approximately 25.2%[15]. - The gearing ratio increased to 28.0% from 24.2%, indicating a rise in financial leverage[15]. - The current ratio decreased to 2.5 from 2.7, suggesting a slight decline in short-term liquidity[15]. - The Group's non-current assets were approximately RMB 14,238,296,000 as of June 30, 2021, up from approximately RMB 13,297,911,000 as of December 31, 2020[48]. - Total current assets rose to RMB 24,474,168, an increase of 3.9% from RMB 23,553,850 at the end of 2020[78]. - The Group's total investment in property, plant, and equipment for the six months ended June 30, 2021, was approximately RMB 1,107,087,000, with 43% allocated for production equipment and 51% for new factory buildings[59]. Sales and Revenue Breakdown - The total export value of textile and clothing from China was approximately US$140.09 billion for the first half of 2021, a year-on-year increase of about 12.1%[20]. - Apparel exports from China amounted to approximately US$71.53 billion, showing a significant year-on-year increase of approximately 40.3%[20]. - Domestic retail sales of apparel reached approximately RMB 487.46 billion, representing a year-on-year growth of about 37.4%[21]. - Sales in the European market increased by approximately RMB 224,441,000 or approximately 11.7% to RMB 2,141,998,000 for the six months ended June 30, 2021, driven by increased demand for sportswear[41]. - Sales in the Japanese market increased by approximately RMB 58,427,000 or approximately 3.0% to RMB 2,011,868,000 for the six months ended June 30, 2021, influenced by increased demand for lingerie and casual wear[42]. - Sales in the US market increased by approximately RMB 308,660,000 or approximately 21.3% to RMB 1,759,824,000 for the six months ended June 30, 2021, primarily due to increased demand for sportswear[42]. - Domestic sales increased by approximately 15.1% to RMB 3,303,033,000 for the six months ended June 30, 2021, with garment sales amounting to approximately RMB 3,218,954,000, representing an increase of approximately 15.5%[45]. Cost and Expenses - Employee costs accounted for approximately 32.4% of the Group's sales for the six months ended June 30, 2021, compared to approximately 28.5% for the same period in 2020[57]. - Total cost of sales, selling and distribution expenses, and administrative expenses amounted to RMB 9,023,721, up 13.3% from RMB 7,967,829 in the prior year[113]. - Other income decreased to RMB 298,768, down 49.3% from RMB 587,851 in the same period of 2020, primarily due to lower government incentives and interest income[115]. - Finance costs decreased to RMB 51,501, down 18.5% from RMB 62,861 in the same period of 2020, reflecting lower interest on bank borrowings[118]. - The company reported a depreciation and amortization expense of RMB 567,818, an increase from RMB 512,425 in the previous year[113]. Inventory and Receivables - Inventories increased significantly to RMB 6,228,174, up 29.4% from RMB 4,811,434 as of December 31, 2020[78]. - Trade and bills receivables as of June 30, 2021, totaled RMB 3,655,783,000, a decrease from RMB 4,167,602,000 as of December 31, 2020, representing a decline of approximately 12.2%[148]. - The Group's raw materials and work in progress inventory as of June 30, 2021, was RMB 4,041,086,000, compared to RMB 3,411,656,000 as of December 31, 2020, indicating a rise of approximately 18.4%[145]. Taxation and Compliance - Income tax expense increased by approximately RMB 15,366,000 to approximately RMB 304,326,000 for the six months ended June 30, 2021, primarily due to two wholly-owned subsidiaries starting to pay corporate income tax[52]. - The corporate income tax in Mainland China for the period was RMB 106,478,000, down from RMB 232,742,000 in the previous year, indicating a decrease of 54.2%[121]. - The current Hong Kong profits tax for the period was RMB 7,339,000, compared to RMB 6,379,000 for the same period in 2020, reflecting an increase of 15.1%[121]. Shareholder Information - As of June 30, 2021, Mr. Ma Jianrong held 639,328,200 shares, representing 42.53% of the issued share capital of the Company[196]. - Mr. Ma Renhe held 71,675,000 shares, accounting for 4.77% of the issued share capital[196]. - The major shareholders recorded as holding 5% or more of the issued share capital were disclosed in the register maintained by the Company[199].
申洲国际(02313) - 2021 - 中期财报