Financial Performance - Total revenue for the first half of 2021 was approximately RMB 886.7 million, an increase of about 20.2% compared to RMB 737.7 million in the same period of 2020[9]. - Profit for the period was approximately RMB 66.5 million, a decrease of 7.6% from RMB 72.0 million in the same period of 2020[17]. - Basic earnings per share were RMB 0.081, down approximately 5.8% from RMB 0.086 in the same period of 2020[18]. - Gross profit for the group increased by 19.1% to RMB 545.8 million, with a gross profit margin of 61.6%[25]. - The group reported a profit before tax of RMB 80,156 thousand, down 12.8% from RMB 91,916 thousand in the previous year[72]. - The net profit for the six months ended June 30, 2021, was RMB 66,544 thousand, a decrease of 7.9% from RMB 72,004 thousand in 2020[72]. - The total comprehensive income for the period was RMB 67,145 thousand, down from RMB 72,550 thousand in the previous year[75]. Segment Performance - The pharmaceutical segment showed strong growth, with the brand "Cao Jing Hua" leading the sales of herbal products and traditional Chinese medicine[10]. - The pharmaceutical segment reported revenue growth of approximately 34.8% to RMB 535.5 million for the six months ended June 30, 2021, accounting for 60.4% of total revenue[22]. - The chain pharmacy segment's revenue increased by about 0.8% to RMB 312.3 million, representing 35.2% of total revenue, with 379 self-operated stores as of June 30, 2021[23]. - The online pharmacy segment saw revenue growth of approximately 27.0% to RMB 38.9 million, contributing 4.4% to total revenue[24]. Expenses and Costs - Selling and distribution expenses increased by approximately 34% to RMB 398.7 million, representing about 45.0% of revenue[32]. - Administrative expenses rose by approximately 7.3% to RMB 47.1 million, primarily due to depreciation from renovation projects[33]. - The chain pharmacy segment's gross profit decreased by 2.4% to RMB 123.1 million, with a gross profit margin of 39.4%[29]. - The online pharmacy segment's gross profit declined by approximately 1.4% to RMB 24.7 million, with a gross profit margin of 63.4%[30]. Assets and Liabilities - As of June 30, 2021, the group's net current assets amounted to approximately RMB 413.0 million, an increase from RMB 398.4 million as of December 31, 2020[36]. - The group's cash and bank balances totaled approximately RMB 227.0 million as of June 30, 2021, down from RMB 294.0 million as of December 31, 2020[36]. - The debt-to-equity ratio as of June 30, 2021, was 11.5%, compared to 9.6% as of December 31, 2020[37]. - Total liabilities increased to RMB 643,030,000, compared to RMB 598,758,000 at the end of 2020, reflecting a rise of 7.4%[79]. - The company's net assets reached RMB 885,128,000, up from RMB 821,763,000, indicating a growth of 7.7%[79]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2021, were approximately RMB 81.0 million, significantly higher than RMB 29.0 million for the same period in 2020[49]. - The group’s total property, plant, and equipment additions for the period were RMB 97,663,000, compared to RMB 61,520,000 in the previous year, marking an increase of approximately 58.7%[134]. - The company made significant investments in property, plant, and equipment, totaling RMB 81,038,000 for the six months ended June 30, 2021, compared to RMB 29,003,000 in 2020[89]. Shareholder Information - The board proposed not to declare any interim dividend for the six months ended June 30, 2021, to maintain healthy cash flow, compared to an interim dividend of HKD 0.0515 per share for the same period in 2020[50]. - The company expressed gratitude to shareholders and stakeholders, anticipating a year filled with opportunities and challenges[13]. - The company declared and paid a final dividend of HKD 2.9 per share and a special dividend of HKD 1.45 per share, totaling approximately HKD 36,540,000 (around RMB 33,458,000) for the previous fiscal year[84]. Employee Compensation - As of June 30, 2021, the total employee compensation was RMB 155.5 million, a decrease from RMB 164.9 million for the same period in 2020[51]. - The total compensation for key management personnel for the six months ended June 30, 2021, was RMB 5,418,000, an increase of 50.3% compared to RMB 3,603,000 in 2020[166]. Fair Value and Financial Instruments - The fair value hierarchy indicates that the company’s financial instruments are primarily measured using observable market prices, with a total of RMB 10,030,000 classified under Level 1 and RMB 37,000,000 under Level 2 as of June 30, 2021[171]. - The company’s management has reviewed and approved the valuation techniques used for estimating fair values, ensuring their reasonableness[170]. - The company has invested in non-listed financial products issued by banks in mainland China, estimating their fair value using a discounted cash flow model[170]. Corporate Governance - The company has no undisclosed interests or short positions in shares or related securities as of June 30, 2021[177]. - No directors or their associates engaged in any competitive business activities during the reporting period[200].
中智药业(03737) - 2021 - 中期财报