Financial Performance - The company's revenue increased by 19.37% from approximately RMB 7,152.2 million for the six months ended June 30, 2022, to approximately RMB 8,537.5 million for the six months ended June 30, 2023[2]. - Gross profit decreased by 3.01% from approximately RMB 1,353.4 million to approximately RMB 1,312.6 million during the same period[2]. - Net profit declined by 6.51% from approximately RMB 858.8 million to approximately RMB 802.9 million[2]. - Total comprehensive income for the period was RMB 809.3 million, down from RMB 860.4 million in the previous year[4]. - The company reported basic and diluted earnings per share of RMB 0.57, down from RMB 0.63 in the previous year[3]. - The company's net profit for the same period was approximately RMB 802.9 million, a decrease of 6.51% compared to RMB 858.8 million in the previous year[34]. - The company's pre-tax profit for the six months ended June 30, 2023, was RMB 57,188 thousand, an increase from RMB 27,456 thousand in the same period of 2022, reflecting a significant rise in financial costs[16]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 803,669 thousand, compared to RMB 857,357 thousand for the same period in 2022, indicating a slight decline[21]. Cash Flow and Assets - Operating cash flow net outflow decreased by 58.42% compared to the same period last year[2]. - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (313,537) thousand, a significant improvement compared to RMB (754,102) thousand for the same period in 2022[9]. - The company's total assets less current liabilities increased to RMB 7,541.9 million from RMB 6,438.9 million[5]. - Current assets increased to RMB 10,985.4 million from RMB 9,480.5 million, driven by an increase in trade and other receivables[5]. - The company's cash and cash equivalents increased by RMB 406,289 thousand for the six months ended June 30, 2023, compared to an increase of RMB 147,162 thousand for the same period in 2022[9]. - Cash and cash equivalents rose significantly from approximately RMB 149.2 million to approximately RMB 556.5 million, while net current assets increased from approximately RMB 6,156.6 million to approximately RMB 7,238.7 million[63]. - Bank loans increased from approximately RMB 2,282.8 million to approximately RMB 2,775.8 million, primarily to fund procurement and expand logistics and supply chain facilities[64]. Shareholder Equity and Dividends - The board of directors has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2023[2]. - As of June 30, 2023, the company's total equity amounted to RMB 7,490,534 thousand, up from RMB 6,378,138 thousand as of January 1, 2023, reflecting an increase of approximately 17.4%[8]. - The company's equity attributable to shareholders increased to RMB 7,485.7 million from RMB 6,372.6 million[6]. - As of June 30, 2023, the company had issued a total of 1,417,066,406 shares, following a capital increase from reserves and a placement of 14,960,000 new shares[32][33]. Operational Highlights - The company expanded its procurement channels, increasing the share of durian sourced from Vietnam to 16.90% of total durian procurement[35]. - The company established 24 sales subsidiaries and 60 sorting centers, covering over 300 cities nationwide[38]. - Sales revenue from emerging retail channels increased by approximately 40% compared to the previous year[38]. - Brand fruit sales accounted for 73.43% of total revenue in the first half of 2023, with the "Hong Jiu Tai Hao Chi" brand series generating approximately RMB 2.89 billion[39]. - The company is actively responding to the Chinese government's rural revitalization strategy by collaborating with local governments to establish procurement subsidiaries and operational centers[36]. - The company has strengthened its end-to-end digital supply chain, enhancing its competitive advantage in procurement, logistics, and sales[35]. - The company successfully launched the "Hongjiutai Delicious Durian Special Train" in June 2023, enhancing cold chain efficiency and reducing transportation costs for Southeast Asian imported fruits[44]. - The company achieved AEO (Authorized Economic Operator) high-level certification in June 2023, improving customs clearance efficiency and reducing risks in import operations[45]. - The company was awarded the "Top Ten Growth Enterprise Brand Case in Specialty Fruits" at the first China Rural Revitalization Brand Conference, recognizing its role in promoting fruit industry development[47]. Expenses and Costs - Sales cost increased by 24.59% from approximately RMB 5,798.9 million to approximately RMB 7,224.9 million, consistent with the growth in sales scale[53]. - Sales and distribution expenses rose by 22.34% from approximately RMB 99.0 million to approximately RMB 121.1 million, driven by increased employee costs and brand promotion efforts[55]. - Administrative expenses increased slightly from approximately RMB 949 million for the six months ended June 30, 2022, to approximately RMB 950 million for the six months ended June 30, 2023, reflecting a growth of 0.17%[56]. - Trade receivables impairment losses rose significantly by 47.76%, from approximately RMB 1,244 million to approximately RMB 1,838 million, primarily due to increased trade receivables and extended payment cycles caused by COVID-19 and macroeconomic conditions[57]. - Other net income surged by 213.42%, increasing from approximately RMB 304 million to approximately RMB 953 million, mainly due to higher foreign exchange gains and increased government subsidies[58]. - Income tax decreased by 18.92%, from approximately RMB 1,777 million to approximately RMB 1,441 million, aligning with the company's profit scale[60]. Future Plans and Strategies - The company plans to expand its upstream procurement network and enhance penetration rates in overseas markets, targeting countries like the Philippines and Chile[48]. - The company aims to strengthen logistics and warehousing management by collaborating with major shipping companies and ports to develop new logistics channels[49]. - The company will continue to enhance its brand strategy to improve brand awareness and consumer loyalty through optimized marketing and product offerings[49]. - The company is focused on digital system upgrades and the development of a global fruit industry internet platform to enhance data analysis and decision-making capabilities[49]. - The company is optimizing its sales channels by shifting resources towards e-commerce and other growth potential channels, reducing reliance on community group buying due to changing market trends[69]. - The company plans to issue up to 30,487,802 domestic unlisted ordinary shares at a price of RMB 16.40 per share, aiming to raise approximately RMB 500 million to strengthen the fruit supply chain and supplement working capital[68]. Governance and Compliance - The board of directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2023[70]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023[70]. - The company has adhered to the corporate governance code and standard code throughout the reporting period[70]. - The mid-term performance announcement will be published on the Hong Kong Stock Exchange and the company's website[71].
洪九果品(06689) - 2023 - 中期业绩