Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 11,243,529, an increase of 4.2% compared to RMB 10,794,419 in the same period of 2023[8]. - Gross profit for the period was RMB 1,479,549, significantly up from RMB 256,745 in 2023, indicating a substantial recovery in profitability[8]. - Operating profit for the first half of 2024 was RMB 610,456, compared to an operating loss of RMB 445,099 in the previous year[8]. - Profit for the period reached RMB 282,269, a turnaround from a loss of RMB 740,178 in the same period last year[9]. - Basic earnings per share for the period was RMB 0.29, compared to a loss per share of RMB (0.81) in 2023[9]. - Total comprehensive income for the period attributable to owners of the company was RMB 281,419, compared to a loss of RMB 682,427 in the previous year[10]. - Other income increased to RMB 83,663 from RMB 57,284 in the same period of 2023, reflecting improved operational performance[8]. - The company reported a profit for the period of RMB 269,938 for the six months ended June 30, 2024, compared to a profit of RMB 7,535,924 at the beginning of the year[15]. Financial Position - Total assets decreased to RMB 21,572,140, down 5.4% from RMB 22,811,172 as of December 31, 2023[11]. - Non-current assets decreased to RMB 10,774,868, a decline of 2.9% from RMB 11,103,716[11]. - Current assets decreased to RMB 10,797,272, down 7.8% from RMB 11,707,456[12]. - Total equity attributable to owners increased to RMB 9,430,498, up 3.1% from RMB 9,149,079[12]. - Non-controlling interests decreased to RMB 490,261, down 19.2% from RMB 606,279[12]. - Total liabilities decreased to RMB 11,651,381, down 10.8% from RMB 13,055,814[13]. - Cash and cash equivalents increased to RMB 2,674,857, up 23.7% from RMB 2,161,795[11]. - Trade and bills receivables increased to RMB 1,713,033, up 8.9% from RMB 1,571,477[11]. Cash Flow - Net cash flows generated from operating activities for the six months ended June 30, 2024, amounted to RMB 2,403,440, compared to RMB 196,344 in the same period of 2023, representing a significant increase of over 1,125%[16]. - Cash flows from investing activities yielded a net inflow of RMB 903,716 for the first half of 2024, contrasting with a net outflow of RMB 264,048 in the prior year[17]. - Proceeds from borrowings in financing activities totaled RMB 4,733,365, while repayments of borrowings were RMB 4,881,099, indicating a net cash outflow in financing activities of RMB 2,800,389[17]. Cost Management - The company is focusing on cost management strategies, as evidenced by the reduction in various expense categories compared to the previous year[65]. - Interest expenses decreased from RMB 274,692,000 in 2023 to RMB 240,368,000 in 2024, a reduction of approximately 12.5%[71]. - Total finance costs incurred decreased from RMB 360,979,000 in 2023 to RMB 262,619,000 in 2024, representing a decline of about 27.3%[71]. - Net finance costs also saw a decrease from RMB 317,496,000 in 2023 to RMB 224,694,000 in 2024, a reduction of approximately 29.3%[71]. Taxation - Current tax on profits for the period was RMB 75,834,000 in 2024, compared to RMB 82,217,000 in 2023, indicating a decrease of about 7.9%[74]. - The effective income tax rate for subsidiaries in Mainland China is 25%, with sixteen subsidiaries qualifying for a preferential rate of 15%[74]. - Subsidiaries in Vietnam are entitled to four years of income tax exemption followed by nine years of a 50% tax reduction based on a 20% rate[76]. Investments and Assets - The closing net book amount of property, plant, and equipment as of June 30, 2024, is RMB 8,273,521, a decrease of 14.3% from RMB 9,506,379 as of June 30, 2023[96]. - The total amount recognized for associates and joint ventures in the condensed consolidated balance sheet as of June 30, 2024, was RMB 364,543, a decrease from RMB 379,038 as of December 31, 2023[114]. - The Group's inventories as of June 30, 2024, totaled RMB 5,070,113,000, down from RMB 5,244,583,000 at the end of 2023, reflecting a decrease of about 3.3%[132]. Financial Instruments and Risks - The Group's activities expose it to various financial risks, including foreign exchange risk, price risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk[35]. - The Group's risk management policies have not changed since the last year-end[35]. - The Group held forward foreign exchange contracts, cross currency swap contracts, cotton future contracts, and cotton option contracts as of June 30, 2024, with fair values determined using active market quotes[40]. Shareholder Information - The share option scheme allows for a maximum of 30% of the ordinary shares to be issued upon the exercise of all outstanding options, ensuring alignment with shareholder interests[195]. - The total number of ordinary shares remained at 4,000,000 shares with a par value of HKD 0.1 each as of both June 30, 2024, and December 31, 2023[167].
天虹国际集团(02678) - 2024 - 中期财报