欣融国际(01587) - 2025 - 中期业绩

Financial Highlights The company's financial performance for the six months ended June 30, 2025, shows revenue growth but a decline in profit attributable to owners of the parent Financial Highlights for the Six Months Ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 317.0 million | RMB 298.6 million | +6.2% | | Gross Profit | RMB 59.2 million | RMB 57.2 million | +3.5% | | Profit Attributable to Owners of the Parent | RMB 17.7 million | RMB 18.9 million | -6.3% | | Basic and Diluted Earnings Per Share | RMB 0.03 | RMB 0.03 | Flat | | Interim Dividend | Not Recommended | Zero | N/A | Consolidated Financial Statements This section presents the condensed consolidated interim financial statements, including the statement of profit or loss, other comprehensive income, and financial position Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the Group's revenue increased by 6.2% year-over-year to RMB 317 million, but profit attributable to owners of the parent decreased by 6.3% to RMB 17.7 million due to increased cost of sales and reduced other income, with basic earnings per share remaining flat Key Profit or Loss Statement Data | Item (RMB thousands) | 2025 (Unaudited) | 2024 (Unaudited) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 316,967 | 298,601 | +6.2% | | Gross Profit | 59,224 | 57,169 | +3.5% | | Profit Before Tax from Continuing Operations | 25,765 | 26,067 | -1.2% | | Profit for the Period | 17,694 | 18,939 | -6.6% | | Profit Attributable to Owners of the Parent | 17,694 | 18,939 | -6.6% | - Basic and diluted earnings per share were RMB 0.03, flat compared to the same period in 2024[6] Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the Group's total assets increased to RMB 711 million and net assets to RMB 515 million, indicating steady asset expansion and a robust financial position with increased net current assets Key Financial Position Statement Data | Item (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 339,258 | 336,968 | +0.7% | | Total Current Assets | 372,025 | 370,554 | +0.4% | | Total Assets | 711,283 | 707,522 | +0.5% | | Total Current Liabilities | 127,580 | 143,932 | -11.4% | | Total Non-current Liabilities | 68,755 | 64,627 | +6.4% | | Net Assets | 514,948 | 498,963 | +3.2% | | Total Equity | 514,948 | 498,963 | +3.2% | Notes to the Financial Statements This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering accounting policies, segment information, and specific balance sheet items Company Information, Basis of Preparation and Accounting Policies The Group primarily engages in the distribution of food ingredients and additives, with financial statements prepared under Hong Kong Accounting Standards, consistent with prior year policies, and new revised standards adopted without significant impact on current financial data - The Group primarily engages in the distribution of food ingredients and food additives[9] - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34, with accounting policies consistent with those applied in the 2024 annual financial statements[10][11] Operating Segments, Revenue and Other Income The Group operates a single business segment, food additive distribution, with revenue primarily from Mainland China and minor operations in Thailand and Vietnam; food ingredient sales grew strongly year-over-year while food additive sales declined, and other income significantly decreased due to reduced government grants and bank interest Revenue by Product Type (RMB thousands) | Product Type | 2025 H1 | 2024 H1 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Food Ingredients | 190,486 | 148,751 | +28.1% | | Food Additives | 126,481 | 149,850 | -15.6% | | Total | 316,967 | 298,601 | +6.2% | Revenue by Geographical Region (RMB thousands) | Geographical Region | 2025 H1 | 2024 H1 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Mainland China | 301,519 | 287,653 | +4.8% | | Thailand | 6,376 | 7,012 | -9.1% | | Vietnam | 9,072 | 3,936 | +130.5% | - Other income and net gains decreased from RMB 1.2 million in the prior period to RMB 0.6 million, primarily due to reduced government grants and bank interest income[22] Profit, Taxation and Dividends Profit before tax slightly decreased, mainly impacted by increased cost of sales and employee benefit expenses; income tax expense rose due to higher taxable income, and the Board does not recommend an interim dividend for the six months ended June 30, 2025, though the final dividend for the previous year was declared and paid during the period - Cost of inventories sold increased from RMB 241 million to RMB 258 million, and employee benefit expenses rose from RMB 20.8 million to RMB 23.1 million, which are key factors affecting profit[23] - Total income tax expense for the period was RMB 8.1 million, an increase from RMB 7.1 million in the same period last year[25] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[3] Earnings Per Share Despite a decrease in profit attributable to owners of the parent, basic and diluted earnings per share remained flat at RMB 0.03 due to an unchanged number of issued shares Earnings Per Share Calculation | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB thousands) | 17,694 | 18,939 | | Weighted Average Number of Ordinary Shares in Issue | 680,000,000 | 680,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.03 | Assets and Liabilities Items At the end of the reporting period, the Group's net book value of property, plant, and equipment increased, inventory levels remained stable, trade receivables significantly decreased, and cash and cash equivalents increased, indicating good financial liquidity - The net book value of property, plant, and equipment increased from RMB 164 million to RMB 167 million[33][34] - Trade receivables decreased from RMB 102 million to RMB 74.15 million, with over 99% due within 3 months, indicating well-controlled credit risk[35][36] - Cash and cash equivalents increased from RMB 185 million to RMB 204 million[37] Share Capital, Commitments and Related Party Disclosures The company's share capital structure remained unchanged, capital commitments primarily for building construction significantly decreased, and related party transactions for sales and purchases occurred during the period but at a reduced scale compared to the prior year - Issued and fully paid share capital remained flat at 680,000,000 shares with a par value of HKD 0.01 per share, consistent with year-end figures[40] - Capital commitments for buildings significantly decreased from RMB 6.4 million at the end of last year to RMB 67 thousand[41] - Total transactions with related parties during the period amounted to RMB 21.8 million, a decrease from RMB 27.6 million in the same period last year[42] Management Discussion and Analysis This section provides management's review of the Group's operational and financial performance, liquidity, and future strategic outlook Business Review and Outlook As a leading food ingredient and additive distributor in Asia, the Group has established strong partnerships with renowned brands through its R&D capabilities, achieving 6.2% revenue growth but a 6.3% profit decline during the period, with future plans to expand product sales, strengthen private brands, enhance R&D, and advance the Asia Pacific Innovation Center construction - The Group has established strong cooperative relationships with global suppliers such as Nestlé, Mitsubishi, Sensient, and Kerry, as well as numerous well-known domestic food and beverage manufacturers including Coca-Cola, Uni-President, and Nongfu Spring[46] - Future development plans include increasing product sales, strengthening private brands, enhancing R&D capabilities, and seeking strategic investment opportunities[48][50][51] - The Asia Pacific Innovation Center, currently under construction, is expected to be operational in early 2026, aiming to expand the portfolio of independently developed formulated products, which will benefit the Group's future development[49] Financial Review Revenue growth was primarily driven by strong performance in the fruit product line; gross profit margin slightly decreased to 18.7% due to market fluctuations; selling and administrative expenses marginally increased due to labor costs and software upgrade fees, resulting in a 6.3% year-over-year decrease in profit for the period - Revenue increased by 6.2% to RMB 317 million, primarily due to strong performance in the fruit product line[52] - Gross profit margin decreased from 19.1% to 18.7%, mainly due to market fluctuations[56] - Selling and distribution expenses increased by 6.3%, primarily attributable to increased labor costs; administrative expenses increased by 1.0%, mainly due to software upgrade fees[59][60] - Under the combined impact, profit for the period decreased by 6.3% from RMB 18.9 million to RMB 17.7 million[64] Liquidity and Capital Resources The Group maintains a robust financial position with cash and cash equivalents increasing to RMB 204 million, a debt-to-asset ratio decreasing from 29.5% to 27.6%, and an increase in trade receivables turnover days, while adhering to prudent financial management and treasury policies - Cash and cash equivalents balance increased to RMB 203.8 million, primarily attributable to increased operating cash flow[68] - The debt-to-asset ratio (calculated as debt divided by total assets) decreased from 29.5% as of December 31, 2024, to 27.6% as of June 30, 2025[69] - Trade receivables turnover days increased from 51 days to 57 days, primarily due to fragmented orders with non-standard payment terms[67] Other Information This section provides additional information including significant investments, share option schemes, corporate governance practices, and details regarding report publication Significant Investments, Share Option Scheme and Corporate Actions The Group holds a significant investment of approximately 8.59% equity in Tianye Innovation Co., Ltd., representing about 15.0% of total assets, with no share options granted or significant acquisitions, disposals, or securities repurchases during the period - The Group holds an 8.59% equity interest in Tianye Innovation Co., Ltd., with a carrying value of RMB 106.6 million as of June 30, 2025, representing approximately 15.0% of the Group's total assets[76] - During the review period, the Group neither granted any share options nor purchased, sold, or redeemed any of the Company's listed securities[75][79] Corporate Governance and Dividends The company complied with all provisions of the Corporate Governance Code during the reporting period, and directors adhered to the Model Code for securities transactions; the Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the review period[80] - The Board does not recommend the payment of any dividend for the review period[82] Audit Committee and Report Publication The Audit Committee, comprising three independent non-executive directors, has reviewed these interim results and confirmed their compliance with all applicable accounting standards and Listing Rules; this results announcement and the full interim report will be published on the Stock Exchange and the Company's website - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results for the review period with management[83] - This results announcement and the 2025 interim report will be published on the Stock Exchange website and the Company's website[84]