Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 7,019.2 million, an increase of 4.9% compared to RMB 6,692.1 million for the same period in 2024[2]. - Gross profit for the same period was RMB 4,389.1 million, reflecting a growth of 7.8% from RMB 4,072.3 million in 2024[2]. - Net profit decreased significantly by 76.8% to RMB 71.0 million from RMB 305.8 million year-on-year[2]. - Adjusted comparable net profit increased by 4.6% to RMB 363.0 million compared to RMB 347.2 million in the previous year[2]. - EBITDA for the six months was RMB 1,033.1 million, down 5.9% from RMB 1,098.4 million in 2024[2]. - Adjusted comparable EBITDA margin decreased by 1.3 percentage points to 15.7% from 17.0% in the previous year[2]. - The overall comprehensive income for the period was RMB 225.4 million, compared to RMB 265.2 million in the same period last year[9]. - The company reported a pre-tax profit of RMB 306,292 thousand for the six months ended June 30, 2025, down from RMB 523,939 thousand, a decrease of 41.54%[13]. - Adjusted comparable EBITDA for the first half of 2025 was RMB 1,100.7 million, a decrease of 3.4% from the previous year, with the EBITDA margin declining from 17.0% to 15.7%[92]. Assets and Liabilities - Non-current assets totalled RMB 14,331,162 thousand as of June 30, 2025, compared to RMB 14,219,781 thousand as of December 31, 2024, reflecting an increase of 0.78%[10]. - Current assets increased to RMB 5,064,338 thousand from RMB 4,622,641 thousand, representing an increase of 9.56%[10]. - Total liabilities amounted to RMB 13,384,016 thousand, up from RMB 12,744,038 thousand, indicating a rise of 5.02%[11]. - The company's total equity decreased to RMB 5,813,371 thousand from RMB 6,009,377 thousand, a decline of 3.26%[11]. - The total value of non-current liabilities was RMB 9,156,682 thousand, slightly down from RMB 9,158,615 thousand, a decrease of 0.02%[11]. - As of June 30, 2025, the group's outstanding borrowings amounted to RMB 9,174.1 million, including current borrowings of RMB 944.0 million[104]. - The debt-to-asset ratio decreased from 49.3% as of December 31, 2024, to 47.3% as of June 30, 2025[104]. - The net leverage ratio improved from 3.99 times as of December 31, 2024, to 3.89 times as of June 30, 2025[104]. Cash Flow - The net cash flow from operating activities was RMB 998,033 thousand for the six months ended June 30, 2025, compared to RMB 1,052,540 thousand for the same period in 2024, a decrease of 5.18%[13]. - Net cash flow used in investing activities was RMB (31,385) thousand, compared to RMB 8,389 thousand in the previous year, indicating a significant decrease in cash inflow from investments[14]. - Net cash flow used in financing activities was RMB (706,534) thousand, a substantial increase from RMB (86,704) thousand in the prior year, reflecting higher financing costs and repayments[15]. - The net increase in cash and cash equivalents for the six months ended June 30, 2025, was RMB 260,114 thousand, down from RMB 974,225 thousand in the same period of 2024[15]. - The ending cash and cash equivalents balance as of June 30, 2025, was RMB 1,812,024 thousand, compared to RMB 2,379,094 thousand at the end of June 30, 2024, showing a decrease of approximately 23.8%[15]. - As of June 30, 2025, cash and cash equivalents, along with structured deposits, totaled RMB 1,812.0 million[103]. Market Performance - Revenue from the Mainland China market was RMB 4,936,033 thousand, up from RMB 4,541,353 thousand year-over-year, indicating a growth of about 8.7%[24]. - Revenue from nutritional supplements reached RMB 4,606.0 million, a 4.1% increase year-over-year, accounting for 65.6% of total revenue[70]. - Revenue from adult nutrition and care products in mainland China grew by 13.1% year-over-year, representing 70.0% of total revenue in this segment[73]. - Revenue from infant formula in mainland China increased by 10.0% to RMB 1,904.9 million, driven by effective consumer education strategies[74]. - Revenue from pet nutrition and care products in mainland China rose by 17.5% to RMB 204.9 million, with new high-margin products accounting for 33.8% of total revenue in this segment[76]. - The infant nutrition and care segment saw a 10.0% increase in sales of infant formula in the Chinese market, with market share in the ultra-premium segment reaching a historical high of 15.9%[48]. - The pet nutrition and care segment contributed 15.4% to total revenue, driven by a strong growth of 13.4% from Zesty Paws and a 17.5% recovery in the Chinese market[48]. - Cross-border e-commerce sales in mainland China grew by 18.1%, accounting for 81.5% of the adult nutrition and care products revenue[55]. Costs and Expenses - Sales and distribution costs increased by 12.4% to RMB 2,883.9 million, with the percentage of these costs relative to revenue rising from 38.3% to 41.1%[84]. - The sales and distribution costs for the adult nutrition and care segment rose by 19.2% year-on-year, reflecting strategic investments in new expansion markets[85]. - Advertising and marketing expenses for pet nutrition and care products increased from 12.4% to 13.2% of revenue, primarily due to investments in new product launches[88]. - Administrative expenses slightly decreased by 1.8% to RMB 398.5 million, representing 5.7% of total revenue, down from 6.1%[89]. - Research and development expenses decreased by 7.8% to RMB 95.9 million, accounting for 1.4% of total revenue, down from 1.6%[90]. Corporate Governance - The company has complied with all corporate governance codes as of June 30, 2025, and will continue to enhance its governance practices[113]. - The audit committee, established on November 25, 2010, is responsible for overseeing financial reporting and internal controls[116]. - The interim financial statements for the six months ending June 30, 2025, have been reviewed by the independent auditor, Ernst & Young[117]. - The audit committee consists of three members, all of whom are non-executive directors, with a majority being independent[116]. Taxation - The corporate income tax rate for the group's business in mainland China is set at 25% until June 30, 2024[32]. - The subsidiary, Biostime Healthy (Guangzhou) Health Products Co., Ltd., is recognized as a high-tech enterprise and will pay corporate income tax at a reduced rate of 15% from 2023 to 2025[33]. - The company is involved in a tax dispute with the Australian Taxation Office, with a potential tax liability of AUD 234.5 million, plus interest and penalties[111]. - A cash deposit of AUD 1.04 million was paid to the Australian Taxation Office as part of the tax dispute resolution process[112]. - The company continues to seek legal counsel regarding the tax dispute and believes the likelihood of a cash outflow is low[112].
H&H国际控股(01112) - 2025 - 中期业绩