TINGYI(HK:00322)2022-08-29 04:14Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 38,216,878 thousand, an increase of 7.97% compared to RMB 35,395,833 thousand in the same period of 2021[4] - Gross profit margin decreased to 28.22%, down 2.83 percentage points from 31.05% in the previous year[4] - EBITDA for the period was RMB 3,417,618 thousand, reflecting a decline of 24.34% from RMB 4,517,006 thousand in 2021[4] - Net profit for the period was RMB 1,494,574 thousand, a decrease of 37.89% compared to RMB 2,406,388 thousand in the same period last year[4] - Earnings attributable to shareholders decreased by 38.42% to RMB 1,253,367 thousand from RMB 2,035,214 thousand in 2021[4] - Basic earnings per share was RMB 22.25, down 13.93 cents from RMB 36.18 in the previous year[4] - The group reported a total comprehensive income of RMB 711,905 thousand for the period, down from RMB 2,559,228 thousand in the same period last year[7] - The total comprehensive income for the period was RMB 516,392 thousand, significantly lower than the RMB 2,178,930 thousand reported in the previous year, indicating a decline of about 76.3%[11] Assets and Liabilities - Total assets increased to RMB 63,729,541 thousand as of June 30, 2022, from RMB 60,309,223 thousand at the end of 2021[8] - The company's total liabilities increased to RMB 44,923,084 thousand from RMB 37,900,723 thousand, marking an increase of about 18.4%[9] - As of June 30, 2022, the total equity attributable to shareholders decreased to RMB 15,389,533 thousand from RMB 18,659,976 thousand as of December 31, 2021, representing a decline of approximately 17.2%[9] - The net debt to equity ratio was -46.27% as of June 30, 2022[4] - The net current liabilities as of June 30, 2022, were RMB (7,663,566) thousand, compared to RMB (4,158,264) thousand at the end of 2021, indicating a worsening liquidity position[9] Cash Flow - Cash and cash equivalents as of June 30, 2022, were RMB 24,631,611 thousand, an increase of RMB 2,670,473 thousand compared to December 31, 2021[4] - The net cash generated from operating activities decreased to RMB 1,278,828 thousand, down 52.5% from RMB 2,691,554 thousand in the same period of 2021[12] - The net cash used in investing activities increased to RMB 2,621,194 thousand, compared to RMB 2,237,201 thousand in the previous year, reflecting a rise of 17.2%[12] - The net cash generated from financing activities significantly increased to RMB 2,559,579 thousand, up 110.5% from RMB 1,215,880 thousand in the prior year[12] Segment Performance - For the six months ended June 30, 2022, the total revenue generated from customer contracts was RMB 38,176,719 thousand, with instant recognition from instant noodles, beverages, and other segments contributing RMB 13,521,336 thousand, RMB 24,295,072 thousand, and RMB 360,311 thousand respectively[18] - The instant noodle business achieved revenue of RMB 13.548 billion, accounting for 35.45% of total revenue, despite a 3.26 percentage point drop in gross margin to 20.63%[48] - The beverage segment's revenue was RMB 24.298 billion, representing 63.58% of total revenue, with a gross margin decline of 2.64 percentage points to 32.14%[52] Market Position and Strategy - The company maintained a 44.6% market share in instant noodle sales and a 46.7% market share in sales revenue, leading the market[48] - The ready-to-drink tea segment held a 41.7% market share, while juice and packaged water segments held 17.9% and 6.0% market shares, respectively[52] - The company is focusing on brand investment and innovation to enhance brand penetration and consumer engagement[47] - The overall market environment faced challenges due to international situations and regional pandemic impacts, but opportunities arose from diversified consumption scenarios[46] Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the rotation of directors every three years, which the board believes is in the best interest of the company[64] - The board of directors is responsible for ensuring that the financial statements comply with statutory requirements and applicable accounting standards[65] - The audit committee, consisting of three independent non-executive directors, recently reviewed the group's performance during the reporting period[66] Shareholder Information - The board declared a special interim dividend of 6.63 US cents per ordinary share, to be paid on or around December 14, 2022[82] - The company's shareholder register will be closed from November 8 to November 10, 2022, to facilitate the dividend payment[82] - As of June 30, 2022, the company had 1,882,927,866 shares held by Ting Hsin (Cayman Islands) Holding Company, with major ownership stakes from various entities[80] Risk Management - The group has established a risk management framework based on the COSO model, aiming to keep overall risk at an acceptable level and enhance operational efficiency[67]