Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,847,152,000, representing a 4.7% increase from RMB 1,763,675,000 in the same period of 2021[8] - Gross profit decreased by 8.2% to RMB 967,029,000, down from RMB 1,053,981,000, resulting in a gross profit margin of 52.4% compared to 59.8% in 2021[8] - The company reported an operating loss of RMB 141,776,000, a significant decline from an operating profit of RMB 733,573,000 in the previous year, marking a 119.3% decrease[8] - Net cash generated from operating activities fell by 77.0% to RMB 111,799,000, down from RMB 485,403,000 in the same period last year[8] - The loss attributable to equity holders of the company was RMB 313,531,000, a 165.2% decline from a profit of RMB 481,129,000 in 2021[8] - Adjusted profit for the period was RMB 381,300,000, down 34.4% from RMB 581,465,000 in the previous year[8] Market Conditions - The management highlighted challenges from declining consumer confidence and rising production costs due to geopolitical conflicts and inflation pressures[11] - The overall economic environment remains challenging, impacting both global and Chinese markets significantly[11] - The catering industry revenue in the first half of 2022 was RMB 2,004 billion, a decrease of 7.7% year-on-year, and a decrease of 5.8% compared to 2019[22] - The Chinese government implemented stringent measures to control the Pandemic, negatively impacting various sectors, but the food and beverage industry still recorded growth[17] Industry Trends - The demand for frozen and prepared foods increased due to the Pandemic, highlighting the importance of strong supply chain management[18] - The food and beverage industry is increasingly focusing on health, nutrition, and taste, leading to intensified competition[19] - The Pandemic has led to a shift in consumer preferences towards products labeled as "natural" and "probiotic," influencing purchasing decisions[18] Segment Performance - Revenue from the F&F and food ingredients business amounted to approximately RMB 888 million, a year-on-year decrease of 2.5%[32] - Revenue from the tobacco raw materials business was approximately RMB 192 million, a year-on-year decrease of 8.1%, accounting for approximately 10.4% of the Group's total revenue[44] - The condiment business revenue decreased by 10.8% year-on-year to approximately RMB 289 million, accounting for 15.7% of total revenue, with an operating loss of approximately RMB 586 million[53] Investments and Projects - As of June 30, 2022, the cumulative investment in the Huabao Yingtan Project was approximately RMB 191 million, representing an investment progress of 18.47%[42] - The cumulative investment in the Huabao TechInno Project was approximately RMB 2.13 million, with an investment progress of 0.47%[42] - The cumulative investment in the Huabao Digital Project reached RMB 8.03 million, representing an investment progress of 13.38%[42] Research and Development - The Group's R&D investment during the reporting period was approximately RMB 111 million, accounting for about 6.0% of revenue, a decrease of 0.2 percentage points compared to the same period last year[85] - A total of 14 patents were granted in the F&F business, reflecting the Group's technological R&D capabilities in tobacco, food, and daily-use chemicals[86] - In the tobacco raw materials business, the Group applied for 26 patents focused on HNB cigarette materials, demonstrating its competitiveness in this field[87] Corporate Governance - The company has established internal reporting practices to monitor operations and business development, ensuring timely capture of potentially price-sensitive information[184] - The Board has adopted corporate governance practices to enhance transparency and accountability, with regular discussions on business strategies and performance[183] - The company has complied with the Corporate Governance Code, except for certain provisions affected by the Chairman's situation[185] Shareholder Information - The Board has declared a special dividend of HK3.38 cents per share for the six months ended 30 June 2022, compared to an interim dividend of HK6.4 cents per share in the same period of 2021[197] - The special dividend represents approximately 31.0% of the adjusted earnings per share of RMB9.31 cents[197] - The register of members will be closed from 15 September 2022 to 20 September 2022 for determining shareholders eligible for the special dividend[199]
华宝国际(00336) - 2022 - 中期财报