Financial Performance - The company reported a net loss attributable to shareholders of approximately RMB 65 million for the first half of 2022, a significant improvement from a net loss of approximately RMB 398 million in the same period of 2021[9]. - Revenue increased by 11.9% from approximately RMB 723.3 million in the first half of 2021 to approximately RMB 809.0 million in the first half of 2022, driven by the recovery in consumer demand[9]. - Total revenue for the first half of 2022 was RMB 809.0 million, an increase of 11.9% compared to RMB 723.3 million in the same period of 2021[17]. - The company recorded a net loss of RMB 6,396 thousand for the six months ended June 30, 2022, significantly improved from a net loss of RMB 40,595 thousand in the prior year, indicating a reduction of 84.2%[50]. - The company reported a basic loss per share of RMB (1.5) for the six months ended June 30, 2022, compared to RMB (9.2) in the same period of 2021, indicating an improvement[50]. Revenue Breakdown - Revenue from processed food decreased by 2.2% to approximately RMB 340 million, attributed to temporary dining restrictions due to COVID-19 in certain regions[12]. - Revenue from chilled and frozen chicken increased by 66.1% to approximately RMB 263.3 million, as consumers shifted to chicken due to rising pork prices since April 2022[14]. - Revenue from chilled and frozen rabbit meat decreased by 26.1% to approximately RMB 76.7 million[12]. - Revenue from other products, primarily pet food and by-products, increased by 13.8% to RMB 129.0 million, driven by growth in the pet food market[16]. - Revenue from China contributed 73.2% of total revenue, with a 25.2% increase to RMB 592.3 million, largely due to increased sales of refrigerated and frozen chicken[19]. Cost and Profitability - The gross profit margin decreased from 4.8% in the first half of 2021 to 3.8% in the first half of 2022 due to rising prices of animal feed raw materials such as corn and soybean meal[9]. - The gross profit margin for processed foods increased by 5.3 percentage points to 11.6% in the first half of 2022, indicating a focus on higher-margin sales channels[24]. - The gross profit margin for refrigerated and frozen chicken dropped by 5.3 percentage points to -9.8% due to rising raw material costs[25]. - Gross profit for the same period was RMB 30,493 thousand, down from RMB 34,373 thousand in 2021, representing a decrease of 11.1%[50]. - The cost of goods sold for the six months ended June 30, 2022, was RMB 677,029 thousand, up from RMB 580,590 thousand in 2021, indicating an increase of approximately 16.56%[75]. Expenses and Income - Other income increased significantly to RMB 23.7 million from RMB 4.1 million, primarily due to the sale of a subsidiary and rental income[28]. - Sales and distribution expenses decreased by RMB 5.2 million to approximately RMB 17.3 million, attributed to reduced export sales and the sale of a subsidiary[29]. - Administrative expenses decreased due to a foreign exchange gain of RMB 3.0 million in the first half of 2022, compared to a loss of RMB 3.7 million in the same period of 2021[30]. - Other operating expenses for the first half of 2022 were RMB 5.4 million, down RMB 8.9 million from RMB 14.3 million in the first half of 2021[30]. - Financing costs decreased by 6.7% to approximately RMB 6.4 million in the first half of 2022, primarily due to a reduction in the average balance of bank borrowings[30]. Assets and Liabilities - Inventory increased by RMB 17.6 million to approximately RMB 145.1 million as of June 30, 2022, consistent with an increase in sales[30]. - Trade receivables increased by RMB 74.6 million to approximately RMB 194.8 million as of June 30, 2022, mainly due to increased sales in the first half of 2022[30]. - The company's total assets decreased to RMB 742,957 thousand from RMB 764,538 thousand, a decline of 2.8%[51]. - Current liabilities totaled RMB 612,569 thousand as of June 30, 2022, slightly up from RMB 599,351 thousand at the end of 2021[51]. - The company's cash and bank balances increased to approximately RMB 152.5 million as of June 30, 2022, up from RMB 138.6 million on December 31, 2021[33]. Debt and Financing - Interest-bearing bank borrowings increased by RMB 178.3 million to approximately RMB 298.8 million as of June 30, 2022, due to new bank loans of approximately RMB 279.8 million and loan repayments of approximately RMB 101.5 million[33]. - The company's debt-to-equity ratio was 82.7% as of June 30, 2022, compared to 50.2% on December 31, 2021[33]. - The total interest-bearing bank borrowings amounted to RMB 298.8 million as of June 30, 2022, compared to RMB 120.5 million as of December 31, 2021[34]. - The annual interest rate for interest-bearing bank borrowings ranged from 2.52% to 4.75% as of June 30, 2022, compared to 1.66% to 4.75% on December 31, 2021[33]. - The company aims to maintain optimal capital structure to reduce capital costs and support future business expansion[33]. Employee and Management - The total employee cost for the review period was approximately RMB 83 million, a decrease from RMB 86.3 million for the six months ended June 30, 2021[34]. - The group employed 2,233 employees in China as of June 30, 2022, down from 2,849 employees as of December 31, 2021[34]. - Short-term employee benefits for directors and other key management personnel were RMB 6,057,000, slightly down from RMB 6,067,000 in the previous year[95]. Corporate Governance - The company has adopted the standard code of conduct and confirmed compliance by all directors for the reporting period[46]. - The board of directors did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[41]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the six months ended June 30, 2022[34]. Market and Strategic Focus - The company plans to focus on high-value-added processed foods and strengthen relationships with key customers to enhance competitiveness and market risk resilience[11]. - The company aims to optimize its product mix, improve cost management, and expand new sales channels to strengthen core capabilities and overall performance[11]. - The company operates in four main business segments: processed food, frozen chicken, frozen rabbit meat, and other products[70].
康大食品(00834) - 2022 - 中期财报