Financial Performance - Revenue for the six months ended June 30, 2022, increased by approximately 24.4% to RMB 236.9 million compared to RMB 190.4 million in 2021[15] - Gross profit rose by about 35.9% to RMB 57.9 million from RMB 42.6 million in the previous year[15] - The net profit attributable to shareholders for the period was approximately RMB 12.1 million, a significant recovery from a loss of RMB 1.0 million in 2021[15] - The gross margin improved to 24.5% in 2022 from 22.4% in 2021[9] - The company reported a pre-tax profit of RMB 14.96 million, up from RMB 1.65 million in the previous year[7] - The group achieved a gross profit of approximately RMB 57.9 million, an increase of about RMB 15.3 million or approximately 35.9% compared to RMB 42.6 million in the same period of 2021, with a gross margin rising from approximately 22.4% to 24.4%[27] - For the six months ended June 30, 2022, the group's profit before tax was approximately RMB 15.0 million, a significant increase from RMB 1.7 million in the same period of 2021[35] - The group's net profit for the six months ended June 30, 2022, increased to approximately RMB 12.1 million, up from a loss of RMB 1.0 million in the same period of 2021[37] - Basic and diluted earnings per share were RMB 2.4, compared to a loss of RMB 0.2 per share in the same period last year[78] - Total comprehensive income for the period was RMB 16,656 thousand, compared to a total comprehensive loss of RMB 10,560 thousand in the previous year[78] Revenue Breakdown - Revenue from knitted fabrics was approximately RMB 65.6 million, an increase of about RMB 16.2 million or 32.8% compared to RMB 49.4 million in the same period of 2021, accounting for about 27.7% of total revenue[24] - Revenue from underwear products was approximately RMB 171.3 million, an increase of RMB 30.2 million or approximately 21.4% compared to RMB 141.1 million in the same period of 2021, accounting for about 72.3% of total revenue[25] - For the six months ended June 30, 2022, the total revenue was RMB 236,913 thousand, with external sales of lingerie products at RMB 171,269 thousand and knitted fabric at RMB 65,644 thousand[103] Assets and Liabilities - Non-current assets as of June 30, 2022, were RMB 173.8 million, down from RMB 185.4 million at the end of 2021[7] - Current assets increased to RMB 321.1 million from RMB 292.5 million at the end of 2021[7] - The total assets amounted to RMB 494.9 million, compared to RMB 477.8 million at the end of 2021[7] - Total liabilities were RMB 206,242 thousand, slightly up from RMB 205,455 thousand at the end of 2021, showing stable financial leverage[82] - The company's net asset value increased to RMB 288,350 thousand as of June 30, 2022, compared to RMB 271,694 thousand at the end of 2021, reflecting growth in equity[82] Cash Flow and Working Capital - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (46,048) thousand, compared to RMB (19,058) thousand for the same period in 2021[94] - The net cash used in investing activities was RMB (1,289) thousand for the six months ended June 30, 2022, compared to RMB (3,004) thousand in the previous year[94] - The net cash used in financing activities was RMB (3,210) thousand for the six months ended June 30, 2022, compared to RMB (363) thousand in the previous year[94] - Cash and bank balances decreased to RMB 114,942 thousand from RMB 161,408 thousand at the end of 2021, indicating a reduction in liquidity[80] - The group's current ratio as of June 30, 2022, was approximately 1.6, up from 1.4 at the end of 2021[42] Expenses and Costs - Sales and distribution expenses increased to approximately RMB 6.3 million, up from RMB 6.0 million in the previous year, mainly due to increased sales volume and distribution costs[31] - Administrative expenses rose by approximately 17.8% to about RMB 39.0 million, primarily driven by increased employee benefits and depreciation costs[32] - The total employee costs, including director remuneration, amounted to RMB 67,839,000, up from RMB 63,213,000 in the previous year[114] - The financing costs for the six months ended June 30, 2022, totaled RMB 2,652,000, compared to RMB 2,550,000 in the previous year[111] Market and Economic Conditions - The textile and apparel export from China grew by 12% year-on-year to USD 80.2 billion in the first half of 2022[11] - Japan remained the largest export market for the group, with exports to Japan amounting to approximately USD 83.54 billion, a slight increase of 4.4% year-on-year[17] - Economic growth is expected to slow down due to monetary tightening policies, impacting consumer sentiment, with hopes for a rebound in clothing demand in the second half of the year[53] Corporate Governance and Management - The company has adhered to corporate governance codes and standards throughout the reporting period[59] - The board of directors decided not to declare any interim dividend for the six months ending June 30, 2022[52] - The Audit Committee has reviewed the unaudited interim results for the six months ending June 30, 2022[73] - The company has established a Remuneration Committee responsible for determining the remuneration policies for directors and senior management[74] - The Nomination Committee is tasked with reviewing the board's structure and proposing changes to align with the company's strategy[75] Other Notable Information - The group maintained stable domestic sales performance, with support from national "promote consumption" policies despite fluctuations due to pandemic-related lockdowns[16] - The group continued to explore new markets for fabrics and underwear products to mitigate market risks and seek new development opportunities[19] - No significant acquisitions or disposals were made during the six months ending June 30, 2022[57] - There were no major events after June 30, 2022, that significantly impacted the group's operations and financial performance[58] - No share options were granted under the share option scheme during the six months ending June 30, 2022[65] - Directors and key executives had no interests in the company's shares or related securities as of June 30, 2022[66] - Major shareholders hold 52.73% of the company's voting shares, totaling 260,661,501 shares[69]
广泰国际控股(00844) - 2022 - 中期财报