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惠生国际(01340) - 2022 - 中期财报
HUISHENG INTLHUISHENG INTL(HK:01340)2022-09-29 13:20

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 18,567,000, a decrease of 63.8% compared to RMB 51,380,000 for the same period in 2021[3] - Gross loss for the period was RMB 1,326,000, compared to a gross profit of RMB 2,277,000 in the previous year[3] - Other income increased to RMB 4,926,000 from RMB 4,678,000 year-on-year, reflecting a growth of 5.3%[3] - Total comprehensive income for the period was RMB 11,116,000, up from RMB 8,011,000 in the same period last year, representing a 38.5% increase[4] - The company reported a net loss attributable to owners of RMB 415,000, compared to a loss of RMB 1,202,000 in the previous year[4] - The company’s basic and diluted loss per share was RMB 0.05, an improvement from RMB 0.14 in the previous year[4] - The company reported a pre-tax loss of RMB 968,000 for the first half of 2022, compared to a pre-tax loss of RMB 799,000 in the same period of 2021[23] - The group reported a loss attributable to owners of approximately RMB 0.4 million for the six months ended June 30, 2022, compared to a loss of approximately RMB 1.2 million in the same period of 2021[69] Revenue Breakdown - The total revenue from the pig slaughtering and meat trading segment for the first half of 2022 was RMB 18,449,000, a decline of 41% from RMB 31,237,000 in the same period of 2021[21] - The total revenue from the pipeline system products segment for the first half of 2022 was RMB 118,000, down from RMB 20,143,000 in the same period of 2021[21] - Revenue from China decreased to RMB 18,449 thousand for the six months ended June 30, 2022, down 41.0% from RMB 31,237 thousand for the same period in 2021[30] - Revenue from Japan significantly dropped to RMB 118 thousand for the six months ended June 30, 2022, compared to RMB 20,143 thousand for the same period in 2021, a decline of approximately 99.4%[30] - The group's pork business and pipeline business recorded revenues of approximately RMB 18.4 million and RMB 0.1 million, respectively, for the six months ended June 30, 2022, compared to RMB 31.2 million and RMB 20.1 million in the same period of 2021, indicating a significant decline in revenue[66] Cash and Assets - Cash and cash equivalents increased to RMB 186,715,000 from RMB 131,581,000, showing a growth of 41.9%[6] - Total assets as of June 30, 2022, were RMB 468,713,000, compared to RMB 452,467,000 at the end of 2021, indicating a 3.6% increase[6] - The total assets for the pig slaughtering and meat trading segment as of June 30, 2022, were RMB 421,749,000, an increase from RMB 374,387,000 at the end of 2021[26] - The total liabilities of reportable segments rose to RMB 30,467 thousand as of June 30, 2022, from RMB 29,137 thousand as of December 31, 2021, an increase of 4.6%[28] - The group's current assets net value was approximately RMB 384.8 million as of June 30, 2022, compared to RMB 368.2 million as of December 31, 2021[70] Expenses and Costs - Total employee costs decreased to RMB 1,982,000 in the first half of 2022 from RMB 2,538,000 in the same period of 2021, reflecting a reduction of approximately 22%[40] - The cost of inventory recognized as an expense was RMB 17,363,000 for the six months ended June 30, 2022, down from RMB 46,947,000 in the same period of 2021, indicating a decrease of approximately 63%[40] - The average selling price of fresh pork and by-products decreased by approximately 40.5% and 31.6%, respectively, compared to the same period last year, aligning with a national average wholesale price drop of about 42.4%[66] - The group's administrative expenses increased to approximately RMB 9.4 million for the six months ended June 30, 2022, up from RMB 7.6 million in the same period of 2021, primarily due to additional costs associated with the pork business[67] Share Options and Governance - The total number of share options available under the share option plan is 88,083,800 shares, representing approximately 10.0% of the company's issued share capital[91] - A total of 88,080,000 share options were granted on July 28, 2021, with an exercise price of HKD 0.083 per share[91] - The company aims to attract and retain talent through the share option plan, aligning the interests of participants with those of shareholders[93] - The company has adopted a standard code of conduct for securities trading, confirming compliance by all directors for the six months ending June 30, 2022[101] - The company has maintained compliance with all corporate governance code provisions for the six months ending June 30, 2022, except for certain deviations mentioned[102] Operational Developments - The company has outsourced pig slaughtering processes to independent slaughterhouses to stabilize production costs and maximize profit margins[63] - The company plans to achieve operational normalization and meet pollution discharge standards by potentially obtaining government approval in the second or third quarter of 2023[62] - The company anticipates moderate increases and stabilization in pig prices in the second half of 2022 due to uncertainties from COVID-19 and government policies in China[86] - A joint venture framework agreement has been established for a new slaughterhouse with an annual capacity of 500,000 pigs, expected to be completed in 2023[86] - The joint venture aims to enhance the company's position in the competitive pork industry and provide opportunities for resource acquisition[87] Compliance and Audit - The audit committee is responsible for overseeing the financial monitoring, risk management, and internal control systems of the group, and has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2022[108] - There were changes in the board of directors, with two independent non-executive directors resigning on June 30, 2022, resulting in a temporary non-compliance with listing rules regarding the minimum number of independent directors[105] - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities of the company or any other entity during the six months ending June 30, 2022[99]