Financial Performance - China Dili Group achieved revenue of RMB 1.04 billion in the first half of 2022, despite challenges from the international environment and domestic COVID-19 outbreaks[7]. - The company recorded a consolidated revenue of approximately RMB 1,038.7 million for the six months ended June 30, 2022, representing a 42.8% increase compared to RMB 727.4 million for the same period in 2021[22]. - Revenue for the six months ended June 30, 2022, was RMB 1,038,737,000, representing a 42.7% increase from RMB 727,418,000 in the same period of 2021[60]. - The company reported a loss of RMB 1,285,082,000 for the period, compared to a profit of RMB 164,613,000 in the previous year[61]. - Total comprehensive loss for the period was RMB 1,274,762,000, compared to a comprehensive income of RMB 189,228,000 in the same period last year[61]. - Operating profit decreased to RMB 58,492,000, down 78.1% from RMB 267,350,000 year-on-year[60]. - The company incurred a net loss before tax of RMB 1,616,897,000 for the six months ended June 30, 2022, compared to a profit of RMB 225,754,000 in the same period of 2021[78]. - Basic and diluted loss per share was RMB (14.48), compared to earnings of RMB 1.83 per share in the previous year[60]. Revenue Sources - Revenue from agricultural product sales significantly increased to RMB 446.9 million, up 1,507.6% from RMB 27.8 million in the previous year[23]. - The group’s revenue from wholesale markets reached RMB 1.822 billion for the six months ending June 30, 2022, sourced from commission and rental income[11]. - Commission income decreased by 22.3% to RMB 376.7 million from RMB 485.0 million in the prior year[23]. - Rental income slightly increased by 0.2% to RMB 215.1 million compared to RMB 214.6 million in the previous year[23]. Operational Developments - The group’s supply chain business saw significant growth, with new business revenue increasing substantially, driven by the integration of transaction, information, financial, and logistics services[7]. - The group is focused on enhancing its core competitiveness through technology and service empowerment in the agricultural supply chain[8]. - The group is advancing its digital transformation by building a comprehensive service system for agricultural products, integrating online and offline transaction models[7]. - The group implemented digital initiatives such as mobile payment systems and online management to enhance operational efficiency and competitiveness in the agricultural wholesale market[7]. Market Presence - The Hangzhou Dili Logistics Cluster, which includes three markets, accounts for approximately 70% of local demand for fruits, vegetables, and aquatic products in the Yangtze River Delta region[10]. - The Shenyang Market supplies over 90% of the local fruit market and serves as a major logistics hub for the Northeast region, with 50% of its fruit supply reaching Northeast China and Inner Mongolia[12]. - The Guizhou market has developed into one of the largest agricultural distribution centers in Southwest and Northwest China, covering a wide area including Guangxi, Hunan, and Hubei provinces[13]. - The Heilongjiang logistics cluster includes four markets, with a focus on regional radiation and foreign trade, particularly through the Mudanjiang market which specializes in Sino-Russian agricultural products[15]. - The Shouguang market is the largest comprehensive agricultural logistics park in Asia, covering approximately 1,082,502 square meters and serving as a key center for vegetable logistics in China[16]. Financial Position - The net current assets as of June 30, 2022, were approximately RMB 1,375.2 million, down from RMB 1,541.8 million as of December 31, 2021[32]. - The total interest-bearing borrowings as of June 30, 2022, amounted to RMB 1,788.9 million, with a breakdown of repayments due within one year at RMB 459.8 million[33]. - The company maintains a strong cash position and financial resources to support operational needs and future business expansion[32]. - The leverage ratio as of June 30, 2022, is 12.42%, an increase from 11.26% as of December 31, 2021[45]. Shareholder Information - Major shareholder Dai Bin holds 62.12% of the issued shares, while other directors and executives hold minimal percentages[49]. - The company has a total of 5,526,147,441 shares held under a family discretionary trust, representing 62.12% of the total equity[52]. - The company has not issued any shares or granted any incentive shares under the share incentive plan during the six months ending June 30, 2022[55]. - The company has a significant concentration of ownership, with the top shareholders holding over 62% of the total equity[52]. Government Support and Grants - The company received government grants totaling RMB 12,986 thousand for the six months ended June 30, 2022, compared to RMB 2,615 thousand in the previous year[69]. - The company reported a government grant of RMB 7,376,000 as of June 30, 2022, down from RMB 8,493,000 at the beginning of the year[108]. Impairment and Losses - Impairment losses on investment properties and property, plant, and equipment were recognized at RMB 547.6 million and RMB 1,104.9 million, respectively, due to COVID-19 impacts[31]. - The company recognized an impairment loss of RMB 1,104,941,000 on property and equipment due to reduced market income since April 2022[88]. - The net loss related to investment property valuation was RMB 547,631,000 for the six months ended June 30, 2022, compared to RMB 38,429,000 in the same period of 2021[89]. Cash Flow and Investments - For the six months ended June 30, 2022, the company reported a net cash outflow from operating activities of RMB 49,983 thousand, compared to a net inflow of RMB 28,559 thousand for the same period in 2021[69]. - The company generated cash from operating activities amounting to RMB 55,632 thousand for the six months ended June 30, 2022, down from RMB 135,352 thousand in the same period of 2021[69]. - The company reported a decrease in cash used in investing activities, amounting to RMB 56,162 thousand for the six months ended June 30, 2022, compared to RMB 290,819 thousand in the same period of 2021[69]. Compliance and Governance - The financial report was prepared in accordance with the International Financial Reporting Standards and was reviewed by KPMG, ensuring compliance with relevant regulations[71]. - The company has established an audit committee to oversee financial reporting and risk management processes[57]. - The interim financial report as of June 30, 2022, was prepared in accordance with International Accounting Standard 34, with no significant issues noted[126].
中国地利(01387) - 2022 - 中期财报