Financial Performance - For the six months ended June 30, 2022, the company recorded revenue of approximately RMB 509.5 million, an increase of about 24.4% compared to approximately RMB 409.5 million for the same period in 2021[12]. - Gross profit increased by approximately 11.0% to about RMB 70.5 million for the six months ended June 30, 2022, from approximately RMB 63.5 million for the same period in 2021[17]. - Profit for the period increased by approximately 13.6% to about RMB 30.2 million for the six months ended June 30, 2022, compared to approximately RMB 26.5 million for the same period in 2021[12]. - Profit before tax increased to RMB 39,995 thousand, compared to RMB 35,627 thousand in the previous year, reflecting a growth of 10.5%[55]. - Net profit for the period was RMB 30,170 thousand, a rise of 13.3% from RMB 26,531 thousand in the prior year[55]. - Basic and diluted earnings per share were RMB 4.77, compared to RMB 4.42 for the same period last year[55]. Cost and Expenses - Sales costs rose by approximately 26.9% to about RMB 439.0 million for the six months ended June 30, 2022, from approximately RMB 346.0 million for the same period in 2021[16]. - Sales and distribution expenses increased from approximately RMB 119 million for the six months ended June 30, 2021, to approximately RMB 124 million for the six months ended June 30, 2022, primarily due to rising transportation costs[19]. - Administrative expenses decreased from approximately RMB 197 million for the six months ended June 30, 2021, to approximately RMB 173 million for the six months ended June 30, 2022, mainly due to a one-time purchase of management software valued at approximately RMB 28 million in the prior period[21]. - Financial costs rose from approximately RMB 27 million for the six months ended June 30, 2021, to approximately RMB 37 million for the six months ended June 30, 2022, attributed to an increase in average bank borrowings during the same period[22]. - Employee costs for the six months ended June 30, 2022, were approximately RMB 242 million, reflecting the costs associated with salaries, allowances, and other benefits[32]. Revenue Breakdown - Revenue for the six months ended June 30, 2022, was RMB 509,516 thousand, an increase of 24.4% from RMB 409,508 thousand in the same period of 2021[67]. - Sales of plain fabric reached RMB 340,534 thousand, up 30.0% from RMB 261,701 thousand in the prior year[67]. - Sales of corduroy fabric increased to RMB 148,097 thousand, representing a growth of 13.9% compared to RMB 130,077 thousand in 2021[67]. - Revenue from dyeing and processing services was RMB 20,885 thousand, a rise of 17.9% from RMB 17,730 thousand in the previous year[67]. - Revenue from external customers in China was RMB 413,223 thousand, a significant increase of 49.3% from RMB 276,589 thousand in the same period of 2021[70]. Assets and Liabilities - As of June 30, 2022, the company's total interest-bearing bank borrowings amounted to approximately RMB 2,915 million, an increase from approximately RMB 2,200 million as of December 31, 2021[30]. - The company's cash and bank balances were approximately RMB 1,077 million as of June 30, 2022, compared to approximately RMB 325 million as of December 31, 2021[29]. - The company's total liabilities as of June 30, 2022, were RMB 288,296,000, compared to RMB 169,393,000 as of December 31, 2021, reflecting an increase of approximately 70.0%[86]. - The total trade receivables and notes receivable as of June 30, 2022, were approximately RMB 291,395,000, compared to RMB 172,492,000 as of December 31, 2021, indicating a significant increase of approximately 68.8%[85]. - The company’s trade receivables aging analysis shows that as of June 30, 2022, RMB 198,920,000 was within 30 days, compared to RMB 115,719,000 as of December 31, 2021, representing an increase of approximately 71.7%[87]. Corporate Governance and Shareholder Information - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[41]. - The major shareholder, Dongyong Holdings Limited, holds 450,000,000 shares, representing 75% of the company's equity[50]. - The company has complied with all applicable provisions of the corporate governance code during the six months ended June 30, 2022, except for a deviation regarding the separation of the roles of Chairman and CEO[42]. - The board has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2022[39]. - The company did not declare any interim dividends for the six months ended June 30, 2022, compared to RMB 12,000,000 declared for the same period in 2021[80]. Future Outlook and Strategic Plans - The company plans to enhance the design and development of eco-friendly textile products in response to increasing customer awareness of sustainability[14]. - The company expects consumer activity to become more active, driving demand in the apparel and textile industry in the second half of 2022[14]. - The company aims to leverage its strong reputation and diverse product portfolio to enhance competitiveness and deliver long-term returns to shareholders[14]. - The company plans to upgrade and improve existing production lines and technical capabilities, expanding capacity and product range with an allocation of HKD 18.9 million[37]. Acquisitions and Investments - The company entered into a share transfer agreement to acquire 100% equity of Xionglian (Changzhou) Textile Printing and Dyeing Co., Ltd. for RMB 800 million, with the completion of the acquisition subject to certain conditions[25]. - The acquisition of a target company holding properties was allocated HKD 32.8 million, fully utilized[37]. - The acquisition of a company with existing production facilities in Jiangsu, China, was allocated HKD 22.0 million, which remains unutilized until December 31, 2022[37].
亚东集团(01795) - 2022 - 中期财报