Financial Performance - For the six months ended June 30, 2022, the company recorded a profit of approximately RMB 10.1 million, compared to RMB 9.4 million for the same period in 2021, representing an increase of about 7.4%[9]. - Revenue decreased by approximately 4.1% from RMB 190.4 million for the six months ended June 30, 2021, to RMB 182.5 million for the same period in 2022, primarily due to reduced sales of OEM products[11]. - Gross profit for the six months ended June 30, 2022, was approximately RMB 51.3 million, a decrease of about 16.4% from RMB 61.4 million for the same period in 2021, with a gross margin of 28.1% compared to 32.2% in 2021[15]. - Profit for the six months ended June 30, 2022, was approximately RMB 10.1 million, compared to RMB 9.4 million for the same period in 2021, reflecting a net increase due to reduced administrative expenses[20]. - The net profit for the period was RMB 10,116,000, an increase of 7.7% compared to RMB 9,357,000 in 2021[133]. - Total comprehensive income for the period was RMB 10,116 thousand, reflecting an increase from RMB 9,357 thousand in the prior year[144]. Revenue Breakdown - Revenue for the six months ended June 30, 2022, was RMB 182,544,000, a decrease of 4.2% from RMB 190,350,000 in the same period of 2021[163]. - OEM product revenue decreased to RMB 63,201,000, down 22.3% from RMB 81,359,000 in 2021[163]. - Own brand product revenue increased to RMB 119,343,000, up 12.5% from RMB 109,991,000 in 2021[163]. Expenses and Costs - Sales costs increased by approximately 1.8%, from RMB 129.0 million for the six months ended June 30, 2021, to RMB 131.3 million for the same period in 2022, mainly due to increased depreciation and maintenance costs[14]. - Selling expenses rose from approximately RMB 15.2 million for the six months ended June 30, 2021, to RMB 19.3 million for the same period in 2022, attributed to increased marketing and promotional activities[17]. - Administrative expenses decreased by approximately 45.9% from RMB 22.9 million for the six months ended June 30, 2021, to RMB 12.4 million for the six months ended June 30, 2022[20]. - The company incurred financing costs of RMB 6,304,000 for the six months ended June 30, 2022, slightly up from RMB 6,262,000 in 2021[167]. Cash Flow and Assets - As of June 30, 2022, cash and cash equivalents were approximately RMB 27.8 million, a decrease of about 23.2% from RMB 36.2 million as of December 31, 2021, primarily due to property, plant, and equipment purchases[41]. - Total assets as of June 30, 2022, were RMB 645,531,000, compared to RMB 618,677,000 as of December 31, 2021[136]. - The company's cash and cash equivalents decreased to RMB 27,804,000 from RMB 36,197,000 as of December 31, 2021[136]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 10,229 thousand, compared to a net cash used of RMB 11,684 thousand in the same period of 2021[145]. Debt and Liabilities - Total borrowings as of June 30, 2022, were approximately RMB 206.8 million, down from RMB 213.4 million as of December 31, 2021[42]. - As of June 30, 2022, the company's debt-to-equity ratio was approximately 53.4%, down from 56.2% as of December 31, 2021, primarily due to the repayment of bank loans[53]. - The total liabilities as of June 30, 2022, were RMB 247,493,000, compared to RMB 238,633,000 as of December 31, 2021[136]. Corporate Governance and Strategy - The company plans to strengthen the development of existing businesses to provide stable returns and growth prospects for shareholders in the future[10]. - The company plans to maintain flexibility in its business strategy to adapt to market trends and potential challenges[39]. - The company is committed to maintaining high standards of corporate governance and will continuously review and improve its governance practices[76]. - The board believes that having Zheng Zhenzhong serve as both chairman and CEO is in the best interest of the company, given his extensive experience in the candy industry[79]. Production and Development - The company operates a large factory in Jinjiang, Fujian Province, with multiple production lines capable of producing several tons of products[9]. - Research and development expenses for new product development increased by approximately RMB 4.7 million during the reporting period[9]. - The company aims to directly control product quality, production costs, and production schedules through its owned production facilities[9]. - The company plans to expand production capacity, upgrade existing production line machinery, enhance marketing through e-commerce channels, and strengthen product offerings through continuous development[72]. Employee and Shareholder Information - The company has 438 employees as of June 30, 2022, an increase from 403 employees as of December 31, 2021[70]. - The company did not declare any dividends for the six months ended June 30, 2022, compared to zero in 2021[54]. - As of June 30, 2022, Zheng Guosi and Zheng Zhenzhong each hold 576,179,908 shares, representing 72.75% of the company's equity[84]. - The issued and fully paid share capital remained at 792,000,000 shares as of June 30, 2022, consistent with the previous period[198].
久久王(01927) - 2022 - 中期财报