Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 13,020,846, an increase from RMB 12,526,280 in the same period of 2021, representing a growth of approximately 3.9%[27] - Gross profit for the period was RMB 2,567,797, compared to RMB 2,852,541 in the prior year, indicating a decrease of about 10%[27] - Profit for the period was RMB 1,024,444, down from RMB 1,321,864 in the previous year, reflecting a decline of approximately 22.5%[28] - Basic earnings per share for profit attributable to owners of the Company was RMB 1.08, compared to RMB 1.41 in the same period last year, a decrease of about 23.4%[28] - Total comprehensive income for the period was RMB 1,051,185, down from RMB 1,323,729 in the same period of 2021, a decrease of approximately 20.5%[30] - Profit attributable to owners of the Company for the six months ended June 30, 2022, was RMB 991,972,000, a decrease of 22.98% from RMB 1,287,620,000 in the same period of 2021[176] - Basic earnings per share for the six months ended June 30, 2022, was RMB 1.08, down from RMB 1.41 in the same period of 2021, reflecting a decline of 23.4%[176] - The Group's revenue increased by approximately 3.9% year-on-year to approximately RMB 13 billion, marking a record high for the Group[198] - Profit attributable to shareholders decreased by 23.0% to approximately RMB 992.0 million during the Review Period[200] Assets and Liabilities - Total assets increased to RMB 26,342,926, up from RMB 24,442,884, representing a growth of 7.8%[20] - Total liabilities increased to RMB 15,140,234 as of December 31, 2022, from RMB 13,841,932 as of June 30, 2022, representing an increase of approximately 9.4%[24] - Total equity attributable to owners of the Company was RMB 11,202,692, a rise of 5.7% from RMB 10,600,952[22] - Current assets totaled RMB 13,937,325, compared to RMB 13,048,619, reflecting an increase of 6.8%[20] - Non-current assets, including property, plant, and equipment, reached RMB 9,642,869, up from RMB 9,229,119, indicating a growth of 4.5%[20] - Total segment assets as of June 30, 2022, amounted to RMB 25,925,079,000, with unallocated assets of RMB 5,230,000[67] - Total liabilities of the Group as of June 30, 2022, were RMB 15,140,234,000, reflecting a significant financial position[67] Cash Flow and Investments - Cash generated from operations for the first half of 2022 was RMB 978,067,000, with net cash flows from operating activities amounting to RMB 770,307,000[38] - The company incurred net cash outflows from investing activities of RMB 1,434,812,000, primarily due to purchases of property, plant, and equipment totaling RMB 1,047,400,000[38] - Financing activities generated net cash inflows of RMB 247,677,000, with proceeds from borrowings amounting to RMB 4,174,836,000[41] - The total cash payment for leases during the six months ended June 30, 2022, was RMB 35,286,000, compared to RMB 33,115,000 for the same period in 2021[79] - The addition to non-current assets for the first half of 2022 was RMB 634,763,000, indicating ongoing investment in growth[67] Market and Operational Strategy - The company is focusing on expanding its market presence and enhancing product development strategies[19] - Future outlook includes continued investment in new technologies and potential acquisitions to drive growth[19] - The company plans to continue expanding its market presence and investing in new technologies to enhance production efficiency[43] - The Group's revenue from external customers in Asia and Americas accounted for 88.6% and 10.6% of total revenue, respectively, for the six months ended 30 June 2022[58] - The demand in the textile industry in China slowed down in the first half of the year due to the COVID-19 pandemic and related policies[198] - The production and operating costs for plants increased, impacting the Group's profitability compared to the previous year[200] - The Group faced challenges from the Russia-Ukraine crisis and high inflation rates, leading to a decline in textile industry demand, especially in Q2[198] Financial Risks and Management - The Group's activities expose it to various financial risks, including foreign exchange risk, price risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk[50] - The Group's liquidity risk management has shown no significant changes compared to the previous year[50] - The Group's risk management policies have remained unchanged since the end of the last year[50] - The Group's financial statements do not include all financial risk management information and disclosures required in the annual financial statements[50] Shareholder Information - A final dividend of RMB 447,492,000 was paid in June 2022, compared to RMB 150,461,000 in 2021, indicating a significant increase[183] - An interim dividend of HKD 0.38 per share was proposed, amounting to RMB 298,328,000, down from RMB 381,518,000 in 2021[183] - The total issued and fully paid ordinary shares were 918,000 thousands, with a share premium of RMB 462,059, resulting in a total of RMB 559,017 as of June 30, 2022[143] - The average exercise price of outstanding options as of June 30, 2022, was HKD 8.27, with 3,500 thousands of options remaining[153] Taxation - Current tax on profits for the period was RMB 192,615,000, a decrease from RMB 300,055,000 in 2021[165] - Six subsidiaries in Mainland China were entitled to a preferential tax rate of 15% during the period, compared to eleven subsidiaries in the same period of 2021[165] - The Company's subsidiaries in Vietnam are entitled to a preferential income tax rate of 15% for 12 years, with initial investments exempt from income taxes for three years[171] - The income tax rate for the Company's subsidiary in Nicaragua is 30%, but it was exempt from profits tax during the period[171] Inventory and Receivables - The company reported a significant increase in inventories, which rose to RMB 7,321,290 from RMB 7,151,667, an increase of 2.4%[20] - The trade receivables as of June 30, 2022, were RMB 2,036,166,000, compared to RMB 1,293,965,000 as of December 31, 2021, indicating a significant increase of approximately 57.3%[105] - The provision for impairment for trade receivables was RMB 2,747,370,000 as of June 30, 2022, compared to RMB 2,030,987,000 as of December 31, 2021, reflecting an increase of approximately 35.3%[105] - The total prepayments, deposits, and other receivables netted RMB 1,067,888,000 as of June 30, 2022, compared to RMB 890,817,000 as of December 31, 2021, marking an increase of around 19.9%[112]
天虹国际集团(02678) - 2022 - 中期财报