Financial Performance - The company achieved a revenue of RMB 842.8 million in the first half of 2023, an increase of 5.0% compared to the same period in 2022[14]. - Net profit for the first half of 2023 was RMB 98.9 million, representing a 31.7% increase year-on-year[14]. - The gross profit margin improved from 9.4% in the first half of 2022 to 11.7% in the first half of 2023 due to increased sales and cost control measures[19]. - The company's revenue increased by 5.0% from RMB 802.4 million in the six months ended June 30, 2022, to RMB 842.8 million in the six months ended June 30, 2023[31]. - Revenue from tea sales rose by 4.5% from RMB 584.7 million to RMB 611.1 million during the same period[33]. - Revenue from tea food sales increased by 5.8% from RMB 101.9 million to RMB 107.8 million[33]. - The group's gross profit increased by 4.6% from RMB 441.9 million for the six months ended June 30, 2022, to RMB 462.4 million for the six months ended June 30, 2023, while the gross margin decreased from 55.1% to 54.9%[38]. - The group's profit attributable to shareholders increased by RMB 23.8 million or 31.7% from RMB 75.1 million for the six months ended June 30, 2022, to RMB 98.9 million for the six months ended June 30, 2023, with a net profit margin rising from 9.4% to 11.7%[46]. - Operating profit increased to RMB 143,154 thousand, up 40.5% from RMB 101,691 thousand in the previous year[90]. - The net profit for the six months ended June 30, 2023, was RMB 98,910 thousand, representing a 31.6% increase from RMB 75,065 thousand in the same period last year[90]. Cost Management - The company has implemented cost control measures, resulting in a reduction of distribution costs and administrative expenses compared to the same period in 2022[19]. - The company's cost of sales increased by 5.5% from RMB 360.5 million to RMB 380.4 million, primarily due to increased sales volume[37]. - Distribution costs decreased by 8.1% from RMB 203.4 million for the six months ended June 30, 2022, to RMB 187.0 million for the six months ended June 30, 2023, primarily due to cost control measures[38]. - Administrative expenses decreased by 3.2% from RMB 142.3 million for the six months ended June 30, 2022, to RMB 137.7 million for the six months ended June 30, 2023, mainly due to reduced employee benefits expenses[39]. Market Expansion and Product Development - The company expanded its retail network to a total of 1,340 self-owned and third-party retail outlets as of June 30, 2023, up from 1,332 at the end of 2022[19]. - The company has diversified its product line, increasing the sales proportion of mid-to-high-end tea products to meet customer demand[19]. - The company plans to expand its retail network, focusing on densely populated commercial areas and smaller cities[22]. - The company continues to develop new tea-related products to meet market demand and adapt to changing consumer preferences[24]. - The company is expanding production capacity by increasing the number of processing bases, with plans for a new white tea packaging factory in Fujian[24]. Financial Position and Liquidity - Cash and cash equivalents decreased by RMB 59.3 million or 17.0% from RMB 348.4 million as of December 31, 2022, to RMB 289.1 million as of June 30, 2023, mainly due to cash outflows from investing and financing activities[46]. - The total bank borrowings decreased from RMB 678.1 million as of December 31, 2022, to RMB 639.6 million as of June 30, 2023, with a weighted average effective interest rate of 3.17%[46]. - The capital debt ratio decreased from 27.7% as of December 31, 2022, to 26.9% as of June 30, 2023, primarily due to a reduction in total borrowings[48]. - The company has sufficient working capital and financial resources to support daily operations as of June 30, 2023[54]. - The company reported a basic and diluted earnings per share of RMB 0.09 for the six months ended June 30, 2023, compared to RMB 0.07 for the same period in 2022[90]. Shareholder Returns and Dividends - The interim dividend of HKD 0.05 per share (equivalent to RMB 0.046) will be paid on September 27, 2023, representing 50% of the after-tax consolidated net profit for the six months ended June 30, 2023[61]. - The interim dividend declared was RMB 50,196,000, compared to RMB 37,182,000 in the previous year, reflecting a growth in shareholder returns[174]. Corporate Governance and Compliance - The company is committed to high corporate governance standards and has complied with the corporate governance code[75]. - The audit committee reviewed the group's unaudited interim results for the six months ended June 30, 2023[84]. - The interim report will be sent to shareholders and is available on the company's website[85]. Related Party Transactions - The group purchased goods and services from related parties amounting to RMB 56,567,000 in the first half of 2023, a slight increase of 3.7% from RMB 54,549,000 in the same period of 2022[178]. - The group reported a total of RMB 15,347,000 in right-of-use assets from related parties for the first half of 2023, up from RMB 14,412,000 in the same period of 2022, reflecting a growth of 6.5%[178]. - The group’s transactions with subsidiaries of the controlling shareholder included purchases from Samoa's subsidiaries amounting to RMB 50,702,000 in the first half of 2023, an increase from RMB 43,624,000 in the same period of 2022[178].
天福(06868) - 2023 - 中期财报