Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 2,443,273,000, an increase of 24.1% from RMB 1,969,445,000 in 2021[7] - Gross profit for the same period was RMB 222,336,000, up from RMB 179,140,000, reflecting a growth of 24.1%[7] - Net loss attributable to shareholders for the six months ended June 30, 2022, was RMB 70,937,000, compared to RMB 61,655,000 in 2021, indicating an increase in loss[7] - For the six months ended 30 June 2022, the Group achieved sales revenue of RMB 2,443.3 million, representing a period-on-period growth of 24.1%[34] - The basic loss per share for the first half of 2022 was RMB (0.05), with a net loss increase of 23.2% compared to the same period in 2021[74] - Total operating revenue increased by 24.1% to RMB2,443.3 million for the six months ended 30 June 2022, compared to RMB1,969.4 million in the same period of 2021[75] Sales and Product Performance - The sales volume of processed chicken meat products increased by 11.9%, reaching 54.7 million kg in the first half of 2022, up from 48.9 million kg in 2021[8] - The sales volume of raw chicken meat products surged by 43.2%, totaling 121.0 million kg in the first half of 2022, compared to 84.5 million kg in 2021[9] - For the six months ended 30 June 2022, the sales volume of processed chicken meat products increased by 11.9% to 54.7 million kg, with revenue growing by 9.0% to RMB1,141.3 million, representing 46.7% of the Group's total revenue[25] - The sales volume of raw chicken meat products increased by 43.2% to 121.0 million kg, with revenue from external sales rising by 48.5% to RMB1,204.6 million, accounting for 49.3% of the Group's total revenue[27] - iShape launched several new products, including low-fat chicken breast sausage and chicken breast oat fried rice, which received positive market feedback[14][15] - The new product series, including low-fat chicken breast sausage and chicken breast oat fried rice, became rising stars in the iShape Tmall flagship shop[61] Market and Brand Development - iShape's salad chicken breast was selected as the only "Tik Tok Annual Products" in the fresh food category at the 2022 Tik Tok E-commerce Ecology Conference[16] - iShape became the official supplier of Beijing Guoan Football Club, enhancing its brand visibility[17] - The Group's processed chicken meat products are marketed under multiple brands, including Fovo Foods and iShape, catering to a diverse consumer base[25] - The company maintained its position as the "Top 1 Ready-to-Eat Chicken Breast Brand" since entering the social e-commerce market in 2021[62] - The brand's proposition was upgraded to "for low-calorie chicken breast, choose iShape," reinforcing its focus on low-calorie products[51] Operational Efficiency and Costs - The company’s manufacturing costs per ton were reduced by 6.3% compared to 2021, while hourly processing efficiency increased by 16%[72] - Operating costs rose by 24.1% to RMB2,221 million, primarily due to an 8.8% increase in the number of white-feathered broilers reared and rising animal feed costs, with corn and soybean meal prices increasing by 3.5% and 18.4%, respectively[76] - Selling expenses increased by 6.3% to RMB173.0 million, driven by higher sales volumes of processed and raw chicken meat products[78] - Administrative expenses decreased by 4.1% to RMB48.1 million, attributed to improved internal management efficiency[77] - R&D expenses rose by 23.8% to RMB15.5 million, reflecting increased investment in a multi-level new product R&D system[79] Financial Position and Borrowings - The total borrowings of the Group decreased by 35.5% to RMB1,585.7 million as of June 30, 2022, primarily due to partial repayment of bank borrowings[92] - The gross profit margin remained stable at 9.1% for both periods, while the net profit margin was (2.9%) for the six months ended 30 June 2022[75] - As of June 30, 2022, the Group's gearing ratio was 48.0%, a significant decrease from 72.4% as of December 31, 2021, while the debt-to-asset ratio improved to 45.0% from 51.0%[93][97] Corporate Governance and Management - The Company has established a comprehensive corporate governance structure in compliance with the Listing Rules, ensuring clear responsibilities among the general meetings, Board of Directors, Board of Supervisors, and senior management[117] - The Board of Directors has delegated oversight of risk management and internal control systems to the Audit Committee, which conducts ongoing reviews of their effectiveness[120] - The Company has adopted an internal audit system with external auditors responsible for independent supervision and evaluation of its financial conditions and internal controls[121] - The Company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended 30 June 2022[118] Future Outlook and Strategy - The business outlook indicates challenges such as high costs of animal feed and ongoing impacts from the COVID-19 pandemic, but also opportunities from rebounding pork prices and new product launches[100][101] - The Group plans to continue its "123" development strategy, focusing on operational decision-making, talent acquisition, and resource concentration to achieve long-term goals[104] - A series of new iShape products have completed market testing and are now entering a vigorous promotion and sales phase, targeting health-conscious consumers in the post-pandemic era[101][103] Shareholder Information and Awards - The Company did not recommend the declaration or payment of an interim dividend for the six months ended 30 June 2022, consistent with the previous year[127] - The 2020 Share Award Scheme was adopted to recognize personnel contributions and provide incentives for retention and development[142] - The 2021 Share Award Scheme was approved by the Board of Directors on December 10, 2021, allowing awarded shares to vest in the form of H Shares[162] - The purpose of the 2021 Share Award Scheme is to recognize contributions from certain employees and provide incentives to retain and attract suitable personnel[163]
凤祥股份(09977) - 2022 - 中期财报