Financial Performance - In the first half of 2023, the company achieved a revenue of approximately RMB 8,537.5 million, representing a growth of 19.37% compared to RMB 7,152.2 million in the same period last year[6]. - The net profit for the same period was approximately RMB 802.9 million, a decrease of 6.51% from RMB 858.8 million year-on-year[6]. - Revenue increased by 19.37% from approximately RMB 7,152.2 million for the six months ended June 30, 2022, to approximately RMB 8,537.5 million for the six months ended June 30, 2023[22]. - Core fruit products revenue rose by 21.28% from approximately RMB 3,517.4 million to approximately RMB 4,265.8 million, accounting for 49.97% of total revenue[23]. - Sales of brand fruit products increased by 18.33% from approximately RMB 5,297.7 million to approximately RMB 6,268.9 million, representing 73.43% of total revenue[25]. - The gross profit for the same period was RMB 1,312,593 thousand, slightly down from RMB 1,353,376 thousand in 2022, indicating a decrease of about 3.0%[68]. - Operating profit for the six months was RMB 1,004,187 thousand, compared to RMB 1,063,949 thousand in the previous year, reflecting a decline of approximately 5.6%[68]. - The profit before tax decreased to RMB 946,999 thousand from RMB 1,036,493 thousand, a reduction of about 8.6% year-over-year[68]. - The net profit attributable to equity shareholders was RMB 803,669 thousand, down from RMB 857,357 thousand in the same period last year, a decrease of approximately 6.3%[68]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.57, down from RMB 0.63 for the six months ended June 30, 2022[35]. Operational Expansion - The company has become the largest fruit distributor in China based on 2022 sales revenue, and remains the largest distributor of Southeast Asian fruits, durians, and imported dragon fruits[6]. - The company has expanded its procurement of durians from Vietnam, which now accounts for 16.90% of its total durian procurement[7]. - The company operates 16 fruit processing plants in Vietnam and Thailand, employing over 400 local team members[7]. - The company is actively collaborating with local governments to establish professional procurement subsidiaries and operational centers in various regions to enhance domestic fruit supply chains[8]. - In the first half of 2023, the company established 24 sales subsidiaries and 60 sorting centers, covering over 300 cities nationwide, enhancing customer service capabilities[10]. - The company plans to expand its upstream procurement network and increase penetration in overseas quality fruit origins, targeting countries like the Philippines and Chile[20]. - The company aims to enhance its sales and distribution network by establishing new sales branches nationwide and focusing on emerging retail channels[20]. Digital Transformation and Supply Chain Management - The company is committed to enhancing its end-to-end supply chain through advanced digitalization strategies[7]. - The company has implemented a digital management system covering the entire business process, improving decision-making efficiency and operational effectiveness[14]. - The company upgraded its IoT equipment for real-time temperature and humidity control, enhancing supply chain risk management and product quality assurance[14]. - The company is focused on digital system upgrades and the development of a global fruit industry internet platform to improve data analysis and decision-making[21]. - The company will enhance internal control management and upgrade financial and contract management systems to support rapid development[21]. Financial Management and Capital Structure - The company is focusing on optimizing cash flow management as it expands its operational scale and market share[6]. - The company reduced the average turnover days of advance payments from 38.3 days at the end of 2022 to 33.4 days, indicating improved operational efficiency[15]. - The net cash outflow from operating activities decreased by 58.42% compared to the same period last year, reflecting continuous improvement in cash flow[15]. - The company is enhancing its capital structure through two rounds of financing, improving its operational capacity and risk resistance[15]. - The company is focusing on optimizing its capital structure to promote sustainable development of its main business[15]. Marketing and Brand Development - Sales revenue from emerging retail channels increased by approximately 40% compared to the same period last year, driven by the growth in the fresh fruit retail market[10]. - Brand fruit sales accounted for 73.43% of total revenue in the first half of 2023, with the "Hong Jiu Tai Hao Chi" brand series generating approximately RMB 2.89 billion, representing 46.15% of brand fruit sales[12]. - The company is actively engaging in brand promotion activities, including the "2023 Durian Freedom Festival," to enhance brand recognition and consumer engagement[13]. - The sales revenue from the company's digital marketing efforts on platforms like Xiaohongshu and Douyin has contributed to increased brand awareness and market presence[13]. Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions as of June 30, 2023[43]. - The company continues to review its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[43]. - The audit committee is composed of three independent non-executive directors, ensuring effective oversight of financial reporting[47]. - The company has made changes to its board composition, electing a new independent non-executive director and audit committee chair[48]. Share Capital and Ownership Structure - A capitalization issue was approved, resulting in an increase of total shares from 467,368,802 to 1,402,106,406, with 934,737,604 new shares issued[45]. - The company issued a total of 14,294,900 new H shares at a price of HKD 40.00 per share, raising approximately HKD 571.80 million, with net proceeds of HKD 559.13 million after underwriting fees and related expenses[51]. - As of June 30, 2023, the total amount of raised funds used was RMB 509.01 million, with 67.3% allocated to improving the fruit supply chain and 15.8% for brand building and product promotion[52]. - The company has a significant concentration of ownership, with major shareholders holding over 5% of the relevant class of shares[60]. - The ownership structure as of June 30, 2023, highlights the influence of key stakeholders in corporate governance and decision-making processes[60].
洪九果品(06689) - 2023 - 中期财报