Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 6,980.8 million, representing a 17.2% increase from RMB 5,955.4 million in the same period of 2022[2]. - Gross profit for the same period was RMB 4,262.4 million, up 15.5% from RMB 3,691.5 million year-on-year[2]. - EBITDA increased by 29.5% to RMB 1,397.9 million compared to RMB 1,079.4 million in the previous year[2]. - Adjusted comparable EBITDA was RMB 1,309.5 million, a 24.0% increase from RMB 1,056.1 million in 2022[2]. - Net profit for the period was RMB 608.0 million, reflecting a 28.0% growth from RMB 475.1 million in the prior year[2]. - Adjusted comparable net profit was RMB 513.4 million, a 6.3% increase from RMB 482.9 million in the same period last year[2]. - The adjusted comparable net profit margin decreased to 7.4% from 8.1% year-on-year, a decline of 0.7 percentage points[2]. Assets and Liabilities - Non-current assets totaled RMB 15,219.1 million as of June 30, 2023, compared to RMB 15,103.6 million at the end of 2022[8]. - Current assets increased to RMB 6,155.6 million from RMB 5,859.4 million at the end of 2022[8]. - Current liabilities decreased slightly to RMB 5,102.7 million from RMB 5,134.9 million at the end of 2022[8]. - As of June 30, 2023, total assets minus current liabilities amounted to RMB 16,272,006 thousand, an increase from RMB 15,828,142 thousand as of December 31, 2022, representing a growth of approximately 2.8%[9]. - Non-current liabilities, including preferred notes, totaled RMB 2,001,509 thousand, up from RMB 1,886,148 thousand, indicating an increase of about 6.1% year-over-year[9]. - The company's net asset value reached RMB 6,662,462 thousand, compared to RMB 6,141,853 thousand in the previous year, reflecting a growth of approximately 8.5%[9]. - The total equity increased to RMB 6,662,462 thousand from RMB 6,141,853 thousand, marking an increase of around 8.5%[9]. - The issued share capital remained stable at RMB 5,519 thousand, with no changes reported[9]. Revenue Segmentation - The group reported total revenue of RMB 6,980,848 thousand for the six months ended June 30, 2023, with significant contributions from the infant formula segment and probiotics and nutritional supplements[18]. - The probiotics and nutritional supplements segment generated revenue of RMB 2,213,750 thousand, while the infant formula segment contributed RMB 2,938,215 thousand[18]. - Revenue from mainland China was RMB 5,076,109 thousand, representing a significant portion of total revenue[22]. - Sales from infant formula amounted to RMB 2,462,057 thousand, while probiotics and nutritional supplements generated RMB 499,132 thousand[21]. - Revenue from the infant nutrition and care products segment decreased by 2.1% year-on-year, partially offsetting growth in other segments[59]. - Revenue from infant formula milk powder in mainland China decreased by 10.2% year-on-year to RMB 2,138.8 million, primarily due to systemic challenges in the industry and a decline in overall sales[62]. - Revenue from infant probiotics and nutritional supplements in mainland China increased by 48.7% to RMB 735.7 million, driven by higher consumer demand and the introduction of new innovative products[62]. Expenses and Costs - The cost of goods sold for the six months ended June 30, 2023, was RMB 2,560,132 thousand, an increase of 20.2% compared to RMB 2,128,935 thousand for the same period in 2022[28]. - Employee benefits expenses increased to RMB 724,390 thousand, reflecting a rise of 18.4% from RMB 611,930 thousand in the prior year[28]. - Total tax expenses for the period amounted to RMB 295,138 thousand, a significant increase of 43.1% from RMB 206,291 thousand in the same period last year[29]. - Financing costs increased by 41.9% to RMB 358.0 million, primarily due to a 65.7% rise in interest on bank loans and preferred notes[79]. - Administrative expenses increased by 31.0% to RMB 412.4 million for the six months ended June 30, 2023, compared to RMB 314.9 million for the same period in 2022, representing 5.9% of total revenue[74]. Market and Strategic Initiatives - The company continues to engage in the production and sale of high-end children's nutrition products and adult nutrition products, indicating a focus on market expansion in these segments[10]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[21]. - The company is focused on continuous profitability growth through strategic investments in core growth areas, globalization, and diversification[43]. - The company aims to leverage its leading position in the adult nutrition and care products segment to drive growth, particularly in core markets like mainland China and Australia[54]. - The company is in the process of reapplying for high-tech enterprise status for its subsidiary, which is expected to significantly reduce its tax rate[30]. Cash Flow and Financing - Net cash generated from operating activities was RMB 22.1 million, after accounting for income tax payments of RMB 337.6 million[82]. - Cash flow used in investing activities was RMB 19.3 million, primarily due to purchases of property, plant, and equipment totaling RMB 47.2 million[83]. - Cash flow used in financing activities amounted to RMB 205.7 million, mainly related to the repayment of bank loans and interest payments totaling RMB 406.6 million[84]. - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 2,137.7 million[85]. - The outstanding interest-bearing bank loans totaled RMB 8,070.6 million, with a net leverage ratio decreasing from 3.93 to 3.57 compared to June 30, 2022[86][87]. Corporate Governance - The company continues to comply with corporate governance codes and will review its practices to ensure adherence to the latest developments[92]. - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the Board, as well as approving their remuneration and terms of engagement[95]. - The interim financial statements for the six months ended June 30, 2023, have been reviewed by the independent auditor Ernst & Young according to the relevant standards[96].
H&H国际控股(01112) - 2023 - 中期业绩