Financial Performance - In the first half of 2021, the Group achieved sales revenue of approximately RMB 122.8 million, representing an increase of approximately RMB 16.2 million or around 15.2% from the same period in 2020[25]. - The Group's revenue increased by 15.2% from RMB106.5 million for the six months ended June 30, 2020, to RMB122.8 million for the corresponding period of 2021[62]. - Revenue for the six months ended June 30, 2021, was RMB 122,783,000, an increase from RMB 106,548,000 in the same period of 2020, representing a growth of approximately 15.5%[161]. - Gross profit increased by 44.4% from approximately RMB21.6 million to approximately RMB31.2 million, with gross profit margin rising from 20.3% to 25.4%[62]. - Gross profit for the same period was RMB 31,218,000, compared to RMB 21,630,000 in 2020, indicating a significant increase of about 44.4%[161]. - The loss attributable to ordinary equity holders of the parent company decreased by approximately 79.8% to approximately RMB 126.2 million compared to RMB 624.6 million in the same period of 2020[31][33]. - Loss for the period was RMB 126,226,000, a decrease from a loss of RMB 624,616,000 in the previous year, showing an improvement of approximately 79.8%[161]. - Basic loss per share decreased from RMB1.08 cents for the six months ended June 30, 2020, to RMB0.22 cents for the corresponding period of 2021[65]. - The total comprehensive loss for the six months ended June 30, 2021, was RMB (125,872) thousand, compared to RMB (622,043) thousand for the same period in 2020, indicating a significant reduction in losses[165]. Sales and Market Strategy - Non-online channel sales increased by 16.2% from approximately RMB 99.1 million in 2020 to RMB 115.1 million in the first half of 2021[25]. - The Group's sales from various channels showed signs of recovery towards growth in the second quarter of 2021[25]. - The Group plans to diversify its condiment product portfolio to enhance business development, focusing on soy sauce, rice vinegar, sesame oil, and fermented bean curd products[31][33]. - The Group is actively developing new retail channels and enriching online products, including strategic cooperation with various e-commerce platforms[39]. - The Group's market penetration strategy includes maintaining approximately 658 distributors and expanding coverage to 30 provinces, autonomous regions, and municipalities[26][28]. - The Group plans to focus on supermarket, distribution, and online e-commerce channels related to household consumption in the short term[84]. - The catering market is expected to be the main growth point for the Group's future business as the post-pandemic recovery continues[84]. - The Group is committed to developing value-for-money products suitable for the catering market to gain a larger market share[84]. Operational Efficiency - The Group adapted to market changes by restructuring production and conducting sales reform amid intensified competition in the condiment market[21]. - The company aims to improve market share by enhancing the marketing team, training staff, and enriching the product structure to offer high-quality products[38][42]. - The Group is committed to improving operational efficiency by updating existing equipment and workshops to lower labor costs[38][42]. - The strategy includes expanding production capacity and achieving automation upgrades to improve overall profitability[89]. Financial Position and Management - The Group's cost of sales increased by 7.9% from RMB84.9 million to RMB91.6 million, primarily due to rising raw material and energy prices[62]. - Selling and distribution expenses increased by 2.4% from approximately RMB28.9 million for the six months ended 30 June 2020 to approximately RMB29.6 million for the corresponding period of 2021, while the percentage of these expenses to revenue decreased from 27.1% to 24.1%[64]. - Administrative expenses decreased by 9.1% from approximately RMB33.3 million for the six months ended 30 June 2020 to approximately RMB30.3 million for the corresponding period of 2021[64]. - Finance costs increased by 7.9% from approximately RMB49.0 million for the six months ended 30 June 2020 to approximately RMB52.9 million for the corresponding period of 2021[64]. - The gearing ratio increased from 189.6% to 203.6% as of June 30, 2021[55]. - As of June 30, 2021, the Group's total borrowings amounted to approximately RMB1,616.4 million, an increase from RMB1,495.5 million as of December 31, 2020[77]. - The Group's cash and cash equivalents were approximately RMB4.9 million as of June 30, 2021, down from RMB8.4 million as of December 31, 2020[80]. - Current liabilities increased to RMB 2,092,243 thousand as of June 30, 2021, compared to RMB 1,982,464 thousand at the end of 2020, indicating a rise in short-term obligations[169]. Corporate Governance and Compliance - The Company has adopted the Corporate Governance Code to enhance management structures and internal control procedures[110]. - The Board aims to maintain and implement high standards of corporate governance practices[121]. - The Company has established an internal audit department to enhance its internal audit function, staffed with experienced personnel[121]. - The Company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuer" and all directors confirmed compliance during the six months ended June 30, 2021[123]. - The Company expects to dispatch relevant reports regarding the delayed annual and interim results in due course[121]. - The Board views the delays in reporting as one-off incidents that have been or will be rectified[121]. Employee and Director Information - As of June 30, 2021, the Group had a total of 466 employees, an increase from 422 employees as of December 31, 2020[104]. - Employee costs for the six months ended June 30, 2021, were RMB 17.4 million, down from RMB 20.3 million for the same period in 2020, representing a decrease of approximately 14.3%[104]. - The Company is targeting to appoint at least one female director by December 31, 2024, to enhance gender diversity at the Board level[95]. - Mr. Liu Jianbin was appointed as the new chief executive officer effective February 2, 2021, following the resignation of Mr. Chen Weizhong[123].
老恒和酿造(02226) - 2022 - 中期财报