Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,034,498, an increase of 54% compared to RMB 672,416 for the same period in 2020[9] - Gross profit for the same period was RMB 233,688, representing a gross margin of approximately 22.6%, up from RMB 125,654 in 2020[9] - Profit for the period attributable to owners of the Company was RMB 101,944, a significant increase of 112% from RMB 48,034 in the previous year[9] - Earnings per share for the period was RMB 0.120, compared to RMB 0.056 for the same period in 2020, reflecting a growth of 114%[9] - Total comprehensive income for the period was RMB 92,332, up from RMB 39,989 in 2020, indicating a growth of 131%[12] - Other income and gains for the period totaled RMB 4,602, a decrease from RMB 8,354 in the previous year[42] - Profit before income tax for the six months ended June 30, 2021, was RMB 101,944,000, compared to RMB 48,034,000 for the same period in 2020, representing a significant increase[65] Expenses and Costs - The cost of sales for the six months ended June 30, 2021, was RMB 800,810, which is 118% higher than RMB 546,762 in the same period of 2020[9] - The Company reported an income tax expense of RMB 39,754 for the period, compared to RMB 19,030 in the previous year, reflecting an increase of 109%[9] - Total employee costs for the six months ended June 30, 2021, amounted to RMB 78,333,000, up from RMB 64,383,000 in the previous year, reflecting a year-on-year increase of approximately 21.7%[48] - Research costs for the period were RMB 36,926,000, compared to RMB 21,076,000 for the same period in 2020, indicating an increase of about 75.4%[49] - Selling expenses rose by approximately RMB 14.3 million to approximately RMB 39.2 million, accounting for 3.8% of the Group's revenue[139] - Administrative and other operating expenses increased by approximately RMB 20.4 million or 47.3% to approximately RMB 63.5 million, representing 6.1% of the Group's revenue[139] - Finance costs for the six months ended June 30, 2021, were RMB 3,690, down from RMB 6,586 in 2020, indicating a reduction in borrowing costs[43] Assets and Liabilities - As of June 30, 2021, total assets amounted to RMB 1,473,335, an increase from RMB 1,402,625 as of December 31, 2020, representing a growth of approximately 5.04%[14] - Net current assets increased to RMB 253,024 from RMB 214,251, reflecting a rise of about 18.06%[14] - The company’s inventories as of June 30, 2021, were valued at RMB 137,018, compared to RMB 110,782 at the end of 2020, reflecting an increase of approximately 23.66%[14] - The total amount of bills receivable as of 30 June 2021 was RMB 95,659,000, compared to RMB 88,938,000 as of 31 December 2020, showing an increase of approximately 7.7%[73] - Trade payables and bills payable increased to RMB 47,698,000 as of June 30, 2021, compared to RMB 39,036,000 as of December 31, 2020, reflecting a growth of approximately 22%[91] - The total outstanding borrowings amounted to approximately RMB 178.7 million, a decrease from RMB 217.2 million as of December 31, 2020[156] Cash Flow - Cash generated from operations for the six months ended June 30, 2021, was RMB 146,561, compared to RMB 65,298 for the same period in 2020, indicating a significant increase of approximately 124.43%[17] - Net cash generated from operating activities reached RMB 127,733, up from RMB 44,210 in the previous year, marking an increase of around 189.66%[17] - The company reported a net decrease in cash and cash equivalents of RMB 23,479 for the six months ended June 30, 2021, compared to a decrease of RMB 61,127 in the same period of 2020[17] - The remaining balance of compensation receivable for the Land Resumption was approximately RMB 100.9 million as of 30 June 2021, down from RMB 175.8 million as of 31 December 2020[142] Strategic Initiatives - The Company plans to continue expanding its market presence and investing in new product development to drive future growth[12] - The Company aims to enhance operational efficiency and reduce administrative expenses moving forward[12] - The company continued to enhance investment in research and development to improve production capacity and efficiency of promising products, as well as to explore new products with good market potential[129] - The company plans to focus on improving internal controllable factors to enhance business operations and increase investments in environmental protection for sustainable business development[132] - The company will deepen its circular economy production system to improve overall productivity and strictly implement cost control measures to enhance competitiveness[132] Shareholder Information - The proposed final dividend for 2020 was HK$0.03 per share, totaling RMB 21,423,000, approved by shareholders on June 11, 2021[63] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2021, compared to no interim dividend in the same period of 2020[63] - The weighted average number of ordinary shares for the purpose of basic and diluted earnings per share remained at 851,954,000 shares for both periods[65] Governance and Compliance - The audit committee reviewed the company's accounting principles and practices, and no objections were raised regarding the accounting treatments adopted during the review period[194] - The independent auditor failed to attend the 2021 AGM due to unforeseen traffic congestion, and the audit committee has reminded them of their obligations under the Corporate Governance Code[190] - The Group's management has recognized an impairment loss of RMB 24,720,000 on amounts due from a former subsidiary, which is considered highly unlikely to be recoverable in the foreseeable future[85]
天德化工(00609) - 2021 - 中期财报