Financial Performance - For the six months ended June 30, 2021, the group's revenue, gross profit, and net profit increased by 54.3%, 54.2%, and 87.6% to RMB 472.2 million, RMB 131.8 million, and RMB 89.5 million respectively[4]. - The group's revenue increased from approximately RMB 306.0 million for the six months ended June 30, 2020, to approximately RMB 472.2 million for the six months ended June 30, 2021, representing an increase of approximately RMB 166.2 million or 54.3%[11]. - Revenue from self-branded processed fruit and beverage products increased to approximately RMB 311.5 million, a 92.0% increase from RMB 162.2 million in the same period last year, accounting for 66.0% of total revenue[13]. - Net profit rose by RMB 41.8 million or 87.6% to approximately RMB 89.5 million, with a net profit margin of 19.0% compared to 15.6% in the previous year[19]. - Operating profit for the six months ended June 30, 2021, was RMB 89,511,000, significantly higher than RMB 47,772,000 for the same period in 2020, reflecting an increase of 87%[60]. - Basic and diluted earnings per share for the period were RMB 0.090, an increase from RMB 0.048 in the previous year[35]. Market Expansion and Product Development - The group completed the acquisition of 100% equity in Tiantong Food (Yichang) Co., Ltd., issuing 13,050,000 shares as part of the deal, which is linked to performance targets of 80,000 tons of processed fruit and RMB 700 million in revenue[4]. - The new project in Yuan'an County, Yichang City, is expected to significantly increase production capacity for beverages, strategically expanding the group's market presence in Central China[4]. - The group launched a new self-branded vitamin sports drink "Shiok Party," which aligns with health trends and has gained rapid market acceptance[5]. - The group introduced a new fruit pulp beverage "Yao Guo Ji," combining fruit flesh, juice, and vitamins, which has attracted significant attention from the market and distributors[5]. - The group plans to introduce more flavors of the "Yao Guo Ji" beverage, including lychee, orange, coconut, hawthorn, pear, and loquat[5]. - The group is preparing to launch new beverage products with an expected annual design capacity of no less than 50,000 tons in 2021[8]. Sales and Distribution - The group's self-branded products are now sold across 27 provinces, municipalities, and autonomous regions in China, covering major retail chains[5]. - Sales of self-branded products contributed RMB 311.5 million, an increase of RMB 149.3 million or 92.0% compared to the previous year[12]. - Domestic sales increased to RMB 451,273,000 for the six months ended June 30, 2021, up from RMB 276,537,000 in 2020, representing a growth of 63%[54]. - Total sales of goods reached RMB 472,199,000, compared to RMB 305,959,000 in the previous year, marking a 54% increase[54]. Financial Position and Assets - Total assets and liabilities as of June 30, 2021, were approximately RMB 1,123.4 million and RMB 328.4 million, respectively, compared to RMB 1,016.5 million and RMB 347.7 million at the end of 2020[23]. - As of June 30, 2021, total assets increased to RMB 1,451,818 thousand, up from RMB 1,364,228 thousand as of December 31, 2020, representing a growth of approximately 6.4%[36]. - Non-current assets rose to RMB 664,244 thousand, compared to RMB 525,908 thousand in the previous year, marking a significant increase of about 26.3%[36]. - The company's retained earnings as of June 30, 2021, amounted to RMB 968,960,000, up from RMB 879,449,000 on January 1, 2021, indicating a profit of RMB 89,511,000 during the period[83]. Expenses and Liabilities - Selling and distribution expenses increased by approximately RMB 5.4 million or 90.0% to RMB 11.4 million, primarily due to higher promotional and advertising expenses[16]. - Income tax expense increased by RMB 1.9 million or 12.4% to RMB 17.2 million, mainly due to increased taxable income[18]. - General and administrative expenses decreased by RMB 1.3 million or 5.6% to RMB 22.1 million, but increased by approximately 22.9% when excluding foreign exchange differences[17]. - The company's total liabilities decreased to RMB 328,431 thousand from RMB 347,743 thousand, showing a decline of about 5.6%[37]. Corporate Governance - The company adheres to high standards of corporate governance as per the corporate governance code since its listing[106]. - The roles of chairman and CEO are held by the same individual, Yang Ziyuan, to provide strong leadership and effective strategic planning[106]. - The audit committee has been established in accordance with listing rules, serving as the main communication channel between other directors, external auditors, and management[108]. - The audit committee consists of three independent non-executive directors, including Mr. Ouyang Weili (Chairman), Mr. Liang Zhongkang, and Professor Lyu Yuanping[108]. Employee and Shareholder Information - The number of employees increased to 685 as of June 30, 2021, up from 645 as of December 31, 2020, with total employee costs reaching approximately RMB 24.8 million[29]. - Major shareholders include Rainbow Lead Ventures Limited with 26.64% ownership, Fortune Limited with 19.82%, and Rich Fortune Limited with 11.11%[100]. - The company has a stock option plan allowing for a maximum of 10% of issued shares, equating to 100,000,000 shares, to be granted as options[102].
天韵国际控股(06836) - 2021 - 中期财报