Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,199,325 thousand, representing an increase of 10.9% compared to RMB 1,081,825 thousand for the same period in 2021[11] - Gross profit for the same period was RMB 436,011 thousand, with a gross margin of approximately 36.3%, compared to RMB 429,486 thousand in 2021[11] - Operating profit increased to RMB 204,319 thousand, up from RMB 197,716 thousand in the previous year, reflecting a growth of 3.1%[11] - Net profit attributable to the owners of the company was RMB 96,312 thousand, compared to RMB 103,245 thousand in the same period last year, indicating a decrease of 6.5%[11] - The company reported a basic and diluted earnings per share of RMB 0.09, down from RMB 0.10 in the same period last year[11] - The company's profit for the six months ended June 30, 2022, was RMB 136,412 thousand, compared to RMB 134,601 thousand for the same period in 2021, representing an increase of 1.34%[14] - Total comprehensive income for the period was RMB 138,170 thousand, up from RMB 136,839 thousand in the previous year, indicating a growth of 0.97%[14] - Total expenses for the six months ended June 30, 2022, amounted to RMB 986,290,000, an increase of 14.1% from RMB 864,987,000 in 2021[14] - Financial costs netted RMB (27,967,000) for the six months ended June 30, 2022, compared to RMB (24,699,000) in 2021, reflecting an increase in financial costs[69] - Income tax expense for the six months ended June 30, 2022, was RMB 39,940,000, slightly higher than RMB 38,416,000 in 2021[70] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 6,220,939 thousand, a slight decrease from RMB 6,311,610 thousand at the end of 2021[6] - Total liabilities decreased to RMB 2,916,356 thousand from RMB 3,142,041 thousand, showing a reduction of 7.2%[9] - Cash and cash equivalents amounted to RMB 297,934 thousand, down from RMB 330,484 thousand at the end of 2021[6] - The total equity attributable to the owners of the company as of June 30, 2022, was RMB 3,002,709 thousand, an increase from RMB 2,836,839 thousand at the end of the previous year, representing a growth of 5.85%[16] - The total borrowings as of June 30, 2022, were RMB 1,448,458 thousand, an increase of 3.8% from RMB 1,395,955 thousand as of December 31, 2021[56] - The company's current liabilities, including accounts payable, totaled RMB 966,335 thousand as of June 30, 2022, down from RMB 1,171,935 thousand as of December 31, 2021, indicating a decrease of approximately 17.5%[59] Cash Flow - The net cash generated from operating activities was RMB 8,749 thousand, a significant decrease from RMB 78,035 thousand in the prior year, reflecting a decline of 88.8%[19] - The company reported a net cash outflow from investing activities of RMB 86,575 thousand, compared to RMB 14,333 thousand in the previous year, marking an increase in cash outflow of 504.0%[19] - The financing activities generated a net cash inflow of RMB 45,763 thousand, contrasting with a net cash outflow of RMB 73,222 thousand in the previous year[19] - The cash and cash equivalents at the end of the period were RMB 297,934 thousand, compared to RMB 251,469 thousand at the end of the previous year, showing an increase of 18.4%[19] Market and Product Development - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11] - The segment revenue from electronic cigarette products was RMB 699,802 thousand, which accounted for approximately 58.4% of total revenue, showing strong market demand[37] - Revenue from electronic cigarette products was approximately RMB 699.8 million, representing a 16.5% increase from RMB 600.6 million in the previous year, driven by contributions from a subsidiary distributing the brand "Meike" across over 30 major cities in China[97] - Revenue from flavor enhancers was approximately RMB 323.8 million, an increase of 7.8% from RMB 300.3 million in the previous year, attributed to stable growth in China[94] - Revenue from food flavors decreased by 4.6% to approximately RMB 86.8 million due to strict transportation controls and community lockdowns caused by new COVID-19 variants[95] - The group has obtained tobacco production licenses for e-cigarette oil, allowing for domestic sales and exports, and is in the process of applying for additional licenses for other e-cigarette products[110] Employee and Governance - The number of employees increased to 1,518 as of June 30, 2022, from 1,267 in the previous year, reflecting the company's growth[123] - The company did not recommend an interim dividend for the six months ended June 30, 2022, consistent with the previous year[81] - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2022[122] - The company has adhered to all provisions of the Corporate Governance Code during the six-month period ending June 30, 2022, except for provision C.2.1[152] - The company believes that the current structure of having the same individual serve as both Chairman and CEO provides strong and continuous leadership for long-term business planning and strategy[152] Investments and Acquisitions - The company acquired a property in Hong Kong for HKD 156,335,000, with an estimated usable area of approximately 6,869 square feet[128] - The acquisition was completed on July 8, 2022, with an initial deposit of HKD 15,633,500 and a remaining balance of HKD 140,701,500 paid[129] - The group has no significant investments as of June 30, 2022[124] Risks and Compliance - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[34] - Management's estimates and judgments in preparing the financial statements remain consistent with those applied in the previous fiscal year, indicating stability in financial reporting practices[33] - All directors confirmed compliance with the standards set out in the Model Code for Securities Transactions by Directors during the six-month period ending June 30, 2022[153]
中国波顿(03318) - 2022 - 中期财报