Interim Report 2021

Hop Fung Group Holdings Limited Interim Report 2021 34 MANAGEMENT DISCUSSION AND ANALYSIS (continued) BUSINESS REVIEW (continued) As China is gradually recovering from the COVID-19 pandemic, the Group’s total sales volume and average selling prices increased. Revenue in the first half of 2021 rose 26% against the first half of 2020. In the first half of 2021, containerboard and corrugated packaging accounted for 25% and 75% of revenue, respectively. Compared to the first half of 2020, revenue from containerboard sales rose by 2% and revenue from corrugated packaging sales rose by 37%. Despite the increase in total sales volume and average selling prices, the cost of raw materials and operating overheads costs were relatively high, which resulted in the Group recording a small profit in the first half of 2021. The Group’s inventory level was higher at the end of June 2021 as compared to that at the end of last year to meet demand during peak season. Additionally, high raw material prices also contributed to the higher inventory costs. As the Group has sufficient working capital, its gearing ratio and net gearing ratio remained at very low levels at the end of June 2021, and the bad debt ratio was close to zero, which presents a strong financial position of the Group. In addition, the Group is still in the process of installing a pulp production line at the leased facility in the Philippines. However, the construction period becomes hardly predictable as the COVID-19 pandemic is still prevalent in the region. The Group will actively monitor the local situation so as to facilitate the commencement of production as soon as possible. Consequently, it could satisfy the business needs of our Group’s upstream business, bringing the Group’s production volume and overall business back on track. 管理層討論及分析 （續） 業務回顧 （續） 隨著中國從新冠疫情中慢慢復蘇過來， 集團於二零二一年上半年總銷售量及平 均銷售價格也有所上升，二零二一年上 半年之收益比二零二零年上半年上升 26% 。於二零二一年上半年箱板紙及瓦 楞包裝業務分別佔收益的 25% 及 75% 。 相比二零二零年上半年，箱板紙之收益 上升 2% ，瓦楞包裝之收益上升 37% 。 雖然總銷售量及平均銷售價格也有所上 升，但原材料成本及經常性開支偏高， 故集團於二零二一年上半年錄得微利。 集團於二零二一年六月底之存貨量比去 年年底高，主要是用於應付旺季需求， 而原材料價格高企亦令存貨水平上升。 但由於集團營運資金充裕，故於二零 二一年六月底集團負債比率及淨負債比 率仍然處於極低的水平，而壞賬率也接 近零，財務狀況非常穩健。 此外，集團在菲律賓租用新廠房安裝新 的大型紙漿生產線的工程仍在進行中， 唯當地疫情反覆令施工時間難以預測， 集團將積極留意當地情況，期望可盡快 開展當地的生產工序，以滿足上游業務 的原材料需要，使集團的生產量及業務 重回正軌。