智通财经APP讯，常茂生物(00954)发布公告，集团预期取得截至2023年12月31日止年度归属于公司股东 的综合净亏损，金额为人民币8500万元至人民币9500万元之间。截至2022年12月31日止年度归属于公司 股东的综合净利润约人民币8142.3万元。 该公司董事会认为集团2023年度之财务表现受影响主要因素如下：(1)产品销售价格下降、出口需求减 弱导致销售收入及毛利率下降;(2)集团位于大连市的新工厂已于2022年第四季度开始运营，其生产线仍 在调整中以实现目标产出及成本。目前尚未盈利，因此对集团整体毛利率产生负面影响。董事会预期经 调整后，大连工厂的生产线将达到计划产量和成本，经营状况将逐步改善，最终成为集团的增长点;及 (3)集团之附属公司，常茂生物连云港有限公司由于未满负荷营运且产品销售价格下降，2023年度出现 亏损。因此集团对连云港常茂在建工程、物业、机器及设备及递延税项资产的帐面价值再进行评估。根 据董事会的最新评估，集团预计将对在建工程、物业、机器及设备计提了减损准备及冲销递延税项资 产，一共为人民币5500万元至人民币6500万元(2022年：无)。董事会谨此强调，根据香港财务报告 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 296,608,000, a decrease of 22.5% compared to RMB 382,810,000 in the same period of 2022[4] - Gross profit for the same period was RMB 41,470,000, down 54.5% from RMB 91,015,000 year-on-year[4] - Operating profit decreased significantly to RMB 8,715,000, compared to RMB 49,216,000 in the previous year, reflecting a decline of 82.3%[4] - Net profit attributable to shareholders for the period was RMB 4,157,000, a decrease of 89.8% from RMB 40,880,000 in the prior year[4] - The company reported a basic and diluted earnings per share of RMB 0.008, down from RMB 0.077 in the previous year[4] - For the six months ended June 30, 2023, the company's profit attributable to shareholders was approximately RMB 4,157,000, a decrease of 89.8% compared to RMB 40,880,000 for the same period in 2022[32] - The company experienced a decline in performance primarily due to a decrease in sales prices of major products, reduced export sales due to lower overseas demand, and production adjustments at the Dalian factory[51] Assets and Liabilities - Total assets as of June 30, 2023, increased to RMB 1,276,792,000 from RMB 1,206,755,000 at the end of 2022, representing a growth of 5.8%[5] - Total liabilities rose to RMB 534,767,000, up from RMB 427,862,000 at the end of 2022, indicating an increase of 25%[6] - The company's total equity as of June 30, 2023, was RMB 688,934,000, reflecting a slight increase from RMB 725,561,000 at the beginning of the year[41] - The company's debt-to-asset ratio was 41.9% as of June 30, 2023, compared to 35.5% as of December 31, 2022[72] Cash Flow and Management - For the six months ended June 30, 2023, the operating cash flow was a net outflow of RMB 20,388,000, compared to a net inflow of RMB 21,738,000 in the same period of 2022, indicating a significant decline in cash generation[10] - The cash and cash equivalents as of June 30, 2023, amounted to RMB 100,132,000, a decrease from RMB 113,945,000 at the end of the previous year[10] - The company reported a net cash outflow from investing activities of RMB 57,464,000 for the first half of 2023, compared to RMB 127,927,000 in the same period of 2022, showing improved cash management[10] - The financing activities generated a net cash inflow of RMB 121,221,000 in the first half of 2023, down from RMB 155,804,000 in the same period of 2022[10] - The company received government subsidies totaling RMB 15,000,000 during the first half of 2023, compared to no subsidies in the same period of 2022[10] Operational Developments - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[4] - The company aims to improve operational efficiency and reduce costs in response to the declining profit margins observed in the first half of 2023[4] - The company is focusing on the construction of the Dalian production base, which is expected to become the main production base for chemical products, enhancing production advantages and accelerating the industrialization of R&D projects[59] - The company is actively promoting new products, including the feed additive PQQ.Na2, and has seen growth in sales of pharmaceutical excipients and raw materials[54][55] - The Changzhou factory is undergoing upgrades, with plans for smart transformation and new equipment expected to be operational within the year[58] - The company aims to accelerate transformation and upgrades, focusing on new materials and raw materials, while increasing R&D investment to foster technological innovation[60] Shareholder Information - As of June 30, 2023, the company has 2,500,000 domestic shares held by Mr. Rui, representing 100% ownership, and 135,000,000 foreign shares, accounting for approximately 39.30%[80] - Major shareholders include Hong Kong Newborn Venture Capital holding 39.30% (135,000,000 shares), Hong Kong Biochemical High-Tech Investment holding 19.65% (67,500,000 shares), and Early Work Limited holding 19.21% (66,000,000 shares)[92] - The company has not disclosed any additional shareholdings by directors or supervisors as of June 30, 2023[83] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2023[93] Governance and Compliance - The company adhered to the corporate governance code as per the listing rules during the six months ending June 30, 2023[97] - There were no known violations of the standard code of conduct for securities trading by the directors during the six months ending June 30, 2023[98] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[99]

Financial Performance - The total sales revenue for the year ended December 31, 2022, was RMB 730 million[14]. - Total revenue for the year ended December 31, 2022, was RMB 730,034,000, representing a 33.1% increase from RMB 547,976,000 in 2021[38]. - Gross profit for 2022 was RMB 180,831,000, compared to RMB 38,680,000 in 2021, indicating a significant improvement in profitability[38]. - Operating profit increased to RMB 89,373,000 in 2022, up from RMB 85,824,000 in the previous year, reflecting a growth of 1.8%[38]. - Net profit for the year was RMB 81,358,000, a 39.7% increase from RMB 58,207,000 in 2021[38]. - The profit for the year 2022 was RMB 81.423 million, an increase from RMB 58.318 million in 2021, representing a growth of approximately 39.6%[60]. - Net profit attributable to shareholders for 2022 was approximately RMB 81,423,000, representing a growth of about 40% from RMB 58,318,000 in the previous year[89]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 1,206,755,000, up from RMB 956,515,000 in 2021, showing a growth of 26.1%[40]. - The company’s non-current liabilities totaled RMB 153,845,000 in 2022, significantly higher than RMB 2,277,000 in 2021, reflecting a substantial increase in financial obligations[42]. - Cash and cash equivalents at year-end were RMB 59,993,000, slightly up from RMB 58,628,000 in 2021, indicating stable liquidity[40]. - The total assets of the company increased to RMB 220,710,000 in 2022 from RMB 144,620,000 in 2021, reflecting a growth of approximately 52.5%[61]. - Short-term bank deposits with maturities exceeding three months increased to RMB 450,000 in 2022 from RMB 200,000 in 2021, indicating better liquidity management[61]. Revenue Recognition and Compliance - The company has implemented strict internal controls for revenue recognition related to product sales[14]. - The company has confirmed that all revenue recognition policies are in line with applicable accounting standards[14]. - The company recognizes revenue from the sale of organic acid products when control is transferred to the customer, with no financing elements involved[180]. - The company has maintained compliance with relevant laws and regulations throughout the year[5]. - The company’s financial reporting aligns with the Hong Kong Financial Reporting Standards, ensuring compliance and transparency[115]. Audit and Governance - The audit report confirmed that the financial statements accurately reflect the company's financial position as of December 31, 2022[8]. - The audit was conducted in accordance with Hong Kong auditing standards, ensuring the integrity of the financial reporting[9]. - The supervisory board has conducted thorough reviews of the company's financial status and related transactions[5]. - The company has established a governance structure that includes a board of directors and a supervisory board, along with three committees: the remuneration and assessment committee, audit committee, and nomination committee[163]. - The board of directors held six meetings during the fiscal year ending December 31, 2022, with full attendance from all members[165]. Impairment and Asset Management - The impairment provision for Lianyungang Changmao's properties, machinery, and equipment amounted to RMB 18 million as of December 31, 2021[18]. - Management conducted a reassessment of the impairment of these assets for the year ending December 31, 2022[18]. - The audit focused on the impairment provisions due to the high estimation uncertainty associated with the recoverable amount[20]. - The company did not recognize any additional provisions for these assets based on management's assessment[20]. - The inventory impairment was recognized at RMB 17,607,000 for the year ended December 31, 2022, up from RMB 6,733,000 in the previous year, reflecting a significant increase in costs[122]. Research and Development - The company is focused on expanding its market presence and enhancing its product offerings through continuous research and development[56]. - The research and development efforts included the ongoing project for the new feed additive PQQ.Na2, with market development and customer feedback being pursued[96]. - The pharmaceutical division received approval for the L-malic acid raw material drug project, marking a significant step in product upgrade and value addition[97]. - The company plans to invest in research and development for new products and technologies to drive future growth[63]. Corporate Social Responsibility - The company invested in environmental protection measures, including energy-saving projects and emissions reduction initiatives at its factories[95]. - The company contributes to employee retirement benefit plans established by local governments in mainland China, with no further payment obligations after contributions[175]. Market and Product Development - The company’s main products include a series of organic acids and derivatives, primarily used as food additives and pharmaceutical intermediates[53]. - The company emphasizes technological investment and innovation, integrating production, learning, and research[56]. - The company is exploring potential mergers and acquisitions to further enhance its market position and operational capabilities[63].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 382,810 thousand, representing a 55.4% increase from RMB 246,356 thousand in the same period of 2021[5] - Gross profit for the same period was RMB 91,015 thousand, compared to RMB 29,755 thousand in 2021, indicating a significant improvement in profitability[5] - Operating profit for the six months was RMB 49,216 thousand, a turnaround from an operating loss of RMB 888 thousand in the previous year[5] - Net profit attributable to equity holders for the period was RMB 40,880 thousand, compared to RMB 242 thousand in the same period of 2021[5] - Total revenue for the six months ended June 30, 2022, reached RMB 382,810,000, up from RMB 246,356,000 in the same period of 2021, representing a year-over-year growth of approximately 55.3%[27] - For the six months ended June 30, 2022, the company reported a net profit before tax of RMB 48,152,000, a significant increase from a loss of RMB 1,136,000 in the same period of 2021[36] - The company reported a basic and diluted earnings per share of RMB 0.077, a significant increase from RMB 0.000 in the previous year[5] Assets and Equity - Total assets increased to RMB 1,149,413 thousand as of June 30, 2022, up from RMB 956,515 thousand at the end of 2021, reflecting strong growth[7] - The company’s total equity increased to RMB 738,185 thousand from RMB 697,526 thousand, reflecting a solid financial position[9] - Non-current assets totaled RMB 744,701 thousand, up from RMB 639,489 thousand, showing investment in long-term growth[7] - The company’s total equity as of June 30, 2022, was RMB 685,014,000, an increase from RMB 586,054,000 as of December 31, 2021[47] Cash Flow and Liquidity - Cash and bank balances rose to RMB 113,945 thousand from RMB 58,628 thousand, indicating improved liquidity[7] - Operating cash flow for the six months ended June 30, 2022, was RMB 49,088,000, a significant improvement from a cash outflow of RMB 7,372,000 in the same period of 2021[15] - Net cash generated from operating activities was RMB 21,738,000, compared to a net cash outflow of RMB 16,012,000 in the prior year[15] - Cash and cash equivalents increased to RMB 113,945,000 as of June 30, 2022, from RMB 57,226,000 at the end of the previous year[15] - The company’s cash and cash equivalents increased to RMB 113,945,000 as of June 30, 2022, compared to RMB 58,178,000 as of December 31, 2021, representing a growth of 96.1%[43] Operational Highlights - The company experienced a recovery in production capacity after relocation, leading to a notable increase in product sales growth[62] - The company’s Lianyungang plant has gradually released production capacity after product structure adjustments, achieving profitability in the second quarter of 2022[62] - The company’s management and sales teams adjusted strategies to deepen domestic demand while stabilizing overseas orders, effectively navigating the new dual circulation pattern[63] - The company has successfully adjusted production and sales strategies at the Lianyungang plant, achieving profitability in Q2 2022 and significantly reducing losses compared to the same period last year [69] Market and Growth Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[5] - The company plans to accelerate transformation and upgrade efforts, particularly at the Dalian base, which will become a major production hub for chemical products and new materials [71] - The company aims to enhance safety and environmental standards, focusing on risk control and clean production to align with national carbon neutrality goals [73] - The sales team is dedicated to developing high-end customers and expanding international markets, enhancing brand recognition and competitiveness [75] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[139] Research and Development - The company has made significant progress in R&D, with multiple projects underway, including the submission of supplementary materials for the apple acid API project to the National Medical Products Administration (CDE) [65] - Investment in R&D has increased by 30%, focusing on innovative technologies and product development[139] - The Dalian plant project is a key focus for the company, with the first phase of construction nearly complete, aiming to enhance production scale and accelerate the industrialization of R&D projects [67] Financing and Debt - The company reported a net cash inflow from financing activities of RMB 155,804,000, compared to RMB 68,495,000 in the previous year[15] - As of June 30, 2022, the total outstanding bank loans amounted to RMB 244.5 million, an increase from RMB 88.4 million as of December 31, 2021[82] - The company has a loan agreement of RMB 200 million with a state-owned commercial bank, with a remaining balance of RMB 195 million as of June 30, 2022, intended for the construction of a new factory in Dalian[82] Employee and Operational Costs - The company reported a total employee cost of approximately RMB 42.39 million for the six months ended June 30, 2022, up from RMB 30.33 million for the same period in 2021, primarily due to an increase in employee numbers and salary adjustments[85] - The company employed a total of 479 employees as of June 30, 2022, compared to 424 employees as of June 30, 2021[85] Corporate Governance and Shareholding - The company has complied with the corporate governance code as per the listing rules during the reporting period[132] - The company’s H shares were listed on the main board of the Hong Kong Stock Exchange since June 28, 2013[127] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2022[125] - The company’s board of directors has adopted a standard code for securities trading by directors, with no known violations during the reporting period[134]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 382,810 thousand, representing a 55.4% increase from RMB 246,356 thousand in the same period of 2021[3] - Profit attributable to equity holders for the same period was RMB 40,880 thousand, a significant increase from RMB 242 thousand in the prior year[3] - Gross profit for the six months was RMB 91,015 thousand, compared to RMB 29,755 thousand in the previous year, indicating a substantial improvement in profitability[6] - Operating profit for the period was RMB 49,216 thousand, recovering from an operating loss of RMB 888 thousand in the same period last year[6] - Total comprehensive income for the period was RMB 40,659 thousand, compared to RMB 20 thousand in the same period last year[6] - Basic and diluted earnings per share attributable to equity holders was RMB 0.077, a significant increase from RMB 0.000 in the prior year[6] - The company reported a net cash increase of RMB 49,615 thousand for the six months ended June 30, 2022, compared to a decrease of RMB 76,628 thousand in the same period of 2021[16] - Operating cash flow for the six months ended June 30, 2022, was RMB 49,088 thousand, a significant improvement from a cash outflow of RMB 7,372 thousand in the same period of 2021[16] - The total employee cost for the six months ended June 30, 2022, was approximately RMB 42.39 million, an increase from RMB 30.33 million for the same period in 2021[90] Assets and Liabilities - Total assets increased to RMB 1,149,413 thousand as of June 30, 2022, up from RMB 956,515 thousand at the end of 2021[9] - The company reported a net cash and bank balance of RMB 113,945 thousand, compared to RMB 58,628 thousand at the end of the previous year[9] - The company’s non-current assets (excluding deferred tax assets) amounted to RMB 724,959 thousand as of June 30, 2022, compared to RMB 618,998 thousand as of December 31, 2021[32] - Trade receivables as of June 30, 2022, amounted to RMB 66,632,000, an increase from RMB 56,263,000 as of December 31, 2021, indicating growth in sales or credit terms[48] - Trade payables as of June 30, 2022, amounted to RMB 41.76 million, a decrease from RMB 52.21 million as of December 31, 2021[60] - The company has outstanding bank loans totaling RMB 244.5 million, with a loan balance of RMB 195 million used for constructing a new factory in Dalian[87] - The company has a debt-to-asset ratio of 35.8% as of June 30, 2022, compared to 27.1% as of December 31, 2021[88] Taxation and Income - The income tax expense for the period was RMB 7,498,000, compared to a tax credit of RMB (1,157,000) in the previous year, reflecting a substantial change in tax obligations[41] - The deferred tax expense for the period was RMB (788,000), compared to RMB (2,998,000) in the previous year, indicating improved tax efficiency[41] - The net financing cost for the six months ended June 30, 2022, was RMB 1,064 thousand, an increase from RMB 248 thousand in the previous year[37] Dividends and Share Capital - The company did not recommend an interim dividend for the six months ended June 30, 2022[3] - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[45] - The company maintained a weighted average of 529,700,000 shares issued during both periods, reflecting stability in share capital[43] Growth and Development - The company has shown a strong growth trajectory, with a focus on expanding its market presence and enhancing product offerings[6] - The company is focusing on the construction of the Dalian plant, which is expected to enhance production capacity and support new product development[69] - The Changzhou plant is undergoing upgrades to improve production efficiency and implement smart manufacturing solutions[71] - The Lianyungang plant achieved profitability in the second quarter of 2022, significantly narrowing losses compared to the same period last year[72] - The company plans to accelerate transformation and upgrade efforts, particularly in the Dalian production base, to create new economic benefits[73] - Research and development projects are progressing steadily, with increased investment in new product development and existing product process improvements[66] - The company emphasizes technology innovation as a long-term development source, increasing R&D investment to accelerate product upgrades and develop competitive new products[75] - The company is actively developing new functional food additives and materials to extend its product line and strengthen its market position[79] Market Presence - The company reports that approximately 35% of its sales revenue comes from exports, while domestic sales account for about 65%[82] - The company plans to enhance its market presence by focusing on high-end customers and expanding internationally through collaborations with major global clients[77] Corporate Governance - The company appointed Ms. Zheng Minhua as an independent non-executive director and chairman of the audit committee effective July 1, 2022, after a vacancy in the audit committee chair[132] - The company complied with the corporate governance code and related regulations as of June 30, 2022, following the appointment of the new independent non-executive director[132] - All directors, except for Ms. Ou Fenglan, were unable to attend the annual general meeting on May 25, 2022, due to the COVID-19 pandemic[132] Shareholder Information - Major shareholders include Hong Kong Newborn Venture Capital Limited with 135,000,000 shares, representing 39.30% of foreign shares[122] - Hong Kong Biochemical High-Tech Investment Limited holds 67,500,000 shares, accounting for 19.65% of foreign shares[122] - The total issued shares as of June 30, 2022, are 529,700,000, comprising 183,700,000 H shares, 2,500,000 domestic shares, and 343,500,000 foreign shares[128] - The percentage of foreign shares is calculated based on the total of 343,500,000 issued foreign shares[122] - The percentage of H shares is based on the total of 183,700,000 issued H shares[123] - Lin Mao holds beneficial ownership of 66,000,000 foreign shares and 2,620,000 H shares, representing 19.21% and 1.43% respectively[120] - Shanghai Technology Venture Investment Co., Ltd. has beneficial ownership of 62,500,000 foreign shares, which is 18.20% of the total[122] Risk Management - The company did not report any significant changes in risk management policies since the end of the previous year[27] - As of June 30, 2022, the company had no significant contingent liabilities[95] Employee Incentives - The company has established an employee incentive plan, with performance-based bonuses amounting to approximately RMB 4 million for the six months ended June 30, 2022[91]

Financial Performance - For the year ended December 31, 2021, the group's sales revenue was approximately RMB 547,976,000, an increase of about 23% compared to RMB 444,106,000 in the same period last year[15]. - The net profit attributable to equity holders of the company was approximately RMB 58,318,000, representing a growth of about 247% from RMB 16,827,000 in the previous year[15]. - Revenue for 2021 was RMB 547,976,000, an increase of 23.5% from RMB 444,106,000 in 2020[38]. - Other income for 2021 was RMB 124,176,000, a significant increase from a net loss of RMB 4,075,000 in 2020, mainly due to relocation compensation[41]. - The group experienced a net loss of RMB 49,195,000 after excluding relocation income, mainly due to impairment of construction projects and increased production costs leading to a decline in gross margin[43]. - Gross margin for 2021 decreased to 7.1% from 21.5% in 2020, primarily due to increased production costs and reduced overseas demand[38]. - The company incurred a projected loss of RMB 7,982,000 due to rising raw material prices affecting irrevocable sales contracts[38]. Production and Operations - The company has completed the relocation of production equipment related to succinic anhydride from its factories in Changzhou and Lianyungang to Dalian[15]. - The company completed the relocation and transformation of its Changzhou factory, enhancing automation and improving production processes to increase product competitiveness[18]. - The Dalian new factory project is a key focus for the company, with the first phase expected to begin trial production in 2022, expanding phthalic anhydride production capacity[27]. - The Lianyungang factory resumed production in 2021 but faced challenges due to unstable steam supply, with plans to improve operations in 2022 following the Dalian factory's production start[29]. - The company plans to relocate its production line to a new factory in Dalian, which is expected to restore normal production of phthalic anhydride[39]. - The company plans to resume production of phthalic anhydride at the new Dalian factory, which is expected to utilize self-generated steam for production[146]. Research and Development - The company emphasizes technological investment and innovation, having won several awards related to production technology, including first-class and second-class awards in the petrochemical industry[8]. - The company aims to leverage its strong R&D capabilities to drive rapid development in the future[8]. - The research and development bases are located in Changzhou and Shanghai, where the company continuously launches new products and technologies[8]. - The pharmaceutical division has made progress in the development of malic acid raw materials, which are set to be used in various medical applications, potentially increasing sales of high-value products[25]. - The company is committed to increasing R&D investment to drive technological innovation and product upgrades[32]. Environmental Management - The company has established a clean production audit report, achieving advanced domestic standards in pollution reduction and resource utilization efficiency[23]. - The company is committed to enhancing environmental management during the Changzhou factory's relocation, ensuring compliance with government standards for soil investigation and pollution cleanup[21]. - The company invested approximately RMB 9 million in environmental protection efforts in 2021[131]. - The company has implemented a new method for producing phthalic anhydride since 2018, significantly reducing greenhouse gas emissions[134]. - The company has established a dedicated environmental protection workshop to manage wastewater and solid waste effectively[130]. - The total greenhouse gas emissions amounted to 73,278 tons in 2021, slightly down from 75,808 tons in 2020, while emissions per unit of production increased to 2.61 tons per ton[137]. - The total wastewater discharged was 329,204 tons, a decrease from 384,199 tons in 2020 and 393,492 tons in 2019[137]. - The company has not reported any significant violations of environmental protection laws and regulations in 2021[131]. Corporate Governance - The company emphasizes high-quality corporate governance, believing it establishes a framework for effective management and enhances shareholder value[71]. - The board of directors confirmed their responsibility for the preparation of the financial statements for the fiscal year ending December 31, 2021[108]. - The company has adopted a standard code of conduct for securities trading, ensuring compliance among all directors[77]. - The board includes independent directors with significant experience in finance and investment banking, enhancing corporate governance[62]. - The company has established three board committees: the remuneration committee, audit committee, and nomination committee[72]. - The Audit Committee held five meetings in 2021, with a 100% attendance rate from all members, focusing on reviewing the financial reporting procedures and internal control systems of the group[89]. - The company has adopted a board diversity policy, recognizing the benefits of diverse perspectives and experiences among board members[99]. Employee Management - Employee costs totaled approximately RMB 64,859,000 for the year, an increase from RMB 55,946,000 in 2020, driven by higher average employee numbers and salaries[51]. - The employee turnover rate for males was 25% in 2021, an increase from 18% in 2020, while the turnover rate for females rose to 15% from 8%[154]. - The average training hours per employee was 69 hours in 2021, slightly up from 68 hours in 2020[156]. - The company has established a detailed social responsibility system covering employment regulations and social welfare[151]. Market and Sales - Domestic sales grew by approximately 27% in 2021, driven by adjustments in sales strategies and increased efforts in promoting products like tartaric acid and malic acid[19]. - Export sales accounted for approximately 33.7% of total revenue, a decrease from 35.6% in 2020, while domestic sales increased to 66.3% from 64.2%[45]. - The company is actively developing high-end end-user clients and expanding into international markets[35]. - The company will continue to focus on food additives while exploring new market segments and applications[36]. Financial Position - As of December 31, 2021, the total outstanding bank loans amounted to RMB 88,400,000, with RMB 86,900,000 due within one year[47]. - The debt-to-asset ratio increased to 27.1% as of December 31, 2021, up from 23.3% in 2020, mainly due to increased bank loans for the new factory[50]. - Cash and cash equivalents decreased to approximately RMB 58,178,000 from RMB 133,693,000 in 2020, primarily due to funding for the new factory[50]. - The company aims for a dividend payout ratio of 30% to 70% of the consolidated net profit attributable to shareholders[121]. Shareholder Information - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 517,198,000, an increase from RMB 511,932,000 in 2020[171]. - The company did not declare any interim dividends for the year, nor did it recommend a final dividend for the year ending December 31, 2021[168]. - The beneficial ownership structure indicates significant control by key individuals, with Mr. Rui and Ms. Leng both holding substantial shares[188]. - The company continues to maintain a diverse ownership structure with both domestic and foreign investments[188].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 246,356,000, an increase from RMB 219,947,000 in the same period of 2020, representing a growth of approximately 12%[5] - Gross profit for the period was RMB 34,090,000, down from RMB 49,972,000 in the previous year, indicating a decline of about 32%[5] - Profit attributable to equity holders of the company was RMB 242,000, compared to RMB 15,178,000 in the same period last year, reflecting a significant decrease[3] - Basic and diluted earnings per share were RMB 0.000 and RMB 0.029 respectively, showing a decline in profitability[4] - Total comprehensive income for the period was RMB 20,000, down from RMB 14,978,000 in the previous year[6] - The company reported a net loss from operations of RMB 888,000, compared to a profit of RMB 20,429,000 in the previous year[5] - For the six months ended June 30, 2021, the company's operating cash flow was a net outflow of RMB 16,012,000, compared to a net inflow of RMB 29,078,000 in the same period of 2020[14] - The company reported a significant increase in sales in mainland China, reaching RMB 158,221,000, up 26.73% from RMB 124,848,000 in 2020[25] - The net profit attributable to equity holders for the same period was approximately RMB 242,000, a decrease of about 98% from RMB 15,178,000 in the previous year[54] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 889,050,000, an increase from RMB 847,329,000 at the end of 2020[10] - Total liabilities increased to RMB 249,709,000 from RMB 197,414,000, indicating a rise of approximately 26%[10] - Cash and bank deposits decreased to RMB 57,226,000 from RMB 134,343,000, a decline of about 57%[8] - The total non-current assets, excluding deferred tax assets, amounted to RMB 466,355,000 as of June 30, 2021, compared to RMB 412,137,000 as of December 31, 2020[26] - Trade receivables increased to RMB 56,890,000 as of June 30, 2021, from RMB 52,389,000 as of December 31, 2020, indicating a growth of 8.5%[40] - Trade payables increased to RMB 38,170,000 as of June 30, 2021, compared to RMB 28,000,000 as of December 31, 2020[49] - The debt-to-asset ratio as of June 30, 2021, was 28.1%, an increase from 23.3% as of December 31, 2020[79] Cash Flow and Investments - The net cash used in investing activities was RMB 129,111,000, compared to RMB 20,936,000 in the same period of 2020, indicating increased investment in property, plant, and equipment[14] - Cash and cash equivalents decreased to approximately RMB 57,226,000 as of June 30, 2021, down from RMB 133,693,000 as of December 31, 2020, primarily due to funding needs for the new factory[79] - The company has authorized but not contracted capital commitments of RMB 106,696,000 as of June 30, 2021, compared to RMB 6,547,000 as of December 31, 2020[52] - The company has capital commitments of approximately RMB 106,696,000 for the construction of a new factory in Dalian, China, expected to be funded through cash flow and/or bank financing[79] Operational Developments - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[2] - The company plans to continue focusing on the production and sales of organic acid products, with an emphasis on enhancing overall group efficiency[24] - The company is preparing for the registration and verification of the apple acid raw material project, which is expected to enhance product value[58] - The company continues to advance the application for the new feed additive project PQQ.Na2, with expert review recently completed[58] - The company has faced significant production cost increases due to the rising market price of its main raw material, causing a decline in gross margin[54] - The company is adjusting its sales strategy to strengthen domestic market sales in response to decreased demand in major export regions due to the pandemic[55] - The Dalian new factory project is a key focus for the company, with construction progressing rapidly and all necessary permits obtained by June 30, 2021[60] - The company has transitioned its Changzhou base from a chemical enterprise to a light industry enterprise, with the first phase of the factory being dismantled as per the relocation agreement[61][62] - Lianyungang Changmao has resumed production as a non-chemical enterprise, completing the dismantling of chemical facilities by June 30, 2021[63] - Despite a decline in net profit in the first half of 2021, production and sales have remained stable, with the company focusing on technological innovation and product upgrades[65] - The company aims to accelerate the construction of the Dalian base, which will serve as a major production hub for high-end food additives and new materials[65] - Continuous investment in R&D is planned to enhance the development of new products, including biodegradable materials and pharmaceutical excipients[66] - The company is committed to improving safety and environmental standards, aiming to become a resource-saving and environmentally friendly enterprise[68] Employee and Governance - The total employee cost for the six months ended June 30, 2021, was approximately RMB 30,330,000, an increase from RMB 25,360,000 for the same period in 2020, attributed to salary increases[80] - As of June 30, 2021, the company employed a total of 424 employees, down from 448 employees as of June 30, 2020[80] - The company has established an employee incentive plan linked to achieving a target profit of at least RMB 40,000,000 for the year ending December 31, 2022[80] - The company has complied with the corporate governance code as per the listing rules during the reporting period[116] - The company’s board of directors has adopted a standard code for securities trading conduct, with no known violations reported during the period[117] Shareholder Information - Hong Kong Newborn Venture Capital Limited holds 135,000,000 foreign shares, representing approximately 39.30% of the total issued foreign shares of 343,500,000[101] - Hong Kong Biochemical High-Tech Investment Limited owns 67,500,000 foreign shares, accounting for about 19.65% of the total issued foreign shares[101] - Early Service Limited has a stake in 66,000,000 foreign shares, which is approximately 19.21% of the total issued foreign shares[101] - Lin Mao holds 2,620,000 H shares, representing about 1.43% of the total issued H shares of 183,700,000[101] - Shanghai Technology Venture Investment Co., Ltd. controls 62,500,000 foreign shares, which is approximately 18.20% of the total issued foreign shares[103] - As of June 30, 2021, the company had a total of 529,700,000 issued shares, comprising 183,700,000 H shares, 2,500,000 domestic shares, and 343,500,000 foreign shares[111] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2021[111] - The company’s foreign shares are valued in Renminbi and are issued to the initiators, with a par value of RMB 0.10 per share[112] - The company’s H shares were listed on the Hong Kong Stock Exchange's main board on June 28, 2013, after being transferred from the Growth Enterprise Market[112] - There were no arrangements made for directors or their family members to hold any shares or debt securities of the company during the reporting period[109] - The company’s legal advisors have indicated that foreign shareholders should have the same rights and obligations as domestic shareholders[114]

Financial Performance - The company's sales revenue for the year ended December 31, 2020, was approximately RMB 444.1 million, a decrease of about 10% compared to RMB 494.6 million in the previous year[14]. - Net profit attributable to equity holders of the company was approximately RMB 16.8 million, down about 71% from RMB 58.3 million in the previous year[14]. - In 2020, the company's revenue was RMB 444,106,000, a decrease of 10.2% from RMB 494,580,000 in 2019, with a gross margin of 23.2%, down from 27.3%[37]. - The company recorded a net profit attributable to equity holders of approximately RMB 16,827,000 for the year ended December 31, 2020, a significant decrease from RMB 58,299,000 in 2019[42]. - Exports accounted for approximately 36% of the company's revenue in 2020, down from 47% in 2019, while domestic sales represented 64%, up from 53%[44]. Impact of COVID-19 - The company faced significant negative impacts on foreign trade sales and new business development due to the COVID-19 pandemic[14]. - The company faced a significant decline in sales due to reduced demand in major export regions like Europe and the US, with shipping costs rising to three to four times previous levels[17]. Production and Operations - The company plans to relocate relevant equipment to a new factory in Dalian due to the inability to produce certain products in Changzhou[15]. - The main production line for food additives has been largely relocated to the second phase of the Changzhou factory, ensuring no impact on future production capacity[15]. - The production line for phthalic anhydride was halted in June 2020, leading to increased production costs due to the need for external procurement of raw materials[17]. - The company is actively relocating the phthalic anhydride production line to a new facility in Dalian, aiming to transition from chemical to light industrial production[25]. - The company plans to build a new factory in Dalian, Liaoning Province, to relocate production lines from Changzhou and Lianyungang, aiming to restore normal production of phthalic anhydride[38]. Research and Development - The company is advancing the development of new feed additive PQQ, with positive feedback received from the Ministry of Agriculture during the second review meeting[21]. - The company has expanded its pharmaceutical excipients project, completing the application for L-potassium tartrate and L-tartaric acid as pharmaceutical excipients[22]. - The raw material drug project is underway, with the production line built and awaiting provincial regulatory approval for national drug application[23]. - The company is focusing on technological innovation and product upgrades, investing in the development of new feed additives and pharmaceutical excipients[30]. Environmental and Safety Measures - Environmental investments have been increased, with electronic monitoring systems installed to ensure compliance with pollution discharge standards[20]. - The company aims to balance product quality improvement with cost control and environmental protection, implementing energy-saving measures and pollution reduction initiatives[125]. - The company has implemented measures to ensure effective operation of equipment to reduce emissions and has engaged independent environmental monitoring firms to ensure compliance with national standards[131]. - The company’s Changzhou factory received ISO 14000 certification, reflecting its commitment to environmental management and pollution prevention[125]. - In 2020, the company invested over RMB 25 million in environmental protection, focusing on waste treatment and pollution control upgrades[126]. Governance and Management - The management team includes experienced professionals with over 20 years of accounting and financial management experience, enhancing the company's financial oversight[68]. - The independent directors bring extensive academic and industry experience, contributing to the company's strategic direction and governance[60][61]. - The company has a robust management structure with a focus on improving production management and safety standards, evidenced by awards received for excellence in production[64]. - The board includes members with diverse backgrounds in engineering, finance, and academia, enhancing the company's strategic capabilities[60][61]. - The board confirmed the preparation of financial statements on a going concern basis, with reasonable assumptions and disclosures[74]. Shareholding Structure - As of December 31, 2020, Mr. Rui Xinsheng holds 2,500,000 domestic shares (100%) and 135,000,000 foreign shares (39.30%) of the company, along with 3,820,000 H shares (2.08%)[173]. - The company has a significant ownership structure with key individuals holding substantial stakes in both domestic and foreign shares[177]. - The report indicates that the company is actively managing its shareholding structure among its directors and related parties[175]. - The company has a diverse shareholding base, with significant foreign investment represented in its capital structure[177]. Employee and Community Engagement - Total employee costs for the year ended December 31, 2020, were approximately RMB 55,946,000, down from RMB 65,477,000 in 2019, attributed to a decrease in average employee numbers[49]. - The company has a strong emphasis on employee development and recognition, fostering a culture of innovation and productivity[64]. - The company made charitable donations totaling RMB 140,000 in 2020, a decrease from RMB 190,000 in 2019[157]. - The company donated 5,000 masks to the government of Chunjiang Town in March 2020 as part of its community support efforts[157]. Compliance and Risk Management - The company has established anti-corruption and anti-bribery control procedures and conducts annual internal audits related to social responsibility[156]. - The board is committed to ongoing monitoring and review of the company's risk management framework and emerging risks[108]. - The company has a policy in place to ensure timely and equal disclosure of insider information to relevant parties[113]. - The internal audit department was formed to continuously evaluate the effectiveness of the internal control system, reporting findings to the board[112].

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 219,947 thousand, a decrease of 26.2% compared to RMB 297,891 thousand for the same period in 2019[3] - Gross profit for the same period was RMB 49,972 thousand, down 47.4% from RMB 94,855 thousand in 2019[3] - Operating profit decreased to RMB 20,429 thousand, a decline of 58.4% from RMB 49,116 thousand in the previous year[3] - Net profit for the period was RMB 14,976 thousand, representing a 64.7% decrease from RMB 42,299 thousand in 2019[3] - Basic and diluted earnings per share were RMB 0.029, down from RMB 0.080 in the same period last year[3] - The pre-tax profit for the six months ended June 30, 2020, was RMB 20,489,000, a decrease of 58.0% compared to RMB 48,778,000 for the same period in 2019[32] - The income tax expense for the current period was RMB 5,513,000, down 14.9% from RMB 6,479,000 in the previous year[30] - Basic earnings per share for the six months ended June 30, 2020, was RMB 15,178,000, compared to RMB 42,528,000 for the same period in 2019[32] - For the six months ended June 30, 2020, the company's sales revenue was approximately RMB 219,947,000, a decrease of about 26% compared to RMB 297,891,000 in the same period last year[54] - The net profit attributable to equity holders for the same period was approximately RMB 15,178,000, down about 64% from RMB 42,528,000 in the previous year[54] Assets and Liabilities - Total assets as of June 30, 2020, amounted to RMB 756,655 thousand, an increase from RMB 737,739 thousand at the end of 2019[5] - Total equity attributable to equity holders of the company was RMB 647,738 thousand, down from RMB 661,692 thousand at the end of 2019[5] - Trade receivables increased to RMB 82,390 thousand from RMB 64,131 thousand in 2019, indicating a rise of 28.5%[5] - Cash and bank deposits decreased to RMB 107,718 thousand from RMB 120,216 thousand, a decline of 10.4%[5] - Total liabilities increased to RMB 108,497 thousand from RMB 75,425 thousand, reflecting a rise of 43.8%[7] - The debt-to-asset ratio as of June 30, 2020, was 14.3%, compared to 10.2% at the end of 2019[76] Cash Flow - For the six months ended June 30, 2020, the operating cash generated was RMB 29,273,000, a decrease of 60.2% compared to RMB 73,519,000 in 2019[12] - The net cash used in investing activities was RMB 20,936,000, an increase of 63.5% from RMB 12,801,000 in the previous year[12] - The cash and cash equivalents as of June 30, 2020, were RMB 107,318,000, a decrease of 8.9% from RMB 119,316,000 at the beginning of the year[12] - Cash and cash equivalents totaled RMB 107,318,000 as of June 30, 2020, a decrease of 10.0% from RMB 119,316,000 at the end of 2019[38] Market Performance - Revenue from the China market was RMB 124,848,000, a decrease of 15.6% compared to RMB 147,912,000 in 2019[23] - Revenue from Europe dropped by 38.3% to RMB 40,534,000 from RMB 65,639,000 in the previous year[23] - Export sales accounted for approximately 43% of total revenue, down from 50% in the same period last year, while domestic sales increased to 57%[73] Employee and Cost Management - As of June 30, 2020, the total employee cost for the first half of the year was approximately RMB 25,360,000, a decrease of 32.3% compared to RMB 37,424,000 for the same period in 2019[79] - The company employed a total of 448 employees as of June 30, 2020, down from 460 employees a year earlier[79] - The company has established an employee incentive plan that will distribute 5% of profits exceeding a target profit of RMB 40,000,000 for the year ending December 31, 2022[79] Corporate Governance and Structure - The company did not recommend any dividend distribution for the six months ended June 30, 2020, consistent with the previous year[33] - The company has not reported any major changes in its corporate structure during the reporting period[82] - The company has complied with the corporate governance code as per the listing rules during the reporting period[113] - The company’s board of directors includes both executive and independent non-executive directors, with attendance affected by the COVID-19 pandemic[113] Strategic Initiatives - The company has initiated the development of a new feed additive, PQQ, and is working on obtaining the necessary approvals for its production[59] - The company has expanded its product line to include pharmaceutical excipients, completing the application for L-potassium tartrate as a pharmaceutical excipient[61] - The company is actively seeking a new production base to expand its production scale and enhance its competitive edge[55] - The company has increased its environmental protection investments and completed the construction of an emergency rainwater pool to meet new environmental requirements[58] - The company is focusing on energy efficiency and cost reduction in response to increased energy procurement costs due to changes in production processes[57] - The raw material drug production line is nearly completed and awaiting provincial regulatory approval for national drug application submission[62] - The company plans to relocate production lines to a new base, focusing on high-end food additives, pharmaceutical excipients, and raw materials to enhance economic benefits[65] - The company is actively pursuing an A-share listing, having submitted a counseling application to the Jiangsu Securities Regulatory Bureau[70] - The company emphasizes technological innovation, aiming to accelerate the development of new products such as PQQ feed additives and raw materials[66] - The company is committed to enhancing safety and environmental standards, focusing on clean production and pollution prevention[67] - The company aims to expand its market presence by developing high-end customers and enhancing brand recognition through improved product quality and service[69] Shareholding and Equity - The company’s major shareholders include Mr. Rui Xinsheng, who holds 2,500,000 domestic shares (100%) and 135,000,000 foreign shares (39.30%)[85] - Ms. Leng Yixin, a major shareholder, also holds 2,500,000 domestic shares (100%) and 135,000,000 foreign shares (39.30%)[87] - Mr. Yu Xiaoping holds 66,000,000 foreign shares (19.21%) and 2,620,000 H shares (1.43%) as of June 30, 2020[85] - The company has a total of 135,000,000 foreign shares, representing approximately 39.30% of the issued capital[97] - The total issued shares of the company as of June 30, 2020, include 343,500,000 foreign shares and 183,700,000 H shares[103][104] - The total issued capital includes both domestic and foreign shares, with specific percentages outlined for each category[97] - The company continues to maintain transparency in its equity disclosures as required by regulatory standards[104] - The company’s foreign shares can be converted into overseas listed foreign shares upon obtaining necessary approvals from regulatory authorities[111]

Financial Performance - In 2019, the group's sales revenue was approximately RMB 494.58 million, a decrease of about 22.6% compared to RMB 639.12 million in the previous year[13]. - The net profit attributable to equity holders of the group was approximately RMB 58.30 million, an increase of 15.4% from RMB 50.53 million in the previous year[13]. - The company's revenue for 2019 was RMB 494,580,000, a decrease from RMB 639,120,000 in 2018, primarily due to reduced sales volume[33]. - The gross profit margin improved to 27.3% in 2019 from 20.3% in 2018, attributed to cost-saving measures and production efficiency improvements[33]. - The net profit attributable to equity holders was approximately RMB 58,299,000 in 2019, an increase from RMB 50,525,000 in 2018, driven by higher gross margins and improved operational efficiency[36]. - Sales and administrative expenses decreased to RMB 75,025,000 in 2019 from RMB 78,723,000 in 2018, partly due to a two-month production halt at the Changzhou plant[34]. - Export sales accounted for approximately 47% of total revenue in 2019, slightly down from 49% in 2018, while domestic sales represented 53%[38]. Production and Operational Improvements - The group implemented differentiated sales strategies and improved production management, maintaining a stable market share despite a decrease in overall sales[14]. - The group achieved significant improvements in the production of succinic anhydride by replacing benzene with butane, reducing production costs and enhancing energy efficiency[14]. - The group focused on energy conservation and emission reduction, implementing automation and intelligent upgrades to production lines[14]. - The group’s production facilities underwent upgrades in late 2019, impacting sales volume during the fourth quarter[13]. - The company focused on creating value for customers and benefits for itself, implementing refined management and 5S management system to improve productivity[16]. Product Development and Market Strategy - The main product, L(+)-tartaric acid, has received FDA certification, enhancing its market competitiveness[7]. - The group plans to continue developing functional nutritional health products, extending its product chain[7]. - The company is developing a new feed additive, PQQ, with expert approval received for its economic viability, aiming for rapid market entry[19]. - The company expanded its pharmaceutical excipients product line by adding three new varieties, enhancing product value and sales efforts[20]. - The raw material drug project is supported by national policies, aiming to upgrade existing products and improve economic benefits[21]. - The company plans to accelerate technological innovation and product upgrades, focusing on new products like PQQ and pharmaceutical excipients[27]. - The Lianyungang facility is a key development project aimed at leveraging production capacity and enhancing competitiveness in high-end markets[28]. Environmental and Safety Initiatives - The company invested in environmental protection, achieving AEO customs certification to enhance trade competitiveness and reduce customs inspection rates[17]. - The company’s Changzhou factory received ISO 14001 certification, demonstrating its commitment to environmental management and pollution prevention[127]. - The Lianyungang project includes a wastewater treatment system with a daily capacity of 1,000 tons, ensuring compliance with environmental standards[22]. - Total wastewater discharged in 2019 was 393,492 tons, a decrease from 451,557 tons in 2018, indicating a reduction of approximately 12.9%[134]. - Total greenhouse gas emissions in 2019 were 71,565 tons, down from 99,940 tons in 2018, representing a reduction of about 28.5%[134]. - The company implemented a new method for producing maleic anhydride, significantly reducing greenhouse gas emissions[131]. - The company’s Jiangsu factory was recognized as a water-saving enterprise, achieving a notable decrease in water usage per unit of product[138]. - The company’s hazardous waste per unit of production decreased from 0.06 tons/ton in 2018 to 0.04 tons/ton in 2019, a reduction of approximately 33.3%[134]. Governance and Management - The management team includes experienced professionals with notable achievements in the biochemical industry, contributing to the company's strategic direction[49][50][52][53]. - The company maintains a commitment to high-quality corporate governance, believing it establishes a framework for effective management and enhances shareholder value[68]. - The board includes independent non-executive directors with extensive experience in finance and engineering, contributing to the company's strategic oversight[55][56]. - The company has a strong focus on continuous improvement and innovation in biochemistry and immobilized cell technology, with several awards for technological advancements[64]. - The board's diverse expertise supports the company's strategic decision-making and long-term growth objectives[55][56][64]. - The board confirmed the responsibility for preparing the financial statements for the fiscal year ending December 31, 2019, ensuring they reflect the group's financial position accurately[105]. Employee and Community Engagement - The total number of employees as of December 31, 2019, was 461, down from 479 in 2018[43]. - Training expenses for employees increased to RMB 350,000 in 2019 from RMB 186,000 in 2018, with 97% of employees receiving training[148]. - The company donated RMB 190,000 to the Changzhou Charity Federation in 2019, an increase from RMB 140,000 in 2018[155]. - The company maintains strict adherence to labor laws, with no reported violations regarding child labor in 2019[146]. - The company has over 100 qualified suppliers, with annual evaluations of their performance to ensure compliance with social responsibility commitments[149]. Shareholder Information - The proposed final dividend for the year ending December 31, 2019, is RMB 0.055 per share, totaling approximately RMB 29,134,000, an increase from RMB 26,485,000 in 2018[160]. - The company's distributable reserves as of December 31, 2019, amounted to approximately RMB 470,558,000, up from RMB 416,392,000 in 2018[161]. - The ownership structure indicates significant concentration among a few major shareholders, with the top three holding over 78% of the foreign shares[184]. - The company has not established any arrangements for directors or executives to hold shares or debt securities during the year[183].