Financial Compliance and Reporting - The condensed consolidated financial statements were reviewed and found to be in compliance with HKAS 34, with no significant issues identified[9]. - The financial statements include the condensed consolidated statement of financial position as of June 30, 2021, and the related profit or loss and other comprehensive income for the six-month period[5]. - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, focusing on inquiries and analytical procedures[5]. - The company is responsible for the preparation and presentation of the financial statements, ensuring they meet the relevant provisions of the listing rules[5]. - The report covers the interim financial information for the six-month period ending June 30, 2021, as required by the Hong Kong Stock Exchange[5]. - The review scope was less extensive than a full audit, which limits the assurance obtained[5]. - The financial position and performance metrics for the interim period are detailed in the financial statements, which are included in the report[5]. - The report is intended solely for the board of directors and does not assume responsibility to any other parties[9]. - The company’s financial reporting adheres to the standards set by the Hong Kong Institute of Certified Public Accountants[5]. - The review was completed by SHINEWING (HK) CPA Limited, with the conclusion that the financial statements are materially accurate[9]. Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 5,699,494, an increase of 48.0% compared to RMB 3,850,007 in 2020[11]. - Gross profit for the same period was RMB 393,215, representing a 37.9% increase from RMB 285,199 in 2020[11]. - Operating profit rose to RMB 223,651, up 66.4% from RMB 134,371 in the previous year[11]. - Profit attributable to owners of the company was RMB 149,223, an increase of 45.0% compared to RMB 102,728 in 2020[11]. - Basic and diluted earnings per share for the period were RMB 0.0249, compared to RMB 0.0171 in 2020, reflecting a 45.0% increase[11]. - Profit before income tax for the six months ended June 30, 2021, was RMB 219,715,000, up from RMB 138,928,000 in 2020, reflecting a growth of approximately 58.0%[24][25]. - Profit after taxation rose by 55.5% to approximately RMB 174,707,000[83]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 4,891,337, a rise from RMB 4,567,492 at the end of 2020[13]. - Current assets increased to RMB 2,400,750, compared to RMB 2,063,831 at the end of 2020, reflecting a growth of 16.3%[13]. - Non-current liabilities totaled RMB 358,698, slightly decreased from RMB 361,851 at the end of 2020[15]. - As of June 30, 2021, total equity amounted to RMB 3,263,899,000, an increase from RMB 3,134,133,000 as of January 1, 2021[17]. - Total trade receivables as of June 30, 2021, were RMB 200,232,000, up from RMB 196,187,000 as of December 31, 2020, showing a growth of about 2%[54]. - The Group's total borrowings as of June 30, 2021, were RMB 398,758,000, a significant increase from RMB 126,849,000 as of December 31, 2020[72]. Cash Flow and Investments - The net cash from operating activities for the six months ended June 30, 2021, was a negative RMB 207,355,000, compared to a positive RMB 141,204,000 in the same period of 2020[19]. - Net cash used in investing activities was RMB 229,600,000 for the six months ended June 30, 2021, up from RMB 126,040,000 in 2020[19]. - Payments for property, plant, and equipment amounted to RMB 221,988,000 for the six months ended June 30, 2021, compared to RMB 170,281,000 in 2020[19]. - The company received government grants totaling RMB 19,900,000 during the six months ended June 30, 2021, compared to RMB 800,000 in 2020[19]. Market and Operational Insights - The company adjusted selling prices to reflect the increase in corn kernel costs due to reduced supply and strong market demand from the pig-farming industry[79]. - Strong demand for lysine products from the pig-farming industry positively impacted the performance of fermented and downstream products[81]. - The business performance of modified starch was stable, and the performance of biobased materials was satisfactory during the review period[82]. - The construction of new lactic acid and polylactic acid production facilities is on track, with trial runs expected in the fourth quarter of this year[77]. - The management team maintains a cautiously optimistic outlook for the second half of 2021, despite facing excessive supply and keen competition in the industry[77]. Corporate Governance and Compliance - The company complied with the Corporate Governance Code, except for the absence of Mr. Tian Qixiang at the 2021 annual general meeting due to other business engagements[137]. - All directors confirmed compliance with the Securities Dealing Code throughout the review period[141]. - The company has adopted a Securities Dealing Code that is no less exacting than the Model Code[141]. - The company is audited by SHINEWING (HK) CPA Limited[144].
中国淀粉(03838) - 2021 - 中期财报