Financial Performance - Revenue for the reporting period was RMB 392.46 million, a 4.57% increase compared to the same period last year[12] - Net profit attributable to shareholders of the listed company was RMB 42.70 million, a slight increase of 0.52% year-over-year[12] - Operating cash flow was negative RMB 71.36 million, a 49.00% decrease compared to the same period last year[12] - Total assets at the end of the reporting period were RMB 1.41 billion, a 4.29% increase compared to the end of the previous year[12] - Revenue for the first half of 2024 reached 392.46 million yuan, a 4.6% increase compared to 375.32 million yuan in the same period of 2023[113] - Operating profit for the first half of 2024 was 48.98 million yuan, up 5.0% from 46.65 million yuan in the first half of 2023[113] - Net profit attributable to parent company shareholders in the first half of 2024 was 42.70 million yuan, a slight increase from 42.48 million yuan in the same period of 2023[114] - R&D expenses increased by 27.3% to 22.16 million yuan in the first half of 2024, compared to 17.41 million yuan in the first half of 2023[113] - Basic earnings per share for the first half of 2024 was 0.43 yuan, up from 0.42 yuan in the same period of 2023[114] - Interest income rose by 56.0% to 6.05 million yuan in the first half of 2024, compared to 3.88 million yuan in the first half of 2023[113] - Other income increased significantly to 2.31 million yuan in the first half of 2024, up from 463,074.67 yuan in the same period of 2023[113] - Sales expenses grew by 9.2% to 39.48 million yuan in the first half of 2024, compared to 36.15 million yuan in the first half of 2023[113] - Operating costs increased by 4.5% to 266.39 million yuan in the first half of 2024, up from 254.80 million yuan in the same period of 2023[113] - The company's financial expenses showed a net income of 5.13 million yuan in the first half of 2024, compared to 3.11 million yuan in the same period of 2023[113] - Operating cash flow from sales of goods and services decreased to 182.72 million yuan in H1 2024 from 203.88 million yuan in H1 2023, a decline of 10.4%[117] - Net cash flow from operating activities was negative 71.36 million yuan in H1 2024, worsening from negative 47.89 million yuan in H1 2023[117] - Cash received from investment returns increased significantly to 361,743.76 yuan in H1 2024 from 98,630.14 yuan in H1 2023, a 266.8% increase[117][119] - Net cash flow from investing activities improved to negative 123.35 million yuan in H1 2024 from negative 136.37 million yuan in H1 2023[118] - Cash and cash equivalents at the end of H1 2024 decreased to 245.01 million yuan from 471.17 million yuan at the beginning of the period, a 48.0% decline[118] - Parent company's operating cash flow from sales of goods and services decreased to 177.93 million yuan in H1 2024 from 185.60 million yuan in H1 2023, a 4.1% decline[119] - Parent company's net cash flow from investing activities worsened to negative 163.26 million yuan in H1 2024 from negative 96.57 million yuan in H1 2023[120] - Parent company's cash and cash equivalents at the end of H1 2024 decreased to 203.43 million yuan from 415.32 million yuan at the beginning of the period, a 51.0% decline[120] - Total owner's equity at the end of H1 2024 was 952.88 million yuan, with minority interests accounting for 12.07 million yuan[121] - The company's total comprehensive income for the current period is RMB 427,030,499.11[122] - The company's total owner's equity at the end of the period is RMB 965,689,920.05[123] - The company's undistributed profit increased by RMB 22,484,137.52 during the current period[124] - The company allocated RMB 20,000,000.00 for profit distribution to owners (or shareholders)[125] - The company's total owner's equity at the end of the period is RMB 944,681,783.25[126] - The company's total owner's equity at the beginning of the period was 823,496,516.58 yuan, with a capital reserve of 525,694,249.30 yuan and undistributed profits of 154,587,040.55 yuan[127] - During the period, the company's comprehensive income totaled 33,433,765.80 yuan, contributing to the increase in owner's equity[127] - The company allocated 7,898,219.60 yuan for profit distribution to owners (or shareholders), reducing the owner's equity accordingly[128] - At the end of the period, the company's total owner's equity increased to 829,026,448.48 yuan, with undistributed profits rising to 180,122,586.75 yuan[128] - In the previous year, the company's total owner's equity was 798,843,712.90 yuan, with undistributed profits of 134,399,517.24 yuan[129] - The company's comprehensive income for the previous period was 33,546,560.50 yuan, contributing to the increase in owner's equity[130] - The company allocated 20,000,000.00 yuan for profit distribution to owners (or shareholders) in the previous period, reducing the owner's equity accordingly[130] - At the end of the previous period, the company's total owner's equity increased to 812,390,273.40 yuan, with undistributed profits rising to 147,946,077.74 yuan[131] Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares, based on 100,000,000 shares, with no stock dividend or capital reserve conversion[2] - The company proposed a cash dividend of RMB 0.5 per 10 shares, totaling RMB 5,000,000, accounting for 100% of the total profit distribution[67] - The company's total distributable profits as of June 30, 2024, were RMB 299,077,315.66[67] - The company completed the 2023 profit distribution, distributing 0.80 yuan per 10 shares, with a total of 98,575,445 shares as the base[87] - The company proposed a 2024 interim profit distribution plan of 0.50 yuan per 10 shares, based on 100 million shares[88] Subsidiaries and Business Operations - The company's subsidiaries include Shaanxi Shangge Road Biological Science Co., Ltd., Shaanxi Bencai Agricultural Development Co., Ltd., and Myanmar Shangge Road Biological Science Co., Ltd., among others[5] - The company's main business focuses on the R&D, production, and sales of pesticide formulations, with product categories including insecticides, fungicides, and herbicides[16] - The company's subsidiary, Shaanxi Shangge Road Biological Science Co., Ltd., reported total assets of 740,088,413.93 yuan, net assets of 357,647,664.39 yuan, and operating income of 285,959,443.71 yuan, with a net profit of 7,508,279.03 yuan[53] - The company established a new subsidiary, SUNGAR AGRI-TECH(PRIVATE) LIMITED, in Pakistan, which has obtained legal registration documents but is still undergoing domestic filing procedures[53] - The company's subsidiary, Jianyi Zhiyuan API project, is expected to increase production capacity, but there is a risk of market promotion not keeping pace with rapid capacity expansion[58] - The company has 7 subsidiaries included in the consolidated financial statements for the reporting period[132] Industry and Market Trends - China's GDP grew by 5.0% year-over-year in the first half of 2024, with the secondary industry contributing 43.6% to economic growth[16] - High-tech manufacturing investment increased by 10.1% year-over-year, driving the development of high-tech industries[17] - Final consumption expenditure contributed 60.5% to economic growth, driving GDP growth by 3.0 percentage points[17] - The revenue of information transmission, software, and IT services enterprises above designated size increased by 11.2% from January to May, 2.7 percentage points higher than the overall service industry[18] - Online retail sales of physical goods grew by 8.8% year-on-year in the first half of the year, 5.1 percentage points higher than the total retail sales of consumer goods, accounting for 25.3% of the total retail sales of consumer goods, an increase of 2.0 percentage points from the first quarter[18] - The "14th Five-Year Plan" for the national pesticide industry aims to reduce the number of pesticide production enterprises from 1,705 in 2020 to less than 1,600 by 2025, fostering 10 enterprises with output value exceeding 5 billion yuan, 50 enterprises exceeding 1 billion yuan, and 100 enterprises exceeding 500 million yuan[20] - The pesticide industry faced a downturn in 2023 with stable terminal market demand and low upstream raw material prices, leading to a decline in terminal product prices and increased inventory pressure[21] - The commercialization of genetically modified crops is advancing, with pilot applications of herbicide-tolerant transgenic soybeans and insect-resistant, herbicide-tolerant transgenic corn accelerating, impacting related herbicide products like glyphosate and glufosinate[21] - Large-scale farmers are emerging as a key force in agriculture, promoting the use of scientific farming practices and high-quality, low-toxicity, and low-residue chemical pesticides[21] - The application of new technologies such as drones, IoT, and big data is making agricultural production more efficient and intelligent, attracting more young people to the industry[21] - The "Innovative Development Implementation Plan for the Fine Chemical Industry (2024-2027)" emphasizes the need for the pesticide industry to accelerate innovation, improve product quality and safety, and phase out high-residue pesticides[19] - The "Pesticide Label and Instructions Management Measures (Revised Draft for Comments)" proposes that a single production enterprise can only use one brand logo or trademark, potentially prompting industry adjustments and upgrades[18] - The "Food Safety National Standard for Maximum Residue Limits of 112 Pesticides in Food" (GB 2763.1-2022) sets 290 maximum residue limits for 112 pesticides in various foods, enhancing food quality and safety[18] Research and Development - R&D investment increased by 27.29% to 22,156,290.60 yuan, reflecting a significant focus on innovation[30] - The company owns 213 invention patents and 311 pesticide registration certificates as of the reporting period[25] - The company's subsidiary, Shangge Road, has been continuously recognized as a national high-tech enterprise since 2009[25] - The company's product "0.06% Sterol Microemulsion" was included in the "First Batch of Green High-Quality Pesticide Products List" by the China Pesticide Industry Association in March 2022[25] - The company has a comprehensive QA/QC inspection system and advanced testing instruments to ensure product quality[27] - The company continuously develops and launches new pesticide formulation products annually, leveraging the strong brand effect of "Shangge"[29] - Research and development expenses include personnel costs, direct input costs, depreciation, and amortization of intangible assets used in R&D activities[175][176] Financial Position and Assets - Total assets at the end of the reporting period were RMB 1.41 billion, a 4.29% increase compared to the end of the previous year[12] - The company's monetary funds decreased by 15.00% to 302,475,742.56 yuan, mainly due to investments in bank deposits and financial products[33] - Accounts receivable increased by 9.85% to 215,968,920.67 yuan, reflecting the peak business season with unsettled payments[33] - The company's financial assets, including trading financial assets, totaled 192,200,000.00 yuan at the end of the reporting period[35] - Restricted assets included 56,457,947.70 yuan in monetary funds and 74,509,930.86 yuan in construction in progress, primarily due to bank loan guarantees[36] - The company's inventory balance at the end of the reporting period was 96.52 million yuan, accounting for 11.65% of current assets, primarily due to targeted stockpiling to meet market demand[56] - The company's operating gross margin for the reporting period was 32.12%, with raw material costs constituting a significant portion of operating costs, posing a risk of margin decline[60] - The company's monetary funds decreased from 493,052,240.16 yuan to 302,475,742.56 yuan, a decrease of 38.7%[106] - Accounts receivable increased from 73,823,212.83 yuan to 215,968,920.67 yuan, an increase of 192.6%[106] - Inventory decreased from 120,907,573.01 yuan to 96,523,380.60 yuan, a decrease of 20.2%[106] - Other current assets decreased from 115,342,050.07 yuan to 34,330,893.05 yuan, a decrease of 70.2%[106] - Total current assets decreased from 843,162,984.27 yuan to 828,234,156.82 yuan, a decrease of 1.8%[106] - Fixed assets decreased from 166,409,151.93 yuan to 161,002,235.16 yuan, a decrease of 3.2%[107] - Construction in progress increased from 236,218,999.73 yuan to 273,369,767.33 yuan, an increase of 15.7%[107] - Total non-current assets increased from 510,313,400.02 yuan to 583,278,127.71 yuan, an increase of 14.3%[107] - Total assets increased from 1,353,476,384.29 yuan to 1,411,512,284.53 yuan, an increase of 4.3%[107] - Total liabilities increased to 445,822,364.48 RMB, up 11.3% from 400,597,865.63 RMB in the previous period[108] - Current liabilities rose to 335,664,315.63 RMB, a 21.9% increase from 275,438,914.09 RMB[108] - Long-term liabilities decreased to 110,158,048.85 RMB, down 12.0% from 125,158,951.54 RMB[108] - Owner's equity increased to 965,689,920.05 RMB, up 1.3% from 952,878,518.66 RMB[108] - Monetary funds decreased to 260,895,100.12 RMB, down 40.3% from 437,203,235.49 RMB[110] - Accounts receivable surged to 196,532,623.42 RMB, a 206.3% increase from 64,161,382.23 RMB[110] - Inventory grew to 5,938,988.57 RMB, a 342.4% increase from 1,342,798.03 RMB[110] - Total current assets increased to 612,464,656.54 RMB, up 3.1% from 593,945,057.01 RMB[110] - Non-current assets rose to 579,985,897.41 RMB, a 26.6% increase from 458,234,567.73 RMB[110] Investments and Projects - Total investment in the reporting period was RMB 42.75 million, a 34.29% increase compared to the same period last year[38] - The green pesticide and intermediate R&D base project has a cumulative investment of RMB 313.45 million, with a project progress of 85.10%[38] - The company headquarters and R&D center project has a cumulative investment of RMB 62.95 million, with a project progress of 31.05%[38] - The green pesticide formulation intelligent digital factory project has a cumulative investment of RMB 10.49 million, with a project progress of 30.45%[38] - The marketing service system construction project has a cumulative investment of RMB 2.50 million, with a project progress of 5.92%[39] - Total raised funds amount to RMB 376.39 million, with RMB 195.78 million already utilized, representing 52.02% of the total[43] - The green pesticide formulation intelligent digital factory project has an adjusted investment of RMB 42.69 million, with a cumulative investment of RMB 10.49 million, representing 24.57% of the adjusted total[44] - The R&D center project has an adjusted investment of RMB 171.40 million, with a cumulative investment of RMB 62.79 million, representing 36.63% of the adjusted total[44] - The marketing service system construction project has a cumulative investment of RMB 2.50 million, representing 5.92% of the total investment[44] - The supplementary working capital project has been fully utilized with a total investment of RMB 120.00 million[44] - The company adjusted the use of funds for the "Green Pesticide Formulation Intelligent Digital Factory Technical Transformation Project" to 17,140.38 million yuan, with a delay in implementation due to approval and construction processes[45] - The "Marketing Service System Construction Project" was changed from purchasing or leasing to self-construction, leading to delays due to longer construction time[45] - The unused raised funds amount to 18,921.38 million yuan, with 8,000 million yuan allocated for structured deposits[46] - The "Green Pesticide Formulation Intelligent Digital Factory Technical Transformation Project" has an investment progress of 24.57% as of the reporting period[48] - The "R&D Center Project"
农心科技(001231) - 2024 Q2 - 季度财报