ZHBIO(300653)2023-07-31 16:00Financial Performance - Revenue for the reporting period was RMB 224.51 million, a decrease of 2.99% compared to the same period last year[26] - Net profit attributable to shareholders of the listed company was RMB 109.84 million, an increase of 5.53% year-on-year[26] - Net cash flow from operating activities was RMB 89.21 million, a decrease of 18.30% compared to the same period last year[26] - Total assets at the end of the reporting period were RMB 954.86 million, a decrease of 3.25% compared to the end of the previous year[26] - Revenue for the first half of 2023 was RMB 224.51 million, a decrease of 3.0% compared to RMB 231.44 million in the same period last year[159] - Net profit for the first half of 2023 was RMB 109.88 million, an increase of 5.5% compared to RMB 104.11 million in the same period last year[160] - R&D expenses increased by 36.2% to RMB 22.43 million in the first half of 2023, up from RMB 16.46 million in the same period last year[159] - Operating cash flow for the first half of 2023 was RMB 89.21 million, a decrease of 18.3% compared to RMB 109.18 million in the same period last year[163] - Investment cash flow for the first half of 2023 was RMB 63.09 million, a significant improvement from a negative RMB 13.81 million in the same period last year[164] - Cash and cash equivalents at the end of the first half of 2023 were RMB 101.34 million, a slight decrease of 1.1% compared to RMB 102.42 million at the end of the same period last year[164] - Basic earnings per share for the first half of 2023 were RMB 0.61, an increase of 5.2% compared to RMB 0.58 in the same period last year[157] - Total comprehensive income for the first half of 2023 was RMB 109.84 million, an increase of 5.5% compared to RMB 104.08 million in the same period last year[157] - Sales expenses decreased by 11.5% to RMB 53.32 million in the first half of 2023, down from RMB 60.22 million in the same period last year[159] - The company paid dividends of RMB 108.00 million in the first half of 2023, an increase of 2.3% compared to RMB 105.60 million in the same period last year[164] - Operating cash flow decreased to 8.924 billion yuan in the first half of 2023 from 10.916 billion yuan in the same period last year[165] - Sales revenue from goods and services dropped to 21.537 billion yuan in H1 2023 compared to 22.693 billion yuan in H1 2022[165] - Investment cash inflow decreased to 64.039 billion yuan in H1 2023 from 77.161 billion yuan in H1 2022[165] - Cash outflow for investment activities reduced to 57.731 billion yuan in H1 2023 from 78.542 billion yuan in H1 2022[165] - Net cash flow from investment activities turned positive at 6.309 billion yuan in H1 2023, compared to -1.381 billion yuan in H1 2022[165] - Dividend payments increased to 108 million yuan in H1 2023 from 105.6 million yuan in H1 2022[166] - Net cash flow from financing activities was -108 million yuan in H1 2023, slightly lower than -105.6 million yuan in H1 2022[166] - Total comprehensive income for the period reached 109.841 million yuan[167] - Cash and cash equivalents increased by 443.293 million yuan in H1 2023, compared to a decrease of 102.49 million yuan in H1 2022[166] - Ending cash and cash equivalents balance stood at 993.23 million yuan as of H1 2023[166] - Total comprehensive income for the period reached RMB 104.08 million[171] - Net profit attributable to owners of the parent company was RMB 105.42 million[172] - Total equity at the end of the period amounted to RMB 783.93 million[173] - Capital reserve increased by RMB 60 million due to capital surplus transfer[172] - Undistributed profit decreased by RMB 1.33 million[171] - Total equity at the beginning of the period was RMB 866.83 million[174] - Comprehensive income for the period was RMB 109.88 million[174] - Profit distribution to owners amounted to RMB 108 million[174] - Total equity at the end of the period was RMB 783.93 million[173] - Capital reserve increased by RMB 60 million due to capital surplus transfer[172] - Total comprehensive income for the period reached RMB 104,109,471.31[178] - Capital reserve transferred to capital (or share capital) amounted to RMB 60,000,000.00[178] - Total owner's equity at the end of the period was RMB 785,449,422.44[179] Product Performance and Market Position - The company's main products, oral repair membrane and absorbable dura (spinal) membrane patch, have experienced rapid growth in recent years and are the primary sources of revenue[3] - The absorbable dura (spinal) membrane patch has been selected in the volume-based procurement in 6 provinces including Jiangsu, Shandong, Fujian, Henan, Hebei, and Anhui, but future expansion of volume-based procurement may impact the company's performance[3] - The company's absorbable dura mater patch successfully entered the provincial alliance centralized procurement in Liaoning Province and continued to win bids in Jiangsu Province[37] - The company's active biological bone product is within the scope of orthopedic medical consumables for centralized procurement in Sichuan, Shanxi, and Beijing[38] - The company's oral repair membrane and bone repair materials are expected to benefit from the reduction in dental implant costs and increased market demand[38] - Revenue from oral repair membrane products was 106.05 million yuan, a year-on-year decrease of 3.57%[45] - Revenue from absorbable dura mater patch products was 90.93 million yuan, a year-on-year increase of 6.13%[45] - The company's products are listed in 31 provinces, with over 2,600 product listings, an increase of about 270 compared to the end of 2022[46] - The company organized approximately 650 academic events to promote its products and enhance brand influence[46] - Calcium-silicon bioceramic bone repair material completed national enrollment for clinical trials[50] - Breast patch and uterine cavity repair film are in the clinical enrollment stage[50] - The company's product "HaiAo® Oral Repair Membrane" was selected for the "Shandong Manufacturing•Qilu Fine Products" list[44] - The company was awarded the title of "Yantai Green Factory"[44] - Cumulative completion of various product storage reached 448,200 pieces/bottles, a year-on-year increase of 7.79%[51] - The company completed the transfer verification for the hard brain (spinal) membrane patch, with the active biological bone expected to complete verification within the year and officially launch sales next year[51] - The company's main products, oral repair membrane and absorbable dura mater (spinal) patch, have achieved rapid growth in recent years, contributing significantly to the company's revenue[82] - The absorbable dura mater (spinal) patch has been selected in 6 provinces (Jiangsu, Shandong, Fujian, Henan, Hebei, Anhui) for volume-based procurement by the end of 2022, without significant pressure on performance growth[82] - The company is actively developing new products such as active biological bone, second-generation dura mater (spinal) patch, and uterine repair membrane, with active biological bone already obtaining registration certification[85] - The company faces risks related to the concentration of its main products, as any significant changes in market environment, downstream demand, or competition could impact performance[85] - High-value medical consumables, including the company's products, are increasingly subject to volume-based procurement policies, which may affect market competitiveness[86] - The company's products are implantable medical devices, and any quality issues could impact safety and effectiveness, potentially affecting production and operations[87] - The company relies on animal tissue as a key raw material, and any large-scale control of animal tissue nationwide could impact production and sales[87] - The company has established a comprehensive intellectual property protection system but still faces risks of core technology leakage or infringement[88] Research and Development - The company faces risks related to the research, development, and registration of new products, particularly for Class III medical devices, which require significant investment and have long development cycles[5] - R&D investment increased significantly by 36.26% to 22.43 million yuan due to more projects entering the clinical stage[62] - The company established a "Bioregenerative Materials Shandong Engineering Research Center" in collaboration with Donghua University, which was included in the new sequence management list by the Shandong Development and Reform Commission[55] - The company has established stable cooperative relationships with renowned domestic research institutions such as the Chinese Academy of Sciences and Sichuan University[59] Corporate Governance and Leadership - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[6] - The company's registered address and other contact information remained unchanged during the reporting period[22] - The company's semi-annual report is disclosed on the Shenzhen Stock Exchange and major financial media, with the report available at the company's board office[23] - The company held multiple investor meetings and conference calls from May to June 2023, engaging with various institutional investors and funds to discuss business operations and development plans[90] - The 2023 First Extraordinary General Meeting had a 46.45% investor participation rate, and the 2022 Annual General Meeting had a 46.10% participation rate[93] - Key personnel changes included the resignation of Chairman Wang Tao on April 12, 2023, and the election of Song Kan as the new Chairman on April 13, 2023[94] - The company reported no profit distribution or capital reserve conversion to share capital for the first half of 2023[95] - No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented during the reporting period[96] - The company maintains a comprehensive governance structure, ensuring compliance with laws and regulations, and timely, accurate, and complete information disclosure to investors[101] - The company actively communicates with investors through various channels, including a dedicated investor hotline, email, and the "Interactive Easy" platform, and participates in investor open days and protection awareness activities[102] - The company's actual controller, shareholders, and related parties have fulfilled their commitments during the reporting period, with no overdue commitments[110] - No non-operational fund occupation by controlling shareholders or other related parties occurred during the reporting period[112] - No illegal external guarantees were made during the reporting period[113] - The semi-annual financial report was not audited[114] - No major litigation or arbitration matters occurred during the reporting period[117] - No significant related transactions related to daily operations occurred during the reporting period[117] - No asset or equity acquisition or sale-related transactions occurred during the reporting period[118] - No significant contracts related to daily operations were reported during the reporting period[128] - The company announced the resignation of its chairman and changes in leadership positions in April 2023[129] - The total number of shares remains unchanged at 180,000,000, with 100% being unrestricted shares[133] - The largest shareholder, Mi Bohai, holds 33.87% of the shares, totaling 60,961,500 shares, with 16,000,000 shares pledged[135] - Longwood Biotechnologies Inc., a foreign legal entity, holds 7.67% of the shares, totaling 13,811,874 shares, with a decrease of 680,000 shares during the reporting period[135] - Sun Zongbing, an individual shareholder, holds 2.10% of the shares, totaling 3,784,763 shares, with no changes during the reporting period[135] - Jiaxing Zhenghai Venture Capital Partnership holds 2.10% of the shares, totaling 3,775,000 shares, with a decrease of 200,000 shares during the reporting period[135] - China Life Insurance Co., Ltd. holds 1.60% of the shares, totaling 2,884,200 shares, with no changes during the reporting period[135] Environmental and Social Responsibility - The company emphasized environmental protection, with all construction projects passing local environmental protection department inspections and emissions far below standards[98] - Wastewater and exhaust gas emissions were strictly managed, with quarterly third-party testing conducted to ensure compliance with environmental regulations[99] - The company highlighted its commitment to social responsibility, focusing on creating value, customer satisfaction, public welfare, and employee well-being since its establishment in 2003[99] - The company prioritizes product quality and safety, implementing a comprehensive quality management system from procurement to post-market surveillance, ensuring consumer protection[104] - The company adheres to environmental protection regulations, optimizing production processes and installing advanced environmental protection equipment to reduce waste emissions[105] - The company conducts quarterly third-party environmental testing and reports to the environmental protection bureau, with no environmental violations or penalties during the reporting period[106] - The company actively participates in social welfare activities, including supporting underprivileged students, donating winter clothing, and contributing to educational resources in remote areas[107] Financial Statements and Accounting Policies - The company's financial statements are prepared under the assumption of continued operation, with no significant factors affecting its ability to continue operations[185] - The company's financial statements comply with the latest Chinese Accounting Standards, accurately reflecting the company's financial status, operating results, and cash flows[187] - The company's fiscal year runs from January 1 to December 31[188] - The company's business operating cycle is short, with assets and liabilities classified based on a 12-month liquidity standard[189] - The company uses RMB as its functional currency[190] - For business combinations under common control, the company measures assets and liabilities at the book value of the acquired entity on the merger date[191] - For business combinations not under common control, the company recognizes goodwill if the merger cost exceeds the fair value of the acquired entity's identifiable net assets[192] - The company treats multiple transactions as a single transaction if they are economically linked or collectively achieve a complete business outcome[193] - When control of a subsidiary is lost, the company re-measures the remaining equity at fair value and recognizes any difference as investment income[195] - The company prepares consolidated financial statements based on the financial statements of the parent company and its subsidiaries[197] - The company determines its consolidation scope based on control, including all subsidiaries and controlled investees[198] Employee and Training - The company has 346 employees and conducted over 200 training sessions (including online) by the end of the reporting period[54] - The company has established a robust employee benefits system, including paid annual leave, heating subsidies, health check-ups, and more, while also enhancing employee training and development programs[103] Intellectual Property and Quality Management - The company holds 67 authorized patents and 95 registered trademarks as of June 30, 2023[58] - The company's products maintain a 100% pass rate upon leaving the factory[52] - The company was awarded the "Technical Demonstration Unit for the Implementation and Application of Unique Device Identification (UDI)" in January 2023[52] - The company has passed ISO 13485 and ISO 9001 quality management system certifications[60] Market Trends and Industry Outlook - The global medical device market is projected to grow at an annual rate of 5.6% from 2017 to 2024, reaching USD 594.5 billion by 2024[35] - China's medical device industry revenue reached approximately RMB 1.02 trillion in 2021, a year-on-year increase of 17%[36] Subsidiaries and Operations - The company's subsidiaries include Suzhou Zhenghai Biotechnology Co., Ltd. and Shanghai Kunyu Biotechnology Co., Ltd., both included in the consolidated financial statements[183] - The company operates in the medical device manufacturing sector, specifically in "6846 Implant Materials and Artificial Organs" and "6863 Dental Materials"[181] - The company's registered capital is RMB 180,000,000.00[181]