Financial Performance - The Group's revenue increased by 5.0% to approximately RMB 13,580.1 million for the six months ended June 30, 2023, compared to the corresponding period, driven by higher contributions from food additives, colloid, and high-end amino acid segments[3]. - Overall gross profit decreased by 17.4% to approximately RMB 2,956.8 million during the same period, primarily due to declines in the gross profit of food additives and animal nutrition segments[3]. - Profit attributable to shareholders decreased by 24.1% to approximately RMB 1,537.9 million for the period[3]. - Basic and diluted earnings per share were RMB 60.70 cents and RMB 60.68 cents, respectively, compared to RMB 79.96 cents for the corresponding period[3]. - Return on equity for the period was 18.9%, down from 28.0% in the corresponding period[3]. - Operating profit for the period was RMB 1,731.9 million, a decrease from RMB 2,721.9 million in the previous period[7]. - Finance income increased to RMB 135.3 million, while finance costs decreased to RMB 109.7 million, resulting in net finance income of RMB 25.6 million[7]. Dividends - An interim dividend of HK 23.0 cents per share was declared, with a dividend payout ratio of 35%[3]. - The interim dividend proposed on August 30, 2023, is HKD583,392,000 (equivalent to RMB534,953,000), representing HKD23.0 cents per share, a decrease from HKD32.0 cents per share in the corresponding period[62]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 26,888.1 million, compared to RMB 26,388.6 million at the end of 2022[11]. - Total liabilities decreased from RMB 10,895,000,000 as of December 31, 2022, to RMB 10,593,691,000 as of June 30, 2023, representing a reduction of approximately 2.8%[12]. - Total equity increased from RMB 15,493,624,000 as of December 31, 2022, to RMB 16,294,399,000 as of June 30, 2023, reflecting a growth of about 5.2%[12]. - Current liabilities decreased from RMB 9,387,995,000 to RMB 8,800,393,000, a decline of approximately 6.2%[12]. - Non-current liabilities increased from RMB 1,507,005,000 to RMB 1,793,298,000, an increase of about 18.9%[12]. Revenue Segmentation - Revenue from the food additives segment increased by 8.1% to approximately RMB 6,558.5 million, mainly due to stable contributions from MSG and increased revenue from starch sweeteners[73]. - Revenue from the animal nutrition segment dropped by 14.0% to approximately RMB 4,090.7 million, influenced by previous high demand during supply chain disruptions[75]. - Revenue from threonine dropped by 36.0% to approximately RMB 884.6 million, with a decrease in average selling price (ASP) by 20.2%[80]. - Revenue from lysine decreased by 11.2% to approximately RMB 907.6 million, despite a sales volume increase of approximately 16.5%[80]. - Revenue of the high-end amino acid segment increased by 54.7% to approximately RMB 827.4 million, driven by increased sales volume[81]. - Revenue of the colloid segment increased by 73.6% to approximately RMB 1,632.3 million, primarily due to increased revenue from xanthan gum[84]. Cost and Profit Margins - Gross profit from the food additives segment decreased by 23.5% to approximately RMB 971.8 million, with a gross profit margin of 14.8%, down 6.1 percentage points[73]. - Gross profit from the animal nutrition segment decreased by 57.5% to approximately RMB 594.5 million, with a gross profit margin of 14.5%, down 14.9 percentage points[76]. - Gross profit of the high-end amino acid segment rose by 40.2% to approximately RMB 298.8 million, with a gross profit margin of 36.1%, a decrease of 3.8 percentage points[81]. - Gross profit of the colloid segment surged by 109.8% to approximately RMB 997.4 million, with a gross profit margin of 61.1%, an increase of 10.5 percentage points[85]. - Gross profit from other products fell by 58.0% to approximately RMB 94.2 million, with a gross profit margin of 20.0%, a decrease of 15.2 percentage points[86]. Cash Flow and Financing - The Group reported a net cash inflow from operating activities of approximately RMB 1,332.0 million, compared to RMB 1,149.7 million in the corresponding period[107]. - As of June 30, 2023, the Group's net unrestricted cash after short-term bank borrowings was approximately RMB 1,934.3 million, an increase from RMB 1,639.5 million at the end of 2022[107]. - The Group's bank borrowings included RMB 948,000 in unsecured loans and RMB 880,000 in secured loans as of June 30, 2023[54]. - The Group's total current income tax in the PRC decreased to RMB 205,691,000 from RMB 332,980,000 in the previous year, reflecting a reduction in taxable profits[42]. Market Conditions - China's GDP growth was recorded at 4.5% in Q1 2023 and 6.3% in Q2 2023, averaging 5.5% for the first half of the year, lower than the expected 5.2% for 2023[63]. - Corn prices fluctuated between RMB2,636 to RMB2,816 per tonne, with supply and demand in China at approximately 188 million tonnes and 116 million tonnes respectively[63]. - Coal supply in China increased by 4.4% to approximately 2.3 billion tonnes, while coal imports surged by 93% to approximately 222 million tonnes[63]. Corporate Governance - The Company has complied with the Corporate Governance Code except for certain exceptions noted during the reporting period[118]. - The Company has adopted the Model Code for securities transactions by Directors and confirmed compliance during the reporting period[120]. - The Group's unaudited interim condensed consolidated financial statements were reviewed by the Audit Committee[118].
阜丰集团(00546) - 2023 - 中期业绩