Financial Performance - For the first half of 2023, the company's revenue was RMB 582.9 million, a decrease of 9.5% compared to RMB 644.2 million in the same period of 2022[8]. - The company reported a net profit attributable to shareholders of RMB 25.0 million, a decrease of 76.0% from RMB 104.4 million in the first half of 2022[14]. - The total comprehensive income for the period was RMB 20,846 thousand, down from RMB 97,626 thousand in the previous year[28]. - The company reported a net profit of RMB 25,008 thousand for the six months ended June 30, 2023, compared to RMB 104,408 thousand for the same period in 2022, indicating a significant decrease[28]. - The net profit for the six months ended June 30, 2023, was RMB 25,116 thousand, a decline of 76.0% compared to RMB 104,460 thousand in the previous year[52]. - The gross profit for the same period was RMB 106,143 thousand, down 45.7% from RMB 195,421 thousand in 2022[52]. - The gross profit margin for carrageenan products significantly declined due to increased average inventory costs and rising sales costs[4]. - Net profit decreased to RMB 25.1 million, down RMB 79.4 million, primarily due to a 37.7% reduction in net sales volume from overseas customers and a gross margin decline of 12.1 percentage points to 18.2%[150]. Market Performance - Sales value in the Chinese market was RMB 294.7 million, an increase of RMB 39.6 million or 15.5%, while overseas market sales value was RMB 288.2 million, a decrease of RMB 100.9 million or 26%[5]. - The sales revenue of carrageenan and agar products accounted for 85.4% of total sales revenue, reflecting a 3.5% decrease compared to the first half of 2022[8]. - The total sales in the Chinese market reached RMB 294,712 thousand, an increase from RMB 255,097 thousand, representing a growth of approximately 15.5%[101]. - In the first half of 2023, the sales revenue of blended products increased by RMB 21.4 million or 55.0% compared to the first half of 2022, driven by an increase in new customer numbers[189]. Assets and Liabilities - As of June 30, 2023, total liabilities amounted to RMB 939,098 thousand, an increase of 11.9% from RMB 838,797 thousand as of December 31, 2022[27]. - The company's bank borrowings increased to RMB 590,362 thousand, up 20.1% from RMB 491,269 thousand in the previous period[27]. - The company's total assets reached RMB 1,818,862 thousand, an increase from RMB 1,691,007 thousand at the end of the previous period[27]. - The total equity as of June 30, 2023, reached RMB 879,764 thousand, a growth of 12.5% from RMB 782,363 thousand at the end of the previous period[28]. - Trade and other payables rose to RMB 227,610 thousand, reflecting an increase of 9.6% compared to RMB 207,838 thousand as of December 31, 2022[27]. - Trade receivables as of June 30, 2023, totaled RMB 155,971,000, up from RMB 107,527,000 as of December 31, 2022, reflecting an increase of approximately 45.0%[139]. Cash Flow and Financing - The company's cash and cash equivalents as of June 30, 2023, were RMB 608,119 thousand, showing an increase from RMB 500,736 thousand at the end of the previous period[28]. - The effective tax expense for the first half of 2023 was RMB 8.4 million, a decrease of RMB 25.0 million or 74.9% compared to RMB 33.4 million in the same period of 2022[12]. - The weighted average interest rate on bank borrowings was 5.64% as of June 30, 2023, compared to 4.46% in 2022[170]. - The group had a net current asset value of RMB 459.7 million, an increase of RMB 29.3 million from December 31, 2022, primarily due to an increase in inventory[169]. - The company incurred financing costs of RMB (19,738) thousand, up from RMB (10,781) thousand in the previous year, marking an increase of approximately 83.5%[77]. Strategic Goals and Investments - The company anticipates a recovery in global demand for hydrophilic colloid products in the foreseeable future due to price adjustments and replenishment of customer inventories[6]. - The company has set long-term goals to enhance product technology levels, aiming to differentiate from competitors and meet changing customer demands[5]. - The company continues to invest in product development, particularly in blended products and processed carrageenan, which are expected to drive future profitability[5]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[29]. - The group plans to further invest in expanding the production capacity of its subsidiary Hongxin, which specializes in semi-refined carrageenan manufacturing[172]. Employee and Operational Costs - Employee benefits expenses, including director remuneration, increased to RMB 57,558 thousand from RMB 52,063 thousand, reflecting a rise of about 10.6%[77]. - Administrative expenses rose by 2.7% to RMB 45.4 million, mainly due to increased labor costs and annual wage growth[167]. - The group employed 1,257 full-time employees as of June 30, 2023, with 1,201 based in mainland China[174]. Dividends and Share Capital - The company did not propose an interim dividend for 2023, compared to a dividend of 0.02 HKD per share in 2022, which amounted to RMB 14,029[119]. - The company’s share capital increased to RMB 7,485,000 as of June 30, 2023, from RMB 7,444,000 as of December 31, 2022, following the issuance of additional shares[140].
绿新生物科技(01084) - 2023 - 中期财报