Financial Performance - For the first half of 2021, the company's revenue increased by 16.6% year-on-year to RMB 9,520,600,000, while net profit rose by 55.8% to RMB 591,000,000, primarily due to rising prices of key products [6]. - The overall revenue increased to approximately RMB 9,520.6 million, up from RMB 8,168.6 million in the same period of 2020, marking a growth of 16.6% [12]. - The gross profit rose to approximately RMB 1,766.0 million, a 20.2% increase from RMB 1,469.2 million in the first half of 2020 [12]. - The net profit attributable to shareholders increased by 55.8% to RMB 591.0 million compared to RMB 379.3 million in the same period of 2020 [18]. - Operating profit increased to RMB 737,576 thousand, representing a 31.0% rise from RMB 562,886 thousand year-on-year [72]. - Earnings per share for the first half of 2021 were RMB 23.33, compared to RMB 14.97 in the same period of 2020, reflecting a growth of 55.8% [72]. Revenue Breakdown - The revenue from food additives increased to approximately RMB 4,495,000,000, up by RMB 238,000,000 or 5.6%, primarily due to the rise in sales of monosodium glutamate [25]. - The Animal Nutrition segment generated revenue of RMB 3,462,376 thousand, up from RMB 2,515,977 thousand, reflecting a significant growth of approximately 37.5% [116]. - The high-end amino acids segment reported revenue of RMB 688,912 thousand, an increase from RMB 453,159 thousand, marking a growth of about 52.0% [116]. - The sales of threonine reached approximately RMB 1,103.0 million, an increase of 71.5% compared to the same period in 2020 [14]. - The revenue from corn refining products rose by approximately 30.9%, attributed to the increase in corn kernel prices [31]. Pricing and Sales Volume - The average selling price of MSG was approximately RMB 7,176 per ton, an increase of about 18.7% compared to the first half of 2020, despite a sales volume decrease of approximately 8.9% to 498,351 tons [8]. - The average selling price of threonine rose by approximately 40.1% to RMB 9,395 per ton, with sales volume increasing by 22.4% to 117,402 tons [8]. - The average selling price of starch sweeteners increased by approximately 39.1% to about RMB 3,500 per ton, despite a significant decrease in production and sales volume [13]. - The average selling price of monosodium glutamate rose by 18.7%, although the production and sales volume decreased by approximately 5.2% and 8.9%, respectively [13]. - The sales of xanthan gum products decreased by RMB 157.2 million, a decline of 30.4% compared to the first half of 2020, with a sales volume drop of approximately 43.3% [9]. Cost and Profitability - The company successfully transferred part of the cost pressure from rising raw material prices to downstream customers, maintaining profitability despite significant increases in raw material costs [7]. - Major raw material costs increased significantly, with corn accounting for 62.4% of total production costs, up from 55.1% in the previous year, and its average price rising by 52.8% to RMB 2,415 per ton [38]. - Total production costs increased by 23.0% to RMB 8,543,003,000, driven by higher prices of key raw materials [37]. - The gross profit margin for high-end amino acids was 44.8%, significantly higher than the overall gross profit margin of 18.5% [21]. Strategic Initiatives - The company has enhanced its production technology for high-end amino acids, leading to improved operational efficiency and the development of new products [7]. - The company aims to expand its business scope from traditional amino acids to high-end products, focusing on health and pharmaceutical raw materials [15]. - The company continues to focus on expanding its production facilities in various provinces in China to enhance its manufacturing capabilities [79]. - The company aims to leverage its R&D capabilities to develop a series of high-end amino acid products, indicating a strategic focus on innovation [33]. Financial Position - As of June 30, 2021, the total assets of the group amounted to approximately RMB 20,188,100,000, an increase from RMB 19,355,700,000 as of December 31, 2020 [65]. - The total liabilities of the group were RMB 7,995,620,000, compared to RMB 7,666,287,000 as of December 31, 2020, indicating an increase in liabilities [71]. - The debt-to-asset ratio was approximately 17.1% as of June 30, 2021, a slight decrease from 17.9% as of December 31, 2020 [65]. - Cash and cash equivalents, along with restricted bank deposits, amounted to RMB 1,623,100,000 as of June 30, 2021, an increase from RMB 1,231,200,000 at the end of 2020 [58]. Dividends and Shareholder Returns - The group declared an interim dividend of HKD 0.098 per share for the six months ended June 30, 2021 [68]. - The company proposed a final dividend of HKD 0.041 per share (equivalent to RMB 0.0343), totaling HKD 103,879,000 (equivalent to RMB 87,003,000) for the year ended December 31, 2020 [151]. - The interim dividend proposed on August 30, 2021, is HKD 0.098 per share (equivalent to RMB 0.0816), totaling HKD 248,297,000 (equivalent to RMB 206,712,000), an increase from HKD 0.058 per share (equivalent to RMB 0.0522) in the same period of 2020 [151]. Risk Management - The group’s financial risk management includes market risks such as foreign exchange risk, cash flow interest rate risk, and credit risk [86]. - The group has maintained a good collection record for trade receivables, leading management to believe that the credit risk from outstanding trade receivables is not significant [88]. - The group considers its debt instrument investments as low-risk investments, with credit ratings monitored to prevent credit deterioration [88]. Employee and Management Compensation - The management's remuneration for the six months ended June 30, 2021, totaled RMB 7,339,000, a decrease of approximately 27.5% from RMB 10,113,000 in the same period of 2020 [153]. - The group employed approximately 13,500 employees as of June 30, 2021, with appropriate salaries and bonuses paid according to local policies [63].
阜丰集团(00546) - 2021 - 中期财报