Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 246,356,000, an increase from RMB 219,947,000 in the same period of 2020, representing a growth of approximately 12%[5] - Gross profit for the period was RMB 34,090,000, down from RMB 49,972,000 in the previous year, indicating a decline of about 32%[5] - Profit attributable to equity holders of the company was RMB 242,000, compared to RMB 15,178,000 in the same period last year, reflecting a significant decrease[3] - Basic and diluted earnings per share were RMB 0.000 and RMB 0.029 respectively, showing a decline in profitability[4] - Total comprehensive income for the period was RMB 20,000, down from RMB 14,978,000 in the previous year[6] - The company reported a net loss from operations of RMB 888,000, compared to a profit of RMB 20,429,000 in the previous year[5] - For the six months ended June 30, 2021, the company's operating cash flow was a net outflow of RMB 16,012,000, compared to a net inflow of RMB 29,078,000 in the same period of 2020[14] - The company reported a significant increase in sales in mainland China, reaching RMB 158,221,000, up 26.73% from RMB 124,848,000 in 2020[25] - The net profit attributable to equity holders for the same period was approximately RMB 242,000, a decrease of about 98% from RMB 15,178,000 in the previous year[54] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 889,050,000, an increase from RMB 847,329,000 at the end of 2020[10] - Total liabilities increased to RMB 249,709,000 from RMB 197,414,000, indicating a rise of approximately 26%[10] - Cash and bank deposits decreased to RMB 57,226,000 from RMB 134,343,000, a decline of about 57%[8] - The total non-current assets, excluding deferred tax assets, amounted to RMB 466,355,000 as of June 30, 2021, compared to RMB 412,137,000 as of December 31, 2020[26] - Trade receivables increased to RMB 56,890,000 as of June 30, 2021, from RMB 52,389,000 as of December 31, 2020, indicating a growth of 8.5%[40] - Trade payables increased to RMB 38,170,000 as of June 30, 2021, compared to RMB 28,000,000 as of December 31, 2020[49] - The debt-to-asset ratio as of June 30, 2021, was 28.1%, an increase from 23.3% as of December 31, 2020[79] Cash Flow and Investments - The net cash used in investing activities was RMB 129,111,000, compared to RMB 20,936,000 in the same period of 2020, indicating increased investment in property, plant, and equipment[14] - Cash and cash equivalents decreased to approximately RMB 57,226,000 as of June 30, 2021, down from RMB 133,693,000 as of December 31, 2020, primarily due to funding needs for the new factory[79] - The company has authorized but not contracted capital commitments of RMB 106,696,000 as of June 30, 2021, compared to RMB 6,547,000 as of December 31, 2020[52] - The company has capital commitments of approximately RMB 106,696,000 for the construction of a new factory in Dalian, China, expected to be funded through cash flow and/or bank financing[79] Operational Developments - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[2] - The company plans to continue focusing on the production and sales of organic acid products, with an emphasis on enhancing overall group efficiency[24] - The company is preparing for the registration and verification of the apple acid raw material project, which is expected to enhance product value[58] - The company continues to advance the application for the new feed additive project PQQ.Na2, with expert review recently completed[58] - The company has faced significant production cost increases due to the rising market price of its main raw material, causing a decline in gross margin[54] - The company is adjusting its sales strategy to strengthen domestic market sales in response to decreased demand in major export regions due to the pandemic[55] - The Dalian new factory project is a key focus for the company, with construction progressing rapidly and all necessary permits obtained by June 30, 2021[60] - The company has transitioned its Changzhou base from a chemical enterprise to a light industry enterprise, with the first phase of the factory being dismantled as per the relocation agreement[61][62] - Lianyungang Changmao has resumed production as a non-chemical enterprise, completing the dismantling of chemical facilities by June 30, 2021[63] - Despite a decline in net profit in the first half of 2021, production and sales have remained stable, with the company focusing on technological innovation and product upgrades[65] - The company aims to accelerate the construction of the Dalian base, which will serve as a major production hub for high-end food additives and new materials[65] - Continuous investment in R&D is planned to enhance the development of new products, including biodegradable materials and pharmaceutical excipients[66] - The company is committed to improving safety and environmental standards, aiming to become a resource-saving and environmentally friendly enterprise[68] Employee and Governance - The total employee cost for the six months ended June 30, 2021, was approximately RMB 30,330,000, an increase from RMB 25,360,000 for the same period in 2020, attributed to salary increases[80] - As of June 30, 2021, the company employed a total of 424 employees, down from 448 employees as of June 30, 2020[80] - The company has established an employee incentive plan linked to achieving a target profit of at least RMB 40,000,000 for the year ending December 31, 2022[80] - The company has complied with the corporate governance code as per the listing rules during the reporting period[116] - The company’s board of directors has adopted a standard code for securities trading conduct, with no known violations reported during the period[117] Shareholder Information - Hong Kong Newborn Venture Capital Limited holds 135,000,000 foreign shares, representing approximately 39.30% of the total issued foreign shares of 343,500,000[101] - Hong Kong Biochemical High-Tech Investment Limited owns 67,500,000 foreign shares, accounting for about 19.65% of the total issued foreign shares[101] - Early Service Limited has a stake in 66,000,000 foreign shares, which is approximately 19.21% of the total issued foreign shares[101] - Lin Mao holds 2,620,000 H shares, representing about 1.43% of the total issued H shares of 183,700,000[101] - Shanghai Technology Venture Investment Co., Ltd. controls 62,500,000 foreign shares, which is approximately 18.20% of the total issued foreign shares[103] - As of June 30, 2021, the company had a total of 529,700,000 issued shares, comprising 183,700,000 H shares, 2,500,000 domestic shares, and 343,500,000 foreign shares[111] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2021[111] - The company’s foreign shares are valued in Renminbi and are issued to the initiators, with a par value of RMB 0.10 per share[112] - The company’s H shares were listed on the Hong Kong Stock Exchange's main board on June 28, 2013, after being transferred from the Growth Enterprise Market[112] - There were no arrangements made for directors or their family members to hold any shares or debt securities of the company during the reporting period[109] - The company’s legal advisors have indicated that foreign shareholders should have the same rights and obligations as domestic shareholders[114]
常茂生物(00954) - 2021 - 中期财报