Revenue Performance - The Group's revenue decreased by 11.9% to RMB252.1 million compared to RMB286.3 million in the same period last year[9]. - Revenue from the manufacturing and sales of wooden products was RMB249.1 million, accounting for 98.8% of total revenue, down from RMB282.9 million[14]. - The retail sales of outdoor wooden products generated no revenue during the period, compared to RMB219 thousand in the previous year[12]. - Revenue from the manufacturing and sales of renewable energy products contributed RMB3.0 million, down from RMB3.4 million[14]. - Revenue from the wooden products segment decreased by 11.9% to approximately RMB249.1 million, accounting for 98.8% of total revenue during the period[17]. - Revenue from the North America market reduced to approximately RMB54.4 million, which accounted for 22% of total revenue, down from 41% in the same period last year[29]. - Revenue from the PRC market significantly decreased to approximately RMB5.9 million, representing only 2% of total revenue, compared to 16% in the previous year[30]. - The Australasia market became the largest income source, with revenue of approximately RMB171.0 million, accounting for 68% of total revenue, up from 36% in the previous year[27]. - Revenue from timber houses and their related parts decreased by 6.6% to RMB214.9 million, representing 85.2% of total sales for the period[33]. - Overall revenue from leisure household products decreased by 11.4% to RMB34.2 million, mainly due to a decrease in sales of recreational products[35]. - Revenue from trading of timber became nil, down from RMB14.2 million in the previous year due to trade friction between China and the United States[35]. Profitability and Margins - The gross profit margin improved to 14.6%, resulting in a profit of approximately RMB4.2 million, a turnaround from a loss of RMB28.0 million in the previous year[9]. - The reportable segment profit from manufacturing and sales of wooden products was approximately RMB10.3 million, compared to a loss of RMB31.7 million in the previous year[16]. - The renewable energy business revenue decreased by 12.4% to RMB3.0 million, with a profit of approximately RMB0.4 million, consistent with the previous year[22]. - The Group recorded a profit of approximately RMB4.2 million for the period, compared to a loss of RMB28.0 million in the previous year[48]. - Gross profit for the same period was RMB36,874,000, compared to a gross loss of RMB3,637,000 in 2020, indicating a significant recovery[128]. - Profit for the period was RMB4,249,000, a turnaround from a loss of RMB27,992,000 in the previous year[130]. Market and Strategic Adjustments - The trade friction with the United States has severely impacted the Group's wooden products segment, leading to a negative gross profit margin prior to the shift in marketing focus[16]. - The Group's marketing strategy has successfully shifted to Australasia, resulting in a gross profit margin of 5.9% from this region[16]. - The Group anticipates further increases in selling costs to the United States due to new anti-dumping duties and countervailing duties[16]. - The Department of Commerce of the United States has imposed a cash deposit requirement of 54.43% on imports of relevant products from China[16]. - The Group has shifted its marketing focus to Australia due to escalating trade tensions and tariffs affecting its U.S. operations[18]. - The Group's strategy includes adjusting its business direction in the retail segment to expand its presence in the PRC household product market[21]. - The Group anticipates continued growth in the Australasian market due to strong private investment and public demand, with an estimated GDP growth of 9.5% in Australia[27]. Financial Position and Assets - As of June 30, 2021, the Group had current assets of RMB500.4 million, an increase from RMB423.3 million at the end of 2020[49]. - Total assets less current liabilities increased to RMB831,588,000 as of June 30, 2021, compared to RMB819,115,000 at December 31, 2020, reflecting a growth of 1.8%[134]. - Net assets rose to RMB824,137,000 at June 30, 2021, up from RMB812,602,000 at December 31, 2020, indicating an increase of 1.9%[134]. - Trade and other receivables rose significantly to RMB212,560,000 from RMB134,800,000, reflecting improved collection efforts[133]. - Cash and cash equivalents increased to RMB165,441,000 from RMB137,969,000, indicating better liquidity[133]. - Non-current assets decreased slightly to RMB442,647,000 from RMB455,592,000, primarily due to depreciation[133]. Shareholder Information and Corporate Governance - The Group's emolument policies are based on individual performance and are reviewed periodically, with discretionary bonuses awarded based on performance assessments[74]. - The maximum number of shares that can be granted under the Share Option Scheme is capped at 10% of the total number of shares in issue, equating to 100,000,000 shares[91]. - The Share Option Scheme was adopted to recognize contributions from eligible participants, including directors and employees[93]. - The Company has adopted a Share Award Scheme allowing for the issuance of up to 20% of the total issued shares, which amounts to 741,200,400 shares[101][102]. - The Board has resolved not to declare any interim dividend for the Period[111][114]. - The Company has complied with the Corporate Governance Code, except for code provision C.1.2 regarding monthly updates to all Board members[116][118]. Cash Flow and Financing Activities - For the six months ended June 30, 2021, the net cash used in operating activities was RMB (35,458) thousand, a significant decrease compared to RMB 66,577 thousand generated in the same period of 2020[141]. - The net cash from investing activities was RMB 4,000 thousand, recovering from a net cash used of RMB (3,905) thousand in the previous year[143]. - The net cash from financing activities increased to RMB 58,978 thousand, compared to a net cash used of RMB (22,782) thousand in the same period of 2020[143]. - The company received proceeds from new bank loans totaling RMB 57,070 thousand, a substantial increase from RMB 7,801 thousand in the prior year[143]. - The total cash and cash equivalents at June 30, 2021, amounted to RMB 165,441 thousand, up from RMB 116,274 thousand at the end of the previous year[143]. Taxation and Compliance - Current tax for the six months ended June 30, 2021, was RMB 120,000, compared to RMB 129,000 in 2020, showing a minor decrease of about 7%[197]. - Deferred tax expense for the six months ended June 30, 2021, was RMB 1,052,000, compared to a credit of RMB 728,000 in 2020, indicating a significant change in tax position[197]. - The Group's other PRC subsidiaries are subject to a corporate income tax rate of 25%[198]. - Zhangping Kimura is entitled to a preferential income tax rate of 15% for the period from 2019 to 2021 due to its qualification as a High and New Technology Entity[199].
中科生物(01237) - 2021 - 中期财报