Company Overview - Tsaker Chemical Group Limited is a leading producer of fine chemicals, including dye and agricultural chemical intermediates, and has expanded into battery materials and environmental technology consultancy since 2017[6]. - The production facilities are primarily located in Dongguang, Hebei Province, and Dongying, Shandong Province, China[14]. - The Group has diversified its product offerings in the new energy sector to include carbon nanotube paste and other battery material products, receiving positive customer feedback during the review period[11]. Production and Product Development - The company has a production capacity of 15,000 tonnes for iron phosphate, a precursor for lithium battery cathode materials, established in Cangzhou, Hebei Province[11]. - The Group's agricultural chemical intermediates include ONT and OT, with PNT being a major raw material for producing DSD Acid, which is essential for herbicide production[7]. - The production of mononitrotoluene has secured upstream raw material supplies for DSD Acid, stabilizing production costs and expanding the product portfolio[7]. - The pigment intermediates produced by the Group, such as DMSS, DMAS, and DIPS, are crucial for high-grade pigments used in printing inks, food additives, and high-grade paints[8]. - The Group has adopted the latest production techniques for iron phosphate products, enhancing supply to downstream customers[11]. - The company aims to further expand its downstream industry chain by producing OBA for textile printing, dyeing, and detergents[7]. Financial Performance - The Group's revenue for the six months ended June 30, 2020, was approximately RMB735.5 million, representing a decrease of approximately RMB339.8 million or 31.6% compared to the same period in 2019[25]. - Gross profit for the same period was approximately RMB307.0 million, a decrease of approximately RMB363.5 million or 54.2% year-on-year[27]. - Net profit attributable to equity holders of the Company decreased by approximately 65.8% to approximately RMB139.0 million compared to RMB406.7 million in the first half of 2019[38]. - Basic and diluted earnings per share for the period were approximately RMB0.13, representing a decrease of approximately RMB0.26 or 66.7% compared to the same period in 2019[29]. - The overall gross profit margin decreased by 20.7 percentage points to approximately 41.7% compared to 62.4% in the first half of 2019[37]. - Dye and agricultural chemical intermediates accounted for approximately 81.9% of total revenue, down from 84.1% in the first half of 2019[39]. - The Group's overall revenue decreased by approximately 31.6% to approximately RMB 735.5 million compared to RMB 1,075.3 million in the first half of 2019[41]. - The overall gross profit declined by approximately 54.2% to approximately RMB 307.0 million, with a gross profit margin decrease of 20.7 percentage points to approximately 41.7%[41]. Segment Performance - Revenue from dye intermediate products decreased by approximately 52.2% to approximately RMB 380.4 million compared to the same period in 2019[45]. - Revenue from agricultural chemical intermediates increased by approximately 103.0% to approximately RMB 221.7 million compared to the same period in 2019[47]. - The total revenue of the segment for dye intermediates decreased by approximately 33.4% to approximately RMB 602.1 million, accounting for approximately 81.9% of the Group's overall revenue[49]. - The gross profit of dye intermediates decreased by approximately 65.8% to approximately RMB 205.9 million, while the gross profit margin decreased by 21.6 percentage points to approximately 54.1%[50]. - The revenue from pigment intermediates decreased by approximately 17.8% to approximately RMB 125.6 million, accounting for approximately 17.1% of the Group's overall revenue[55]. - The environmental protection business recorded a revenue of approximately RMB 2.6 million, with a gross profit margin increase of 17.6 percentage points to approximately 48.2%[61]. - The battery materials segment recorded a revenue of approximately RMB 5.3 million, with an impairment provision of approximately RMB 8.45 million against inventories due to high unit costs[65]. Expenses and Costs - Selling and distribution expenses amounted to approximately RMB20.2 million, representing approximately 2.7% of the Group's revenue, compared to 2.0% in the same period of 2019[83]. - Administrative expenses increased to approximately RMB84.8 million, an increase of approximately RMB9.7 million from RMB75.1 million in the same period of 2019, primarily due to extended suspension periods caused by the COVID-19 pandemic[86]. - Finance costs amounted to approximately RMB13.6 million, a decrease of approximately RMB4.8 million compared to approximately RMB18.4 million for the same period in 2019[89]. - The net exchange losses amounted to approximately RMB10.4 million, compared to approximately RMB1.5 million for the same period in 2019, mainly due to fluctuations in the exchange rate of Renminbi against the US dollar[92]. - Income tax expenses were approximately RMB39.9 million, a decrease of approximately RMB106.2 million from approximately RMB146.1 million for the same period in 2019, primarily due to a decrease in profit before tax[95]. Cash Flow and Liquidity - The Group's net cash inflows from operating activities were approximately RMB154.6 million, a decrease of approximately RMB215.3 million compared to approximately RMB369.9 million for the same period in 2019[95]. - The Group's net cash outflows from investing activities were approximately RMB49.6 million, a decrease of approximately RMB51.1 million compared to approximately RMB100.7 million for the same period in 2019[95]. - The Group's net cash outflows from financing activities were approximately RMB89.5 million, a decrease of approximately RMB244.1 million compared to approximately RMB333.6 million for the same period in 2019[95]. - As of 30 June 2020, the Group had cash and cash equivalents of approximately RMB120.0 million, an increase from approximately RMB104.8 million as of 31 December 2019[99]. - The Group had interest-bearing bank and other borrowings of approximately RMB295.0 million, with interest rates ranging from 4.61% to 13.45% per annum[99]. - The Group maintained unutilised banking facilities of RMB26.0 million and USD2.0 million as of 30 June 2020[99]. Shareholder Information - The Board declared an interim dividend of RMB0.048 per share for the six months ended June 30, 2020, compared to nil for the same period in 2019[30]. - The Company reported an interim dividend of RMB0.048 per share for the six months ended 30 June 2020[145]. - The interim dividend will be paid in Hong Kong dollars at an exchange rate of HK$1: RMB0.894[144]. - The Company repurchased a total of 5,249,500 Shares at a total consideration of HK$6,234,095 during the half year ended June 30, 2020[194]. - The highest purchase price per Share during June 2020 was HK$1.26, while the lowest was HK$1.12[197]. - 3,200,000 repurchased Shares were cancelled on June 19, 2020, and the remaining 2,049,500 Shares were cancelled on July 20, 2020[194]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code, except for code provision A.2.1, where the roles of chairman and CEO are held by the same individual[150]. - The Board consists of three independent non-executive Directors, ensuring a balance of powers and authorities[151]. - The Audit Committee reviewed the unaudited interim financial statements for the six months ended 30 June 2020[157]. - There were no changes in the information of Directors or chief executives during the Review Period[163]. - As of June 30, 2020, the total number of issued shares was 1,033,146,000 shares[2]. Future Outlook - The Group plans to enhance production technologies and product quality while reducing production costs, and will continue to invest in environmental protection and R&D[77]. - The Group aims to seek merger and acquisition opportunities to consolidate competitive advantages within the industry chain[77]. - The Group remains confident in its ability to navigate the crisis and create value for shareholders despite uncertainties in the global economic outlook[73]. - The Group is actively seeking acquisition targets and conducting negotiations, despite challenges posed by the political and economic environment[138].
彩客新能源(01986) - 2020 - 中期财报