中国淀粉(03838) - 2024 - 中期财报

Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2024, revenue slightly decreased by 2.9%, but a significant drop in cost of sales led to a 189.4% surge in gross profit, achieving a net profit of RMB 267.48 million and a positive basic EPS, reversing prior period losses Key Consolidated Statement of Profit or Loss Data (For the six months ended June 30) | Indicator | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 5,645,514 | 5,814,323 | -2.9% | | Gross Profit | 507,180 | 175,247 | +189.4% | | Operating Profit/(Loss) | 342,483 | (45,735) | Turned profitable | | Profit/(Loss) for the period | 267,482 | (28,959) | Turned profitable | | Profit/(Loss) attributable to owners of the Company | 214,659 | (37,754) | Turned profitable | | Basic EPS | 0.0360 RMB | (0.0063) RMB | Turned profitable | Consolidated Statement of Financial Position As of June 30, 2024, total assets slightly increased to RMB 5.44 billion, while total liabilities decreased to RMB 1.29 billion due to reduced borrowings, optimizing the balance sheet structure with total equity rising to RMB 4.15 billion Key Consolidated Statement of Financial Position Data | Indicator | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,439,704 | 5,352,626 | +1.6% | | Non-current Assets | 2,549,859 | 2,655,002 | -4.0% | | Current Assets | 2,889,845 | 2,697,624 | +7.1% | | Total Liabilities | 1,290,656 | 1,416,073 | -8.9% | | Current Liabilities | 1,022,749 | 1,192,374 | -14.2% | | Total Equity | 4,149,048 | 3,936,553 | +5.4% | | Cash and Cash Equivalents | 1,094,537 | 899,830 | +21.6% | Consolidated Statement of Changes in Equity As of June 30, 2024, total equity increased to RMB 4.15 billion, primarily driven by a net profit of RMB 267.48 million for the period, partially offset by RMB 37.56 million in dividends paid and RMB 0.55 million from share repurchases - Beginning total equity was RMB 3.937 billion, with profit for the period increasing it by RMB 267.48 million, offset by RMB 37.56 million in 2023 final dividends paid and RMB 0.55 million from share repurchases, resulting in an ending total equity of RMB 4.149 billion[6] Condensed Consolidated Statement of Cash Flows In H1 2024, net cash inflow from operating activities was RMB 482.68 million, up 20.7%, while investing activities turned to a net inflow of RMB 215.81 million, and financing activities saw a significant net outflow of RMB 503.78 million primarily for loan repayments, increasing period-end cash and cash equivalents to RMB 1.095 billion Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 482,678 | 399,882 | | Net cash from/(used in) investing activities | 215,812 | (212,027) | | Net cash used in financing activities | (503,783) | (88,019) | | Net increase in cash and cash equivalents | 194,707 | 99,836 | | Cash and cash equivalents at end of period | 1,094,537 | 1,102,821 | Notes to the Unaudited Interim Financial Report 3 SEGMENT INFORMATION The company operates in two segments: Upstream Products and Fermentation & Downstream Products; in H1 2024, Upstream Products saw reduced revenue but turned profitable with RMB 98.34 million in segment results, while Fermentation & Downstream Products significantly grew both revenue and results to RMB 255.95 million, becoming the core profit driver Segment Results (For the six months ended June 30) | Segment | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | | :--- | :--- | :--- | | Upstream Products | | | | External sales | 3,524,090 | 4,349,545 | | Segment results | 98,337 | (93,324) | | Fermentation and Downstream Products | | | | External sales | 2,121,424 | 1,464,778 | | Segment results | 255,951 | 58,500 | 8 DIVIDENDS The Board does not recommend an interim dividend for the six months ended June 30, 2024, while the 2023 final dividend of HK 0.69 cents per share remained consistent with 2022 - The Board does not recommend an interim dividend for 2024 (2023 corresponding period: nil)[20][21] 12 SHARE CAPITAL During the reporting period, the company repurchased 4.075 million shares on the Stock Exchange for approximately HKD 0.607 million, all of which have been cancelled, resulting in 5,964,492,043 ordinary shares issued as of June 30, 2024 - The company repurchased a total of 4,075,000 shares in March and April 2024 for a total consideration of HKD 0.607 million, which have been cancelled[28][29] 14 BORROWINGS As of June 30, 2024, total borrowings significantly decreased by 86.9% to RMB 73.32 million from RMB 559.37 million at the end of 2023, with all borrowings classified as short-term and due within one year Borrowings | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Borrowings repayable within one year | 73,316 | 559,365 | | Of which: Bank borrowings | 29,508 | 518,585 | | Of which: Other borrowings | 43,808 | 40,780 | Management Discussion and Analysis INDUSTRY OVERVIEW AND COMPANY DEVELOPMENT In H1 2024, the corn starch and lysine markets improved as oversupply was absorbed, while the company focused on enhancing production efficiency through improved wastewater treatment, strict personnel cost control, optimized equipment operation, and reduced energy consumption - Market conditions improved as the corn starch and lysine markets absorbed last year's oversupply in 2024[36] - Production efficiency was enhanced by improving wastewater treatment capacity, controlling headcount, optimizing equipment operation, and upgrading energy-saving equipment to reduce unit production costs[36] - The Shouguang production facility expansion project was completed in 2023, with lysine sales projected to reach a new record in 2024[36] BUSINESS REVIEW Upstream products saw significantly improved profit margins due to a substantial drop in corn prices, while downstream products, particularly lysine, achieved significant revenue growth by expanding overseas markets with nearly doubled export volumes, modified starch experienced both volume and price increases, and starch sugar business profitability slightly improved - Upstream products recorded increased profit margins despite lower selling prices, benefiting from a significant reduction in corn kernel costs[37] - Lysine products faced domestic oversupply but achieved substantial revenue growth by aggressively expanding overseas markets, with export volume increasing from 23,204 tons to 45,708 tons[37] - Modified starch saw growth in both sales volume and selling price, primarily due to enhanced wastewater treatment capacity and reduced corn costs[37] FINANCIAL PERFORMANCE Despite a slight decrease in total revenue due to lower average product selling prices, the significant decline in corn kernel costs to a new low since 2021, exceeding the product price drop, led to substantial increases in both gross profit and net profit, successfully turning the group profitable - Key to performance turnaround: The decrease in raw material costs (corn kernels) was greater than the decrease in product selling prices, leading to a significant increase in gross profit[39] Upstream Products Segment Performance (For the six months ended June 30) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue (RMB thousands) | 3,524,090 | 4,349,545 | | Gross Profit Margin | 5.6% | 0.4% | Fermentation and Downstream Products Segment Performance (For the six months ended June 30) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue (RMB thousands) | 2,121,424 | 1,464,778 | | Gross Profit Margin | 14.6% | 10.9% | - Total lysine product sales volume was approximately 273,256 tons, a 71.1% year-on-year increase (2023: 159,682 tons), serving as the primary driver for downstream business growth[44] - The average cost of the main raw material, corn kernels, was approximately RMB 2,135 per ton, a 16.4% year-on-year decrease (2023: RMB 2,554 per ton)[47] REVIEW OF OTHER OPERATIONS During the reporting period, the company effectively controlled various expenses, with slight decreases in distribution and administrative costs, and a significant 53.5% year-on-year reduction in research expenses to RMB 43.69 million due to fewer research projects - Distribution expenses slightly decreased to RMB 82.22 million, and administrative expenses decreased to RMB 96.21 million[48][51] - Research expenses significantly decreased from RMB 94.06 million to RMB 43.69 million, primarily due to a reduction in the number of research projects[53] Liquidity, financial resources and capital structure The company maintains a healthy financial position with ample working capital, showing improved key financial ratios including enhanced current and quick ratios, while the leverage ratio (borrowings to total assets) significantly decreased from 10.5% to 1.3%, indicating reduced financial risk and a more robust capital structure Key Financial Performance Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 2.8 times | 2.3 times | | Quick Ratio | 1.9 times | 1.6 times | | Leverage Ratio (Borrowings/Total Assets) | 1.3% | 10.5% | - As of June 30, 2024, the Group's total number of employees was 2,267, a decrease from 2,310 in 2023[55] Disclosure of Additional Information INTERIM DIVIDEND The Board has decided not to declare an interim dividend for the first half of 2024 - The Board does not recommend an interim dividend for the six months ended June 30, 2024 (2023: nil)[57][59] PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES In H1 2024, the company repurchased 4,075,000 of its own shares on the Stock Exchange for approximately HKD 0.607 million, with all repurchased shares cancelled by May 30, 2024 Share Repurchase Details (2024) | Month | Number of Shares | Price per Share (HKD) | Total Paid (HKD thousands) | | :--- | :--- | :--- | :--- | | March | 2,000,000 | 0.146 - 0.150 | 296 | | April | 2,075,000 | 0.145 - 0.150 | 311 | | Total | 4,075,000 | | 607 | CORPORATE GOVERNANCE During the reporting period, the company complied with the Corporate Governance Code under the Listing Rules, and the Audit Committee reviewed the unaudited interim financial statements for the period - The company complied with the applicable code provisions set out in Part 2 of Appendix C1 to the Listing Rules during the reporting period[69] - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024[72] Corporate Information Corporate Information This section provides essential company information including core management, Board members, registered address, principal place of business, auditors, legal advisors, principal bankers, and share registrar