莱茵生物(002166) - 2018 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides the important notice, table of contents, and definitions relevant to the semi-annual report - The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report and bear corresponding legal responsibilities[3] - Investors are reminded that forward-looking statements regarding future plans do not constitute substantial commitments, and attention should be paid to risks such as policy, macroeconomic, market, management, raw material, and exchange rate fluctuations[4] - The company's 2018 semi-annual profit distribution plan is to not distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Section II Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance during the reporting period Key Accounting Data and Financial Indicators In the first half of 2018, operating revenue decreased by 18.81% due to the BT project nearing completion, while net profit attributable to shareholders increased by 1.26%, and operating cash flow turned negative, with total assets declining by 9.89% Key Financial Indicators for H1 2018 | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 307,180,652.21 | 378,352,935.18 | -18.81% | | Net Profit Attributable to Shareholders (RMB) | 72,266,618.07 | 71,365,258.46 | 1.26% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (RMB) | 69,718,030.78 | 69,027,075.73 | 1.00% | | Net Cash Flow from Operating Activities (RMB) | -20,106,699.99 | 56,012,111.19 | -135.90% | | Basic Earnings Per Share (RMB/share) | 0.17 | 0.16 | 6.25% | | Total Assets (RMB) | 2,610,471,695.42 | 2,896,950,513.93 (Prior Year End) | -9.89% | | Net Assets Attributable to Shareholders (RMB) | 1,101,082,740.69 | 1,050,989,341.32 (Prior Year End) | 4.77% | - During the reporting period, total non-recurring gains and losses amounted to RMB 2.5486 million, primarily from government subsidies totaling RMB 5.9256 million[22][23] Section III Business Overview This section outlines the company's primary business operations, significant asset changes, and core competitive advantages Primary Businesses During the Reporting Period The company primarily operates in two segments: natural health products, focusing on natural sweeteners like Monk Fruit and Stevia extracts for food and beverage, and construction, mainly involving BT financing projects in Guilin, aiming for a full industry chain model - The company's main businesses are divided into two segments: natural health products (plant extraction and consumer goods) and construction (BT projects)[26][27] Key Plant Extract Products and Applications | Product Name | Application Areas | | :--- | :--- | | Stevia Extract | Food, beverages, nutritional supplements, pharmaceuticals, etc | | Monk Fruit Extract | Food, beverages, nutritional supplements, pharmaceuticals, etc | | Shikimic Acid | Pharmaceutical field | | Rhodiola Extract | Nutritional supplements, cosmetics, pharmaceuticals, etc | | Grape Seed Extract | Nutritional supplements, cosmetics, etc | - The plant extraction business operates on a 'procurement + production + sales' model, consumer goods on a 'procurement + OEM + sales' model, and construction on a BT project model, with an overall strategy to build a full industry chain[28] Significant Changes in Major Assets During the reporting period, major assets underwent significant changes, with long-term receivables and interest receivables decreasing by 100% and 98.09% respectively due to BT project repayments, cash decreasing by 41.50% due to increased tax expenses, and other non-current assets increasing by 148.49% for new factory equipment payments Major Asset Changes | Major Asset | Explanation of Change | | :--- | :--- | | Long-term Receivables | Decreased by 100% from the beginning of the period, due to repayment of BT project loans during the reporting period | | Cash and Cash Equivalents | Decreased by 41.50% from the beginning of the period, due to increased tax and fee expenses during the reporting period | | Other Non-current Assets | Increased by 148.49% from the beginning of the period, due to increased payments for new factory equipment during the reporting period | | Interest Receivables | Decreased by 98.09% from the beginning of the period, due to receipt of interest receivables accrued in prior years for BT projects during the reporting period | Analysis of Core Competencies The company's core competencies lie in scale, market channels, R&D, and quality control, with new factory operations enhancing capacity and environmental standards, a global sales network, 50 invention patents, and a full-chain quality control system including FDA GRAS certification for Monk Fruit and Stevia extracts - The company's core competencies remain unchanged, primarily in scale, market channels, technology R&D, and quality control[33] - The new factory is operational with an annual raw material processing capacity exceeding 60,000 tons, implementing 'coal-to-gas' conversion and advanced wastewater treatment systems to promote a 'green circular economy'[33] - The company holds 50 invention patents and has established multiple R&D platforms, including a 'Post-doctoral Research Workstation', demonstrating strong technological R&D capabilities[35] - The company is the world's first to simultaneously obtain US FDA GRAS certification for both Monk Fruit glycosides and Steviol glycosides, possessing a comprehensive quality certification system[36] Section IV Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, financial position, and future outlook Overview In H1 2018, operating revenue decreased by 18.81% to RMB 307 million due to the BT business winding down, while net profit attributable to parent company shareholders increased by 1.26% to RMB 72.2666 million, with plant extraction business, especially Stevia extract, showing stable growth and increased gross profit contribution - The plant extraction business developed steadily, with Stevia extract sales revenue and gross profit contribution significantly increasing, while Monk Fruit extract revenue slightly declined[39] - The BT business continued to advance, generating RMB 138 million in operating revenue and RMB 62.8711 million in net profit during the reporting period[40] - In the consumer goods segment, the company's self-developed botanical cosmetics, functional sugar-free gummies, and Monk Fruit flavored water beverages have been successively launched, with active expansion of online and offline sales channels[40] Analysis of Main Business During the reporting period, total operating revenue decreased by 18.81% year-on-year, primarily due to a 36.05% decline in construction (BT project) revenue, while manufacturing (plant extraction) revenue increased by 6.56%, with construction gross margin rising to 54.95% and manufacturing gross margin decreasing to 24.08% Year-on-Year Changes in Key Financial Data | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 307,180,652.21 | 378,352,935.18 | -18.81% | Reduced BT project workload | | Operating Cost | 190,248,955.12 | 256,633,417.88 | -25.87% | Reduced BT project revenue leading to corresponding cost reduction | | Selling Expenses | 14,880,157.87 | 10,807,649.11 | 37.68% | Increased expenses due to subsidiary staff expansion | | Financial Expenses | 6,110,937.86 | 10,688,157.80 | -42.83% | Reduced bank loans | | Net Cash Flow from Operating Activities | -20,106,699.99 | 56,012,111.19 | -135.90% | Increased tax and fee expenses | Operating Performance by Industry/Product | Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Main Business - Manufacturing | 167,642,221.30 | 127,270,585.37 | 24.08% | 6.56% | | Main Business - Construction | 138,257,675.46 | 62,280,661.32 | 54.95% | -36.05% | Analysis of Assets and Liabilities At the end of the reporting period, the asset structure significantly changed, with fixed assets increasing from 5.45% to 21.34% of total assets due to the transfer of construction in progress for the new factory, investment properties decreasing significantly due to transfer, and short-term borrowings decreasing from 18.28% to 8.94% of total assets Significant Changes in Asset Composition | Item | Proportion of Total Assets at Period End | Proportion of Total Assets at Prior Year End | Explanation of Change | | :--- | :--- | :--- | :--- | | Investment Properties | 0.22% | 9.13% | Due to the transfer of investment properties during the reporting period | | Fixed Assets | 21.34% | 5.45% | Due to the transfer of construction in progress for the new factory into fixed assets during the reporting period | | Construction in Progress | 0.10% | 14.01% | Due to the transfer of construction in progress for the new factory into fixed assets during the reporting period | | Short-term Borrowings | 8.94% | 18.28% | Due to a reduction in bank loans during the reporting period | - As of the end of the reporting period, RMB 186 million in assets were restricted, primarily fixed assets, intangible assets, and investment properties pledged for bank loans[53] Analysis of Major Subsidiaries and Associates During the reporting period, Guilin Rhein Investment Co., Ltd., a subsidiary primarily engaged in BT projects, significantly impacted net profit with RMB 62.8729 million in H1 net profit, while Guilin Bank Co., Ltd., an associate, also had a notable impact, and Guilin Rhein Agricultural Development Co., Ltd. was newly established as a wholly-owned subsidiary Performance of Major Subsidiaries and Associates | Company Name | Type | Main Business | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Guilin Rhein Investment Co., Ltd. | Subsidiary | BT Projects | 62,872,937.04 | | Guilin Bank Co., Ltd. | Associate | Banking | 1,414,510,291 (Guilin Bank's own performance) | - During the reporting period, the company established a new wholly-owned subsidiary, 'Guilin Rhein Agricultural Development Co., Ltd.', which has been included in the consolidated financial statements[63] Forecast of Operating Performance for Jan-Sep 2018 The company forecasts net profit attributable to shareholders for Jan-Sep 2018 to range from RMB 72 million to RMB 99 million, a -20% to 10% change year-on-year, primarily due to increased plant extraction revenue offset by higher expenses and reduced BT project income Performance Forecast for Jan-Sep 2018 | Item | Forecast | | :--- | :--- | | YoY Change in Net Profit Attributable to Parent Company | -20% to 10% | | Net Profit Attributable to Parent Company Range | RMB 72 million to RMB 99 million | | Net Profit Attributable to Parent Company in Prior Period (2017) | RMB 89.9994 million | Risks Faced by the Company and Countermeasures The company faces six key risks: policy changes, macroeconomic shifts, market competition, management challenges from expansion, raw material supply volatility, and exchange rate fluctuations, addressed by monitoring policies, enhancing competitiveness, strengthening client relationships, implementing employee stock ownership plans, securing raw material supply, and expanding domestic markets - The company has identified six major risks: policy risk, macroeconomic risk, market risk, management risk, raw material procurement risk, and exchange rate fluctuation risk[65][67][68][69][71][73] - To mitigate management risks, the company has launched two phases of employee stock ownership plans, covering middle and senior management and core employees to enhance cohesion and improve governance[70] - To ensure raw material supply, the company has established a 'company + base + farmers' cooperation model and plans to set up Monk Fruit and Stevia raw material planting bases to implement quality control from the source[72] Section V Significant Events This section details significant events including litigation, employee incentive plans, and other major corporate actions Litigation Matters During the reporting period, the company was involved in a lawsuit with Shanghai Tongji Construction Co., Ltd. regarding a wastewater treatment plant construction contract, with the first-instance judgment requiring the company to pay RMB 1.756 million, which the company has appealed - The company is involved in a lawsuit with Shanghai Tongji Construction Co., Ltd. over a wastewater treatment plant construction contract, with a disputed amount of RMB 5.559 million; the first-instance court ruled the company pay RMB 1.756 million, and the company has appealed, with the case still ongoing[82][83] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company has implemented two phases of employee stock ownership plans, with the first phase (2016) having purchased 7.4987 million shares and its lock-up period expired, and the second phase (2017) having purchased 9.6575 million shares with its lock-up period expiring on September 16, 2018 - The company has launched two phases of employee stock ownership plans, with the lock-up period for the first phase expiring on March 30, 2017, and the second phase expiring on September 16, 2018[87][88][89] Explanation of Other Significant Matters The company is proceeding with a rights issue to all shareholders, with the public offering proposal approved by the general meeting on April 19, 2018, accepted by the CSRC on May 8, and feedback addressed by the end of the reporting period - The company plans a rights issue to all shareholders, which has been approved by the general meeting and accepted by the CSRC, and is currently in progress[108] Section VI Changes in Shares and Shareholder Information This section details changes in the company's share capital and the composition of its shareholders Changes in Share Capital During the reporting period, the company's total share capital of 437,281,362 shares remained unchanged, but the share structure shifted as approximately 4.89 million restricted shares from a non-public offering were released, reducing restricted shares from 20.20% to 19.05% of total shares - The 4,889,400 restricted shares held by shareholder Yang Xiaotao from a non-public offering expired on April 30, 2018, leading to a reduction in the company's restricted shares[115] Number of Shareholders and Shareholding Structure As of the end of the reporting period, the company had 55,424 common shareholders, with the actual controller Qin Benjun holding 17.57% and forming a concerted party with Jiang Anming, Jiang Xiaosan, and Jiang Jun, while the first and second employee stock ownership plans ranked tenth and sixth among the top ten shareholders Top Ten Common Shareholders' Shareholding (As of Report End) | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Qin Benjun | 17.57% | 76,840,512 | | Yao Xinde | 7.86% | 34,361,643 | | Liang Dingzhi | 4.77% | 20,874,447 | | Central Huijin Asset Management Co., Ltd. | 4.46% | 19,491,600 | | Jiang Xiaosan | 3.19% | 13,969,226 | | Tibet Trust - Rhein No. 2 Collective Fund Trust Plan | 2.21% | 9,657,516 | | Yi Hongshi | 2.18% | 9,515,350 | | Jiang Anming | 2.13% | 9,304,728 | | Jiang Jun | 2.07% | 9,037,459 | | Caitong Securities Asset Management Rhein No. 1 Collective Asset Management Plan | 1.71% | 7,498,703 | - Shareholder Qin Benjun, Jiang Anming, Jiang Xiaosan, and Jiang Jun are brothers and constitute a concerted party[117] Section VII Preferred Shares Information This section confirms the absence of preferred shares during the reporting period Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[122] Section VIII Information on Directors, Supervisors, and Senior Management This section confirms no changes in the shareholdings or composition of the company's directors, supervisors, and senior management Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings or personnel of the company's directors, supervisors, and senior management - There were no changes in the shareholdings or personnel of the company's directors, supervisors, and senior management during the reporting period[124][125] Section IX Corporate Bonds Information This section confirms the absence of outstanding or defaulted corporate bonds during the reporting period Corporate Bonds The company had no publicly issued and listed corporate bonds that were outstanding or fully defaulted as of the approval date of the semi-annual report - The company has no corporate bonds that are outstanding or have defaulted on full payment[128] Section X Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and notes Audit Report The company's 2018 semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[130] Financial Statements This chapter presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for H1 2018, showing total assets of RMB 2.61 billion, total liabilities of RMB 1.509 billion, and net profit of RMB 72.26 million Key Items from Consolidated Balance Sheet (Period-End Balance) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 2,610,471,695.42 | | Total Liabilities | 1,509,365,818.33 | | Total Equity Attributable to Parent Company Owners | 1,101,082,740.69 | Key Items from Consolidated Income Statement (Current Period) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 307,180,652.21 | | Total Profit | 78,767,362.39 | | Net Profit | 72,259,947.88 | | Net Profit Attributable to Parent Company Owners | 72,266,618.07 | Notes to Consolidated Financial Statements This chapter provides detailed explanations of consolidated financial statement items, including accounts receivable of RMB 83.56 million, inventory book value of RMB 1.589 billion (with RMB 1.18 billion from BT projects), short-term borrowings of RMB 233 million, and prepayments of RMB 720 million (mainly for BT projects), with total operating revenue of RMB 306 million - Period-end inventory book value was RMB 1.589 billion, with RMB 1.18 billion attributed to construction in progress (BT projects), representing the most significant component of inventory[283] - Period-end prepayments amounted to RMB 720 million, of which RMB 710 million was for BT project construction payments[326] Revenue and Cost by Business Segment | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Plant Extraction | 168,804,127.19 | 127,947,651.36 | | BT Projects | 138,337,897.67 | 62,280,661.32 | Section XI Documents for Reference This section lists the documents available for reference, including signed financial statements and publicly disclosed reports - Documents for reference include financial statements signed and sealed by the legal representative, chief financial officer, and head of accounting, the original 2018 semi-annual report signed by the company's legal representative, and the originals of all publicly disclosed documents and announcements during the reporting period[462]