大成生化科技(00809) - 2025 - 中期财报

Definitions This section defines key terms and entities used in the report, crucial for understanding the company's operations, financial transactions, and corporate governance - “The Company” refers to DaCheng Biochemical Technology Group Limited, a limited company incorporated in the Cayman Islands, whose shares are listed on the Main Board of the Stock Exchange (stock code: 00809)[6] - “Disposal” refers to the sale of the disposed shares in accordance with the terms of the sale and purchase agreement, which was completed on December 30, 2024[9] - “Supplier Debt Restructuring Arrangement” refers to a series of arrangements undertaken or to be undertaken by the Group to restructure and settle supplier debts, totaling approximately RMB 461.1 million[13] Company Information This section lists the company's board members, company secretary, registered office, principal place of business in Hong Kong, auditor, legal counsel, principal bankers, share registrar, Hong Kong share registrar, website, and stock code - This section lists the company's board members, company secretary, registered office, principal place of business in Hong Kong, auditor, legal counsel, principal bankers, principal share registrar, Hong Kong share registrar, website, and stock code[16][17] - Board members include Executive Directors Mr. Wang Cheng (Chairman) and Mr. Wang Guicheng, Non-executive Director Mr. Li Yuewen, and Independent Non-executive Directors Ms. Jiang Fangfang, Mr. Tan Chao, and Ms. Xie Liangqiu[16] - The Company's stock code is 00809, and its auditor is RSM Hong Kong[16][17] Letter to Shareholders 3.1 Business Review Following structural reorganization, the Group optimized resource allocation, significantly enhancing Changchun Deda's production facility utilization and reducing operating costs. The amino acid business performed strongly, achieving over 30% year-on-year growth in consolidated revenue through flexible production and build-to-order strategies. Despite pressure on lysine product average selling prices, production cost reductions outpaced price declines, leading to a substantial increase in gross profit margin - The Group's amino acid business performed strongly, maintaining high production capacity utilization and flexibly adjusting production lines to produce based on sales, shortening finished goods inventory time and reducing losses[18] - Despite intense domestic competition leading to downward pressure on the average selling price of lysine products, the Group focused on expanding sales volume, resulting in a year-on-year increase of over 30% in consolidated revenue for the period[18] - The Group accurately anticipated rising corn prices and promptly implemented inventory measures, coupled with energy-saving and consumption-reducing production processes, leading to a greater reduction in production costs than the decline in product prices, thereby improving operational efficiency[18] Gross Profit and Gross Profit Margin Changes | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Profit | Substantial increase of nearly 1.5 times | - | | Gross Profit Margin | 13.6% | 7.3% | - Following the completion of the Disposal on December 30, 2024, administrative and other expenses of the disposed group are no longer consolidated into the financial statements, reducing overall operating costs and increasing cash liquidity[19] - The Group has reached a consensus with over 130 suppliers regarding payables of approximately RMB 461.1 million, with the supplier debt restructuring arrangement expected to be completed within the year, further improving the financial position[19] 3.2 Future Outlook Facing global economic uncertainties, tariff pressures, rising domestic corn prices, and new lysine production capacity, the Group will initiate a boiler renovation project to reduce costs, promote full resumption of operations at Xinglongshan plant, and explore business alliances or investor participation, while monitoring the expropriation of remaining Luyuan properties to overcome debt crises and achieve stable business development - Despite cross-border trade expansion in the first half of 2025, the global economic outlook remains clouded by tariffs, with global growth expected to be uncertain in the second half of 2025[20] - The market anticipates continued increases in corn prices in the second half of 2025, potentially impacting the Group's production costs; the domestic lysine market is expected to see hundreds of thousands of tonnes of new capacity, reshaping the competitive landscape[20] - The Group has initiated a boiler renovation project aimed at effectively reducing Changchun Deda's operating costs and enhancing production facility efficiency[21] - The Group is committed to promoting the full resumption of operations at the Xinglongshan plant, including exploring the introduction of business alliances or investors to participate in operations, and utilizing R&D centers and pilot facilities to explore strategic cooperation opportunities[21] - The Group will continue to monitor the expropriation of remaining Luyuan properties and ensure the disposed group repays the outstanding portion of the repurchase loan, significantly reducing financial expenditures, improving overall financial health, and gradually overcoming the debt crisis[21] Management Discussion and Analysis 4.1 Business Review The Group primarily engages in the production and sale of corn refined products and amino acids. Amid a slowing global economy, trade tensions, and geopolitical uncertainties, China's economy maintained stable growth but faced challenges. International corn prices fell, while domestic prices rose. The lysine market experienced significant volatility due to international trade policies, leading to decreased export volumes and domestic price pressure. The Group achieved significant growth in amino acid revenue and gross profit by strengthening domestic sales, developing new markets, and introducing high-value-added products, while restarting the boiler renovation project to enhance competitiveness and actively promoting the resumption of operations at the Xinglongshan plant and strategic collaborations - The Group primarily engages in the production and sale of corn refined products and amino acids (after the completion of the Disposal, it no longer operates corn sweetener and biochemical alcohol businesses)[24] - Global economic growth is projected to slow to 2.3% in 2025, the lowest level since 2008, facing challenges from trade tensions, geopolitical uncertainties, and protectionism[25] - China's GDP grew by 5.3% year-on-year in the first half of 2025, with a stable economy but facing weak consumer confidence, the US-China trade war, real estate market adjustments, and external demand uncertainties[25] Corn Price Changes | Metric | January 2025 | End of June 2025 | End of June 2024 | | :--- | :--- | :--- | :--- | | International Corn Price (per bushel) | 459.2 US cents | 420.5 US cents | 397.0 US cents | | Domestic Corn Price (per tonne) | RMB 2,075 | RMB 2,447 | - | - The global lysine market faced significant volatility, impacted by additional US tariffs and anti-dumping investigations by the EU and Brazil, leading to a 5.0% decrease in China's lysine export volume to approximately 521,500 tonnes in the first half of 2025[28] Changes in Average Price of China's Lysine Products | Period | Average Price (per tonne) | | :--- | :--- | | H1 2025 | RMB 7,700 to RMB 8,100 (Decrease 23%-27%) | | End of June 2024 | RMB 10,200 to RMB 10,500 | - The Group strengthened domestic market sales and developed new non-EU markets, launching various new amino acid products with higher profit margins, resulting in significant growth in amino acid segment revenue and gross profit[29] - The boiler renovation project restarted and commenced construction in July 2025, expected to further reduce amino acid production costs and enhance market competitiveness[29] - The Group is actively committed to resuming production at the Xinglongshan plant, exploring the introduction of business alliances or investors, and collaborating on operating a synthetic biology pilot platform to enhance operational efficiency and strengthen working capital[29] 4.2 Financial Performance The Group's financial performance for the period showed a significant 32.0% increase in consolidated revenue, with substantial improvements in gross profit and gross profit margin, driven by enhanced production facility utilization and reduced unit production costs, despite a decline in average selling prices for amino acid products. However, the company still recorded a net loss due to the absence of one-off government grants and fair value gains on financial assets from the prior period. Administrative and other expenses significantly decreased following the disposal of the disposed group, but finance costs rose due to increased estimated interest on convertible bonds 4.2.1 Consolidated Revenue and Gross Profit Consolidated revenue for the period increased significantly by approximately 32.0% to approximately HKD 1,186 million, primarily due to improved utilization of amino acid production facilities and a decrease in average unit production costs, despite a decline in average selling prices for amino acid products, with gross profit and gross profit margin also showing significant improvement - The average selling price of amino acid products decreased by 11.9% during the period, but the utilization rate of amino acid production facilities increased, and the total average unit production cost decreased by 18.4%[30] Consolidated Revenue, Gross Profit, and Gross Profit Margin Changes | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Consolidated Revenue | HKD 1,186 million (Increase 32.0%) | **HK