Business Performance - In the first half of 2022, the company signed 38 supply contracts, with an increase in both the volume of catalysts and the contract amounts compared to the previous year[12]. - The company achieved a breakthrough with the State Power Investment Corporation, signing contracts for two projects, expanding its business scope to cover all five major power groups in China[13]. - The production tasks for catalysts in the first half of 2022 increased significantly compared to the same period last year, with a notable rise in the production of honeycomb catalysts[14]. - The sales of commercial vehicles dropped by 42% year-on-year, significantly impacting the related supply chain, including engines and exhaust systems[15]. - The company's revenue from the cement industry saw successful expansion, with two new catalyst supply contracts signed in this sector[13]. - The overall production capacity in the industrial catalyst market remains excessive, leading to a downward trend in sales prices during the first half of 2022[11]. - The company completed 47 catalyst production tasks in the first half of 2022, indicating a saturated production capacity and improved operational rates compared to last year[14]. - The company is adjusting its product development strategy in response to the current market conditions, particularly for diesel vehicle catalysts[16]. - The company plans to continue its focus on the development of denitration catalysts and expand its market presence in China[78]. Financial Performance - The total revenue for the first half of 2022 was approximately RMB 348.4 million, an increase of 11.9% compared to RMB 311.2 million in the same period of 2021[21]. - Revenue from sales of plate denitration catalysts increased to approximately RMB 282.4 million, a 7.6% increase from RMB 261.7 million in the same period of 2021[22]. - The gross profit for the first half of 2022 was approximately RMB 64 million, up from RMB 36 million in the same period of 2021[23]. - Sales and marketing expenses increased by 25.5% to approximately RMB 59 million, compared to RMB 47 million in the same period of 2021[25]. - Administrative expenses rose by 23.4% to approximately RMB 95 million, compared to RMB 77 million in the same period of 2021[26]. - The company recorded a loss attributable to owners of approximately RMB 84 million, compared to a profit of RMB 30 million in the same period of 2021[28]. - For the six months ended June 30, 2022, the company reported customer contract revenue of RMB 34,844,000, an increase from RMB 31,120,000 in the same period of 2021, reflecting a growth of 87.5%[65]. - The gross profit for the same period was RMB 6,401,000, compared to RMB 3,597,000 in 2021, indicating an increase of 78.1%[65]. - The company incurred a loss before tax of RMB 8,440,000 for the six months ended June 30, 2022, compared to a loss of RMB 2,516,000 in the previous year[65]. - The basic and diluted loss per share for the period was RMB 0.017, a decrease from a profit of RMB 0.006 per share in the same period of 2021[65]. - The board has recommended not to declare an interim dividend for the period[56]. Assets and Liabilities - As of June 30, 2022, the company had net current assets of approximately RMB 1.468 billion, with cash and cash equivalents of approximately RMB 734 million[29]. - The company has no outstanding bank loans or other borrowings, resulting in a debt-to-equity ratio of zero[29]. - Total assets decreased from RMB 325,787,000 to RMB 310,392,000, a decline of approximately 4.7%[67]. - Total liabilities decreased from RMB 118,266,000 to RMB 109,033,000, a reduction of about 7.8%[67]. - Net assets decreased from RMB 207,521,000 to RMB 201,359,000, a decrease of approximately 3.0%[68]. - Inventory increased from RMB 122,035,000 to RMB 140,582,000, an increase of about 15.2%[67]. - Trade receivables decreased from RMB 34,957,000 to RMB 20,277,000, a decline of approximately 42.3%[67]. - Cash and cash equivalents increased from RMB 71,359,000 to RMB 73,404,000, an increase of about 2.9%[76]. - The total equity attributable to owners remained stable at RMB 201,359,000 as of June 30, 2022, compared to RMB 207,521,000 at the end of the previous year[68]. Employee and Operational Information - The company employed 200 staff as of June 30, 2022, an increase from 171 staff as of December 31, 2021[46]. - Employee compensation for the period was RMB 9.7 million, down from RMB 12.1 million for the same period last year[46]. - The company invested approximately RMB 2.0 million in capital expenditures during the period, compared to RMB 5.1 million for the same period last year[37]. - The company has no major investments, acquisitions, or disposals of subsidiaries or associates as of the report date[40]. Market and Economic Conditions - The GDP growth in China for the first half of 2022 was only 2.5%, with the second quarter showing a mere 0.4% growth, posing challenges for economic recovery[10]. - The company is closely monitoring the impact of COVID-19 and is taking appropriate measures to minimize its effects on business[41]. - The company faces foreign exchange risks primarily related to deposits denominated in HKD, USD, and EUR, but has not engaged in any hedging activities during the period[45]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the provision regarding the dual role of the chairperson and CEO[59]. - The company maintained sufficient public float as per the listing rules during the reporting period[57]. - There were no share options granted, exercised, cancelled, or lapsed under the share option scheme since its adoption[54]. - The company has consistently applied the same accounting policies as in the previous financial year, with no significant impact from the adoption of new IFRS standards[84]. Shareholder Information - The percentage of shares held by major shareholders includes 30.98% by Advant Performance Limited and 10.34% by EEC Technology Limited[48]. - As of June 30, 2022, Advant Performance holds 153,031,609 shares, representing 30.98% of the company's equity[53]. - EEC Technology owns 51,075,015 shares, accounting for 10.34% of the company's equity[53].
迪诺斯环保(01452) - 2022 - 中期财报