Financial Performance - For the six months ended June 30, 2022, the group's sales revenue increased by approximately 8.99% compared to the same period in 2021, reaching RMB 3,014,688 thousand[4]. - The profit attributable to the owners of the company for the same period rose by approximately 0.91%, amounting to RMB 318,322 thousand[4]. - The earnings per share attributable to the owners of the company for the six months ended June 30, 2022, was RMB 0.25[4]. - The total comprehensive income for the period was RMB 578,553 thousand, compared to RMB 443,953 thousand in the previous year, reflecting a significant increase[7]. - The company's total assets as of June 30, 2022, were RMB 12,353,189 thousand, up from RMB 11,593,866 thousand at the end of the previous year[9]. - The total liabilities of the company increased to RMB 3,944,960 thousand from RMB 3,435,464 thousand at the end of the previous year, indicating a rise in financial obligations[9]. - Operating cash flow increased to RMB 621,389 thousand from RMB 566,705 thousand, representing a growth of approximately 9.5% year-over-year[11]. - Net cash flow from operating activities reached RMB 531,447 thousand, up from RMB 470,016 thousand, indicating a year-over-year increase of about 13.0%[11]. - The total equity attributable to shareholders as of June 30, 2022, was RMB 8,158,402 thousand, compared to RMB 7,278,958 thousand at the beginning of the year, showing an increase of approximately 12.1%[12]. - The company's financial income for 2022 was RMB 18,936,000, compared to RMB 14,880,000 in 2021, reflecting an increase of 27.5%[24]. - The net financial expenses decreased to RMB 9,324,000 in 2022 from RMB 14,576,000 in 2021, indicating a reduction of 36.5%[24]. - The total tax expense for the first half of 2022 was RMB 102,012,000, a decrease of 3.3% from RMB 105,736,000 in the same period of 2021[27]. Assets and Liabilities - Inventory as of June 30, 2022, was RMB 2,994,092 thousand, compared to RMB 2,847,116 thousand at the end of the previous year, indicating an increase in stock levels[8]. - Cash and cash equivalents decreased to RMB 2,671,707 thousand from RMB 3,246,159 thousand at the end of the previous year, showing a reduction in liquidity[9]. - Non-current assets, including property, plant, and equipment, totaled RMB 2,585,705 thousand as of June 30, 2022, slightly down from RMB 2,614,731 thousand at the end of the previous year[8]. - As of June 30, 2022, accounts receivable and notes totaled RMB 1,597,937 thousand, an increase from RMB 1,256,651 thousand as of December 31, 2021, representing a growth of approximately 27.2%[32]. - Accounts payable as of June 30, 2022, amounted to RMB 814,933 thousand, a decrease from RMB 893,714 thousand as of December 31, 2021, reflecting a decline of approximately 8.8%[36]. - The company's net accounts receivable and notes stood at RMB 1,528,166 thousand as of June 30, 2022, compared to RMB 1,193,165 thousand as of December 31, 2021, indicating a significant increase of approximately 28.1%[32]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022[4]. - Major shareholder, Tong Ren Tang Holdings, holds 600,000,000 shares, representing 92.01% of domestic shares and 46.85% of total voting shares[93]. - The total shares held by major shareholders amount to 617,877,000, accounting for 93.46% of domestic shares and 48.24% of total voting shares[93]. Market and Product Development - The company plans to continue expanding its market presence and investing in new product development to drive future growth[12]. - New products such as Guanxin Suhe Pills and Jiawei Xiaoyao Pills were introduced to meet market demand during the reporting period[59]. - The company is actively expanding its marketing channels and enhancing product promotion through e-commerce platforms like JD and Alibaba, resulting in improved product exposure and consumer awareness[61]. - The company plans to open brand stores in the global duty-free trade channels, leveraging its new subsidiary established in Hainan[63]. - The company is committed to ongoing research and development of existing products, focusing on enhancing their core value and safety evaluations for classic formulas[61]. - The company achieved sales revenue exceeding RMB 100 million for five products and RMB 10 million for nine products during the reporting period[61]. - Sales revenue for the Six Flavor Rehmannia Pill series increased by 17% year-on-year, while the Jiawei Xiaoyao Pill series saw a 66% increase[61]. Challenges and Adjustments - The company faced challenges such as material supply difficulties and employee isolation due to pandemic policies, impacting the overall production and value of traditional Chinese medicine[58]. - The company has implemented production adjustments and emergency plans to ensure continuous supply of medicines amid the pandemic[59]. - The company has faced challenges due to the pandemic, impacting production and supply, but has managed to reverse the declining trend in core markets[63]. Compliance and Governance - The financial data presented is unaudited and prepared in accordance with International Accounting Standards, ensuring compliance with relevant regulations[15]. - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2022, and found no issues with the accounting treatment[90]. - The company has adopted a set of standards for securities transactions by directors and supervisors, ensuring compliance with regulations[83]. - Independent non-executive directors will review compliance with non-competition commitments at least annually[97]. Research and Development - Research and development expenses reached RMB 2,695.4 million, representing 0.89% of revenue, up from 0.49% in the previous year[74]. - The company focuses on developing four main product types: granules, water honey pills, tablets, and soft capsules[97].
同仁堂科技(01666) - 2022 - 中期财报