Financial Performance - The unaudited consolidated revenue for the first half of 2022 increased by approximately RMB4,641 million or 61% to approximately RMB12,214 million compared to RMB7,573 million for the same period in 2021[8]. - The unaudited consolidated net profit for the first half of 2022 rose by approximately RMB415 million or 47% to approximately RMB1,304 million from RMB889 million in the first half of 2021[8]. - Revenue from urea sales increased by approximately RMB1,364 million or 66% to approximately RMB3,438 million, driven by a 23% increase in sales volume and a 35% increase in average selling price year on year[9]. - Revenue from urea solution for vehicles increased by approximately RMB54 million or 23% to approximately RMB290 million, with a 12% rise in average selling price and a 10% increase in sales volume year on year[10]. - Revenue from compound fertilisers surged by approximately RMB1,782 million or 90% to approximately RMB3,763 million, supported by a 31% increase in sales volume and a 45% increase in average selling price year on year[11]. - Profit for the period increased by approximately RMB415 million or 47% from RMB889 million in 1H2021 to RMB1,304 million in 1H2022, mainly due to an increase in gross profit and other income[34]. - Gross profit for the period was RMB 3,060,098, representing a 44.5% increase compared to RMB 2,117,960 in the prior year[86]. - Profit for the period reached RMB 1,304,459, up 46.6% from RMB 889,431 in the previous year[86]. Production and Capacity - The Group's production capacity reached a new milestone with the commissioning of the third production base in Jiangxi Jiujiang and upgrades to the second and third plants in Henan Xinxiang[8]. - The DMF Project at Jiangxi Base, with an annual output of 100,000 tons, is in trial production and expected to officially commence in Q3 2022[42]. - The Tianxin Coal Mine in Xinjiang Base has entered trial production, with safety production license expected by the end of 2022[42]. Cost and Expenses - Sales and distribution expenses increased by approximately RMB128 million or 33% from RMB383 million in 1H2021 to RMB511 million in 1H2022, primarily due to increased sales volume leading to higher employee salaries and commissions[30]. - General and administrative expenses rose by approximately RMB262 million or 64% from RMB407 million in 1H2021 to RMB669 million in 1H2022, mainly due to increased compensation for core technical talents and enhanced management capabilities[31]. - Finance costs increased by approximately RMB53 million or 19% from RMB282 million in 1H2021 to RMB335 million in 1H2022, attributed to higher amounts and average interest rates of interest-bearing borrowings[32]. - The cost of inventories sold rose to RMB 9,153,788 in 2022, up from RMB 5,455,087 in 2021, marking an increase of about 67.5%[120]. - Employee benefit expenses surged to RMB 1,043,537 in 2022, compared to RMB 593,423 in 2021, representing an increase of approximately 76%[120]. Financial Position - The gearing ratio improved to 70.98% as of June 30, 2022, down from 75.01% as of December 31, 2021, indicating better capital management[40]. - Net debt increased to approximately RMB15,808 million as of June 30, 2022, compared to RMB15,556 million as of December 31, 2021[40]. - Total capital increased to approximately RMB6,462 million as of June 30, 2022, up from RMB5,182 million as of December 31, 2021[40]. - Total liabilities increased to RMB 19,618,542 from RMB 17,545,291 as of December 31, 2021[90]. - Total equity increased to RMB 9,536,357,000 as of June 30, 2022, up from RMB 7,961,382,000, representing a growth of approximately 19.7% year-over-year[93]. Market Conditions - In the first half of 2022, global demand for chemical fertilizers was strong due to food security policies and the impacts of the Russia-Ukraine conflict, leading to high prices[42]. - The Group expects a decline in chemical fertilizer prices in the second half of 2022 due to off-season agricultural demand, but prices will be supported by tight supply conditions in the international energy and urea markets[42]. Shareholder Information - As of June 30, 2022, Ms. Yan Yunhua held 254,465,000 shares, representing approximately 20.74% of the Company's issued share capital[46]. - Pioneer Top Holdings Limited, a beneficial owner, held 413,007,999 shares, accounting for 33.63% of the Company's issued share capital[50]. Corporate Governance - The Company confirmed compliance with the Model Code for Securities Transactions by Directors, with all directors adhering to the required standards during the six months ended June 30, 2022[75]. - The Company has established written guidelines for relevant employees regarding securities transactions, with no incidents of non-compliance noted during the six months ended June 30, 2022[79]. - The Company has complied with all provisions of the Corporate Governance Code as of June 30, 2022[78]. Cash Flow and Investments - Cash flows generated from operations for the six months ended June 30, 2022, were RMB 1,808,832,000, an increase from RMB 1,462,959,000 in the same period of 2021, reflecting a growth of approximately 23.6%[96]. - The total cash flows used in investing activities were RMB 1,565,096,000, compared to RMB 1,681,465,000 in the previous year, indicating a decrease of about 6.9%[96]. - The company issued new shares worth RMB 56,500,000 during the reporting period[94]. Risk Management - The Group's major market risks include changes in average selling prices of key products and fluctuations in raw material costs, primarily coal[55]. - The Group maintains strict control over outstanding receivables, with overdue balances regularly reviewed by senior management, minimizing credit risk[139]. - The Group does not hold any collateral or other credit enhancements over its trade receivables, indicating a diversified customer base with no significant concentration of credit risk[139].
中国心连心化肥(01866) - 2022 - 中期财报