Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 5,814,428, an increase of 2.01% from RMB 5,699,494 in 2021[4] - Gross profit for the same period was RMB 725,479, representing a significant increase of 84.67% compared to RMB 393,215 in 2021[4] - Operating profit reached RMB 445,206, up 99.00% from RMB 223,651 in the previous year[4] - Profit before income tax was RMB 452,654, an increase of 106.67% from RMB 219,715 in 2021[4] - Profit and total comprehensive income for the period was RMB 364,695, compared to RMB 174,707 in 2021, marking a growth of 108.67%[4] - Earnings per share attributable to owners of the Company increased to RMB 0.0438 from RMB 0.0249, reflecting a growth of 75.50%[4] Assets and Equity - Total assets as of June 30, 2022, amounted to RMB 5,157,297, an increase from RMB 4,719,159 at the end of 2021[6] - Current assets increased to RMB 2,654,513 from RMB 2,197,648, showing a growth of 20.73%[6] - Total equity attributable to owners of the Company was RMB 3,505,411, up from RMB 3,277,963 at the end of 2021[8] - Non-controlling interests increased to RMB 228,660 from RMB 214,059, indicating a growth of 6.25%[8] - As of June 30, 2022, total equity increased to RMB 3,734,071,000, up from RMB 3,492,022,000 at the beginning of the year, reflecting a growth of approximately 6.9%[10] Cash Flow and Financing - The net cash outflow from operating activities for the six months ended June 30, 2022, was RMB 139,002,000, an improvement compared to RMB 207,355,000 in the same period of 2021[12] - Cash and cash equivalents decreased to RMB 792,185,000 as of June 30, 2022, from RMB 1,000,977,000 at the beginning of the year, indicating a reduction of approximately 21%[12] - The net cash outflow from investing activities was RMB 62,666,000, significantly lower than RMB 229,600,000 in the previous year, showing a reduction of about 72.7%[12] - Proceeds from borrowings amounted to RMB 180,831,000, while repayments totaled RMB 100,000,000, resulting in a net inflow from financing activities of RMB 7,124,000[12] - The Group's total liabilities decreased from RMB 416,302,000 as of December 31, 2021, to RMB 350,647,000 as of June 30, 2022[72] Research and Development - Research expenses significantly increased to RMB 151,496 in the first half of 2022, compared to RMB 22,607 in the same period of 2021, indicating a focus on innovation and development[23][24] - The Group's commitment to research and development is expected to enhance its competitive position in the cornstarch and corn-refinery industry[96] - The business performance of new biobased materials was stable, with plans to allocate more resources to R&D for better production experience[103] Market Performance - Total sales to external customers for the six months ended June 30, 2022, amounted to RMB 5,814,428, a decrease of 6.5% compared to RMB 5,699,494 for the same period in 2021[17] - The domestic market showed strong demand for lysine products, supported by a reduction in global supply and robust animal feed market demand[98] - The Group faced challenges in the starch-based sweetener segment due to excessive production capacity in the PRC, but efforts were made to expand market share[98] - Modified starch sales volume significantly decreased due to city sewage reduction measures impacting production[98] Expenses and Cost Management - Unallocated expenses for the first half of 2022 were RMB 64,840, compared to RMB 182,161 in the same period of 2021, showing improved cost management[17] - Distribution expenses decreased to RMB 85,501,000 from RMB 91,532,000 due to the use of bulk cargo delivery and more customers picking up goods[125] - Administrative expenses increased to RMB 104,325,000 from RMB 97,934,000, primarily due to higher staff costs and government levies[130] - Staff costs for the six months ended June 30, 2022, were approximately RMB 125,578,000, up from RMB 109,981,000 in 2021, reflecting an increase in workforce[146] Taxation - Current income tax for the six months ended June 30, 2022 was RMB 104,378,000, significantly higher than RMB 32,079,000 in 2021, reflecting a substantial increase in tax expenses[27] - The Group's effective tax rate for PRC subsidiaries was 25%, with one subsidiary benefiting from a preferential rate of 15%[27] Dividends - The final dividend for 2022 was recorded at RMB 34,882,000, compared to RMB 44,941,000 for 2021, indicating a decrease of approximately 22.3%[10] - The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2022, while a final dividend of HK0.69 cents per share was declared for 2021[46] Governance and Compliance - The Company complied with the Corporate Governance Code during the six months ended 30 June 2022, except for the absence of Mr. Tian Qixiang at the annual general meeting[164] - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended 30 June 2022[168] - The interim financial statements reflect the Company's commitment to maintaining high standards of governance and transparency[168]
中国淀粉(03838) - 2022 - 中期财报