Financial Performance - For the six months ended June 30, 2022, the Group's revenue increased by 28.2% to US$81.21 million compared to US$63.37 million in the same period of 2021[6] - The loss attributable to shareholders was US$4.98 million in 1H22, a decline from a profit of US$6.72 million in 1H21, primarily due to a significant drop in profits from ECI Metro[7] - Basic and diluted earnings per share were negative 1.97 US cents in 1H22, compared to positive 2.65 US cents in 1H21[8] - Revenue for the six months ended June 30, 2022, was US$81,211,000, an increase of 28.1% compared to US$63,369,000 in the same period of 2021[59] - Gross profit for the period was US$19,127,000, up 16.4% from US$16,414,000 in the previous year[59] - The company reported a loss before tax of US$2,891,000, compared to a profit of US$8,799,000 in the same period of 2021[59] - Total comprehensive income for the period was a loss of US$15,424,000, compared to a gain of US$10,110,000 in the same period of 2021[62] - The company reported a loss of US$4,984,000 for the six months ended June 30, 2022, compared to a profit of US$6,724,000 for the same period in 2021[81] Revenue Sources - Revenue contribution from different regions included 40.5% from China, 24.3% from the Americas, 20.4% from Asia Pacific (excluding China), and 14.8% from other regions[15] - The Group's strategic expansion into related veterinary products contributed to revenue growth in China amid softening demand for CTC products[17] - Despite logistical challenges from the COVID-19 pandemic, the Group achieved solid revenue growth through targeted marketing and increased overseas sales, particularly in North America[16] - Revenue from Mainland China was US$32,905,000, up from US$32,069,000 in 2021, representing a growth of 2.6%[127] Cost and Profitability - The overall gross profit margin declined from 25.9% in 1H21 to 23.6% in 1H22, impacted by rising raw material and energy costs[18] - The Group's cost of inventories sold for the six months ended June 30, 2022, was US$62,084,000, an increase of 32.2% from US$46,955,000 in 2021[142] - The Group reported a total asset value of US$365,216,000 as of June 30, 2022[125] Cash Flow and Financing - The Group's cash and cash equivalents were US$28.3 million as of 30 June 2022, a decrease of US$2.8 million compared to US$31 December 2021[34] - Total borrowings amounted to US$43.8 million as of 30 June 2022, an increase from US$42.6 million as of 31 December 2021[38] - Cash generated from operations for the six months ended June 30, 2022, was $3,037,000, compared to a cash used in operations of $(9,625,000) for the same period in 2021, representing a significant turnaround[85] - Net cash flows generated from operating activities were $1,937,000 for the first half of 2022, compared to $(10,629,000) in the prior year, indicating improved operational efficiency[85] Assets and Liabilities - Total non-current assets decreased to US$225,261,000 as of June 30, 2022, from US$240,738,000 as of December 31, 2021[66] - Current liabilities increased to US$73,280,000 as of June 30, 2022, compared to US$59,155,000 at the end of 2021[66] - Net assets decreased to US$262,065,000 as of June 30, 2022, down from US$283,523,000 as of December 31, 2021[69] - The total liabilities of the Group were US$81,693,000 as of June 30, 2022[125] Employee and Operational Insights - The Group employed around 1,000 employees in mainland China and Hong Kong as of 30 June 2022[43] - The Group operates in two segments: the biochemical segment, focusing on chlortetracycline and related products, and the industrial segment, which includes machinery trading and automotive parts manufacturing[98] Related Party Transactions - Sales of goods to C.P. Pokphand Co., Ltd. and its subsidiaries totaled US$1,103,000 for the six months ended June 30, 2022, down from US$1,365,000 in the same period of 2021, representing a decrease of approximately 19.2%[188] - Related party transactions were conducted at prices no more favorable than those offered to independent third-party customers, ensuring compliance with market standards[191] Future Outlook - The Group expects continued challenges in the biochemical business due to ongoing economic pressures from the COVID-19 pandemic[27] - Fixed-asset investment growth in China is anticipated to remain low for the remainder of 2022, with intensified competition expected[27]
正大企业国际(03839) - 2022 - 中期财报