Financial Performance - For the six months ended June 30, 2023, the Group's revenue increased by 2.0% to US$82.81 million compared to US$81.21 million in the same period of 2022[5]. - Profit attributable to shareholders was US$2.03 million, a turnaround from a loss of US$4.98 million in 1H22, primarily due to improved performance in the industrial business[6]. - Basic and diluted profit per share were both 0.80 US cents, compared to a loss of 1.97 US cents in 1H22[7]. - Profit before tax for the period was $2,705,000, compared to a loss of $2,891,000 in 2022[49]. - Profit for the period was $2,281,000, a significant recovery from a loss of $3,940,000 in the same period last year[52]. - The profit for the period is US$2,027,000, compared to a loss of US$4,984,000 in the same period last year[66]. - Total comprehensive income for the period was a loss of $8,000,000, an improvement from a loss of $15,424,000 in the previous year[52]. Revenue Composition - Revenue contribution from CTC products decreased from 57% in 1H22 to 48% in 1H23, while revenue from animal health products and other segments increased from 43% to 52%[13]. - Segment revenue for the biochemical operations reached US$82,810,000, an increase from US$81,211,000 in the same period last year, representing a growth of 1.97%[121]. - Revenue from mainland China was US$45,094,000, significantly up from US$32,905,000 in the previous year, marking an increase of 37%[115]. Assets and Liabilities - As of June 30, 2023, the Group's total assets were US$346.5 million, a decrease of 1.2% from US$350.6 million as of December 31, 2022[22]. - Total liabilities were US$98,722,000, with unallocated corporate liabilities at US$66,335,000[101]. - Net debt increased to US$22.7 million as of June 30, 2023, compared to US$18.2 million as of December 31, 2022, resulting in a debt-to-equity ratio of 0.09, up from 0.07[22]. - Non-current assets decreased to $212,649,000 from $221,263,000 as of December 31, 2022[56]. - Current assets increased to $133,825,000 from $129,322,000 at the end of 2022[56]. Cash Flow and Investments - Cash flows from operating activities resulted in a net outflow of US$3,152,000, a decline from a net inflow of US$1,937,000 in the previous year[68]. - The net cash flows used in investing activities amounted to US$2,656,000, compared to US$7,766,000 in the same period last year[68]. - Proceeds from bank borrowings increased significantly to US$47,801,000 from US$18,722,000 in the previous year[68]. - The Company reported a retained profit of US$176,075,000 as of June 30, 2023, up from US$174,094,000 at the beginning of the year[62]. Corporate Governance - The interim financial report for the six months ended June 30, 2023, was reviewed by KPMG, confirming compliance with relevant standards[190]. - The Company has maintained compliance with the Corporate Governance Code throughout the reporting period[188]. - All Directors confirmed compliance with the Code of Conduct for Securities Transactions during the six months ended June 30, 2023[189]. - The audit committee has also reviewed the interim report for the six months ended June 30, 2023[196]. Employment and Operations - The Group employed approximately 1,000 employees in Mainland China and Hong Kong as of June 30, 2023[33]. - The Group operates in two reportable segments: the biochemical segment, which focuses on the manufacture and sale of chlortetracycline and related products, and the industrial segment, which involves trading machinery and manufacturing automotive parts through joint ventures and associates[91]. Market Outlook - The outlook for the biochemical business remains cautious due to economic recovery uncertainties and intensified competition[21]. - The outlook for the remainder of 2023 remains cautious due to economic recovery uncertainties and intensified competition in the biochemical business[26]. - The Group plans to continue expanding its animal health and trading businesses in response to changing market dynamics[14].
正大企业国际(03839) - 2023 - 中期财报