Financial Performance - The Group's revenue increased by 33.4% or RMB 282.9 million to RMB 1,129.9 million for the Reporting Period, compared to RMB 847.0 million for the six months ended June 30, 2021[8]. - Gross profit increased by RMB 34.7 million to RMB 192.2 million, while the gross profit margin slightly decreased from 18.6% to 17.0% due to increased purchase costs[9]. - Net profit decreased by approximately RMB 13.4 million to RMB 61.9 million, primarily due to increased sales and administration expenses related to market promotion and research and development activities[10]. - Basic earnings per share amounted to RMB 0.03049 for the Reporting Period, down from RMB 0.04450 for the six months ended June 30, 2021[11]. - Diluted earnings per share also decreased to RMB 0.03048 from RMB 0.04450 in the previous period[12]. - Revenue for the six months ended June 30, 2022, was RMB 1,129.9 million, an increase of 33.4% from RMB 847.0 million in the same period of 2021[18]. - Gross profit for the same period was RMB 192.2 million, representing a 22% increase compared to RMB 157.5 million in 2021[18]. - The profit before tax decreased to RMB 78.6 million, down 14.3% from RMB 91.7 million in the previous year[18]. - The net profit margin for the period was 5.5%, a decrease from 8.9% in the previous year[18]. Revenue Sources - Revenue from sales of Human Albumin Solution increased by approximately RMB 322.0 million, while revenue from sales of antibiotics decreased by approximately RMB 41.6 million[8]. - Revenue from Human Albumin Solution was RMB 1,127.4 million, an increase of approximately 40% or RMB 322.0 million compared to the first half of 2021, driven by increased supply and sales volume[45]. - The Group temporarily halted sales of antibiotics due to adverse market demand from the ongoing COVID-19 pandemic, with plans to develop new sales channels for these products[49]. Expenses and Costs - Increased research and development expenses on aesthetic medicine contributed to the rise in overall expenses during the Reporting Period[10]. - The overall financial results indicate a need for careful management of costs to improve profitability moving forward[10]. - The Group recorded administrative expenses of RMB 37.3 million, an increase of RMB 19.9 million compared to the same period in 2021[58]. - The Group's selling and distribution expenses were approximately RMB 67.8 million, an increase of RMB 32.9 million compared to the corresponding period in 2021, mainly due to higher marketing promotion expenses[57]. Assets and Liabilities - The total assets as of June 30, 2022, were RMB 1,603.4 million, up 30% from RMB 1,232.8 million at the end of 2021[18]. - The total liabilities increased to RMB 1,007.1 million, a rise of 17.4% from RMB 857.9 million at the end of 2021[18]. - Inventory balances decreased to RMB 45.2 million from RMB 61.3 million at the end of 2021, a reduction of RMB 16.1 million due to lower inventory of human albumin solution[67]. - Trade receivables increased to RMB 228.5 million from RMB 213.2 million at the end of 2021, an increase of RMB 15.3 million due to higher sales[69]. - Trade and bills payables increased to RMB 568.3 million from RMB 422.9 million at the end of 2021, an increase of RMB 145.4 million driven by increased purchases[79]. Cash Flow and Financing - Net cash from operating activities increased to approximately RMB 87.7 million for the six months ended June 30, 2022, compared to RMB 81.7 million for the same period in 2021[88]. - Net cash used in investing activities rose significantly to RMB 90.0 million, up from RMB 1.6 million in the prior year, primarily due to the acquisition of Demei Company for RMB 68.0 million[89]. - Net cash from financing activities increased to RMB 124.6 million, compared to RMB 44.8 million in the same period last year, driven by net proceeds from bank borrowings of RMB 160.0 million[90]. - Cash and cash equivalents at the end of the period totaled RMB 456.7 million, an increase from RMB 267.0 million at the end of the previous year[87]. Strategic Initiatives - The Group's financial performance reflects a strategic focus on expanding sales channels and enhancing product offerings in the medical beauty sector[10]. - The Group acquired a 70% equity interest in Demei Company in May 2022, enhancing its capabilities in the medical beauty services sector[36]. - The research and development of the first medical beauty product, "Girl Needle," is progressing well, with pilot production expected to start in the second half of the year[42]. - The Group aims to develop a series of "PCL+X" products based on polycaprolactone raw materials to expand its medical aesthetics product line[42]. Corporate Governance and Compliance - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions under the Corporate Governance Code during the Reporting Period[149]. - The Group complied with all applicable laws and regulations of the Cayman Islands, British Virgin Islands, Hong Kong, and the PRC during the Reporting Period[145]. - The Audit Committee reviewed the unaudited condensed interim results of the Group for the Reporting Period[159]. Shareholder Information - The Board resolved not to declare any interim dividend for the Reporting Period, consistent with the previous year[13]. - As of June 30, 2022, Mr. Huang holds 1,050,000,000 shares, representing 51.65% of the total shares issued, which amounts to 2,032,890,585 shares[167][170]. - Mr. Jin Min, a beneficial owner, holds 13,680,000 shares, accounting for approximately 0.67% of the total shares[167]. - The Share Option Scheme, effective from March 10, 2016, allows for the issuance of up to 160,000,000 shares, which is 7.87% of the issued share capital as of the report date[185]. Employee and Labor Relations - The Group had a total of 133 employees as of June 30, 2022[122]. - The Group's employee remuneration policy considers local market remuneration, industry standards, inflation, and employee performance[123]. - The Group did not experience major difficulties in recruitment or significant labor disputes during the reporting period[128].
兴科蓉医药(06833) - 2022 - 中期财报