泰达生物(08189) - 2022 Q1 - 季度财报

Report Overview This section provides an overview of the company's information, disclaimer, and a summary of its quarterly financial performance Company Information and Disclaimer This report for Tianjin TEDA Biomedical Engineering Co., Ltd.'s Q1 2022 emphasizes GEM market investment risks and director responsibility for accuracy - The GEM market is positioned for small and medium-sized companies with higher investment risks compared to main board companies, requiring investors to understand potential risks and consider carefully[2] - Company directors jointly and individually assume full responsibility for the report's accuracy, completeness, and absence of misleading or fraudulent content[3] Quarterly Results Summary Q1 2022 saw significant year-on-year declines in turnover and gross profit, a shift from profit to loss, and a substantial increase in loss attributable to equity holders 2022 Q1 Key Financial Indicators Summary | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 89,195,530 | 124,407,625 | -28.30% | | Consolidated Gross Profit | 5,489,781 | 13,722,640 | -59.99% | | Loss attributable to equity holders of the Company | (6,043,544) | (165,625) | Loss widened | | Loss per share | 0.319 cents | 0.009 cents | Loss widened | - The Board of Directors does not recommend paying a dividend for the three months ended March 31, 2022[5] Unaudited Quarterly Results This section presents the unaudited consolidated income statement and detailed notes on the financial statements for the quarter Consolidated Income Statement In Q1 2022, the group experienced a significant year-on-year decline in revenue and gross profit, leading to a substantial increase in loss for the period 2022 Q1 Unaudited Consolidated Income Statement | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Revenue | 89,195,530 | 124,407,625 | | Cost of Sales | (83,705,749) | (110,684,985) | | Gross Profit | 5,489,781 | 13,722,640 | | Other income and losses, net | 26,569 | 140,814 | | Selling and distribution costs | (4,263,313) | (7,828,413) | | R&D and administrative expenses | (6,621,896) | (7,455,064) | | Finance costs | (742,591) | (73,225) | | Loss before tax | (6,111,450) | (1,493,248) | | Income tax | – | – | | Loss for the period | (6,111,450) | (1,493,248) | | Loss attributable to owners of the Company | (6,043,544) | (165,625) | | Non-controlling interests | (67,906) | (1,327,623) | | Loss per share – Basic (RMB) | (0.319) cents | (0.009) cents | Notes to Financial Statements This section details the basis of financial statement preparation, accounting policies, revenue breakdown, income tax treatment, loss per share calculation, and dividend policy - Financial statements are prepared on a historical cost convention and in accordance with Hong Kong Financial Reporting Standards, on a going concern basis[7] - Q1 2022 fertilizer product revenue decreased year-on-year, while elderly care and healthcare services revenue significantly increased year-on-year[8] - Income tax expenses for Hong Kong and China were zero during the period due to no taxable income or business[10] - Basic loss per share for Q1 2022 was RMB 0.319 cents, a significant increase from RMB 0.009 cents in the prior year[13] - The Board of Directors does not recommend paying an interim dividend for Q1 2022[14] Basis of Presentation and Accounting Policies Financial statements are prepared under historical cost convention, adhering to HKFRS and GEM Listing Rules, with no significant impact from new HKFRS applications - Financial statements are prepared under the historical cost convention and in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles in Hong Kong, the Hong Kong Companies Ordinance, and the disclosure requirements of the GEM Listing Rules[7] - The application of new Hong Kong Financial Reporting Standards had no significant impact on the Group's unaudited operating results and financial position[7] Revenue Analysis This section provides a breakdown of the Group's revenue by product category for the first quarter of 2022 and 2021 2022 Q1 Revenue Composition | Product Category | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Fertilizer products | 89,086,907 | 124,379,590 | | Elderly care and healthcare services | 108,623 | 28,035 | Income Tax This section details the applicable income tax rates in China and Hong Kong, and reconciles the loss before tax to the period's tax expense - The statutory corporate income tax rate in China is 25%, with high-tech enterprises (e.g., Guangdong Fulilong Compound Fertilizer Co., Ltd.) enjoying a preferential rate of 15%[9] - Income tax expenses for Hong Kong and China were zero during the period due to no taxable income or business[10] Reconciliation of Income Tax Expense to Loss Before Income Tax Expense | Indicator | 2022 Q1 (RMB thousands) | 2021 Q1 (RMB thousands) | | :--- | :--- | :--- | | Loss before income tax expense | (6,111) | (1,493) | | Tax calculated at corporate income tax rate of 25% | (1,528) | (373) | | Tax rate difference | 253 | 67 | | Impact of tax loss calculation | 1,275 | 306 | | Tax expense for the period | – | – | Loss Per Share This section outlines the calculation of basic loss per share for the first quarter of 2022 and 2021 Basic Loss Per Share Calculation | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | | :--- | :--- | :--- | | Loss for calculation of basic earnings per share | (6,043,544) | (165,625) | | Weighted average number of ordinary shares | 1,894,500,000 | 1,894,500,000 | | Basic loss per share | (0.319) cents | (0.009) cents | Dividends The Board of Directors has not recommended any interim dividend for the three months ended March 31, 2022 - The Board of Directors does not recommend paying an interim dividend for the three months ended March 31, 2022[14] Changes in Reserves The report includes a statement of changes in reserves, but the table format is unclear, making specific data interpretation difficult - The report contains a statement of changes in reserves, but the table content format is disorganized and difficult to interpret specific data[15] Management Discussion and Analysis This section provides management's perspective on the Group's business operations, financial performance, risk factors, and future strategic outlook Business Review The Group operates in biological compound fertilizers and elderly care services, with compound fertilizers as its core, while brainwave detection business development is slow - The Group is currently involved in two major business areas: biological compound fertilizer business and elderly care and healthcare business[16] - The elderly care and healthcare business focuses on individuals with severe cognitive impairment, offering operational management, resource integration, supervision, and consulting services, alongside developing assistive device leasing[16] - The brainwave detection business is developing slowly, and market expansion still requires time[16] Financial Review In Q1 2022, the Group's turnover, gross profit, and gross profit margin all significantly declined, leading to a substantial increase in loss attributable to owners 2022 Q1 Financial Performance Review | Indicator | 2022 Q1 (RMB) | 2021 Q1 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 89,195,530 | 124,407,625 | -28.30% | | Consolidated Gross Profit | 5,489,781 | 13,722,640 | -59.99% | | Consolidated Gross Profit Margin | 6.15% | 11.03% | -4.88% | | Loss attributable to owners of the Company | (6,043,544) | (165,625) | Loss widened | | Loss per share | 0.319 cents | 0.009 cents | Loss widened | Pledged Assets and Contingent Liabilities As of March 31, 2022, the Group's contingent liabilities for bank loan guarantees were zero RMB, a significant reduction from RMB 3,000,000 at December 31, 2021 - As of March 31, 2022, contingent liabilities were RMB zero, a significant decrease from RMB 3,000,000 as of December 31, 2021[18] Foreign Currency Risk The Group faces minimal foreign currency risk as all sales and payments are settled in RMB - The Group faces minimal foreign currency risk as all sales are domestic sales settled in RMB, and all payments to suppliers are also settled in RMB[19] Treasury Policy The Group's bank borrowings are denominated in RMB, typically renewed annually, with cash balances held in licensed Chinese banks - The Group's bank borrowings are denominated in RMB and generally renewed annually upon maturity[20] - Any cash balances are deposited in licensed banks in China[20] Future Outlook The Group anticipates a recovery in the compound fertilizer market and plans to optimize product structure, while expanding elderly care services through a light-asset model - The rapid increase in raw material prices for compound fertilizers may have ended, with the market expected to gradually recover; the company will strengthen marketing, adjust product structure, and promote efficient, intelligent production[21] - China's aging population highlights the elderly care service industry as a "sunrise industry" with great potential; the Group will primarily adopt a light-asset operating model, enhance professional capabilities, and vigorously develop assistive device leasing services[22] Directors, Supervisors and Major Shareholders' Interests This section details the shareholdings of directors, supervisors, and major shareholders, and confirms the absence of competing interests or share option schemes Directors' and Supervisors' Interests in Shares As of March 31, 2022, Ms. Sun Li indirectly held 15.83% of the company's shares, with no other directors disclosing interests or share option arrangements - Ms. Sun Li holds a long position of 300,000,000 ordinary shares, representing 15.83% of the issued share capital, indirectly held through Shenzhen Xiangyong Investment Co., Ltd. and Dongguan Luye Fertilizer Co., Ltd[23] - Except for Ms. Sun Li, as of March 31, 2022, no other directors, supervisors, or senior executives of the Company held any interests in the securities, related shares, and debentures of the Company or its associated corporations that needed to be disclosed to the Company and the Stock Exchange[24] - During the review period, neither the Company, its subsidiaries, nor its holding company entered into any arrangements that would allow the Company's directors and supervisors, or their respective spouses or children under 18, to profit from purchasing the Company's shares[25] Major Shareholders This report lists major shareholders holding over 5% of the company's shares as of March 31, 2022 Major Shareholders' Shareholding (as of March 31, 2022) | Shareholder Name/Company | Capacity | Number of Ordinary Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Tianjin Economic-Technological Development Area State-owned Assets Management Co., Ltd. | Beneficial owner | 182,500,000 | 9.63% | | Shenzhen Xiangyong Investment Co., Ltd. | Beneficial owner | 180,000,000 | 9.50% | | Guangdong Jiamei Ecological Technology Co., Ltd. | Beneficial owner | 180,000,000 | 9.50% | | Dongguan Luye Fertilizer Co., Ltd. | Beneficial owner | 120,000,000 | 6.33% | - All shares are domestic shares[26] Other Important Matters This section covers the SJKGC profit guarantee, competing interests, audit committee activities, share option schemes, management contracts, and corporate governance practices SJKGC Profit Guarantee Background and Status After acquiring SJKGC, the company faced unfulfilled profit guarantees for 2018 and 2019, leading to arbitration and revised settlement agreements - The Company acquired a 51% equity interest in SJKGC in 2016, with SJK guaranteeing SJKGC's audited after-tax profit for each of the three fiscal years 2017, 2018, and 2019 would be no less than USD 5,390,000[28][29] - The 2017 profit guarantee was not met, and SJK fulfilled its commitment by paying a cash dividend of USD 2,750,000[29] - The 2018 and 2019 profit guarantees were not met, and as of now, SJK has not paid the guaranteed cash dividends to the Company[30] - The Company initiated arbitration proceedings at the Hong Kong International Arbitration Centre on September 3, 2019, and revised the "Settlement Agreement" and related agreements in 2020 and 2021[30] Competing Interests For the three months ended March 31, 2022, no directors, supervisors, or management shareholders had competing interests with the Group's business - For the three months ended March 31, 2022, no directors, supervisors, or management shareholders of the Company and their respective associates had or might have any competing interests with the Group's business, or any other conflicts of interest with the Group[31] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviews financial reporting, external audit, internal controls, and has reviewed the quarterly results - The Audit Committee comprises three independent non-executive directors: Mr. Li Xudong (Chairman), Mr. Wang Yongkang, and Ms. Gao Chun[32] - The committee's primary responsibilities include reviewing and overseeing the Group's financial reporting process, and examining the effectiveness of external audits, internal controls, and risk assessments[32] - The Audit Committee has reviewed the Group's first quarterly results and first quarterly report for the three months ended March 31, 2022[32] Share Option Scheme No new share option schemes were approved by the company during the period ended March 31, 2022 - No new share option schemes were approved by the Company during the period ended March 31, 2022[33] Management Contracts No management contracts for the overall business or any major business were entered into or existed during the period ended March 31, 2022 - No contracts concerning the management or administration of the Company's overall business or any major business were entered into or existed during the period ended March 31, 2022[34] Purchase, Sale or Redemption of Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's shares during the review period - The Company did not redeem any of its shares during the review period; neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period ended March 31, 2022[35] Corporate Governance Practices The Board and management are committed to complying with the GEM Listing Rules' Corporate Governance Code and believe full compliance was achieved during the review period - The Company's Board of Directors and management are consistently committed to implementing the provisions of the Corporate Governance Code contained in Appendix 15 of the GEM Listing Rules within the Group[36] - The Directors believe that the Company has complied with all Code provisions during the review period[36]