Financial Position - As of June 30, 2023, the company reported non-current assets of RMB 822,984,000, an increase from RMB 769,340,000 as of December 31, 2022, representing a growth of approximately 6.96%[13] - The company's current assets totaled RMB 921,838,000 as of June 30, 2023, compared to RMB 909,293,000 at the end of 2022, indicating a slight increase of about 1.8%[13] - Total liabilities as of June 30, 2023, were RMB 921,718,000, up from RMB 780,326,000 at the end of 2022, reflecting an increase of approximately 18.1%[13] - The company reported a net asset value of RMB 602,339,000 as of June 30, 2023, which is consistent with RMB 602,620,000 reported at the end of 2022, showing stability in equity[14] - The company’s total equity remained stable at RMB 602,339,000 as of June 30, 2023, compared to RMB 602,620,000 at the end of 2022, reflecting no significant changes in shareholder equity[14] - As of June 30, 2023, total borrowings amounted to approximately RMB 739.7 million, an increase from RMB 655.9 million as of December 31, 2022[95] - The group's debt-to-equity ratio increased to 122.8% as of June 30, 2023, from 108.8% as of December 31, 2022, primarily due to increased bank borrowings during the period[113] Revenue and Profitability - For the six months ended June 30, 2023, the company recorded revenue of approximately RMB 1,476.1 million, a decrease of 7.6% compared to RMB 1,598.1 million in the same period of 2022[39] - The decline in revenue was primarily due to a significant drop in market prices for self-produced animal nutrition products, leading to decreased sales in mainland China[39] - The total comprehensive income for the six months ended June 30, 2023, was RMB (281) thousand, compared to RMB 168,054 thousand for the same period in 2022[19] - The company reported a profit of RMB 881 thousand for the six months ended June 30, 2023, compared to a profit of RMB 170,804 thousand for the same period in 2022[19] - Gross profit for the six months ended June 30, 2023, was approximately RMB 166.6 million, down from RMB 377.1 million for the same period in 2022, resulting in a gross margin of 11.3% compared to 23.6%[57][65] - The company recorded a profit of approximately RMB 0.9 million for the six months ended June 30, 2023, a significant decrease from RMB 170.8 million for the same period in 2022[70] Operational Performance - The company’s trade receivables increased to RMB 221,892,000 as of June 30, 2023, from RMB 219,351,000 at the end of 2022, marking a growth of approximately 1.1%[13] - The company’s inventory stood at RMB 360,425,000 as of June 30, 2023, slightly up from RMB 359,140,000 at the end of 2022, indicating a marginal increase of about 0.36%[13] - The company incurred a net cash outflow from investing activities of RMB 99,948 thousand for the six months ended June 30, 2023, compared to RMB 104,735 thousand in the same period of 2022[19] - The company raised new borrowings of RMB 265,152 thousand during the six months ended June 30, 2023, compared to RMB 253,516 thousand in the same period of 2022[19] - The company’s capital expenditure amounted to approximately RMB 24.0 million, an increase from RMB 17.0 million as of December 31, 2022, primarily for the purchase of machinery and equipment[122] Market Conditions - The overall financial performance was impacted by a downturn in the domestic and global chemical intermediate markets, driven by a decline in the real estate market and rising interest rates[38] - Despite a 50% increase in sales volume of choline chloride, the gross profit and gross margin decreased by approximately 45% and 10%, respectively, due to oversupply in the market and declining prices[50] - The company anticipates that the termination of paraxylene sales since July 2022 will narrow the profit margins from this product line[39] - The global iodine market prices remained at historical highs during the period, but the company could not expand gross margins through strategic procurement plans[50] Corporate Governance - The board of directors resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[8] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023[7] - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[143] - The company confirmed compliance with all corporate governance codes except for the separation of the Chairman and CEO roles, which is under review[166] - Mr. Yin holds approximately 55.31% of the company's issued share capital, making him the controlling shareholder[159] Employee and Administrative Expenses - The total employee cost for the six months ended June 30, 2023, was approximately RMB 62.2 million, compared to RMB 59.5 million for the same period in 2022, with a total of 1,108 employees as of June 30, 2023, up from 969 in 2022[125] - Administrative expenses increased from approximately RMB 53.4 million to approximately RMB 56.7 million, primarily due to increased feasibility study costs for potential expansion plans[87] Research and Development - Research and development expenses are recognized as incurred, reflecting the nature of the activities aimed at improving production efficiency and developing production equipment[88] - Research and development expenses decreased from approximately RMB 359 million for the six months ended June 30, 2022, to approximately RMB 318 million for the six months ended June 30, 2023, due to completed production technology enhancement projects[106] Cash Flow and Liquidity - As of June 30, 2023, the net cash generated from operating activities was RMB 26,987 thousand, a significant improvement from a net cash outflow of RMB 86,550 thousand in the same period of 2022[19] - The company maintained a prudent treasury policy, ensuring a good liquidity position throughout the period, with a focus on continuous credit reviews of customers to mitigate credit risk[120] - As of June 30, 2023, the company had restricted bank deposits of approximately RMB 49.0 million, up from RMB 33.9 million as of December 31, 2022[142] Future Plans and Investments - The company plans to fund future acquisitions through internal funds and other fundraising activities, including issuing new debt or equity instruments[147] - The group has invested approximately RMB 10 million in acquiring land use rights in Vietnam to expand production capacity for choline chloride and iodine derivatives[109] - The company has no major investments or capital asset plans for the coming year, aside from those disclosed in the prospectus[129]
GHW INTL(09933) - 2023 - 中期财报