Financial Performance - For the six months ended June 30, 2022, the company's revenue was approximately RMB 114.6 million, a slight increase of 0.1% compared to RMB 114.5 million for the same period in 2021[8]. - Gross profit for the same period was RMB 77.2 million, up from RMB 70.0 million in 2021, reflecting a gross margin increase from 61.2% to 67.4%[13]. - Profit before tax increased to RMB 58.6 million from RMB 49.4 million, indicating a strong operational performance despite market challenges[8]. - Net profit attributable to the owners of the company was RMB 44.9 million, representing a 22.0% increase from RMB 36.8 million in the previous year[8]. - Operating profit increased to RMB 59,416 thousand, up from RMB 52,279 thousand year-over-year, reflecting a growth of approximately 13.4%[115]. - The company reported a basic and diluted earnings per share of RMB 0.04, down from RMB 0.05 in the previous year[115]. - Total assets as of June 30, 2022, amounted to RMB 676,948 thousand, an increase from RMB 622,664 thousand as of December 31, 2021[120]. - Total liabilities increased to RMB 259,969 thousand from RMB 234,480 thousand at the end of the previous year, indicating a rise of approximately 10.9%[123]. - Cash and cash equivalents decreased significantly to RMB 109,844 thousand from RMB 235,593 thousand at the end of 2021, reflecting a decline of about 53.4%[120]. Revenue Breakdown - Revenue from gold mine hazardous waste treatment services decreased by approximately 21.4% year-on-year, from about RMB 50.0 million to approximately RMB 39.3 million[37]. - Sales of recycled products accounted for 59.4% of total revenue, increasing from 49.9% in the previous year[32]. - Revenue from hazardous waste treatment services decreased to RMB 39,315 thousand in the first half of 2022, down 21.4% from RMB 50,045 thousand in the same period of 2021[184]. - Revenue from the sale of recycled products increased to RMB 68,009 thousand in the first half of 2022, up 19.0% from RMB 57,161 thousand in the same period of 2021[184]. - Major customer A contributed RMB 30,330 thousand to total revenue in the first half of 2022, an increase from RMB 23,784 thousand in the same period of 2021[199]. Operational Developments - The company is focusing on the research and development of gold tailings resource recovery technologies, collaborating with Yantai University on low-carbon recovery techniques[14]. - The project on the recovery of sulfur iron resources from gold tailings received a second-class award from the China Environmental Protection Federation for technological progress[14]. - The new product production line is expected to start operations around Q2 2023, with an annual capacity of approximately 240,000 tons[18]. - The company plans to establish a resource comprehensive research laboratory to foster innovation in resource utilization[27]. Financial Management - The company's financing costs netted approximately RMB 0.9 million for the six months ended June 30, 2022, a decrease of about 69.0% from RMB 2.9 million for the same period in 2021[47]. - Income tax expenses rose to approximately RMB 13.6 million for the six months ended June 30, 2022, up about 7.9% from RMB 12.6 million for the same period in 2021[54]. - The actual tax rate decreased from approximately 25.4% for the six months ended June 30, 2021, to about 23.3% for the same period in 2022, mainly due to a reduction in tax losses[54]. - The company reported a net cash inflow from financing activities of RMB 8,759,000 for the six months ended June 30, 2022, compared to a net outflow of RMB 25,245,000 in the same period of 2021[150]. - The company’s cash flow from financing activities was significantly improved, indicating a positive shift in financial management strategies[150]. Challenges and Risks - The average procurement cost of raw materials has increased due to inflationary pressures from monetary easing and the ongoing impacts of the COVID-19 pandemic[10]. - The hazardous waste disposal industry is facing significant challenges, including increased competition and declining disposal prices[10]. - The group will closely monitor foreign exchange risks and consider hedging for significant foreign currency risks if necessary[66]. - The risk management policy has remained unchanged since the end of last year, focusing on minimizing potential adverse impacts on financial performance[178]. Corporate Governance - The company has maintained compliance with corporate governance standards and has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[94]. - The group has no significant changes in its capital structure, which consists solely of ordinary shares[68]. - The group does not have a foreign exchange hedging policy, as the board believes that foreign exchange fluctuations do not significantly impact business operations or financial performance[66]. Employee and Shareholder Information - The group employed 186 employees as of June 30, 2022, with total employee costs amounting to approximately RMB 9.7 million for the six months ended June 30, 2022[82]. - The board did not recommend any interim dividend for the six months ended June 30, 2022[81]. - The company has adopted a share option plan effective from October 23, 2021, valid until October 23, 2031, allowing the issuance of up to 100,000,000 shares, which is 10% of the total issued shares as of the mid-term report date[85]. - No share options have been granted since the adoption of the share option plan, and there are no unexercised options as of June 30, 2022[93].
鸿承环保科技(02265) - 2022 - 中期财报