LHG(SH:600186)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 850,616,886.97, representing an increase of 8.70% compared to CNY 782,529,141.09 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 28,567,873.77, a decrease of 8.23% from CNY 31,131,264.49 in the previous year[22]. - The net cash flow from operating activities was CNY 61,980,209.79, a significant recovery from a negative cash flow of CNY -826,353,340.92 in the same period last year[22]. - The total assets at the end of the reporting period were CNY 1,520,713,363.19, showing a slight increase of 1.13% from CNY 1,503,783,979.79 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company increased by 7.41% to CNY 413,875,072.63 from CNY 385,307,198.86 at the end of the previous year[22]. - The basic earnings per share for the first half of 2021 were CNY 0.0207, down 8.41% from CNY 0.0226 in the same period last year[23]. - The diluted earnings per share were also CNY 0.0207, reflecting the same percentage decrease of 8.41%[26]. - The weighted average return on net assets decreased by 3.36 percentage points to 7.15% from 10.51% in the previous year[26]. - The company reported a slight increase of 1.50% in the basic earnings per share after deducting non-recurring gains and losses, reaching CNY 0.0203 compared to CNY 0.0200 in the previous year[26]. Research and Development - Research and development expenses increased significantly by 671.09%, amounting to 6.16 million RMB, indicating a strong focus on new product development[40]. - Research and development expenses for the first half of 2021 were ¥6,164,969.05, significantly higher than ¥799,508.59 in the first half of 2020, marking an increase of 671.5%[124]. - The company is advancing its "5+N" product system, focusing on health-oriented seasoning and food products to meet consumer demand[40]. Market and Industry Position - The domestic condiment industry has a compound annual growth rate (CAGR) of over 15% in the past decade, with the market expected to reach RMB 539.2 billion by 2022, and a projected growth rate of around 10% over the next five years[32]. - The company has established a comprehensive sales network across the country, with sales representatives in major cities and distribution points in most county-level areas[32]. - The company has a strong brand presence, recognized as a leading brand in the MSG industry and awarded multiple quality accolades, including being a "famous trademark" in China[36]. - The company has a national-level enterprise technology center and a post-doctoral research station, accumulating rich experience in production and technology processes, with many leading proprietary technologies in the industry[36]. - The company’s main products include MSG and chicken essence, with a focus on green product structures and a full industry chain production model for its key products[32]. - The company has shifted its MSG business towards semi-finished product processing, primarily producing glutamic acid and sodium glutamate[32]. - The company benefits from favorable policies and support as a key enterprise in the agricultural industry, enjoying advantages in financial and project funding[33]. - The company’s sales model primarily relies on distributors, supplemented by direct sales, targeting a diverse consumer base[32]. - The company’s chicken essence and compound seasoning products maintain a full industry chain production model, while liquid seasonings and other new products are produced using OEM models[32]. Legal and Compliance Issues - The company is involved in multiple lawsuits, with amounts claimed totaling approximately ¥6,000,000, including a trademark infringement case with a claim of ¥5,000,000[71]. - The company has ongoing litigation related to a sales contract dispute amounting to ¥109,897 and an advertising contract dispute of ¥1,160,000[71]. - The company has received a court notice regarding the execution of a debt claim amounting to ¥15,000,000 against a third party, which is part of a larger dispute[78]. - The company has ongoing trademark administrative disputes involving claims of ¥2,000,000 and ¥1,000,000 against different parties[76]. - The company has submitted jurisdictional objections in several contract disputes, indicating ongoing legal strategies to mitigate potential liabilities[75]. - The company is facing a labor dispute with a claim involving social security and risk compensation totaling ¥5,000[75]. - The company has reported that it is actively involved in the execution of a court ruling related to a debt claim, which is expected to have no adverse impact on profits[78]. - The company has ongoing litigation with various parties, indicating a proactive approach to managing legal risks and disputes[71]. Financial Stability and Capital Structure - The total current assets amount to 870,719,236.01 RMB, an increase from 842,757,394.02 RMB as of December 31, 2020[106]. - Cash and cash equivalents are reported at 516,760,110.35 RMB, up from 470,569,389.97 RMB[106]. - Accounts receivable stand at 111,477,974.14 RMB, slightly increased from 111,427,636.78 RMB[106]. - Inventory decreased to 70,450,358.67 RMB from 118,832,290.51 RMB[106]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period is ¥70,000,000, which represents 16.91% of the company's net assets[86]. - The total liabilities amounted to ¥1,340,314,518.60, slightly down from ¥1,352,823,471.80, indicating a decrease of about 0.9%[111]. - The equity attributable to shareholders increased to ¥413,875,072.63 from ¥385,307,198.86, reflecting a growth of approximately 7.4%[111]. - The company has reduced short-term borrowings by 14.28%, amounting to 300.63 million RMB, improving its financial stability[43]. - The company’s total liabilities increased, impacting the overall financial leverage and risk profile[145]. Future Outlook - Future outlook includes plans for market expansion and potential new product launches to drive revenue growth[120]. - The company is focusing on expanding its market presence and enhancing its product offerings through strategic investments and potential acquisitions[145]. Shareholder Information - The total number of common shareholders as of the reporting period is 58,272[90]. - The controlling shareholder, Wuhu Lian Tai Investment Management Center (Limited Partnership), holds 138,509,529 shares, accounting for 10.04% of the total share capital[90]. - As of June 30, 2021, 103,882,000 shares are pledged, representing 75% of the shares held by the controlling shareholder and 7.53% of the total share capital[90]. - The top ten shareholders collectively hold significant stakes, with the largest shareholder holding over 10%[95]. - The company has a diverse shareholder structure, with public shareholders holding 62.22% of the total shares[192]. Operational Efficiency - The company completed the construction of its new district project, which is expected to significantly improve production efficiency and product quality[40]. - Sales expenses decreased by 17.68% to 36.15 million RMB due to enhanced transportation and promotional cost management[40]. - Inventory decreased by 40.71% to 70.45 million RMB, attributed to increased sales and improved inventory turnover[43]. - Cash flow from operating activities showed a significant recovery, with a net inflow of 61.98 million RMB compared to a net outflow in the previous year[40]. - The company reported cash received from sales and services of ¥925,089,617.26, an increase from ¥859,854,585.89 in the first half of 2020[137]. - Total cash outflow from operating activities was ¥876,815,684.74, down from ¥1,709,145,292.95 in the previous year, reflecting improved cash management[137].