HISUN(SH:600267)2023-08-21 16:00Financial Performance - The company reported a net profit attributable to ordinary shareholders of approximately CNY 419.41 million for the first half of 2023, with a basic earnings per share of CNY 0.37 and diluted earnings per share of CNY 0.33[7]. - The company recognized non-recurring gains of CNY 122.54 million, with a net profit after deducting these gains amounting to CNY 296.87 million[7]. - Total net profit after deducting non-recurring gains and losses for the reporting period (January to June) was approximately CNY 296.87 million, an increase of 57.58% compared to the same period last year[22]. - The company’s net profit for the first half of 2023 reached CNY 431,107,180.61, an increase of 35% compared to CNY 319,368,051.58 in the same period of 2022[50]. - Operating profit for the first half of 2023 was CNY 550,256,415.27, up from CNY 410,422,340.19 in the previous year, reflecting a growth of approximately 34%[50]. - The company reported a total profit of CNY 503,502,808.33 for the first half of 2023, compared to CNY 407,961,490.93 in the previous year, marking a growth of approximately 23%[50]. - Total operating revenue for the first half of 2023 reached ¥6,060,103,056.03, an increase of 5.65% compared to ¥5,736,689,223.53 in the same period of 2022[38]. - Total operating costs amounted to ¥5,564,001,745.74, up from ¥5,402,764,290.71, reflecting a rise of 2.98%[38]. Research and Development - Research and development expenses totaled CNY 101.17 million in the current period, an increase from CNY 89.76 million in the previous period, reflecting a growth of approximately 12.9%[2]. - The company incurred a total of CNY 30.68 million in employee compensation as part of its R&D expenses, up from CNY 26.45 million in the previous period[2]. - Research and development expenses increased to ¥210,712,020.46, compared to ¥181,439,748.83, marking a growth of 16.14%[38]. - The company continues to focus on innovation and compliance as key drivers for growth in the pharmaceutical sector[45]. Shareholder Information - The number of shareholders at the end of the reporting period was 29,338,100, with a decrease of 1,244,000 during the reporting period[1]. - The top shareholder, Zhejiang Haizheng Group Co., Ltd., held 320,783,590 shares, representing 26.52% of total shares[1]. - The second-largest shareholder, Zhejiang Provincial International Trade Group Co., Ltd., reduced its holdings by 1,974,000 shares, holding 72,673,907 shares or 6.01%[1]. Assets and Liabilities - The company’s total net assets attributable to ordinary shareholders at the beginning of the period were CNY 8.08 billion[7]. - The company’s total liabilities were 9.442 billion yuan, down from 10.454 billion yuan at the end of the previous year[36]. - The company’s total equity attributable to shareholders was 8.629 billion yuan, an increase from 8.079 billion yuan at the end of the previous year[36]. - The company’s total assets were 18.334 billion yuan, down from 18.785 billion yuan at the end of the previous year[36]. - As of the end of the reporting period, the company's current liabilities amounted to 6.737 billion yuan, a decrease of 396 million yuan or 5.56% compared to the beginning of the year, primarily due to the repayment of short-term financing[30]. - The company's non-current liabilities totaled 2.705 billion yuan, a decrease of 616 million yuan or 18.55% compared to the beginning of the year, mainly due to the conversion of convertible bonds and long-term loans maturing within one year[30]. Cash Flow and Dividends - Cash flow from operating activities generated a net amount of CNY 741,725,087.61, a decrease of 29% from CNY 1,048,070,078.82 in the first half of 2022[53]. - The company paid CNY 256,135,891.20 in dividends during the first half of 2023, compared to CNY 226,256,436.29 in the same period of 2022, reflecting an increase of about 13%[57]. Financial Ratios - The weighted average return on net assets was reported at 5.08% for the first half of 2023[8]. - The debt-to-asset ratio decreased by 4.15 percentage points to 51.50% compared to the previous year[22]. - The interest coverage ratio improved to 5.24, up 53.67% from 3.41 in the same period last year[22]. - The cash interest coverage ratio was 10.14, showing a slight increase of 3.79% compared to 9.77 last year[22]. - The company’s EBITDA to total debt ratio improved to 0.18, an increase of 38.46% from 0.13 in the same period last year[22]. Inventory and Receivables - The company's inventory stood at 613 million yuan, slightly down from 616 million yuan at the end of the previous year[36]. - The company's accounts receivable balance at the end of the period is CNY 2,835,448,956.41, with CNY 2,779,007,528.43 being within one year[166]. - The total amount of inventory is 1,347,911,571.35 RMB, with a provision for inventory depreciation of 113,404,146.82 RMB[193]. - The company has recognized a total of CNY 2,826,621,805.68 in accounts receivable, with varying provision rates for different aging categories[173]. Investments - The total balance of investments in joint ventures and associates at the end of the period was approximately 1.13 billion for Yasal and 2.18 billion for Zhejiang Xinyi Ruijue Pharmaceutical Co., Ltd.[200]. - The company holds a 40.32% stake in Zhejiang Borui Biopharmaceutical Co., Ltd. and a 49.00% stake in Yasalili (Taizhou) Pharmaceutical Co., Ltd., both accounted for using the equity method[92]. - The investment in Zhejiang Borui Biopharmaceutical Co., Ltd. showed a balance of approximately 1.14 billion, with a loss recognized under the equity method of approximately 13.18 million[200]. Risk Management - The company has detailed potential risks in its report, specifically in the section "Management Discussion and Analysis" under "Risks Faced"[94]. - The company’s financial instruments are assessed for expected credit losses based on historical experience and current economic conditions[108]. - The expected credit loss rates for accounts receivable are set at 5.00% for within one year, 10.00% for 1-2 years, and 30.00% for 2-3 years[110].