Adisseo(SH:600299)2023-08-04 16:00Financial Performance - The company's operating revenue for the first half of 2023 was approximately RMB 6.33 billion, a decrease of 12.05% compared to the same period last year[22]. - The net profit attributable to shareholders for the first half of 2023 was approximately RMB 33.4 million, down 96.16% year-on-year[22]. - The basic earnings per share for the first half of 2023 was RMB 0.01, a decrease of 96.88% compared to the previous year[23]. - The gross profit margin dropped to 21% from 32% year-on-year, with gross profit amounting to RMB 1.33 billion, down 41% from RMB 2.27 billion[52]. - The net profit attributable to shareholders was approximately RMB 33.4 million, a significant decline of 97% from RMB 87 million in the previous year[52]. - The company reported a profit before tax of CNY 55,116,368, down from CNY 1,109,746,129 in the previous year, indicating a significant drop in profitability[144]. - The total comprehensive income for the first half of 2023 was a loss of CNY 2,334,015, compared to a total comprehensive income of CNY 450,917,089 in the first half of 2022[148]. Cash Flow and Financial Position - The net cash flow from operating activities increased by 244.96% to approximately RMB 1.18 billion compared to the same period last year[22]. - The company reported a cash balance of approximately RMB 870 million as of June 30, 2023, an increase of about RMB 73 million from December 31, 2022, due to significant improvements in working capital[54]. - The total cash inflow from investment activities was ¥27,192,789, while cash outflow was ¥860,859,518, resulting in a net cash flow from investment activities of (¥833,666,729)[152]. - The total cash and cash equivalents at the end of the period were ¥869,547,965, up from ¥767,427,558 at the end of the previous year[152]. - The company reported a significant decrease in investment income, with a loss of CNY 0 compared to a gain of CNY 455,546,000 in the first half of 2022[146]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 21.69 billion, reflecting a 1.63% increase from the previous year[22]. - Total liabilities reached CNY 6,611,004,746, compared to CNY 6,390,567,553 at the end of 2022, indicating a growth in liabilities[138]. - The company's total equity attributable to shareholders increased to CNY 15,056,324,222 from CNY 14,933,588,455, reflecting a growth of approximately 0.8%[138]. - The company's total assets at the end of the reporting period were 18,372,894,000 RMB, up from 14,027,383,990 RMB, marking a growth of approximately 30.9%[165]. Research and Development - The company operates 8 R&D centers with approximately 300 employees focused on research and innovation, supporting its dual pillar strategy[30]. - Research and development expenses increased by 23.06% to RMB 202.83 million, reflecting accelerated innovation projects[56]. - The R&D expenses for new technologies and products were reported at 45,089,442 RMB, reflecting the company’s commitment to innovation[162]. Market and Product Development - The company has expanded its liquid methionine production capacity by 80,000 tons per year since Q3 2021 to meet growing market demand[32]. - The company has launched two new rumen-protected methionine products, Stramin® and Meistr®, aimed at improving milk quality and cow health while reducing nitrogen emissions[36]. - The company is actively developing new products and solutions to help farmers produce poultry, pigs, and aquaculture more sustainably, reducing antibiotic use and improving animal health[39]. - The company plans to expand its market presence through strategic acquisitions and new product launches in the upcoming quarters[162]. Environmental and Sustainability Initiatives - The company emphasizes safety and sustainability, aiming for a zero-accident workplace and implementing challenging environmental impact reduction goals[30]. - The company is committed to reducing waste emissions and improving raw material utilization in animal production processes[29]. - The company aims to reduce greenhouse gas emissions, energy consumption, and water usage by 20% per kilogram of product compared to 2015 levels, achieving this target ahead of the 2025 deadline[113]. - The company has invested nearly 300 million RMB annually in HSE initiatives over the past three years, with environmental protection investments averaging 50% of total HSE investments[112]. Risks and Challenges - The company faces various risks, including political, regulatory, and economic competition risks, particularly in its global operations[68]. - The company is exposed to raw material supply risks, with reliance on a limited number of suppliers for key inputs like propylene and sulfur, which could affect its financial performance[74]. - The company is at risk of losing competitive advantage if it fails to innovate or if competitors introduce superior products or technologies[75]. - The company faces significant risks from production facility shutdowns and disease outbreaks, which could adversely impact its business and financial performance[80]. Management and Governance - Key management changes include the appointment of Hao Zhigang as CEO effective July 1, 2023, and Frederic Jacquin as COO[96]. - The company held its annual general meeting on May 31, 2023, where all proposed resolutions were approved, including the financial report and profit distribution plan[93]. - The company has not reported any significant litigation or arbitration matters during the reporting period[118].