TIANMA TECH(SH:603668)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately CNY 2.43 billion, representing a 39.25% increase compared to CNY 1.75 billion in the same period last year[22]. - The net profit attributable to shareholders of the listed company was approximately CNY 60.88 million, a 7.46% increase from CNY 56.65 million in the previous year[22]. - The net cash flow from operating activities reached approximately CNY 233.86 million, showing a significant increase of 333.96% compared to CNY 53.89 million in the same period last year[22]. - The total assets of the company at the end of the reporting period were approximately CNY 4.39 billion, a 33.04% increase from CNY 3.30 billion at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were approximately CNY 1.28 billion, reflecting a 4.76% increase from CNY 1.22 billion at the end of the previous year[22]. - The basic earnings per share for the first half of 2021 were CNY 0.18, up 5.88% from CNY 0.17 in the same period last year[22]. - The weighted average return on net assets was 4.88%, slightly increasing by 0.05 percentage points from 4.83% in the previous year[22]. - The company reported a slight increase in the net profit after deducting non-recurring gains and losses, reaching approximately CNY 55.10 million, a 1.09% increase from CNY 54.51 million[22]. Business Operations and Strategy - The company has undergone a business combination not under the same control during the reporting period[22]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in its strategic development and operational plans[9]. - The company is focusing on expanding its production facilities outside Fujian to achieve stable growth and regional leadership[31]. - The company aims to build a comprehensive supply chain platform for feed, breeding, and food, integrating the three main businesses[28]. - The company is committed to providing high-quality, safe, and traceable meat materials through standardized and intensive farming techniques[28]. - The company is actively promoting the transformation of the eel farming industry towards efficient and standardized practices[31]. - The company is enhancing its marketing structure and expanding its market presence through a "technology + service" business strategy, improving customer loyalty[81]. - The company is committed to maintaining high production standards and has implemented various quality management systems to ensure product safety and efficiency[81]. Market and Industry Insights - The company’s special aquatic feed business accounted for 29.44% of total revenue in the first half of 2021[29]. - The livestock and poultry feed business contributed 57.80% to total revenue during the same period[31]. - The company is recognized as a leading enterprise in the special aquatic feed industry, with its "Jianma" brand being a famous Chinese trademark[29]. - The market for aquatic feed in China is expected to benefit from the continuous growth in demand for meat products, supported by rising incomes and economic growth[40]. - The eel farming sector in China has a market output exceeding 120,000 tons per year, with major farming regions concentrated in Guangdong and Fujian provinces[44]. - The global demand for animal-based food products is projected to double by 2050, with significant increases expected in fish and dairy product consumption[45]. - The majority of participants in China's aquaculture industry are small enterprises, with over 90% of companies having registered capital below 5 million yuan, leading to intense competition[44]. Research and Development - The company has developed early-stage feed for seedlings, breaking the technical monopoly of countries like Japan and South Korea[29]. - The company has developed nine series of animal health products, enhancing customer loyalty and product value in the aquaculture sector[34]. - The company’s research and development efforts have led to significant advancements in feed technology, enhancing nutritional balance and growth performance for various aquatic species[51]. - The company has developed various specialized aquaculture feeds, including patented formulations for eel, turtle, and yellow croaker, with a focus on health and growth performance[49]. - The company’s shrimp feed products have shown improved feed conversion rates and faster growth rates in shrimp, indicating a strong competitive advantage in the market[53]. Financial Management and Investments - The company has implemented a centralized procurement model to effectively control raw material costs and ensure stable supply[71]. - The company has established strategic partnerships with several universities and research institutions to strengthen its R&D capabilities[68]. - The company plans to raise up to RMB 56 million through a private placement of A-shares to fund the construction of an eel ecological breeding base and a food industry base[88]. - The company completed a private placement of 96,551,724 A shares at a price of RMB 5.80 per share, raising a total of RMB 559,999,999.20[145]. - The company’s total guarantees, including those to subsidiaries, amounted to RMB 585,778,894.26[151]. Risk Management - The company faces risks from natural disasters and price fluctuations of raw materials, which could impact feed demand and production costs[105][106]. - The company has implemented measures to mitigate risks, including a comprehensive budget management system and the use of futures contracts for hedging[106]. - The company is enhancing its biosecurity measures to prevent disease outbreaks in aquaculture, focusing on standardized and intelligent management practices[108]. - The company is enhancing its risk management strategies to address potential food safety issues that could impact sales revenue[108]. Compliance and Governance - The company has committed to not engage in any business that competes with its listed operations, ensuring no conflicts of interest with its controlling shareholders and related parties[130]. - The company has established a priority right for the listed company to purchase shares from related parties in case of any competitive business activities[130]. - The company has committed to timely disclosure of any related party transactions and adherence to legal and regulatory requirements[133]. - The company has not reported any new mergers or acquisitions during the reporting period[168]. - The company has not received any penalties or corrective actions related to legal violations during the reporting period[140].