CCGB(SZ:300138)2022-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 3,227,191,537.69, representing a 53.74% increase compared to CNY 2,099,150,619.43 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 240,397,801.18, up 27.40% from CNY 188,698,023.48 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 211,485,971.37, reflecting a 31.43% increase from CNY 160,915,538.86 year-on-year[23]. - The net cash flow from operating activities was CNY 963,901,233.43, an increase of 23.04% compared to CNY 783,395,394.01 in the same period last year[23]. - The total assets at the end of the reporting period were CNY 6,174,833,693.11, a 3.69% increase from CNY 5,955,165,411.81 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 2,967,267,210.06, up 6.53% from CNY 2,785,482,526.20 at the end of the previous year[23]. - The basic earnings per share increased to CNY 0.45, an 18.42% rise from CNY 0.38 in the same period last year[23]. - The diluted earnings per share also stood at CNY 0.45, reflecting an 18.42% increase compared to CNY 0.38 in the previous year[23]. - The weighted average return on equity was 8.29%, up from 7.77% in the same period last year[23]. Market Trends and Industry Insights - The plant extract industry in China saw an export value of $3.03 billion in 2021, representing a year-on-year growth of 23.9%[32]. - In the first half of 2022, the export value of plant extracts reached $1.765 billion, with a year-on-year increase of 28.19%[32]. - The global market for plant extracts is projected to reach $59.4 billion by 2025, indicating significant growth potential[34]. - The restaurant industry in China rebounded in 2021, achieving a revenue of ¥46,895 billion, which is an 18.6% increase year-on-year[33]. - The sweetener market is experiencing growth, with stevia as a high-sweetness, low-calorie natural sweetener gaining traction[33]. - The global natural food coloring market is projected to reach 2.5 billion USD by 2025, driven by the shift from synthetic to natural colors[40]. - The penetration rate of pepper extract in the restaurant industry is currently below 2%, indicating significant growth potential[42]. - The market for plant-based feed additives is expected to grow rapidly due to the implementation of anti-antibiotic policies in 2020[47]. Product Development and R&D - The company aims to develop ten products that rank first or among the top globally, leveraging its technological R&D and industrial production capabilities[39]. - The company employs a market-oriented R&D model to ensure product development aligns with market feedback and trends[36]. - The company has a research and development team of over 100 people and has received 78 technology awards, including two national science and technology progress second prizes[47]. - The company is conducting various R&D projects, including the optimization of extraction processes for chili, stevia, and rosemary, aimed at improving product quality and market competitiveness[52][54]. - The company is developing new products, including microencapsulated products and alternative anti-products, to diversify its product offerings and create new profit growth points[54]. Operational Strategies and Supply Chain - The company has established raw material bases in Xinjiang, Yunnan, and India, implementing a "farmhouse + government + enterprise" model for raw material cultivation and procurement, ensuring production stability[36]. - The company has established a complete procurement, R&D, production, and sales model, continuously improving its operational strategies based on market demand[35]. - The company has established strategic partnerships with core suppliers, enhancing the stability of raw material supply through a "farmer + government + enterprise" model[81]. - The company has increased its procurement of raw materials from India, improving production and inventory levels for chili extract products[71]. Environmental and Social Responsibility - The company has increased investment in environmental protection facilities and established a strict environmental monitoring system to comply with rising environmental standards[126]. - The company has implemented measures to reduce carbon emissions, including the use of liquid CO2 in production and the adoption of natural gas to lower CO2 and nitrogen oxide emissions[145]. - The company has actively participated in social responsibility initiatives, donating over 140,000 RMB in pandemic prevention materials and supporting local education and public services in India and Zambia[147]. - The company has established wastewater treatment and dust removal facilities, ensuring that wastewater is treated and partially reused for landscaping[141]. Financial Management and Investments - The company reported a year-on-year revenue increase of 80.74% for cottonseed and cottonseed products, which contributed over 50% to the total revenue[65]. - The company has received approval for its stock to be listed and directed issued on the National Equities Exchange and Quotations system, allowing for the issuance of up to 15,870,356 new shares within 12 months from June 29, 2022[188][189]. - The company has been actively involved in securing bank loans, with multiple instances of increasing guarantee amounts reported throughout the year, indicating a focus on financial leverage[190][191]. - The company has provided guarantees for its subsidiaries' equipment leasing and subsequent repurchase arrangements, indicating a commitment to supporting its subsidiaries' operational needs[184]. Shareholder and Governance Matters - The company has fulfilled all commitments made by controlling shareholders and related parties as of the end of the reporting period[150]. - The commitments include not engaging in any competitive business activities with the company and ensuring the protection of shareholder interests[150]. - The company has established measures to ensure the legal and reasonable exercise of shareholder rights[150]. - The company has a clear strategy to mitigate potential conflicts of interest from shareholders[150]. Subsidiary Performance - The subsidiary "Morning Light Biotechnology Group Tumushuke Co., Ltd." reported a revenue increase of 483.48%, operating profit increase of 1387.31%, and net profit increase of 1814.67% compared to the same period last year, primarily due to rising sales prices and increased sales volume[120]. - The subsidiary "Morning Light Biotechnology Group Karamay Co., Ltd." experienced a revenue growth of 15.10%, operating profit growth of 3.97%, and net profit growth of 2.02% year-on-year, attributed to increased sales prices and volume[120]. - The subsidiary "Morning Light Biotechnology Group Yanqi Co., Ltd." reported a sales revenue increase of 66.27%, but a decline in operating profit and net profit by 27.82% and 26.62% respectively, due to cost fluctuations in internal processing business[121].