Forbon(SZ:300387)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 385,018,940.46, representing a 13.31% increase compared to CNY 339,796,596.24 in the same period last year[24]. - The net profit attributable to shareholders of the listed company decreased by 2.81% to CNY 30,208,095.27 from CNY 31,080,681.47 in the previous year[24]. - The net cash flow from operating activities turned negative at CNY -15,882,763.14, a decline of 127.71% compared to CNY 57,324,587.43 in the same period last year[24]. - The basic earnings per share decreased by 2.53% to CNY 0.1042 from CNY 0.1069 in the previous year[24]. - Total assets at the end of the reporting period were CNY 1,611,439,608.95, down 4.22% from CNY 1,682,371,141.40 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company remained relatively stable, decreasing slightly by 0.04% to CNY 1,189,915,210.25[24]. - The company reported a decrease of 8.40% in net profit after deducting non-recurring gains and losses, amounting to CNY 27,889,283.17 compared to CNY 30,448,094.86 in the previous year[24]. - The weighted average return on net assets increased slightly to 2.58% from 2.50% in the previous year[24]. Revenue Breakdown - The company achieved operating revenue of 385.02 million yuan, an increase of 13.31% year-on-year, with domestic revenue at 216.61 million yuan and overseas revenue at 168.41 million yuan[32]. - The company's additive business generated revenue of 312.25 million yuan, reflecting a year-on-year increase of 9.42% despite facing pressures from global supply chain issues and intensified competition[39]. - The company achieved domestic fertilizer additive sales revenue of CNY 160.38 million, a year-on-year increase of 7.38%[42]. - Overseas fertilizer additive sales revenue reached CNY 151.87 million, reflecting a year-on-year growth of 11.66%[42]. - Revenue from the value-added fertilizer and soil conditioner segment reached 63.8 million yuan, representing a year-on-year growth of 31.05%[51]. - Revenue from fertilizer additives reached ¥312,245,218.36, an increase of 9.42% year-over-year, with a gross margin of 27.06%[84]. - Revenue from fertilizer products was ¥63,796,776.53, up 31.05% year-over-year, with a gross margin of 10.64%[84]. - Domestic revenue totaled ¥216,612,433.47, reflecting a 10.61% increase year-over-year, while gross margin decreased by 12.80% to 21.19%[84]. - International revenue amounted to ¥168,406,506.99, a 16.97% increase year-over-year, with a gross margin of 30.03%[84]. Strategic Focus and Innovations - The company has shifted its focus from fertilizer additives to digital agriculture, aiming to optimize agricultural production factors through advanced technologies[32]. - The company is committed to technological innovation and providing comprehensive solutions to enhance its market position in the fertilizer additive industry[38]. - The company is actively developing new types of fertilizers and has established Hubei Fugui Elephant Agricultural Technology Co., Ltd. to provide customized nutrition services[45]. - The company is focusing on the development of value-added fertilizers and soil conditioners, including round granular potassium fertilizer and sulfur-coated granular fertilizer[47]. - The company is enhancing its digital transformation efforts, utilizing cloud ERP and video conferencing to maintain overseas market stability[121]. - The company is actively exploring digital agriculture technologies, including soil testing and smart irrigation systems, to enhance agricultural efficiency[77]. - The company aims to transform traditional agricultural practices into digital agriculture through a service platform that integrates soil testing, scientific formulation, and fertilizer production[57]. - The company is leveraging its long-standing industry experience to integrate digital agriculture resources and enhance overall efficiency in the planting chain[54]. Market Expansion and Partnerships - The company has established stable partnerships with over 300 large fertilizer enterprises globally, enhancing its market presence in East Asia, Southeast Asia, Europe, and North Africa[34]. - The company is actively expanding its market presence by engaging in technical exchanges with customers and understanding their needs[41]. - The company has signed cooperation agreements with several farms, focusing on smart irrigation, yield estimation, soil data mapping, and sensor technology[60]. - The company plans to establish a wholly-owned subsidiary, Forbon Technology Africa Holdings, in Morocco with a registered capital of 1 million USD to accelerate market expansion in Africa and Europe[114]. - The company has signed a memorandum with Israeli Soli to introduce advanced agricultural technologies, enhancing its digital agriculture capabilities[123]. Financial Management and Investments - The company reported a significant increase in cash outflows, with a net decrease of CNY 150.93 million in cash and cash equivalents, a 638.53% decline compared to the previous year[82]. - The company is responding to the rising costs of raw materials by optimizing procurement strategies and enhancing internal supply chain maturity[40]. - The company has implemented a price linkage mechanism between raw material prices and product sales prices to promote performance growth[42]. - The company has established a comprehensive internal control system and implemented international leading cloud ERP services to optimize procurement, sales, and finance processes, enhancing audit and supervision capabilities[143]. - The company has made progress in the construction of the digital agriculture industrial park, with the Israeli greenhouse completed and in use, and various crops such as hydroponic lettuce and cherry tomatoes starting trial sales[176]. Risk Management - The company has not disclosed any significant risks that could materially affect its operations during the reporting period[3]. - The company faces risks from fluctuating raw material prices, with strategies in place to maintain reasonable inventory and diversify supply channels[126]. - The company is actively managing foreign exchange risks, with overseas revenue subject to significant currency fluctuations[125]. - The company has a high level of accounts receivable, with measures to improve cash flow and reduce bad debt risks through effective credit policies and customer management[127]. Corporate Governance and Compliance - The company did not distribute cash dividends or issue bonus shares for the half-year period, nor did it increase capital through reserves[136]. - The company has committed to not transferring or entrusting the management of its indirectly held shares for 36 months from the date of its stock listing[151]. - The company’s major shareholders have promised to limit their annual share transfers to no more than 25% of their total holdings during their tenure[151]. - The company has established a framework for accountability regarding the accuracy of its financial disclosures[151]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[153]. - There were no violations regarding external guarantees during the reporting period[154]. - The semi-annual financial report has not been audited[155]. - The company did not experience any bankruptcy reorganization matters during the reporting period[156]. - There were no significant litigation or arbitration matters during the reporting period[157].