Zhongjing Food(SZ:300908)2022-08-07 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately RMB 416.6 million, representing a 6.12% increase compared to RMB 392.6 million in the same period last year[20]. - The net profit attributable to shareholders decreased by 8.61% to approximately RMB 63.1 million, down from RMB 69.1 million in the previous year[20]. - The net cash flow from operating activities significantly dropped by 77.03%, totaling approximately RMB 17.2 million compared to RMB 75 million in the same period last year[20]. - The basic earnings per share decreased by 8.70% to RMB 0.63, down from RMB 0.69 in the previous year[20]. - Total assets increased by 4.15% to approximately RMB 1.76 billion, compared to RMB 1.69 billion at the end of the previous year[20]. - The net assets attributable to shareholders rose by 0.86% to approximately RMB 1.54 billion, compared to RMB 1.53 billion at the end of the previous year[20]. - The company reported a significant decrease of 31.07% in net profit after deducting non-recurring gains and losses, totaling approximately RMB 39.2 million compared to RMB 56.9 million in the previous year[20]. - The gross margin decreased by 3.12% due to rising material costs, particularly for pepper, soybean oil, and beef[45]. - The company achieved a revenue of 416.38 million yuan in the first half of 2022, representing a year-on-year growth of 6.12%[45]. - The total operating costs increased by 11.67% to ¥259,374,577.58 in the first half of 2022, up from ¥232,273,657.48 in the previous year[64]. - The total profit for the first half of 2022 was CNY 72,382,606.21, a decrease of 7.8% from CNY 78,546,762.53 in the same period of 2021[170]. Market Position and Growth - The Chinese condiment market reached a scale of 459.4 billion RMB in 2021, projected to grow to 788.1 billion RMB by 2025, indicating a strong growth trajectory[29]. - The production volume of major condiment sauce manufacturers increased from 707,000 tons in 2013 to 911,300 tons in 2021, reflecting a consistent positive growth in the condiment sauce industry[30]. - The company has established itself as a leader in the mushroom sauce category, leveraging patented fermentation technology and innovative processing methods[34]. - The company’s unique supercritical CO2 extraction technology for spice flavoring has positioned it as a pioneer in the spice seasoning industry, ensuring high-quality and pure flavor extracts[38]. - The company’s product portfolio includes various sauces and oils, such as mushroom sauce, beef sauce, and chili oil, catering to both individual consumers and the restaurant industry[36]. - The company’s total sales revenue for the top 100 condiment brands in China reached 131.71 billion RMB in 2021, with a year-on-year growth rate of 11.2%[29]. - The company has seen a 6.8% year-on-year growth in production volume for the top 100 condiment brands, indicating a robust market presence[29]. - The company aims to become a widely influential and reputable provider of healthy food products, driven by continuous innovation and market orientation[35]. Advertising and Sales - Advertising expenses increased significantly, with a new investment of 23.37 million yuan in CCTV advertising, resulting in a 100.07% year-on-year growth in advertising costs[45]. - E-commerce sales grew rapidly, with self-operated e-commerce business achieving sales of 21.63 million yuan, a year-on-year increase of 126.17%[46]. - The company launched new products, including eight quick-cooking sauces, generating sales of 20.53 million yuan for the Shanghai scallion oil product[45]. - The company has established a diversified product matrix, including retail, catering, and industrial products, enhancing brand competitiveness[48]. - The number of distributors increased by 119, representing a growth rate of 7.24% across various regions[51]. - The company’s main sales model includes a distribution model for seasoning products, with revenue from distributors amounting to 237.62 million yuan, a year-on-year increase of 4.37%[50]. Costs and Expenses - The cost of beef procurement rose by 43.03% year-on-year, significantly impacting the cost of beef sauce products[53]. - The total cash inflow from investment activities was ¥932,349,118.22, down from ¥1,309,892,667.26 in the first half of 2021, representing a decline of approximately 29%[177]. - The net cash flow from investment activities was ¥38,681,007.33, significantly lower than ¥138,729,263.31 in the previous year, indicating a decrease of about 72%[176]. - The company paid out ¥48,071,530.57 in dividends and interest, slightly down from ¥50,239,583.33 in the previous year, reflecting a decrease of about 4%[177]. Investment and Development - The company has invested in a research and development system that integrates multiple departments, enhancing its capabilities in new product development and quality control[59]. - The company has established strong procurement relationships with approximately 50 local mushroom cooperatives, securing about 70% of the local mushroom trade[58]. - The annual production line project for 60 million bottles of seasoning sauce has been postponed to May 31, 2025, due to land approval restrictions[77]. - The construction of the 1,200-ton seasoning ingredient production line has been completed, with a total investment of RMB 10,600 million and a progress rate of 69.54%[77]. - The company plans to use RMB 16,604.52 million of oversubscription funds for the seasoning sauce production line and marketing network projects[79]. - The company has permanently supplemented working capital with RMB 12,600 million from oversubscription funds, achieving a 100% utilization rate[77]. Risk Factors - The company faced various risk factors which are detailed in the report, emphasizing the need for investors to be aware of potential risks[5]. - The company is exposed to market competition risks due to product homogeneity and changing consumer preferences[88]. - The company faces risks related to fluctuations in raw material prices, which significantly impact its cost structure[89]. - The rapid expansion of the company's operations and product variety has increased management complexity, posing challenges to decision-making and risk control[92]. Environmental and Social Responsibility - The company has constructed a wastewater treatment facility with a daily capacity of 1,000 cubic meters, ensuring treated water meets Class A discharge standards[105]. - The company has received the "National Green Factory" title and is actively implementing energy-saving and emission-reduction measures, including the installation of a rooftop solar power station[111]. - The company has established an emergency response plan for environmental incidents and conducts regular drills to enhance management capabilities[108]. - The company donated 50,000 yuan to support rural revitalization projects in January 2022[114]. - The company invested a total of 8.01 million yuan in the establishment of the "Zhongjing Mushroom Planting Demonstration Base" since January 2013, enhancing mushroom quality and benefiting local farmers[112]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[100]. - The company has maintained a good integrity status, with no significant litigation or arbitration matters during the reporting period[123]. - There were no significant non-operating fund occupations by controlling shareholders or related parties during the reporting period[118]. - The company has not engaged in any major related party transactions during the reporting period[124]. - The company has a total of 14,565 shareholders at the end of the reporting period[147]. - The largest shareholder, Henan Wanshi Holdings Co., Ltd., holds 39.43% of the total shares, amounting to 39,430,000 shares[147].