I. Overview
(I) Operating data and financial indicators
In the first half of 22, the company achieved a total operating income of 28,652,49.37 yuan within the scope of consolidated statements, an increase of 7.23% over the same period of last year, and realized operating profit. The net profit attributable to shareholders of listed companies was 53,84,422.69 yuan, a decrease of 8.93% compared with the same period of last year.
during the reporting period, the operating performance of the company's plant extraction business grew steadily, and the realized operating income was 245,221, yuan, accounting for 87.38% of the company's consolidated operating income, up by 18.66% compared with the same period of last year, and the net profit increased by 11.93% compared with the same period of last year. The growth trend of the main business was good. As the BT project of the company is drawing to a close, the confirmed operating income is RMB 33,19,9, accounting for 11.83% of the company's consolidated operating income, a decrease of 31.81% compared with the same period of last year, and a decrease of 27.33% in net profit compared with the same period of last year, which has a certain impact on the overall performance of the company during the reporting period.
at the end of the reporting period, the company's total assets were RMB 2,713,77,259.28, up by 4.39% compared with the beginning of the reporting period, and the owners' equity attributable to shareholders of listed companies was RMB 1,785,232,421.43, up by 1.53% compared with the beginning of the reporting period.
(II) Analysis of business situation
The global outbreak of the COVID-19 epidemic in 22 has brought great impact to the global social and economic development. Since the outbreak, all employees of the company have actively taken epidemic prevention measures to ensure the timely and safe resumption of work and production, effectively ensuring the stable development of the company's main business during the reporting period.
during the reporting period, the company closely focused on the long-term development strategy and annual business objectives formulated by the board of directors, made full use of the company's brand accumulation and technology accumulation in the plant extraction industry, continued to actively expand the large-scale single product business, and focused on promoting the innovative development of the natural sugar-free sweetener business and the project construction and market layout of the industrial cannabis business.
1. Development of natural sugar-free sweetener business
The company has always been adhering to the business philosophy of "green technology and healthy future", and is committed to providing customers with the best quality products and solutions in the fields of food and beverage, nutritional supplements, food additives and animal feed with natural plants as raw materials. At present, the company has mastered hundreds of core technologies for extracting natural ingredients. In recent 1 years, the company has unswervingly developed the natural sugar-free sweetener business represented by Siraitia grosvenorii extract and Stevia rebaudiana extract, concentrated superior resources and energy on the natural sugar-free sweetener market, actively laid out the development of the industrial chain, and established the operation capability of the whole industrial chain from seedling cultivation to the application of end consumer goods.
during the reporting period, the operating income of the company's natural sweeteners related products reached 157 million yuan, accounting for 64.32% of the operating income of the company's plant extraction business.
in 218, the company signed a natural sweetener procurement contract with Fenmeiyi with a cumulative target income of USD 4 million, which laid a solid foundation for the company's rapid development of natural sweetener business in the next few years. At present, through the cooperation with Fenmeiyi, the company has successfully established cooperative relations with global food and beverage brands such as Danone, Nestle and Pepsi.
during the reporting period, we are very happy to see that the application of sugar-free sweeteners in the domestic consumer goods market has set off an upsurge. In particular, a number of emerging national brands, represented by Yuanqi Forest, have favored the raw materials of zero-calorie zero-sugar zero-fat sweeteners, and their products have also been loved by a large number of young consumers. According to the company's financial data in the first half of the year, the revenue of plant extraction business sold in China increased by 55.72% compared with the same period of last year, and the company's ability to cooperate with well-known foreign consumer brands for a long time was gradually recognized by more domestic brands. The company will continue to explore the domestic market in the future and strive to provide more high-end and high-quality natural sweetener products for domestic consumers.
in order to further enhance the competitiveness of the natural sweetener business, the company planned the private offering of shares in 22 in August this year, and the funds raised were mainly used for the construction of Stevia rebaudiana professional extraction factory and the replenishment of working capital. Based on the confidence in the development prospect of the natural sweetener market, Mr. Qin Benjun, the controlling shareholder of the company, plans to subscribe for the private offering of shares in full at a cost of 92 million yuan. After the completion of this non-public offering, it will help the company to seize the development opportunity of the natural sweetener market, enhance its business scale and market share, and continue to provide quality products and services to domestic and foreign customers.
2. Continue to promote the capacity building of industrial hemp business
In 219, the company gave full play to its technological research and development advantages in the plant extraction industry, seized the development opportunity, and launched the industrial hemp extraction business in Indiana, USA, investing about 4 million yuan to build the "Industrial Hemp Extraction and Application Engineering Construction Project". This project is an important business layout of the company's strategic development direction and an important extension of the development strategy of "big single product". The completion and commissioning of the project will increase the company's new profit growth point, improve the company's profitability and core competitiveness, and create more value for shareholders.
(1) Development of industrial hemp project
At present, the civil construction of industrial hemp extraction plant has been capped, and the construction progress is in line with expectations. At present, the factory is listed as a demonstration project in the field of industrial hemp extraction in the United States by the Indiana government. The overall design, construction, equipment and safety requirements of the factory are formulated with reference to the highest standards in the industry, which will improve the company's initial construction investment, but also lay a good foundation for the subsequent safe and standardized operation of the factory. Since 22, affected by Sino-US trade relations and COVID-19 epidemic, Hemprise, a subsidiary company, has faced some unfavorable factors, such as higher tariffs, higher installation costs and longer installation period, in terms of equipment import from China and personnel entry restrictions. Based on the construction progress of the project and the current business environment, during the reporting period, the company actively communicated with design and construction companies, equipment manufacturers and other partners, and adopted measures such as building three-dimensional drawings, specifying equipment parameters in detail, and positioning drawings at fixed points to refine the installation arrangements in advance, effectively reducing the risk of subsequent installation cost increase and construction period delay. Not only that, during the reporting period, the company also actively promoted the promotion of soft power such as PCT patent application and FDA-GRAS certification, and achieved certain results. Especially in promoting the industrial hemp extract to pass the GRAS certification of FDA, with the help of the company's previous experience in GRAS certification of Siraitia grosvenorii and Stevia rebaudiana, the company has established and upgraded the industry standard of industrial hemp extract through close cooperation with international third-party laboratories, laying a solid foundation for the sustainable development of the company's business, and will certainly be conducive to rapidly promoting the market expansion of the company's industrial hemp business in the future.
(2) Industrial hemp extract has a wide range of applications and a broad market development prospect
From the international market, in the field of plant extraction, industrial hemp has a broad downstream application space, including drugs, food and beverage, health care products, tobacco and other fields. At present, there are many brands that have been used or publicly announced to be used in this field, including famous consumer brands such as Coca-Cola, Pepsi-Cola, Marlboro, Corona, Red Bull and Nestle. With the continuous progress of extraction technology and the further demonstration of product benefits by the scientific community, the demand for industrial hemp extract will continue to expand. According to the relevant report of GrandViewResearch, the global CBD market was USD 4.6 billion in 218, and it is expected to reach USD 9.3 billion in 22.
With the gradual improvement of policy relaxation, the application market from medicines to health care products and even consumer goods will be opened, and the market space of industrial hemp extract will be broader and broader. According to the relevant research report of TF Securities (61162), the United Nations Commission on Narcotic Drugs held its first closed meeting in June 22 to discuss the proposal of removing CBD preparations from the international drug control conventions. CBD is expected to be allowed to be widely used in end consumer goods by the end of 22. Regionally, the United States is currently the largest market for the application of industrial cannabis extract, and it is predicted that the overall market size of CBD in the United States will exceed 2 billion dollars by 224. The company's new industrial hemp extraction project in the United States conforms to the development trend of the global industrial hemp industry and is expected to usher in huge development opportunities.
3. Further clarify the strategic position of the terminal consumer goods business
From the development trend of the international health industry and the relevant national policies, the domestic terminal consumer goods industries such as health care products, cosmetics, functional foods, beverages, special medical foods and so on will face great development opportunities, and their demand for natural plant extracts will be further enhanced, and the plant extraction industry will surely become the "bridgehead" for the healthy development of the terminal consumer goods industry. Enterprises in the plant extraction industry can establish an efficient and reliable link system between natural plants and consumers, so as to protect consumers from enjoying more natural, healthy and safe products. Therefore, based on the superior industrial chain resources that the company already has in the plant extraction industry, during the reporting period, the company decided to further increase investment in the field of end consumer goods, and clearly listed it as one of the core strategic directions for the company's future development.
in order to ensure the implementation of the above strategy, the company will sort out the existing subsidiaries of terminal consumer goods business, and at the same time further intensify its efforts in capital investment, talent introduction policy, management incentive system and investment and financing strategy in the terminal consumer goods market, so as to attract a group of teams with innovative spirit and brand building ability with a more open mind and entrepreneurial mentality, and * * * contribute healthier, greener and safer products to consumers.
4. Continuously increase investment in R&D, improve the ability of sustainable development
5. Actively promote the review, handover and payment return of BT projects, and support the development of the company's main business
During the reporting period, the construction of BT projects entered the final stage, with an accumulated output value of about 1.94 billion yuan and a cumulative payment of 1.448 billion yuan.
the company closely follows the work in the final stage of the project, actively maintains efficient communication with the owner on audit, handover and payment collection, promotes the early recovery of the project repurchase funds, and supports the development of the company's plant extraction business.
ii. risks faced by the company and countermeasures 1. macroeconomic risks the current sino-us economic and trade friction has brought great uncertainty to the industry and economic operation. If the situation further expands, the global market will inevitably be affected by this systemic risk, and uncertain political factors may affect the global economic development process. Countermeasures: on the one hand, through technical improvement, reduce product cost, improve product quality and enhance product competitiveness. On the other hand, strengthen close cooperation with major customers, actively adjust the sales structure, and expand market share in Europe, Asia-Pacific and other regions. In order to reduce the impact of macroeconomic fluctuations on the company's performance. 2. Business model change risk Rheinland Investment, a wholly-owned subsidiary of the company, is engaged in the operation management, construction services, investment and financing of flood control and drainage and Hutang water system projects in Lingui New District of Guilin City, and enjoys operating returns. The business model is BT. In 22, the construction of BT project is coming to an end, the project output value is decreasing year by year, the revenue recognized in the same period is greatly reduced, and the net profit is greatly reduced, which has a great impact on the operating performance during the reporting period. After the completion of the BT project, if the company's plant extraction business fails to reach the performance target as scheduled, there is a risk that the company's performance will drop significantly. Countermeasures: The company actively develops the plant extraction market, and on the basis of stabilizing existing customers, it takes advantage of the capacity scale and quality control system of the new factory to increase the development of strategic customers. The company further increased strategic investment in R&D and sales, developed new "big single products", continued to strengthen docking cooperation with Fenmeiyi, ensured the effective performance of major contracts, and ensured the sustained and rapid growth of plant extraction business income. 3. Management Risk With the expansion of the company's scale and the business expansion of its subsidiaries, the demand for management talents, marketing talents and professional and technical talents of the company and its subsidiaries has increased substantially, and the rapid expansion of the scale has aggravated the company's management tasks. If we don't adjust the management mode and improve the management level according to the changes of the external environment in time, it will bring certain risks to the company's future business development. Countermeasures: The company will balance the two talent mechanisms of "internal training and external introduction", make overall plans for the development and utilization of talent resources in domestic universities, and focus on accelerating the training of high-potential talents. Adhere to the combination of independent training and development of talents and introduction of talents, strengthen the talent training mode with values training as the core, supplemented by professional skills, management skills and compound talent training, clarify standards, precise training and long-term counseling, simultaneously promote the implementation of talent development from three levels of resources, operation and system, optimize the strategic layout of talents, and strengthen talent reserves. The company strives to create a level playing field for its employees, implements a competitive recruitment system for key management positions, and gives every employee a fair and open promotion opportunity. Through the use of performance management tools, the company's business objectives are decomposed into employee job evaluation step by step, so as to give full play to employees' subjective initiative and improve work efficiency, and realize that employees with excellent performance are given priority in salary increase, rank promotion and position promotion. At the same time, the combination of material reward and spiritual reward, and the combination of reward and punishment will be implemented, and those who have made outstanding contributions will be rewarded; Heavy penalties will be imposed on those who cause huge losses. The company comprehensively uses various incentive measures to stimulate the enthusiasm and creativity of all employees and enhance the cohesion within the company. 4. Financial Risk With the continuous expansion of the company's production scale and the continuous expansion of overseas markets, the company's export business will continue to increase in the future. As the company's import and export business will generate a certain amount of foreign exchange receipts and payments, the country's foreign exchange policy will change, or the RMB exchange rate level will fluctuate greatly, which will have a certain impact on the company's performance. At the same time, affected by industry factors, the company's accounts receivable and inventory balance increased year by year with the growth of the company's main business. Although the overall risk was limited, the company also made provision for bad debts according to the principle of prudence, but it still brought certain pressure to the company's working capital. Countermeasures: For the exchange rate market trend, the company will enhance the bargaining power by increasing the added value of products, strive for more profit space, avoid the impact of RMB exchange rate fluctuation on the company's export sales, and avoid foreign exchange risks through forward settlement and sale of foreign exchange and foreign exchange treasure. The company attaches great importance to the expected risk of accounts receivable and inventory impairment in financial management, strengthens internal control and risk prevention mechanism, and minimizes financial risks and financial losses. 5. Risk of deterioration of the business environment caused by the aggravation of the COVID-19 epidemic. The COVID-19 epidemic in China has not completely ended, and the epidemic situation in other countries in the world has gradually increased. On March 11th, the World Health Organization announced that the COVID-19 epidemic has the characteristics of a global pandemic, and the form is worrying. Nearly 7% of the company's income comes from foreign regions. If the foreign epidemic is not effectively contained, it will bring certain uncertainties to the company's annual operation. Countermeasures: The company will actively respond to the epidemic situation, actively implement the epidemic prevention and control work, strengthen communication with customers and suppliers, establish a common destiny, join hands with * * * to overcome the difficulties, and strive to grasp the impact of the epidemic situation.