COFCO TECH(SZ:000930)2018-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 3,454,801,464.73, representing an increase of 18.18% compared to CNY 2,923,222,429.71 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 18.26% to CNY 183,279,055.62 from CNY 224,234,812.41 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was CNY 175,041,697.62, a significant increase of 31,784.36% compared to a loss of CNY 552,454.53 in the previous year[19]. - The net cash flow from operating activities was CNY 131,480,243.42, down 50.36% from CNY 264,865,799.58 in the same period last year[19]. - The total assets at the end of the reporting period were CNY 6,199,955,158.71, an increase of 4.10% from CNY 5,955,889,252.79 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company increased by 10.48% to CNY 1,992,822,845.98 from CNY 1,803,788,223.92 at the end of the previous year[19]. - The company achieved a 14.62% increase in domestic revenue, totaling RMB 3.06 billion, while international revenue decreased by 27.50% to RMB 315.32 million[37]. - The company reported a total comprehensive income of CNY 209,075,500.41 for the first half of 2018, down from CNY 226,217,515.95 in the previous year, a decline of about 7.6%[139]. - The total operating costs increased to CNY 3,263,830,149.76 from CNY 2,937,373,403.21, marking an increase of about 11.1%[141]. - The company reported a net profit distribution of CNY -2,450,000.00 to shareholders, indicating a loss in profit distribution compared to the previous period[153]. Operational Developments - The company is actively promoting the "retreating from the city to the park" project, with the main construction of the project nearly completed[27]. - The company has commenced trial operations of a 300,000 tons/year fuel ethanol production line at the Mohekou plant[27]. - The citric acid production line in the Bengbu area has been shut down, and existing production equipment is being dismantled and relocated[27]. - The company is focusing on diversifying raw materials, including the use of rice and wheat, to address issues related to unsuitable food stocks[30]. - The company has established long-term partnerships with over 10 research institutions and universities to enhance its R&D capabilities[30]. - The company is actively pursuing market expansion and strategic customer stabilization, leading to an increase in operating profit compared to the previous year[34]. Financial Position - Cash and cash equivalents decreased to ¥392 million, accounting for 6.32% of total assets, down from 9.56% in the previous year, a decline of 3.24%[41]. - Accounts receivable decreased to ¥214 million, representing 3.45% of total assets, down from 5.20% last year, a decrease of 1.75%[41]. - Inventory decreased significantly to ¥555 million, now 8.96% of total assets, compared to 19.08% previously, a reduction of 10.12% due to changes in procurement strategy[41]. - Fixed assets decreased to ¥1.87 billion, making up 30.22% of total assets, down from 36.85%, a decline of 6.63% due to ongoing relocation projects[41]. - Construction in progress increased to ¥862 million, now 13.91% of total assets, up from 2.57%, an increase of 11.34% reflecting capital investments in relocation projects[41]. - Short-term borrowings rose to ¥2.24 billion, accounting for 36.08% of total liabilities, up from 34.63%, an increase of 1.45%[41]. - Long-term borrowings increased to ¥488 million, representing 7.88% of total liabilities, up from 5.95%, an increase of 1.93%[41]. - The total liabilities amounted to CNY 4,025,789,904.19, up from CNY 3,994,545,277.85 in the previous period, reflecting a growth in financial obligations[131]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by the environmental protection department[87]. - The total emissions of sulfur dioxide and nitrogen oxides from the company's thermal power production department are 1,331.62 tons and 319.9 tons respectively, exceeding the permitted limits[87]. - The company has implemented pollution control facilities with a desulfurization efficiency of 85% and dust removal efficiency of 99.5%[91]. - A total of 32 impoverished households benefited from industrial poverty alleviation policies, with each household increasing income by over CNY 1,000 through various agricultural activities[99]. - The company provided CNY 464,000 for housing renovation, benefiting 26 impoverished households[100]. - The company aims to ensure that no impoverished household is left behind in the poverty alleviation efforts by implementing a monthly visit system for support[103]. Corporate Governance and Structure - The company has established a new wholly-owned subsidiary, COFCO Biochemical Service Management Co., Ltd., with a registered capital of 50 million yuan to enhance management capabilities[52]. - The company has undergone significant changes in ownership structure, with COFCO Group becoming the largest shareholder[169]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[174]. - The financial statements comply with the latest accounting standards issued by the Ministry of Finance, reflecting the company's financial position, operating results, and cash flows accurately[177]. - The company has not reported any changes in the number of restricted shares during the reporting period[112]. Research and Development - Research and development expenses increased by 18.31% to RMB 32.12 million, reflecting the company's commitment to innovation[35]. - The company plans to enhance its market competitiveness by diversifying raw materials and improving production technology to reduce costs and improve product quality[55].