SINOCHEM INTERNATIONAL(600500)2023-08-30 16:00Production Capacity and Projects - The company has an annual production capacity of 12,508 tons of N-Methyl-Isothiazolinone (CMIT) as approved by the Environmental Protection Bureau on November 26, 2013[1]. - The company also has a project for an annual production of 500 tons of Morpholine, approved on January 19, 2016[1]. - The company has a production capacity of 20,000 tons of Trichlorotoluene and 5,000 tons of other products, with acceptance approval on September 23, 2016[1]. - The company is involved in the development of a new energy power component research and demonstration line, with project approval received on June 2, 2021[23]. - The company has a project for the production of 0.2GWh ternary and lithium iron phosphate battery cells, with approval received on September 17, 2021[23]. - The company is currently constructing a 1.8G lithium-ion battery production line, with an expected capacity of 0.9G watt-hours per year[34]. - The company is in the process of upgrading its 1.8G lithium-ion battery production line technology, with construction ongoing[34]. Environmental Compliance and Management - The company reported a concentration of ammonia nitrogen at 10.99 mg/L, which is within regulatory limits[3]. - The company has a sulfur dioxide emission level of 1.14 mg/L, significantly below the regulatory limit of 50 mg/L[5]. - The company has a total waste water discharge of 129.38 tons per year, managed by Jiangsu Lvrui Environmental Technology Co., Ltd[8]. - The company utilizes its own incineration facilities for waste disposal, including 65.512 tons of copper sulfate recovery[10]. - The company has a total of 80 mg/L for volatile organic compounds, which is compliant with environmental standards[5]. - The company is actively engaged in environmental monitoring and compliance, ensuring all emissions are within acceptable limits[6]. - The company has established an emergency response plan, which has been filed with the local environmental protection bureau[11]. - The company has a wastewater treatment system that includes advanced catalytic oxidation and sedimentation processes, ensuring compliance with discharge standards[17]. - The average discharge concentration for COD is reported at 83.9 mg/L, which meets the regulatory limit of 500 mg/L[18]. - The company has implemented a multi-stage adsorption and absorption process for exhaust gas treatment, ensuring compliance with environmental standards[17]. - The company has a total of 10 sets of exhaust gas outlets, with an online monitoring system for wastewater discharge[17]. - The company has conducted regular soil monitoring to prevent groundwater pollution[17]. - The company has established a partnership with a third-party environmental management firm for the operation and maintenance of its wastewater treatment facilities[18]. - The company has a wastewater treatment process involving "Fenton oxidation + coagulation + biological treatment" to meet discharge standards[34]. - The company has established a comprehensive wastewater treatment system that includes multiple stages of processing to ensure compliance with environmental standards[36]. - The company has maintained its wastewater discharge within regulatory limits, with a total discharge of 1,328 tons per annum[160]. - The company has a valid pollution discharge permit, ensuring compliance with environmental regulations[160]. Financial Performance - The company reported a net profit for the first half of 2023 was -562,020,443.15 RMB, a decrease of 164.75% compared to the same period last year[146]. - The operating revenue for the first half of the year is ¥29,020,878,889.57, a decrease of 34.66% compared to ¥44,412,538,013.70 in the same period last year[186]. - The net profit attributable to shareholders is -¥163,974,598.18, representing a decline of 116.83% from ¥974,340,111.91 year-on-year[186]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is -¥562,020,443.15, down 164.75% from ¥867,933,111.73 in the previous year[186]. - The net cash flow from operating activities is ¥898,854,099.89, a decrease of 35.06% compared to ¥1,384,186,532.42 last year[186]. - The total assets at the end of the reporting period are ¥54,835,837,921.60, down 21.95% from ¥70,257,205,941.45 at the end of the previous year[186]. - The net assets attributable to shareholders at the end of the reporting period are ¥17,883,207,301.40, a decrease of 1.44% from ¥18,144,438,168.22 at the end of last year[186]. - Basic earnings per share for the first half of the year is -¥0.05, a decline of 114.29% from ¥0.35 in the same period last year[200]. - The diluted earnings per share is also -¥0.05, reflecting the same percentage decrease of 114.29% compared to the previous year[200]. - The weighted average return on net assets is -0.99%, a decrease of 9.03 percentage points from 8.04% last year[200]. Related Party Transactions and Commitments - The company has committed to avoiding competition with its controlling shareholder, Sinochem Group, as per agreements established in December 2004 and June 2009, ensuring compliance with long-term commitments[53]. - The company has implemented a comprehensive environmental management approach, integrating online data with municipal networks to strengthen operational guidance and monitoring[49]. - The company has made commitments to resolve related party transactions and competition issues with its subsidiaries, ensuring shareholder interests are protected[11]. - The company has established a clear division of overlapping businesses with its subsidiaries to focus on core business development and eliminate competition[11]. - The company has committed to ensuring fair pricing and compliance with disclosure obligations in related party transactions[10]. - The company has confirmed that it will not engage in any improper benefits or profit transfers through its controlling position[9]. - The company will utilize various legal methods to address potential competition issues arising from its subsidiaries within five years of the commitment date[11]. - The company has committed to not engaging in any activities that would affect Sinochem International's independence following the acquisition[72]. - The company will implement various measures, including asset restructuring and business adjustments, to resolve potential competition issues with Sinochem Group[72]. Social Responsibility and Community Engagement - The company has engaged in social responsibility initiatives, contributing a total of 1.3882 million yuan to support targeted poverty alleviation areas in the first half of 2023[42]. - The company organized a series of activities for World Environment Day 2023, emphasizing the theme of "Building a Modern Society in Harmony with Nature" to enhance public awareness of ecological protection[50]. - The company’s subsidiaries engage in community partnerships to promote environmental knowledge and fulfill corporate social responsibility, participating in various public welfare and charity activities[50]. - The company’s commitment to social responsibility is reflected in its active involvement in community greening projects, improving the overall environment of the industrial park[50]. - The company’s initiatives include organizing environmental knowledge competitions and themed art contests to foster a culture of environmental awareness among employees and their families[50]. - The company has actively participated in local environmental clean-up activities, utilizing mechanized sweeping vehicles to maintain a clean environment around its facilities[50]. Liquidity and Financial Position - The company reported a maximum daily deposit limit of RMB 4.5 billion with a deposit interest rate range of 0.01%-5%[65]. - As of the beginning of the reporting period, the company had a balance of RMB 2,939,486,191.23, with total deposits during the period amounting to RMB 83,048,109,921.54 and total withdrawals of RMB 84,573,650,705.61[65]. - The company maintains a strong liquidity position with ongoing bond issuance strategies to support future growth[122]. - The current liquidity ratio is 1.11, down 7.50% from 1.20 at the end of the previous year[146]. - The quick ratio improved to 0.71, an increase of 54.35% compared to 0.46 at the end of the previous year[146]. - The debt-to-asset ratio decreased to 56.14%, down 6.08 percentage points from 62.22% at the end of the previous year[146]. Debt and Guarantees - The total amount of guarantees provided by the company, including those to subsidiaries, is 2,155,276,700.00, which accounts for 12.05% of the company's net assets[84]. - The amount of debt guarantees provided to entities with a debt-to-asset ratio exceeding 70% is 1,441,960,000.00[84]. - The total amount of guarantees to subsidiaries during the reporting period is 430,000,000.00, with a balance of 713,316,700.00 at the end of the reporting period[84]. - The total guarantee balance (excluding guarantees to subsidiaries) was CNY 1,441,960,000[83]. - The company has provided a guarantee of 1,441,960,000.00 to a joint venture, which is classified as a related party guarantee[84]. Shareholder Information - The total number of shares outstanding is 3,591,616,773 after the cancellation of 1,673,800 restricted shares[109]. - The company completed the registration of 829,220,901 shares from a non-public offering in December 2022[109]. - As of the end of the reporting period, the total number of common shareholders is 72,001[113]. - The company has no strategic investors or general legal entities becoming top ten shareholders due to new share placements[119]. - The company has not issued any corporate bonds during the reporting period[120]. - The company issued bonds totaling RMB 3.5 billion with an annual interest rate of 2.96% for the first phase[122]. - The second phase of bond issuance is planned for RMB 500 million with an annual interest rate of 2.90%[122]. - The total number of shareholders at the end of the reporting period was 1,948,551,478 shares, representing 54.25% ownership by China Sinochem[134]. - The top ten shareholders include Qingdao Fanyi Asset Management with 50,000,000 shares (1.39%) and China State-Owned Enterprise Structural Adjustment Fund with 48,805,039 shares (1.36%)[134]. - The company has no applicable investor protection clauses or triggering conditions for the bond issuance[123]. - The company reported no changes in the status of pledged, marked, or frozen shares among the top shareholders[134].