SCSF(600779)2023-07-28 16:00Financial Performance - Revenue for the first half of 2023 was RMB 1.53 billion, a decrease of 26.38% compared to the same period last year[13] - Net profit attributable to shareholders was RMB 202.78 million, down 45.15% year-on-year[13] - Basic earnings per share decreased by 45.07% to RMB 0.4165[13] - Weighted average return on equity (ROE) dropped by 7.63 percentage points to 5.69%[13] - Total assets remained stable at RMB 7.04 billion, with a slight decrease of 0.09%[13] - Revenue decreased by 26.38% to RMB 1,526,606,558.13 compared to the same period last year, primarily due to reduced shipments to lower inventory levels and stabilize the value chain[28] - Operating costs decreased by 14.95% to RMB 267,701,894.14, in line with the reduction in revenue[28] - Net profit for the first half of 2023 was RMB 202,782,545.83, down 45.2% from RMB 369,735,266.16 in the first half of 2022[104] - Total revenue for the first half of 2023 reached 3,893,519,195.20 RMB, a decrease from 4,410,141,788.64 RMB in the same period last year[97] - Net profit for the first half of 2023 was a loss of RMB 36,054,659.01, compared to a profit of RMB 9,980,582.30 in the same period last year[107] - Total comprehensive income for the first half of 2023 was a loss of RMB 36,054,659.01, compared to a profit of RMB 9,980,582.30 in the same period last year[108] - Cash received from sales of goods and services in the first half of 2023 was RMB 1,690,458,860.09, a decrease from RMB 2,129,853,976.16 in the same period last year[109] - Net cash flow from operating activities in the first half of 2023 was RMB 13,236,853.44, compared to RMB 1,446,428.22 in the same period last year[111] - Net cash flow from investing activities in the first half of 2023 was a loss of RMB 668,389,622.30, compared to a loss of RMB 515,402,314.62 in the same period last year[111] - Net cash flow from financing activities in the first half of 2023 was a loss of RMB 3,836,341.70, compared to a loss of RMB 54,748,278.12 in the same period last year[111] - Net increase in cash and cash equivalents in the first half of 2023 was a loss of RMB 658,989,110.56, compared to a loss of RMB 568,704,164.52 in the same period last year[112] - Ending cash and cash equivalents balance for the first half of 2023 was RMB 1,247,589,977.31, compared to RMB 1,316,512,002.41 in the same period last year[112] - Sales revenue from goods and services received in cash decreased to RMB 657.94 million in H1 2023, down from RMB 1.01 billion in H1 2022[113] - Net cash flow from operating activities was negative RMB 274.45 million in H1 2023, compared to negative RMB 119.55 million in H1 2022[113] - Net cash flow from investing activities decreased to RMB 127.18 million in H1 2023 from RMB 369.86 million in H1 2022[115] - Net cash flow from financing activities was negative RMB 3.21 million in H1 2023, compared to negative RMB 54.31 million in H1 2022[115] - Total cash and cash equivalents at the end of H1 2023 were RMB 159.24 million, down from RMB 499.73 million at the end of H1 2022[115] - Owner's equity decreased by RMB 134.21 million in H1 2023, primarily due to a decrease in undistributed profits of RMB 162.84 million[116] - Comprehensive income for H1 2023 was RMB 202.78 million, contributing positively to owner's equity[116] - Total owner's equity at the end of H1 2023 was RMB 3.32 billion, down from RMB 3.46 billion at the beginning of the year[118] - Total comprehensive income for the period increased by RMB 369.74 million, reaching RMB 369.74 million[119] - Owner's equity decreased by RMB 31.00 million, resulting in a total owner's equity of RMB 2.60 billion[119] - Capital reserve decreased by RMB 7.17 million, with a total capital reserve of RMB 431.18 million[123] - Undistributed profits decreased by RMB 401.68 million, resulting in a total undistributed profit of RMB 1.89 billion[123] - Total owner's equity at the end of the period was RMB 2.92 billion, a decrease from the previous period[123] - Total comprehensive income for the period amounted to RMB 9,980,582.30[125] - Owner's capital reduction and decrease amounted to RMB -35,109,019.74[125] - Profit distribution to owners (or shareholders) was RMB -365,630,136.00[125] - Total equity at the end of the period was RMB 2,074,190,263.33[125] Cash Flow and Liquidity - Operating cash flow increased significantly by 815.14% to RMB 13.24 million[13] - Net cash flow from operating activities increased significantly by 815.14% to RMB 13,236,853.44, as the decrease in cash received was smaller than the decrease in cash paid[28] - Net cash flow from investing activities decreased by 29.68% to RMB -668,389,622.30, mainly due to continued investment in the Qionglai full-industry production base project[28] - Monetary funds decreased by 34.70% to RMB 1,248,327,063.79, accounting for 17.73% of total assets[30] - Cash and cash equivalents decreased to 1,248,327,063.79 RMB from 1,911,718,169.37 RMB at the end of 2022[97] - Cash and cash equivalents decreased from 310,416,064.57 yuan to 159,975,096.06 yuan[100] - The company's monetary funds as of June 30, 2023, totaled RMB 1,248,327,063.79, with bank deposits accounting for RMB 1,247,589,977.31[181] Assets and Liabilities - Total assets slightly decreased by 0.9% to RMB 4,594,998,637.65 in the first half of 2023, compared to RMB 4,638,838,171.37 in the first half of 2022[102] - Total liabilities increased by 24.4% to RMB 1,676,768,923.36 in the first half of 2023, up from RMB 1,347,561,049.92 in the first half of 2022[102] - Total equity decreased by 11.3% to RMB 2,918,229,714.29 in the first half of 2023, down from RMB 3,291,277,121.45 in the same period last year[102] - Accounts receivable increased by 62.28% to RMB 5,620,084.20, representing 0.08% of total assets[30] - Inventory increased by 5.39% to RMB 2,574,520,442.59, accounting for 36.56% of total assets[30] - Construction in progress increased by 29.77% to RMB 2,106,941,056.27, representing 29.92% of total assets[30] - Contract liabilities increased by 5.71% to RMB 1,085,996,030.38, accounting for 15.42% of total liabilities[30] - Dividends payable increased by 70.20% to RMB 886,493,208.79, primarily due to declared but unpaid 2022 dividends[30][31] - Accounts receivable increased to 5,620,084.20 RMB from 3,463,200.00 RMB at the end of 2022[97] - Inventory increased to 2,574,520,442.59 RMB from 2,442,905,934.90 RMB at the end of 2022[97] - Prepayments increased to 22,032,591.97 RMB from 16,318,214.07 RMB at the end of 2022[97] - Other receivables decreased slightly to 14,255,933.66 RMB from 14,904,556.23 RMB at the end of 2022[97] - Construction in progress increased significantly to 2,106,941,056.27 RMB from 1,623,635,131.93 RMB at the end of 2022[97] - Fixed assets decreased to 463,588,612.09 RMB from 483,183,052.52 RMB at the end of 2022[97] - Investment property decreased slightly to 8,817,501.96 RMB from 8,965,281.32 RMB at the end of 2022[97] - Other current assets increased to 28,763,078.99 RMB from 20,831,714.07 RMB at the end of 2022[97] - Total assets decreased slightly from 7,047,460,201.68 yuan to 7,040,965,796.76 yuan[98] - Non-current assets increased significantly from 2,637,318,413.04 yuan to 3,147,446,601.56 yuan[98] - Intangible assets rose from 129,990,663.19 yuan to 163,638,952.19 yuan[98] - Deferred tax assets grew from 332,065,930.57 yuan to 358,170,358.75 yuan[98] - Total liabilities increased from 3,589,009,775.46 yuan to 3,716,725,572.86 yuan[99] - Contract liabilities rose from 1,027,343,815.54 yuan to 1,085,996,030.38 yuan[98] - Shareholders' equity decreased from 3,458,450,426.22 yuan to 3,324,240,223.90 yuan[99] - Inventory increased from 2,380,952,280.18 yuan to 2,520,719,830.35 yuan[100] - Accounts receivable surged from 3,463,200.00 yuan to 118,767,571.93 yuan[100] - Other receivables decreased to RMB 14,255,933.66 from RMB 14,904,556.23 at the beginning of the period[195] - Deposits and guarantees accounted for RMB 8,774,862.33 of other receivables, up from RMB 8,450,362.33 at the beginning of the period[198] - Employee advances increased to RMB 78,686.21 from RMB 27,062.23 at the beginning of the period[198] - Other receivables with a maturity of 1-2 years amounted to RMB 6,436,152.78[197] - The top five other receivables accounted for 77.71% of the total other receivables, totaling RMB 11,078,104.88[200] - The largest other receivable was RMB 4,000,000.00, accounting for 28.06% of the total other receivables[200] - Other receivables with a maturity of 1 year or less amounted to RMB 5,942,065.07[197] - Other receivables with a maturity of 2-3 years amounted to RMB 853,787.45[197] - Other receivables with a maturity of 5 years or more amounted to RMB 998,420.26[197] - Other receivables with a maturity of 4-5 years amounted to RMB 25,508.10[197] Business Operations and Strategy - The company's core products include Shuijingfang Classic, Shuijingfang Jingtai, and Shuijingfang Zhenniang Ba Hao, which are key to its premium brand positioning[18] - The company's R&D team focuses on traditional brewing techniques and microbial research, leveraging the Shuijingfang Distillery Site, a national key cultural relic[19] - The company employs four sales models: traditional general agency, new general agency, high-end product operation, and emerging channel operation[19][20] - Q2 revenue increased by 2% year-over-year, with net profit surging by 509% year-over-year, meeting company expectations[21] - The company expects double-digit revenue growth starting from Q3 and anticipates full-year 2023 revenue and net profit to grow compared to 2022[21] - The company launched the new ultra-premium product "Shui Jing Fang·First Workshop" to enrich its brand portfolio[22] - The "Baijiu Academy" initiative has covered over 1,000 participants, including industry experts, distributors, and consumers, since its trial operation in November 2022[23] - The company has established over 40 cultural and aesthetic experience centers in more than 30 cities nationwide to enhance brand influence and consumer engagement[25] - The company has expanded its distribution network, covering over 30 key cities and accumulating more than 1,000 corporate group purchase clients[25] - The company plans to increase investment in brand media and PR in H2 2023 to boost brand awareness[25] - The company will focus on strengthening sales team capabilities and launching competitive incentive programs for distributors and retailers[25] - The company aims to enhance consumer cultivation through high-quality events and the expansion of aesthetic experience centers in key markets[25] - The company will intensify marketing efforts for the new "Jingtai" product and increase participation in the 200 RMB price segment[26] - The company faces macroeconomic risks due to global inflation and regional conflicts, which may impact its operations. It plans to focus on high-end products, expand direct-controlled stores, and optimize investment strategies[35] - The company is addressing intensified industry competition by maintaining product quality, focusing on core markets, and strengthening value chain management[35] - The company's main business involves the production and sale of alcoholic beverages[126] Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit, with main pollutants including wastewater, exhaust gas, and solid waste[42] - The average daily concentration of COD cr at the Tuqiao plant wastewater treatment station is 26.80 mg/L, with a total discharge of 1.92 tons[43] - The average daily concentration of NH3-N at the Tuqiao plant wastewater treatment station is 0.51 mg/L, with a total discharge of 0.04 tons[43] - The average daily concentration of COD cr at the Qionglai plant wastewater treatment station is 65.03 mg/L, with a total discharge of 5.4331 tons[44] - The average daily concentration of NH3-N at the Qionglai plant wastewater treatment station is 0.5429 mg/L, with a total discharge of 0.0488 tons[44] - The Tuqiao plant's 20t/h natural gas boiler has an NOx hourly average concentration of 16 mg/m³, with a total discharge of 0.31 tons[45] - The Qionglai plant's 25t/h 1st natural gas boiler has an NOx hourly average concentration of 18.99 mg/m³, with a total discharge of 0.291 tons[45] - The Qionglai plant's 25t/h 2nd natural gas boiler has an NOx hourly average concentration of 15.32 mg/m³, with a total discharge of 0.14 tons[45] - The Qionglai plant's 25t/h 3rd natural gas boiler has an NOx hourly average concentration of 18.5 mg/m³, with a total discharge of 0.255 tons[45] - The Tuqiao plant disposed of 9379.82 tons of distiller's grains as general industrial solid waste[46] - The Qionglai plant disposed of 51657 tons of distiller's grains as general industrial solid waste[47] - The company's environmental monitoring data shows that the NOx emission concentration in the crushing workshop is 30 mg/Nm³, with quarterly manual monitoring[54] - The SO2 emission concentration in the boiler room is 10 mg/Nm³, adhering to the Chengdu Boiler Air Pollutant Emission Standards, with quarterly manual monitoring[54] - The ammonia emission concentration in the boiler room is 8.7 mg/Nm³, monitored quarterly by a third-party agency[54] - The hydrogen sulfide emission concentration in the wastewater treatment station is 0.58 mg/Nm³, monitored quarterly by a third-party agency[54] - The VOCs emission concentration at the southwest factory boundary is 2.0 mg/Nm³, monitored semi-annually by a third-party agency[55] - The COD concentration in the wastewater discharge outlet is 400 mg/L, with real-time online monitoring[56] - The NH3-N concentration in the wastewater discharge outlet is 30 mg/L, with real-time online monitoring[56] - The noise level at the east factory boundary packaging workshop is 60 dB during the day and 50 dB at night, monitored quarterly by a third-party agency[58] - The noise level at the southwest factory boundary crushing workshop is 60 dB during the day and 50 dB at night, monitored quarterly by a third-party agency[58] - The dust emission concentration in the raw material unloading area is 120 mg/Nm³, monitored semi-annually by a third-party agency[59] - The company's raw material unloading area has organized dust emissions of 120 units, with a concentration of 2.758 mg/m³, monitored manually twice a year[60] - The crushing workshop has organized dust emissions of 120 units, with a concentration of 31.8 mg/m³, monitored manually twice a year[60] - The boiler room has organized NOx emissions of 30 mg/m³, monitored automatically every hour, and SO2 emissions of 5 mg/m³, monitored manually every quarter[60] - The wastewater treatment station has organized ammonia emissions of 4.9 mg/m³ and hydrogen sulfide emissions of 0.33 mg/m³, monitored