HNHS(SH:600156)2024-08-22 07:41Financial Performance - The company's operating revenue for the first half of 2024 was ¥329,948,590.45, a decrease of 12.63% compared to ¥377,642,892.88 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was -¥25,621,886.72, compared to -¥9,532,621.56 in the previous year[11]. - The total profit for the period was a loss of CNY 32.55 million, with a net profit attributable to shareholders of CNY -25.62 million[17]. - The total comprehensive income for the first half of 2024 was -57,572,797.49 CNY, compared to -11,640,360.22 CNY in the same period of 2023[52]. - The company reported a net loss of CNY 148,021,586.37 as of June 30, 2024, compared to a net loss of CNY 122,399,699.65 at the end of 2023[45]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥18,636,721.50, indicating a significant cash outflow during the reporting period[11]. - Cash flow from operating activities showed a net outflow of CNY 18.64 million, compared to a smaller outflow of CNY 1.64 million in the previous year[18]. - The company’s cash and cash equivalents decreased by 30.51% to CNY 102.68 million, primarily due to the payment of prior period advance receipts[20]. - The total cash inflow from operating activities was 401,419,118.23 CNY, down from 418,750,929.48 CNY in the previous year[52]. - The company reported a net cash outflow from financing activities of -7,823,090.26 CNY, compared to -3,644,437.48 CNY in the same period last year[53]. Assets and Liabilities - The total assets at the end of the reporting period were ¥872,465,696.09, down 7.30% from ¥941,193,995.35 at the end of the previous year[11]. - The total liabilities were CNY 435,490,863.26, down from CNY 475,668,290.51, reflecting a decrease of approximately 8.4%[45]. - The company’s total assets decreased by 2.75% compared to the previous year, reflecting the impact of various operational challenges[20]. - The total equity attributable to shareholders decreased to CNY 639,558,165.84 as of June 30, 2024, from CNY 697,130,963.33 at the end of 2023[47]. Research and Development - Research and development expenses increased by 20.88% to CNY 5.48 million, reflecting the company's commitment to innovation[18]. - The company reported a significant increase in research and development expenses, totaling CNY 5,476,485.98 for the first half of 2024, compared to CNY 4,530,650.54 in the same period of 2023[48]. - The company holds over 40 valid patents, including more than 10 invention patents[16]. Market and Industry Trends - In the first half of 2024, the textile industry saw a revenue increase of 6% and a profit increase of 21.1% compared to the same period last year[14]. - The hemp textile industry achieved a revenue of 16.089 billion RMB, up 32.48% year-on-year, and a profit of 696 million RMB, up 118.85% year-on-year[15]. - The company is actively seeking new markets, shifting trade focus from Europe and the US to Southeast Asia[17]. Environmental and Social Responsibility - The company reported that the wastewater discharge concentration and total volume are within the approved limits, with no exceedance of discharge standards[33]. - The company has implemented pollution prevention facilities that are operating normally, with no exceedance in emissions for wastewater, exhaust gas, and noise[33]. - The company has taken measures to reduce carbon emissions by utilizing photovoltaic power generation[37]. Shareholder Information - The controlling shareholder, Hunan Xingxiang Investment Holding Group Co., Ltd., holds 162,104,312 shares, representing 40.31% of the total shares[42]. - As of the end of the reporting period, the total number of ordinary shareholders is 24,742[42]. Financial Instruments and Accounting Policies - The company applies the accounting treatment for business combinations under common control by measuring the acquired assets and liabilities at the book value in the consolidated financial statements of the ultimate controlling party[72]. - Financial instruments are recognized when the company becomes a party to the financial instrument contract, and derecognition occurs under specific conditions[77]. - The company recognizes deferred tax assets and liabilities based on the temporary differences between the tax bases of assets and liabilities and their carrying amounts[108]. Employee Compensation and Benefits - Total employee compensation for the first half of 2024 amounted to CNY 45,551,073.75, a significant increase compared to CNY 33,395,960.90 in the same period of 2023, reflecting a growth of approximately 36.5%[164]. - The total employee welfare expenses amounted to CNY 2,356,665.17, showing a slight increase from CNY 2,291,265.17, which is an increase of approximately 2.9%[164]. Inventory Management - The company reported a total of 137,396,379.61 CNY in inventory, with a provision for inventory depreciation of 91,338,488.37 CNY, resulting in a net inventory value of 46,057,891.24 CNY[136]. - The company’s finished goods inventory stands at 86,501,573.91 CNY, with a depreciation provision of 68,269,381.34 CNY[137]. Credit Risk Management - The company has not applied the expected credit loss model for bad debt provisions, indicating a conservative approach to credit risk management[126]. - The company reported a bad debt provision of CNY 54,603,764.07, which represents 45.24% of the total accounts receivable[120].