HX GROUP(SH:900917)2024-08-23 07:35Company Profile and Key Financial Indicators Company Information Shanghai Haixin Group Co, Ltd is a listed company engaged in pharmaceuticals, property leasing, textiles, financial investment, and commodity trading - Basic company information includes its Chinese name “上海海欣集团股份有限公司”, A-share ticker “海欣股份”, B-share ticker “海欣B股”, and legal representative, Fei Minhua1216 Key Accounting Data and Financial Indicators Revenue fell 34.98% due to the deconsolidation of Haixin Pharmaceutical and reduced trade, while net cash flow from operations surged 1687.11% from lower tax payments 2024 H1 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 406,499,814.08 | 625,159,485.96 | -34.98 | | Net Profit Attributable to Shareholders | 101,781,616.57 | 101,676,991.04 | 0.10 | | Net Profit Attributable to Shareholders (Non-recurring items deducted) | 99,477,853.24 | 104,421,712.71 | -4.73 | | Net Cash Flow from Operating Activities | 66,627,801.39 | 3,728,237.70 | 1,687.11 | | Asset Status | End of Current Period | End of Prior Year | Change from Prior Year-End (%) | | Net Assets Attributable to Shareholders | 3,886,419,387.36 | 3,965,055,449.29 | -1.98 | | Total Assets | 4,870,678,774.69 | 4,910,625,159.28 | -0.81 | 2024 H1 Key Financial Indicators | Key Financial Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.0843 | 0.0842 | 0.12% | | Weighted Average Return on Equity (%) | 2.5344 | 2.6108 | Decrease of 0.0764 percentage points | - The decline in operating revenue was mainly due to the deconsolidation of Haixin Pharmaceutical (a decrease of 80.27 million Yuan) and a reduction in commodity trading revenue (77.18 million Yuan)19 - The significant increase in net cash flow from operating activities was primarily due to a 56.29 million Yuan reduction in various tax payments20 Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss for the period totaled 2.30 million Yuan, mainly from fair value changes and disposals of financial assets and liabilities Non-recurring Profit and Loss Items | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -37,965.91 | | Government Grants Recognized in Current Profit or Loss | 891,877.80 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities | 2,599,130.54 | | Other Non-operating Income and Expenses | -299,104.54 | | Other Items Meeting the Definition of Non-recurring P&L | 216,686.29 | | Total | 2,303,763.33 | Management Discussion and Analysis Report on the Company's Industry and Main Business during the Reporting Period The company operates across five segments: pharmaceuticals, property management, textiles, financial investment, and commodity trading - The company's main business segments include: - Pharmaceuticals: Primarily focused on chemical drug production and sales - Industrial Plant and Property Leasing: Manages and leases existing properties - Textiles: Engaged in the R&D, production, and sale of plush fabrics and apparel - Financials: Holds equity stakes in Changjiang Securities and Changxin Asset Management - Commodity Trading: Participates in upstream and downstream supply chain procurement and sales25 Discussion and Analysis of Operations In H1 2024, the company achieved revenue of 407 million Yuan (-34.98% YoY) and net profit of 102 million Yuan (+0.10% YoY) amid a complex environment - Pharmaceuticals Segment: Holding pharmaceutical manufacturing companies achieved a combined operating revenue of 236 million Yuan, down 15.00% YoY, and a combined net profit attributable to the parent of 10.57 million Yuan, down 5.29% YoY2728 - Property Segment: Maintained an occupancy rate of around 90% despite market downturns, generating self-operated leasing income of 41.99 million Yuan and a net operating profit of 25.83 million Yuan, up 2.63% YoY2930 - Textiles Segment: Continued its contraction and adjustment, with revenue of 63.49 million Yuan (-25.29% YoY), but achieved a turnaround in net profit attributable to the parent, realizing a profit of 44,900 Yuan31 Key Operations during the Reporting Period Significant financial metric changes occurred, including decreased revenue and costs, a 78.60% drop in finance costs, and a 1687.11% surge in operating cash flow Analysis of Key Items in Financial Statements | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 406,499,814.08 | 625,159,485.96 | -34.98 | Deconsolidation of Haixin Pharmaceutical and reduced commodity trading revenue | | Operating Costs | 169,159,793.18 | 332,617,406.22 | -49.14 | Deconsolidation of Haixin Pharmaceutical and reduced commodity trading costs | | Finance Costs | -4,279,137.94 | -2,395,882.98 | -78.60 | Reduced interest expense and increased foreign exchange gains | | Net Cash Flow from Operating Activities | 66,627,801.39 | 3,728,237.70 | 1,687.11 | Decrease in various tax payments | | Net Cash Flow from Investing Activities | -107,248,544.75 | 85,189,284.71 | -225.89 | Decrease in investment redemptions (wealth management products) | | Net Cash Flow from Financing Activities | -20,484,169.35 | -1,622,224.39 | 1,162.72 | Reduced borrowing by Nanjing Plush | Performance of Major Subsidiaries and Investees | Company Name | Business Nature | Net Profit (CNY 10,000) | Investment Income (CNY 10,000) | % of Company's Net Profit | | :--- | :--- | :--- | :--- | :--- | | Holding Subsidiaries | | | | | | Jiangxi Gannan Haixin Pharmaceutical | Pharmaceuticals | 2,019.15 | - | - | | Xi'an Haixin Pharmaceutical | Pharmaceuticals | -346.92 | - | - | | Nanjing Haixin Lining Plush | Textiles | 290.22 | - | - | | Investee Companies | | | | | | Changjiang Securities | Financials | - | 2,978.40 | 29.26% | | Changxin Asset Management | Financials | - | 1,720.97 | 16.91% | | Jiangsu Suzhong Pharmaceutical Group | Pharmaceuticals | - | 1,271.17 | 12.49% | | Jiangsu Suzhong Health Technology | Health Services | - | 1,315.72 | 12.93% | - The company faces key risks including market competition, policy changes in healthcare and finance, technological iteration, environmental protection, and quality control4647485051 Corporate Governance Summary of Shareholders' Meetings The 2023 Annual General Meeting was held on June 20, 2024, approving the annual report, profit distribution plan, and amendments to the Articles of Association - The 2023 Annual General Meeting approved multiple resolutions, including the "Company's 2023 Annual Report," the "2023 Profit Distribution Plan," and the "Resolution on Amending the