沈阳化工(000698) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report, which is unaudited, and no cash dividends, bonus shares, or capital reserve conversions are planned[1] Company Profile and Key Financial Indicators Company Profile Shenyang Chemical Co., Ltd. (stock code: 000698) is a company listed on the Shenzhen Stock Exchange, with Chen Shukang as its legal representative Company Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Shenyang Chemical | | Stock Code | 000698 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Chen Shukang | Key Accounting Data and Financial Indicators Revenue increased by 2.70% to 2.38 billion CNY, but net loss attributable to shareholders widened by 16.59% to 284.60 million CNY, while net loss excluding non-recurring items significantly narrowed by 69.00% to 75.28 million CNY, and operating cash flow turned positive Key Financial Data | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 2,377,014,775.91 | 2,314,475,557.13 | 2.70% | | Net Profit Attributable to Shareholders (CNY) | -284,602,794.21 | -244,109,882.74 | -16.59% | | Net Profit Excluding Non-Recurring Items (CNY) | -75,280,448.96 | -242,877,241.35 | 69.00% | | Net Cash Flow from Operating Activities (CNY) | 4,041,287.23 | -40,187,258.78 | 110.06% | | Basic Earnings Per Share (CNY/share) | -0.347 | -0.298 | -16.44% | | Weighted Average Return on Net Assets | -20.25% | -12.99% | -7.26% | | Total Assets (CNY) | 4,814,051,924.13 | 6,083,200,108.57 | -20.86% (Period-end vs. Prior Year-end) | | Net Assets Attributable to Shareholders (CNY) | 1,268,525,808.77 | 1,542,432,318.58 | -17.76% (Period-end vs. Prior Year-end) | Non-Recurring Gains and Losses and Amounts Non-recurring losses totaled 209.32 million CNY, primarily due to a 217.43 million CNY investment loss from a subsidiary's deconsolidation Non-Recurring Gains and Losses | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 2,020,083.16 | | Government Grants Included in Current Profit/Loss | 2,824,046.38 | | Other Non-Operating Income/Expenses | 4,118,202.82 | | Investment Income | -217,433,931.31 | | Less: Income Tax Impact | 830,364.65 | | Less: Impact of Minority Interests (After Tax) | 20,381.65 | | Total | -209,322,345.25 | Management Discussion and Analysis Principal Businesses and Operations During the Reporting Period The company's core business involves chlor-alkali and polyether polyol chemical products, achieving 2.38 billion CNY in revenue despite a sluggish market - Company's main products include caustic soda, PVC paste resin, and polyether polyols[14] - Achieved 2.38 billion CNY in operating revenue in the first half of 2024[14] - Operating model includes differentiated customized marketing, increased R&D investment, and centralized procurement to reduce costs and increase efficiency[14] Analysis of Core Competencies The company's core strengths lie in its strong brand, continuous technological innovation, and industry leadership, including "China Famous Brand Product" and "National High-Tech Enterprise" recognitions - Brand advantages: PVC paste resin is a "China Famous Brand Product," "Xingta" brand is a "China Well-known Trademark," and "Dongda" brand polyether polyol is an industry "renowned brand"[15] - Technology and qualifications: The company has been recognized as a National High-Tech Enterprise since 2008, enjoying a 15% corporate income tax preference; subsidiary Sinochem Dongda is also a National High-Tech Enterprise and a Manufacturing Single Champion Demonstration Enterprise[15] Analysis of Principal Business Polyether and chlor-alkali segments drove revenue growth, while petrochemical revenue significantly declined due to a subsidiary's shutdown and deconsolidation, leading to a sharp increase in management expenses and substantial cash outflow from financing activities Key Financial Indicators | Financial Indicator | Current Period | Prior Period | YoY Change | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Management Expenses | 150,026,266.31 | 67,505,087.46 | 122.24% | Increased expenses for laid-off personnel and Wax Chemical shutdown | | Net Cash Flow from Operating Activities | 4,041,287.23 | -40,187,258.78 | 110.06% | Reduced tax payments | | Net Cash Flow from Financing Activities | -424,678,577.17 | -112,696,006.10 | -276.84% | Repayment of Wax Chemical company loans | Operating Revenue Composition (by Industry) | Industry | Current Period Revenue (CNY) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Petrochemical Industry | 59,319,514.02 | 2.50% | -87.88% | | Chlor-Alkali Chemical Industry | 935,740,812.04 | 39.37% | 19.34% | | Polyether Chemical Industry | 1,361,252,167.93 | 57.27% | 34.66% | Operating Revenue Composition (by Product) | Product | Current Period Revenue (CNY) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Paste Resin | 659,984,271.99 | 27.77% | 39.47% | | Caustic Soda | 248,519,318.75 | 10.46% | -13.50% | | Acrylic Acid and Esters | 59,319,514.02 | 2.50% | -85.88% | | Polyether | 1,361,252,167.93 | 57.27% | 34.66% | Analysis of Assets and Liabilities Total assets decreased by 20.86% to 4.81 billion CNY due to the deconsolidation of a subsidiary entering bankruptcy, impacting various asset and liability accounts, with 842.53 million CNY in restricted assets - Deconsolidation of subsidiary Wax Chemical Co., Ltd. due to bankruptcy proceedings led to significant changes in multiple asset and liability accounts[20][21] Asset and Liability Changes | Asset and Liability Item | Period-end Amount (CNY) | Explanation of Change from Prior Year-end | | :--- | :--- | :--- | | Cash and Equivalents | 773,508,839.96 | -6.94% (of total assets), mainly due to repayment of interest-bearing debt of Wax Chemical Co. | | Fixed Assets | 1,927,350,108.36 | Mainly due to subsidiary's deconsolidation | | Short-term Borrowings | 849,510,410.05 | -6.69% (of total assets), mainly due to partial repayment of Wax Chemical Co. loans upon maturity | | Taxes Payable | 12,725,940.97 | -1.52% (of total assets), mainly due to subsidiary's deconsolidation | Period-end Restricted Assets | Item | Period-end Restricted Amount (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Equivalents | 236,227,122.15 | Used for margin deposits | | Fixed Assets | 171,139,735.75 | Used as collateral for secured loans | | Accounts Receivable Financing | 435,163,775.55 | Used as pledge collateral | | Total | 842,530,633.45 | | Analysis of Investment Status The company's investments focused on expanding polyether polyol business, including a 65 million CNY investment in Sinochem Dongda (Quanzhou) and ongoing construction of a 240,000 tons/year polyether polyol project, with another subsidiary's capacity increasing to 400,000 tons/year - New investment in Sinochem Dongda (Quanzhou) Co., Ltd. with an investment of 65 million CNY and 100% ownership, for polyether production and sales[23][24] - Significant non-equity investment project is the "240,000 tons/year Polyether Polyol Project," with 38.47 million CNY invested in the current period, cumulative investment of 47.32 million CNY, and project progress at 20%[25][26] Significant Asset and Equity Disposals The company sold its 100% equity in Shandong Bluestar Dongda (Nanjing) Co., Ltd. for 158.39 million CNY to optimize resource allocation and focus on core business - The company sold 100% equity in Shandong Bluestar Dongda (Nanjing) Co., Ltd. to Nanjing Chengzi Clean Energy Co., Ltd. for 158.39 million CNY[30] - This equity disposal aims to revitalize assets, optimize resource allocation, and focus on the company's core business, aligning with its overall development strategy[30][31] Analysis of Major Holding and Participating Companies Core subsidiary Sinochem Dongda (Zibo) Co., Ltd. reported a net profit of 31.77 million CNY, while the company completed the sale of Shandong Bluestar Dongda (Nanjing) and deconsolidated Shenyang Wax Chemical Co., Ltd. due to bankruptcy Major Subsidiary Financial Data | Company Name | Type | Principal Business | Net Profit (CNY) | | :--- | :--- | :--- | :--- | | Sinochem Dongda (Zibo) Co., Ltd. | Subsidiary | Polyether Chemicals and Related Products | 31,773,681.88 | - Disposed of 100% equity in Shandong Bluestar Dongda (Nanjing) Co., Ltd. during the reporting period[32] - Wholly-owned subsidiary Shenyang Wax Chemical Co., Ltd. was accepted for bankruptcy liquidation by the court and is no longer included in the company's consolidated financial statements[32] Risks Faced by the Company and Countermeasures The company faces risks from a sluggish chlor-alkali and polyether polyol market, planning to address them through enhanced safety, operational excellence, technological innovation, deepened reform, and strengthened Party building - Main risks: Continued sluggishness in the chlor-alkali chemical market leading to shrinking downstream demand; polyether polyol demand constrained by furniture and construction industries, leading to price declines[34] - Countermeasures include: - Safety Management: Thoroughly investigate and rectify major accident hazards, strengthen HSE management - Operational Excellence: Strengthen production planning and supply/sales management, tap potential for cost reduction, and improve profitability - Technological Innovation: Advance the Sinochem Dongda Quanzhou project and develop new grades of paste resin - Deepening Reform: Strengthen the listed company platform function and promote smart factory construction - Party Building Leadership: Solidly carry out themed education and leverage the leading role of Party building[34][35] Corporate Governance Information on Annual and Extraordinary General Meetings Held During the Reporting Period The company held its 2023 Annual General Meeting on May 24, 2024, with a 27.67% investor participation rate[37] Changes in Directors, Supervisors, and Senior Management During the reporting period, the company appointed new Executive Deputy General Manager, Chief Financial Officer, and Securities Affairs Representative Personnel Changes | Name | Position Held | Type | Date | | :--- | :--- | :--- | :--- | | Shao Changwei | Executive Deputy General Manager | Appointment | 2024年03月06日 | | Sun Hongyun | Chief Financial Officer | Appointment | 2024年03月25日 | | Zhang Qian | Securities Affairs Representative | Appointment | 2024年04月26日 | Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions for the 2024 semi-annual period - The company's semi-annual profit distribution plan is a "three noes" scheme: no cash dividends, no bonus shares, and no capital reserve conversions to share capital[39] Environmental and Social Responsibility Significant Environmental Issues The company, a key pollutant-discharging entity, strictly adheres to environmental regulations, with 6.99 million CNY invested in environmental governance and no administrative penalties for environmental issues in H1 2024 - The company and its subsidiaries are classified as key pollutant-discharging entities and have obtained pollutant discharge permits[40][41] - During the reporting period, the company's pollutant emissions met standards, with no instances of exceeding limits[41] - In the first half of 2024, Shenyang Chemical invested 6.99 million CNY in environmental governance and protection, and paid 10,141.22 CNY in environmental taxes[42] Social Responsibility The company actively fulfills social responsibilities by supporting poverty alleviation through consumer assistance and rural revitalization projects in partnership with local villages - Shenyang Chemical supported poverty alleviation by purchasing 0.33 million CNY worth of agricultural products from Gulang County, Gansu Province, for employee benefits[43] - Subsidiary Sinochem Dongda donated 0.10 million CNY to each of two supported villages and engaged in Party building co-construction and priority procurement to support rural revitalization[43] Significant Matters Significant Related Party Transactions The company has significant financial transactions with its related party finance company, including 530.53 million CNY in deposits and 760.00 million CNY in loans, and an outstanding debt of 246.59 million CNY to its parent company Transactions with Sinochem Group Finance Co., Ltd. (million CNY) | Business Type | Daily Maximum Deposit Limit/Loan Limit | Beginning Balance | Current Period Transactions | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | | Deposit Business | 1,200.00 | 1,005.78 | Deposited 4,977.37 / Withdrawn 5,452.62 | 530.53 | | Loan Business | 1,500.00 | 840.00 | Loaned 825.00 / Repaid 905.00 | 760.00 | - The company's outstanding debt to its parent company, Shenhua Group, was 246.59 million CNY at period-end[48] Significant Contracts and Their Performance The company's total outstanding external guarantees amounted to 372.97 million CNY, representing 29.40% of its net assets, all provided to subsidiary Shenyang Wax Chemical Co., Ltd. and not yet fulfilled Significant Guarantees | Item | Amount (million CNY) | | :--- | :--- | | Total Approved External Guarantee Limit at Period-end | 3,800.00 | | Total Actual External Guarantee Balance at Period-end | 372.97 | | Ratio of Total Actual Guarantees to Company's Net Assets | 29.40% | - All external guarantees are provided to Shenyang Wax Chemical Co., Ltd[56][57] Significant Matters of Company Subsidiaries Subsidiary Shenyang Wax Chemical permanently ceased operations and entered bankruptcy, while Sinochem Dongda (Zibo) expanded polyether polyol capacity to 400,000 tons/year, and the company completed the 158.39 million CNY transfer of Shandong Bluestar Dongda (Nanjing) equity - Subsidiary Shenyang Wax Chemical permanently ceased major production operations and was accepted for bankruptcy liquidation by the court[61][62] - Subsidiary Sinochem Dongda (Zibo) Co., Ltd.'s polyether polyol expansion project was approved, increasing annual capacity from 300,000 tons to 400,000 tons[61][62] - The company publicly transferred 100% equity of subsidiary Shandong Bluestar Dongda (Nanjing) Co., Ltd. for 158.39 million CNY[62] Share Changes and Shareholder Information Share Changes The company's total share capital remained unchanged at 819,514,395 shares, with 4.12% restricted and 95.88% unrestricted shares Share Capital Structure | Share Type | Quantity (shares) | Proportion | | :--- | :--- | :--- | | Restricted Shares | 33,803,922 | 4.12% | | Unrestricted Shares | 785,710,473 | 95.88% | | Total Share Capital | 819,514,395 | 100.00% | Shareholder Numbers and Shareholding As of the reporting period end, the company had 55,173 common shareholders, with Shenyang Chemical Group Co., Ltd. and China Bluestar (Group) Co., Ltd. as the top two shareholders - Total common shareholders at the end of the reporting period were 55,173[64] Top Two Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held (shares) | | :--- | :--- | :--- | :--- | | Shenyang Chemical Group Co., Ltd. | State-owned Legal Person | 26.68% | 218,663,539 | | China Bluestar (Group) Co., Ltd. | State-owned Legal Person | 19.35% | 158,585,867 | Preferred Shares The company had no preferred shares during the reporting period[72] Bonds The company had no bond-related information during the reporting period[73] Financial Report Financial Statements This section provides the company's unaudited 2024 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity - The company's semi-annual financial report is unaudited[74] Consolidated Balance Sheet As of June 30, 2024, total assets were 4.81 billion CNY, total liabilities were 3.53 billion CNY, and equity attributable to parent company owners was 1.27 billion CNY, with total assets and liabilities decreasing by 20.86% and 21.98% respectively from the beginning of the year Consolidated Balance Sheet | Item | Period-end Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 4,814,051,924.13 | 6,083,200,108.57 | | Total Liabilities | 3,534,346,774.52 | 4,529,817,640.80 | | Total Equity Attributable to Parent Company Owners | 1,268,525,808.77 | 1,542,432,318.58 | Consolidated Income Statement In the first half of 2024, the company achieved 2.38 billion CNY in total operating revenue, with a total operating cost of 2.47 billion CNY, resulting in a net loss attributable to parent company shareholders of 284.60 million CNY, widening the loss from the prior period Consolidated Income Statement | Item | H1 2024 (CNY) | H1 2023 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 2,377,014,775.91 | 2,314,475,557.13 | | Total Operating Cost | 2,465,750,656.79 | 2,543,627,173.22 | | Total Profit | -278,782,790.20 | -240,003,184.30 | | Net Profit Attributable to Parent Company Shareholders | -284,602,794.21 | -244,109,882.74 | Consolidated Cash Flow Statement In H1 2024, net cash flow from operating activities turned positive at 4.04 million CNY, while investing activities had a net outflow of 7.14 million CNY, and financing activities had a net outflow of 424.68 million CNY, primarily for debt repayment, leading to a significant decrease in period-end cash and cash equivalents Consolidated Cash Flow Statement | Item | H1 2024 (CNY) | H1 2023 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,041,287.23 | -40,187,258.78 | | Net Cash Flow from Investing Activities | -7,137,885.18 | -45,202,089.80 | | Net Cash Flow from Financing Activities | -424,678,577.17 | -112,696,006.10 | | Net Increase in Cash and Cash Equivalents | -425,022,515.84 | -198,071,159.62 |