Jinhong (000669)2024-08-28 10:45Financial Performance - The company's operating revenue for the first half of 2024 was ¥689,073,899.25, representing a 6.13% increase compared to ¥649,255,362.35 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was -¥92,622,841.61, a significant decrease of 2,527.98% from ¥3,814,807.64 in the previous year[11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥93,287,616.55, down 3,532.23% from ¥2,717,991.68 in the same period last year[11]. - The net cash flow from operating activities decreased by 30.96%, amounting to ¥94,920,288.10 compared to ¥137,480,294.80 in the previous year[11]. - The total assets at the end of the reporting period were ¥2,578,164,761.11, a decrease of 4.78% from ¥2,707,676,464.65 at the end of the previous year[11]. - The net assets attributable to shareholders of the listed company were ¥162,094,629.86, down 37.60% from ¥259,756,585.05 at the end of the previous year[11]. - The basic earnings per share were -¥0.1361, a decline of 2,530.36% from ¥0.0056 in the same period last year[11]. - The diluted earnings per share were also -¥0.1361, reflecting the same decline as the basic earnings per share[11]. - The weighted average return on equity was -43.39%, a decrease of 44.20% compared to 0.81% in the previous year[11]. - The company reported a significant increase in investment income, which rose by 135.61% to ¥6,349,826.45 from ¥2,695,012.89 in the previous year, mainly due to increased profits from equity method investments[21]. - The company experienced a dramatic rise in credit impairment losses, which surged by 2,925.90% to ¥-136,135,767.61 from ¥-4,499,013.52, primarily due to the provision for large bad debts[21]. - The company reported a net profit of -93.29 million yuan for the current period, a decrease of 3532.21% compared to the same period last year[115]. - The current ratio decreased by 31.54% to 16.43, while the quick ratio also fell by 31.45% to 15.08[115]. - The debt-to-asset ratio increased by 2.64% to 89.11%, indicating a higher level of financial leverage[115]. - The company reported a significant increase in financial expenses, totaling CNY 34,989,118.78 in the first half of 2024, compared to CNY 32,028,138.30 in the same period of 2023[124]. Revenue Sources - Gas business contributed ¥670,778,399.62, accounting for 97.34% of total revenue, with a year-on-year growth of 5.24%[23]. - The mining business saw significant growth of 54.30%, generating ¥18,295,499.63, up from ¥11,856,968.45 in the previous year[22]. - The Hunan region accounted for 93.16% of total revenue, with a year-on-year growth of 7.11%, while the Shandong region experienced a decline of 5.63%[22]. Operational Challenges - The company is facing financial constraints due to slow cash recovery, which has limited its business expansion capabilities[16]. - The company is actively working to address debt issues and improve its financing capabilities[41]. - The company aims to diversify its operations and enhance its overall profitability and risk resistance[41]. - The company is actively seeking external support through asset sales, strategic investments, and government assistance to reduce financial expenses and debt pressure[42]. - The company plans to accelerate the recovery of accounts receivable and improve its financial situation while maintaining operational efficiency[42]. Legal and Compliance Issues - The company reported a lawsuit involving a dispute over equity transfer with an amount of CNY 16,356.52 thousand, which has not formed a provision for liabilities[52]. - Another lawsuit related to the same equity transfer dispute has an amount of CNY 6,025.95 thousand, also without a provision for liabilities[52]. - A third lawsuit concerning a different equity transfer dispute has an amount of CNY 4,955.22 thousand, with no provision for liabilities[53]. - The company is involved in a financial loan dispute with China Construction Bank, with a principal balance and interest amounting to CNY 13,603.51 thousand, which is currently in execution[54]. - The company has ongoing litigation regarding the construction contract dispute with Zhongyou Jintong Natural Gas, with claims totaling approximately 50.10 million yuan[56]. - The company has a pending construction contract dispute with Hebei Construction Group Installation Engineering, claiming 1,520,024.23 yuan for the remaining project payment[58]. - The company has a financing lease contract dispute with Minsheng Financial Leasing, with an outstanding amount of 69,740.58 million yuan[58]. - The company is currently executing a judgment related to the financial loan contract dispute with China Construction Bank, with a principal amount of 83.89 million yuan[57]. Shareholder and Governance Changes - The annual shareholders' meeting had a participation rate of 21.01% on May 17, 2024, while the first extraordinary shareholders' meeting had a participation rate of 27.08% on June 12, 2024[44]. - The company will not distribute cash dividends or issue bonus shares for the half-year period[45]. - There were significant changes in the board of directors and management, including the election of new members and the dismissal of others in June 2024[45]. - The company appointed Yuan Zhibiao as the new general manager and adjusted other senior management positions during the board meeting on June 13, 2024[90]. - The largest shareholder, Shanxi Kunjie Energy Technology Partnership, holds 20.71% of the shares, totaling 140,899,144 shares[93]. - The company experienced a change in its controlling shareholder, with Shanxi Kunjie Energy Technology Partnership (Limited Partnership) becoming the new controlling shareholder on January 18, 2024[100]. Asset Management and Investments - The company has established a solid foundation for its gas business through its own long-distance pipelines and extensive urban networks, ensuring deep development in various regions[18]. - The company aims to expand its clean energy and renewable energy development, focusing on policy market dynamics and tracking new energy technology developments[15]. - The company plans to enhance its investment in high-quality energy project acquisitions and strengthen the integration of various resources to become a leading comprehensive clean energy service provider in China[15]. - The company has not reported any significant equity investments during the reporting period[29]. - The company has not engaged in any securities investments during the reporting period[31]. Financial Reporting and Compliance - The financial statements were approved by the board on August 28, 2024, covering the period from January 1, 2024, to June 30, 2024[149]. - The financial statements comply with the enterprise accounting standards, reflecting the company's financial position as of June 30, 2024[151]. - The company uses the historical cost basis for accounting, except for certain financial instruments[149]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[157]. - The company applies the expected credit loss model for financial instrument impairment, reflecting the weighted average of credit losses based on default risk[172]. Risk Management - The company faces risks related to economic cycles, which can affect natural gas demand[35]. - Policy changes in the natural gas industry may impact market demand for the company's products[36]. - The company is dependent on upstream suppliers, which poses risks if supply is disrupted[39]. Social Responsibility and Community Engagement - The company emphasizes social responsibility by actively participating in community service and supporting local welfare initiatives[49]. - The company has made substantial investments in safety inspection and customer service, achieving recognition in the gas industry[48]. - The company focuses on sustainable development by aligning its operations with local economic needs and enhancing gas infrastructure[48].