XSS(SH:600117)2015-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2015 was approximately ¥2.37 billion, a decrease of 17.04% compared to ¥2.86 billion in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2015 was approximately -¥235.59 million, worsening from -¥128.33 million in the same period last year[22]. - The net cash flow from operating activities was -¥135.33 million, a significant decline of 170.80% compared to ¥191.14 million in the previous year[22]. - The total profit for the first half of 2015 was -239 million RMB, representing a decline of 163.71% year-over-year[30]. - The net profit attributable to the parent company for the first half of 2015 was -236 million RMB, down 83.58% from the previous year[30]. - The company reported a net loss of ¥237,284,960.26 for the first half of 2015, compared to a net loss of ¥114,687,210.40 in the previous year, representing an increase in losses[84]. - The operating profit for the period was -¥248,580,878.53, worsening from -¥95,347,793.26 in the same period last year[83]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥24.22 billion, an increase of 6.73% from ¥22.69 billion at the end of the previous year[22]. - The company's net assets attributable to shareholders decreased by 8.77% to approximately ¥2.46 billion from ¥2.70 billion at the end of the previous year[22]. - The company's total liabilities reached CNY 20.95 billion, compared to CNY 19.19 billion, marking an increase of about 9.2%[76]. - Current liabilities rose to CNY 16.83 billion from CNY 14.67 billion, reflecting an increase of about 14.7%[76]. - The company's total liabilities increased, with other payables rising by 39.65% to ¥2,353,686,158.85, mainly due to increased borrowings from the controlling shareholder[35]. Cash Flow - Cash flow from operating activities in the first half of 2015 was -135 million RMB, a decrease of 170.80% compared to the same period last year[25]. - Cash flow from financing activities was 432 million RMB, down 53.01% year-over-year due to the repayment of financing funds[25]. - The total cash and cash equivalents at the end of the period is ¥611,656,975.65, a decrease from ¥1,417,976,394.88 in the previous period[90]. - Total cash inflow from operating activities was ¥1,807,380,460.20, while cash outflow was ¥1,767,724,806.67, resulting in a net increase of cash from operations[93]. Production and Operations - In the first half of 2015, the company produced 653,300 tons of iron, a 5.56% increase year-over-year, while steel production decreased by 4.33% to 664,500 tons[30]. - The steel industry segment's revenue dropped by 24.58%, with a gross margin of 8.00%, down 1.31 percentage points from the previous year[39]. - The company is focusing on low-cost development and exploring high-end customer markets to maintain stable growth amid challenging market conditions[30]. Shareholder and Equity Information - The largest shareholder, Xining Special Steel Group Co., Ltd., holds 369,669,184 shares, representing 49.87% of the total shares[64]. - The company did not distribute profits or convert reserves into share capital during the reporting period[5]. - The company has not implemented any profit distribution measures during the reporting period[49]. Research and Development - Research and development expenses increased by 68.32% to ¥91,536,405.21, driven by advancements in low-carbon raw material sintering technology[34]. Market Environment - The overall market environment remains challenging, with a slight decline in steel production and sales compared to the previous year, but transformation and upgrading efforts are proceeding as planned[37]. Financial Governance and Compliance - The company has complied with all relevant laws and regulations regarding corporate governance and information disclosure[59]. - The financial report was approved for release on August 28, 2015, by the board of directors[118]. Future Outlook - The company anticipates a potential cumulative net loss by the end of the next reporting period due to declining steel prices and high financial costs[50]. - The company has ongoing major projects with significant investments, including CNY 2,500,000,000 for upgrading steel production systems, which is 93% complete[51].