ZHONGHENG GROUP(SH:600252)2014-07-24 16:00Financial Performance - The company achieved total revenue of CNY 1.793 billion in the first half of 2014, representing a 15.36% increase compared to CNY 1.555 billion in the same period last year[22]. - Net profit attributable to shareholders reached CNY 490 million, up 31.04% from CNY 374 million in the previous year[22]. - The net profit of the pharmaceutical segment was CNY 487 million, a 30% increase from CNY 374 million year-on-year[27]. - The company's operating revenue for the reporting period was CNY 1,793,428,080.40, representing a 15.36% increase compared to CNY 1,554,572,507.28 in the same period last year[35]. - Operating profit increased to ¥504,414,953.17, representing a growth of 30.5% from ¥386,558,559.57 year-over-year[109]. - Net profit for the period was ¥490,261,829.91, a rise of 30.9% compared to ¥374,445,565.39 in the same period last year[110]. - Comprehensive income totalled ¥296,223,706.36, compared to ¥249,172,493.48 in the previous period, marking an increase of 18.9%[110]. Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY 391 million, a decrease of 9.80% compared to CNY 433 million in the same period last year[22]. - The net cash flow from operating activities decreased by 9.80% to CNY 390,712,048.92 from CNY 433,164,030.00, influenced by changes in sales volume and marketing strategies[36]. - Cash flow from operating activities generated a net cash inflow of ¥390,712,048.92, down from ¥433,164,030.00 in the prior period[116]. - Investment activities generated a net cash inflow of ¥184,640,813.86, a significant recovery from a net outflow of ¥516,120,701.91 in the previous period[116]. - The company received 302,000,000.00 RMB from other investment activities, which was a new source of cash inflow[121]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 6.047 billion, a slight decrease of 0.18% from CNY 6.058 billion at the end of the previous year[22]. - Total assets decreased from CNY 6,057,743,926.87 at the beginning of the year to CNY 6,046,827,522.77 at the end of the period, a decline of approximately 0.18%[102]. - Total liabilities decreased from CNY 2,368,656,307.43 to CNY 2,279,597,757.57, a decline of approximately 3.74%[103]. - Current liabilities slightly decreased from CNY 1,876,269,120.04 to CNY 1,857,206,131.02, a reduction of about 1.02%[102]. - Shareholders' equity increased from CNY 3,689,087,619.44 to CNY 3,767,229,765.20, representing a growth of approximately 2.12%[103]. Research and Development - Research and development expenses rose significantly by 151.11% to CNY 34,625,327.37 from CNY 13,788,727.65, reflecting the company's increased investment in R&D[36]. - The company successfully obtained four invention patents related to new extraction methods and formulations during the reporting period[30]. Business Segments - The pharmaceutical segment's revenue was CNY 1,678,742,394.21, with a gross margin of 81.92%, showing a slight decrease of 0.78 percentage points in gross margin compared to the previous year[41]. - The food segment's revenue was CNY 40,429,499.10, with a gross margin of 33.70%, which increased by 1.77 percentage points year-on-year[41]. - The real estate segment reported a revenue of CNY 68,590,737.30, with a gross margin of -15.87%, reflecting a significant decrease of 28.54 percentage points due to asset divestiture[41]. Shareholder Information - The total share capital as of December 31, 2014, was 1,091,747,528 shares, with a cash dividend of 2 RMB per 10 shares distributed, totaling 21,834.95 million RMB[62]. - As of the end of the reporting period, the total number of shareholders was 74,291, with the largest shareholder, Guangxi Zhongheng Industrial Co., Ltd., holding 22.52% of the shares[91]. - The top ten shareholders include several investment funds, with the second-largest shareholder, China Industrial Bank - Guangfa Jufeng Stock Fund, holding 4.561% of the shares[91]. Corporate Governance - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[7]. - The company has committed to not engage in any business activities that compete with its controlling shareholder, Guangxi Zhongheng Industrial Co., Ltd., or its controlled enterprises, ensuring no competition in the main business areas[78]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[82]. Accounting and Financial Reporting - The financial statements for the first half of 2014 were prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position and operating results accurately[146]. - The company follows the accrual basis of accounting, measuring initial values based on historical costs[159]. - The company’s accounting policies and estimates have not changed during the reporting period[160]. - The company’s financial reports include consolidated financial statements that reflect the assets, liabilities, and equity of both the parent and its subsidiaries[156].