Nisco(SH:600282)2015-08-24 16:00Financial Performance - The company reported a revenue of CNY 11.87 billion for the first half of 2015, a decrease of 10.87% compared to CNY 13.31 billion in the same period last year[20]. - Net profit attributable to shareholders was CNY 34.84 million, down 70.12% from CNY 116.60 million year-on-year[20]. - The net cash flow from operating activities was CNY 868.41 million, a decline of 65.27% compared to CNY 2.50 billion in the previous year[20]. - Basic earnings per share decreased by 70.00% to CNY 0.009 from CNY 0.030 in the same period last year[21]. - The weighted average return on net assets fell by 0.99 percentage points to 0.41% compared to 1.40% in the previous year[21]. - Operating revenue decreased by 10.87% to approximately CNY 11.87 billion, primarily due to a decline in trade business revenue and average selling prices of steel products[28]. - Operating costs fell by 11.57% to approximately CNY 10.67 billion, driven by lower trade business costs and raw material prices[28]. - Net profit dropped by 70.09% to approximately CNY 34.93 million, largely due to a decrease in total profit[29]. - The company reported a total revenue of 11.867 billion RMB, achieving 40.92% of the annual target[36]. - The company reported a total of 38 subsidiaries included in the consolidated financial statements, a decrease of 2 from the previous year[134]. Assets and Liabilities - The company's total assets increased by 8.01% to CNY 42.71 billion from CNY 39.54 billion at the end of the previous year[20]. - The company’s cash and cash equivalents increased by 52.01% to approximately CNY 7.48 billion, representing 17.51% of total assets[30]. - The company’s total assets increased by 24.85% to approximately CNY 42.7 billion, with current assets accounting for 37% of total assets[30]. - Total liabilities increased to ¥34,093,336,183.24 from ¥30,965,500,626.88, reflecting a growth of about 10.0%[106]. - The company's equity attributable to shareholders increased to ¥8,598,559,993.66 from ¥8,558,334,902.06, reflecting a growth of approximately 0.5%[106]. - The total owner's equity reached ¥8,612,513,717.80, up from ¥8,572,192,949.70, indicating an increase of about 0.5%[106]. Production and Operations - The company produced 4.2289 million tons of pig iron, 4.2789 million tons of steel, and 3.9242 million tons of materials in the first half of the year, representing year-on-year increases of 12.49%, 15.76%, and 15.42% respectively[26]. - Steel product exports reached 275,600 tons, a significant year-on-year increase of 120%[26]. - The company is focusing on upgrading its product offerings, particularly in high-value products like Ni-based low-temperature steel, to enhance market share and brand effect[25]. - The company aims to transform into a production service-oriented enterprise by integrating energy-saving and environmental protection initiatives with its core steel business[25]. Investments and Subsidiaries - The company’s major subsidiary, Nanjing Steel Group, has total assets of approximately 24.02 billion RMB and a net profit of about 100.26 million RMB[50]. - The company’s investment amount reached 112 million RMB, a 313.28% increase compared to the same period last year[43]. - The company reported a total investment in securities of approximately 890.6 million RMB, with a year-to-date profit of about 9.95 million RMB[45]. - The company has invested 30 million RMB in a non-principal guaranteed floating income financial product, with an expected annual return of 12%[49]. Cash Flow and Financing - Cash flow from operating activities decreased by 65.27% to approximately CNY 868.41 million, attributed to a higher volume of operating payables in the previous year[29]. - The company reported a total cash balance of approximately ¥7.48 billion as of June 30, 2015, compared to ¥4.92 billion at the beginning of the period, indicating a significant increase of 52.5%[194]. - The total cash inflow from financing activities was 10,866,329,169.20 RMB, an increase from 7,203,043,099.39 RMB in the previous year, reflecting a growth of approximately 50.5%[120]. - The company issued its first short-term financing bond of 300 million RMB at an interest rate of 6.5% with a maturity of 365 days on January 16, 2015[86]. Related Party Transactions - The total amount of daily related party transactions accounted for 4.52% of the company's operating income during the reporting period[71]. - The company engaged in related party transactions for sales of goods and services totaling 196.92 million RMB for spare parts, and 20.9082 million RMB for water, electricity, and steam[68]. - The company’s related party transactions pricing policy is based on market prices or agreed prices when independent third-party prices are not available[71]. Compliance and Governance - The company has committed to maintaining its existing business structure and not engaging in any competing businesses with Nanjing Steel Co., Ltd.[79]. - The company has ensured compliance with relevant laws and regulations regarding related party transactions[79]. - Nanjing Steel's board confirmed that there are no discrepancies between its governance practices and the requirements of the Company Law and relevant regulations[82]. Accounting Policies - The financial statements were prepared based on the actual transactions and events in accordance with the relevant accounting standards[135]. - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, and cash flows[139]. - The company recognizes impairment losses for financial assets when there is objective evidence indicating that the asset's recoverable amount is less than its carrying amount, with specific methods for significant and non-significant amounts[156].