Nisco(SH:600282)2016-07-29 16:00Financial Performance - The company's operating revenue for the first half of 2016 was approximately RMB 10.88 billion, a decrease of 8.36% compared to RMB 11.87 billion in the same period last year[21]. - Net profit attributable to shareholders for the first half of 2016 was approximately RMB 145.56 million, representing an increase of 317.82% from RMB 34.84 million year-on-year[21]. - Basic earnings per share for the first half of 2016 was RMB 0.0367, up 308.71% from RMB 0.0090 in the same period last year[19]. - The net cash flow from operating activities for the first half of 2016 was approximately RMB 2.26 billion, an increase of 159.91% compared to RMB 868.41 million in the previous year[21]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching approximately RMB 141.09 million, up 1,033.49% from RMB 12.45 million year-on-year[21]. - The company achieved operating revenue of 10.88 billion RMB, a decrease of 8.36% compared to the previous year[28]. - The net profit attributable to shareholders was 146 million RMB, representing a significant increase of 315.55% year-on-year[29]. - Total operating revenue for the first half of 2016 was CNY 10,875,290,726.74, a decrease of 8.36% compared to CNY 11,867,260,603.90 in the same period last year[112]. - Net profit for the period was CNY 145,163,115.19, significantly up from CNY 34,933,141.01 in the previous year, marking an increase of 315.56%[113]. Assets and Liabilities - The company's total assets at the end of the reporting period were approximately RMB 33.87 billion, a decrease of 6.80% from RMB 36.34 billion at the end of the previous year[21]. - The company's total assets decreased to CNY 27,139,677,745.17 from CNY 29,210,785,109.33, a decline of 7.09%[110]. - The company's total liabilities decreased to CNY 22,709,729,836.41 from CNY 24,831,341,048.62, a reduction of 8.56%[110]. - The company's total liabilities as of June 30, 2016, were RMB 27.414 billion, down from RMB 30.024 billion at the beginning of the period[106]. - The company's current assets totaled RMB 8.357 billion, a decrease from RMB 10.252 billion at the beginning of the period[106]. - The company's equity attributable to shareholders increased to RMB 6.445 billion from RMB 6.306 billion at the beginning of the period[107]. Investments and Financing - The total investment in securities amounted to CNY 694,516.33 million, with a total loss of CNY 26,971.26 million during the reporting period[36]. - The company sold 4.93 million shares of MGM China Holdings, realizing an investment gain of CNY 7.74 million[36]. - The total amount of funds raised through non-public issuance was CNY 197,672.80 million, all used for repaying bank loans[42]. - The company has fully utilized the net proceeds from its non-public offering, amounting to RMB 191,246,480, for repaying bank loans[43]. - The company received funding support from its controlling shareholder, Nanjing Steel Union, totaling CNY 1.52 billion at the end of the period[59]. - The company reported a significant decline in sales in the South China region, with a decrease of 69.82% to CNY 6,920.42 million[35]. Production and Operations - Steel production reached 4.42 million tons, an increase of 3.34% year-on-year, while iron and material production also saw growth of 2.15% and 3.16% respectively[25]. - The company successfully developed new products, including weather-resistant bridge steel and low-temperature steel for ships, with the latter being the first in China to receive certification from Japan's NK classification society[25]. - The gross profit margin for black metal smelting and processing increased by 2.29 percentage points, despite a 14.77% decrease in revenue[32]. - The average procurement price of raw materials decreased significantly, contributing to a reduction in operating costs by 9.87%[28]. - The company completed 52.79% of its annual revenue target during the reporting period[30]. Related Party Transactions - There were no non-operating fund occupation situations by controlling shareholders or related parties during the reporting period[5]. - The company has engaged in related party transactions, including purchasing materials from affiliated companies totaling RMB 22,000,000[53]. - The total amount of daily related party transactions accounted for 5.33% of the company's operating income during the reporting period[56]. - The total amount of daily related party transactions for purchasing raw materials, fuel, and power accounted for 2.45% of the company's operating costs[56]. - The company has established pricing policies for related party transactions based on government pricing, market prices, and reasonable cost plus profit[54]. Corporate Governance - The company has established a complete corporate governance structure to ensure the protection of shareholder rights[68]. - The company’s board of directors, supervisory board, and management team each perform their respective duties, forming a scientific decision-making mechanism and effective supervision mechanism[68]. - The company has no undisclosed significant related party transactions during the reporting period[57]. - The company has no significant changes or progress in previously disclosed related party transactions[58]. Shareholder Information - As of the end of the reporting period, the total number of shareholders reached 183,046[74]. - The largest shareholder, Nanjing South Steel Group Co., Ltd., holds 1,795,351,958 shares, accounting for 45.31% of the total shares[76]. - The top ten shareholders include various entities, with the second-largest being Nanjing Iron and Steel Group Co., Ltd., holding 114,179,672 shares (2.88%)[76]. - The company’s employee stock ownership plan holds 86,320,000 shares, which will be subject to a 36-month lock-up period starting from the listing date[78]. Accounting Policies - The company’s accounting policies comply with the requirements of the enterprise accounting standards[139]. - The company recognizes revenue from sales when the significant risks and rewards of ownership have transferred to the buyer, with specific recognition points for domestic and international sales[188]. - The company has no significant changes in accounting policies or estimates reported for the period[196]. - The company recognizes rental income from operating leases on a straight-line basis over the lease term[193]. Taxation - The company reported a significant tax rate structure, with the corporate income tax rate set at 25% and various VAT rates ranging from 5% to 17%[196]. - The company benefits from a 100% VAT refund policy on electricity or heat produced from industrial waste heat, as per government regulations[198]. - The company and its subsidiary can reduce taxable income by 90% for revenue derived from specific resource utilization products[198].