CAHIC(SH:600195)2016-08-29 16:00Financial Performance - The net assets attributable to shareholders of the listed company increased by 4.50% to CNY 3,173,949,500.44 compared to the end of the previous year[18]. - Total assets rose by 32.65% to CNY 5,823,671,328.54 compared to the end of the previous year[18]. - Operating revenue decreased by 16.00% to CNY 1,754,080,049.28 compared to the same period last year[21]. - Net profit attributable to shareholders of the listed company decreased by 5.66% to CNY 133,070,002.97 compared to the same period last year[21]. - Basic earnings per share decreased by 5.67% to CNY 0.3096 compared to the same period last year[19]. - The weighted average return on net assets decreased by 0.51 percentage points to 4.29% compared to the same period last year[19]. - The net cash flow from operating activities was negative at CNY -190,996,348.73, compared to CNY -125,221,375.52 in the same period last year[21]. - The company reported a non-operating income of CNY 3,366,584.33 from government subsidies related to normal business operations[21]. Revenue Breakdown - The company's operating revenue for the first half of 2016 was approximately ¥1.75 billion, a decrease of 16% compared to ¥2.09 billion in the same period last year[28]. - The company's revenue from the agriculture sector reached ¥1,743,192,332.03, with a gross margin of 27.67%, reflecting a year-over-year increase of 4.80 percentage points[36]. - Revenue from biological products was ¥542,091,545.89, with a gross margin of 54.71%, which decreased by 1.30 percentage points compared to the previous year[36]. - The veterinary medicine segment saw revenue of ¥316,228,817.42, with a gross margin of 33.44%, an increase of 7.27 percentage points year-over-year[36]. - The feed segment generated ¥328,503,199.14 in revenue, with a gross margin of 21.73%, showing a slight decrease of 0.02 percentage points from the previous year[36]. - Trade product revenue decreased by 47.15% year-over-year, primarily due to the suspension of corn storage operations during the reporting period[36]. - Domestic revenue totaled ¥1,654,982,568.64, down 16.78% compared to the previous year, while international revenue was ¥88,209,763.39, a decrease of 2.72%[40]. Investment and Projects - Five major investment projects have been completed and are now operational, contributing to the company's capacity and product quality improvements[33]. - The company obtained 5 new veterinary drug certificates and 3 authorized patents during the reporting period, indicating progress in product development[33]. - The company approved the use of up to RMB 13 billion for investment and wealth management activities in 2016, increasing from the previous limit of RMB 5 billion[46]. - The company completed a public issuance of RMB 1.2 billion corporate bonds on February 29, 2016, to enhance the effective use of temporarily idle funds[46]. - The company reported that the project for the production of inactivated vaccines at the Lanzhou Biological Pharmaceutical Factory achieved a progress rate of 99.80%[51]. - The company has five fundraising projects that have been put into use, including the construction of the Baoshan Biological Pharmaceutical Factory's new production line for foot-and-mouth disease vaccines[52]. Subsidiary Performance - The total assets of the fully-owned subsidiary Zhongmu Lianchuan amounted to 327.24 million RMB, with a net loss of 22.46 million RMB due to a significant decline in trade goods revenue[54]. - The fully-owned subsidiary Nanyao reported total assets of 31.89 million RMB and a net profit of 4.20 million RMB[54]. - The fully-owned subsidiary Neimeng Zhongmu had total assets of 110.42 million RMB and a net profit of 7.38 million RMB[54]. - Chengdu Hualuo, a 90.60% owned subsidiary, reported total assets of 53.83 million RMB and a net loss of 0.03 million RMB due to increased initial investments in new business and R&D[55]. - The 80% owned subsidiary Zhongmu Anda achieved total assets of 109.43 million RMB and a net profit of 10.13 million RMB[55]. - The 55% owned subsidiary Shengli Biological reported total assets of 498.03 million RMB and a net profit of 19.67 million RMB[56]. - The 25.67% owned associate Jindaiwei achieved total assets of 2,908.55 million RMB, with a net profit of 129.58 million RMB, representing a year-on-year growth of 52.27%[57]. Corporate Governance and Compliance - The company is committed to improving corporate governance in accordance with the Company Law and relevant regulations, ensuring compliance and transparency[74]. - There were no changes in the total number of shares or capital structure during the reporting period[77]. - The total number of shareholders at the end of the reporting period was 26,543[79]. - The largest shareholder, China Animal Husbandry Industry Group, held 225,620,900 shares, representing 52.49% of the total shares[82]. - The company maintained a credit rating of AA+ from Pengyuan Credit Rating Agency[93]. - There were no changes in the controlling shareholder or actual controller during the reporting period[84]. Financial Ratios and Metrics - Current ratio increased to 304.18% from 190.75%, a change of 113.44% due to the receipt of company bond funds[94]. - Quick ratio rose to 238.01% from 120.63%, reflecting a 117.38% increase attributed to the same bond funds[94]. - Debt-to-asset ratio increased to 39.87% from 23.57%, a change of 16.30%[94]. - EBITDA interest coverage ratio decreased to 16.56 from 72.44, a decline of 77.13% due to interest accrual on company bonds[94]. - Interest payment ratio fell to 10.45 from 53.84, a decrease of 80.60% also due to bond interest accrual[94]. Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of CNY 190,996,348.73, worsening from a net outflow of CNY 125,221,375.52 in the same period last year[113]. - Cash flow from investing activities resulted in a net outflow of CNY 1,265,349,888.26, compared to a net inflow of CNY 63,543,008.86 in the previous year, indicating a significant decline[113]. - Cash flow from financing activities generated a net inflow of CNY 1,087,811,210.24, improving from a net outflow of CNY 18,976,156.73 in the same period last year[114]. - The total cash and cash equivalents at the end of the period stood at CNY 334,745,212.08, slightly up from CNY 315,535,384.82 at the end of the previous year[114]. Accounting Policies and Practices - The company's financial statements are prepared based on the going concern principle, indicating no foreseeable risk of liquidation[134]. - The accounting policies comply with enterprise accounting standards, ensuring a true and complete reflection of the company's financial status[135]. - The company recognizes revenue from the sale of goods when the risks and rewards of ownership have been transferred to the buyer, and the amount can be reliably measured[196]. - Government grants related to assets are recognized as deferred income and amortized over the useful life of the related assets[198]. - The company recognizes estimated liabilities when obligations are present, likely to result in economic outflows, and can be reliably measured[192].