ZSIG(SH:600313)2014-08-08 16:00Financial Performance - The company achieved operating revenue of CNY 985.84 million in the first half of 2014, an increase of 28.10% compared to the same period last year[16]. - The net profit attributable to shareholders was a loss of CNY 2.56 million, a reduction in loss of 20.01% year-on-year[16]. - The basic earnings per share were -0.0070 CNY, improving from -0.0087 CNY in the previous year[16]. - The net cash flow from operating activities was -CNY 269.28 million, a significant decline of 473.79% compared to the previous year[16]. - The total assets increased by 9.76% to CNY 1,944.44 million compared to the end of the previous year[16]. - The company reported a significant increase in fertilizer sales, with 280,000 tons sold, generating revenue of CNY 848.10 million, up 27.27% year-on-year[21]. - Operating costs amounted to ¥956,297,638.17, reflecting a rise of 28.56% year-on-year[23]. - The gross profit margin for the main business was 3.01%, a decrease of 0.2 percentage points compared to the previous year[24]. - The company reported a net cash flow from financing activities of -¥8,440,205.77, a decline of 141.46% compared to the previous year[23]. - The company reported a total profit of CNY -8,085,630.36, worsening from CNY -3,747,023.04 in the previous year[69]. Cash Flow and Investments - The net cash flow from operating activities was -144,653,867.82 RMB, compared to -5,641,601.38 RMB in the previous period, indicating a significant decline in operational performance[77]. - Total cash inflow from financing activities was 371,131,029.29 RMB, while cash outflow was 379,571,235.06 RMB, resulting in a net cash flow of -8,440,205.77 RMB[74]. - The company incurred investment cash outflows of 26,620,846.40 RMB, a decrease from 34,107,007.00 RMB in the previous period, indicating reduced investment activity[77]. - The company’s total liabilities increased, impacting its cash flow management and financial stability[74]. - The company has a total of 84,400,000 RMB in entrusted financial products, with 58,900,000 RMB being non-raised funds[28]. Subsidiaries and Legal Matters - The subsidiary Huaken International Trade Co., Ltd. has total assets of 268,066,300 RMB and a net profit of 2,662,300 RMB[30]. - The subsidiary Hubei Seed Collection Group Co., Ltd. reported a net loss of 962,150 RMB[30]. - The company is involved in a legal dispute with Sichuan Jinboshi Seed Industry Co., claiming a total of RMB 2,505,171 for unpaid seed purchases and damages[37]. - 华垦公司 has filed a lawsuit against 宜昌嘉华置业有限公司 for a debt of 43.4 million RMB, with a court ruling in 2009 allowing for the recovery of part of the debt through property valued at 52.5 million RMB[32]. - The company has successfully recovered 756,400 RMB in overdue rent from 天津中兴科贸有限公司 following a court ruling[34]. Shareholder Information - The total number of shareholders at the end of the reporting period was 23,654[51]. - The largest shareholder, China Agricultural Reclamation Group Corporation, holds 27.25% of the shares, totaling 100,100,000 shares[51]. - The second largest shareholder, China Agricultural Development Group Co., Ltd., holds 17.18% of the shares, totaling 63,087,248 shares[51]. Assets and Liabilities - The total liabilities increased to CNY 563,629,941.30 from CNY 451,058,967.24, representing a growth of approximately 25%[62]. - The company's total assets reached CNY 1,944,435,543.57, up from CNY 1,771,557,307.23, indicating an increase of about 9.7%[62]. - The total owner's equity increased to CNY 1,380,805,602.27 from CNY 1,320,498,339.99, reflecting a growth of about 4.6%[62]. Accounting and Compliance - The company adheres to the enterprise accounting standards, ensuring the financial statements accurately reflect its financial status and operating results[95]. - The accounting period for the company is from January 1 to December 31 each year, with mid-term reports including semi-annual, quarterly, and monthly statements[96]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[45]. Revenue Recognition and Taxation - The company recognizes revenue from sales when the risks and rewards of ownership have been transferred to the buyer, and the amount can be reliably measured[151]. - The corporate income tax rate applicable to the company is 25%, with specific exemptions for certain agricultural activities[163]. - The company will recognize any impacts from changes in tax rates on previously recognized deferred tax assets and liabilities in the current period's tax expense[157]. Accounts Receivable and Bad Debts - The total accounts receivable at the end of the period was ¥175,619,010.54, with a bad debt provision of ¥16,735,135.66, representing 9.52% of the total[183]. - The company fully provided for bad debts amounting to ¥3,795,679.00 from Yichang Jiahua Real Estate Co., Ltd. due to its inability to repay[192]. - The total bad debt provision for accounts receivable was ¥33,677,869.80, which is approximately 81.83% of the total other receivables[190]. Strategic Investments and Market Expansion - The company plans to continue expanding its market presence and product offerings through strategic investments and acquisitions[172]. - The company acquired 51% of Shanxi Luyu Seed Industry Co., Ltd. for RMB 66.114 million, which was completed in January 2014, and this entity is now included in the consolidated financial statements[172]. - The company invested RMB 10.68 million in Wuhan Qingfa Hesheng Agricultural Development Co., Ltd., increasing its stake to 50%, and this entity is also included in the consolidated financial statements[173].