LZCIC(SH:600423)2017-08-09 16:00Financial Performance - The company's operating revenue for the first half of 2017 was ¥884,215,569.18, a decrease of 21.09% compared to ¥1,120,553,500.41 in the same period last year[18]. - The net profit attributable to shareholders was -¥87,916,820.03, improving from -¥239,438,323.92 year-on-year[18]. - The company reported a basic earnings per share of -¥0.22, compared to -¥0.60 in the same period last year[19]. - Operating profit loss amounted to 24,817.84 million RMB, with a net profit loss of 8,791.68 million RMB attributable to the parent company[31]. - The company reported a net loss of 8,791.68 million yuan for the reporting period, with an accumulated loss of 111,638.55 million yuan[51]. - The company reported a net loss of 87.92 million RMB for the first half of 2017, with an accumulated unremedied loss of 1.116 billion RMB[133]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥167,282,844.16, down 15.59% from ¥198,183,421.49 in the previous year[18]. - Cash and cash equivalents decreased by 63.44% compared to the previous period, primarily due to increased cash payments for debt repayment[37]. - Cash and cash equivalents at the end of the period were CNY 61,412,072.68, down from CNY 371,393,310.93 at the end of the previous period[115]. - The company reported a loan repayment rate of 96.86%, down by 0.62 percentage points compared to the previous year[94]. - The company has been actively seeking funds to resolve overdue debts and is negotiating with relevant institutions for solutions[95]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,414,079,888.58, a decrease of 7.71% from ¥3,699,181,387.00 at the end of the previous year[18]. - The company's asset-liability ratio reached 103.14%, indicating significant debt pressure and a state of insolvency[29]. - The company's total liabilities exceeded total assets, resulting in a net asset value of -107,244,700 RMB[45]. - The total liabilities of Liuzhou Chemical Co., Ltd. exceeded total assets, resulting in a net asset of -107.24 million RMB as of June 30, 2017[133]. Government Support and Subsidies - The company received government subsidies amounting to ¥162,037,662.75, primarily related to policy support for fertilizer production and electricity price reforms[22]. - The company received a policy subsidy of 160 million RMB from the Liuzhou government during the reporting period[35]. - The company received a policy subsidy of 350 million RMB from the Liuzhou Finance Bureau, with 160 million RMB already received in the first quarter of 2017[133]. Operational Challenges - The company is facing challenges due to excess capacity and insufficient market demand, leading to intensified competition[27]. - The company is facing operational risks due to the need for relocation and transformation as per new safety regulations[46]. - The company has ongoing litigation involving a debt amount of 96,490.7 thousand yuan related to a contract dispute[52]. - The company has faced multiple lawsuits during the reporting period, with details disclosed in various announcements[54]. Corporate Governance and Management - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[5]. - The company has not appointed or dismissed any accounting firms during the reporting period[51]. - The chairman and vice chairman resigned during the reporting period, effective upon delivery of their resignation letters[77]. - The company is under scrutiny due to a non-standard audit report highlighting significant uncertainties regarding its ability to continue as a going concern[51]. Environmental Management - The company has installed three online monitoring systems for environmental protection, ensuring compliance with emission standards[66]. - The company’s total discharge of ammonia nitrogen during the reporting period was 53 tons, while the total discharge of chemical oxygen demand was 163 tons[66]. - The company has five emission outlets, with a total annual sulfur dioxide emission limit of 1,150 tons and nitrogen oxides at 652 tons; during the reporting period, actual emissions were 538 tons and 271 tons respectively[67]. Related Party Transactions - The company engaged in major related party transactions, including a purchase of goods worth 20,000 million RMB from Guangdong Zhongcheng Chemical Co., Ltd., with an execution amount of 1,486.27 million RMB[60]. - The company’s total amount of related party transactions for the purchase of goods was 8,500 million RMB from Guangxi Liuhua Chlor-Alkali Co., Ltd., with an execution amount of 2,000.95 million RMB[60]. - The company’s related party loan to Liuhua Group amounted to 380,173,416.99 RMB, with a borrowing rate based on the People's Bank of China’s benchmark rate[61]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the going concern assumption, highlighting potential uncertainties regarding the company's ability to continue operations[133]. - The company adheres to the accounting policies and estimates as per the enterprise accounting standards, ensuring the accuracy of financial reporting[134]. - The company has not made any changes to its significant accounting policies or estimates during the reporting period[179].