SINOCHEM INTERNATIONAL(SH:600500)2018-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2018 was approximately ¥30.42 billion, a decrease of 7.59% compared to the same period last year[19]. - The net profit attributable to shareholders was approximately ¥646.53 million, representing an increase of 27.62% year-on-year[19]. - The basic earnings per share for the first half of 2018 was ¥0.31, up 29.17% from ¥0.24 in the same period last year[20]. - The total assets of the company at the end of the reporting period were approximately ¥57.20 billion, an increase of 2.59% compared to the end of the previous year[19]. - The weighted average return on net assets increased to 5.84%, up 1.75 percentage points from the previous year[20]. - The company reported a net cash flow from operating activities of approximately -¥435.86 million, indicating a significant improvement from -¥1.33 billion in the same period last year[19]. - The net profit after deducting non-recurring gains and losses was approximately ¥574.60 million, a substantial increase of 298.28% compared to the previous year[19]. - The company reported a revenue of ¥3,041,762.62 million for the current period, a decrease of 7.59% compared to ¥3,291,464.41 million in the previous year[41]. - Operating costs decreased by 10.35% to ¥2,651,750.22 million from ¥2,957,859.82 million year-on-year[41]. - The company achieved a significant reduction in net cash outflow from operating activities, improving by 67.29% to -¥43,586.10 million from -¥133,245.05 million[41]. Business Operations and Strategy - The company completed the acquisition of 100% equity in several subsidiaries, including Sinochem Plastics and Sinochem Jiangsu, in December 2017, impacting comparative data[20]. - The agricultural chemicals business has established a leading position in China, with a wide distribution network covering all provinces except Hong Kong, Macau, Taiwan, and Tibet, and has seen a growth in proprietary product sales[25]. - The high-performance materials and intermediates business has achieved a leading global capacity in dichlorobenzene products and domestic leadership in bio-based epoxy chloropropane, contributing to stable business operations[26]. - The polymer additives business has become a global leader in rubber chemicals, with products like antioxidant PPD leading the market, and is focusing on new product innovation to enhance performance[26]. - The natural rubber business, integrated under Halcyon Agri Corporation, covers the entire industry chain from planting to trading, positioning the company as a global leader in this sector[27]. - The company has implemented a strategy of both acquisitions and divestitures to optimize its business portfolio, enhancing its core competitive advantages and profitability[29]. - The company has established localized subsidiaries in key Asia-Pacific markets such as Thailand, India, the Philippines, and Australia to strengthen its distribution capabilities[29]. - The acquisition of Yangnong Group has provided a robust chemical industry foundation and operational experience, enhancing the company's competitive position in fine chemicals[30]. - The company has formed strategic partnerships with major international tire manufacturers, enhancing its market presence in rubber chemicals[30]. - The company is actively pursuing market opportunities through continuous research and development, aiming to improve its integrated production and sales capabilities[29]. Research and Development - R&D expenditure increased by 27.10% to ¥26,354.39 million compared to ¥20,734.65 million in the previous year, reflecting a commitment to innovation[41]. - The company is focused on enhancing its high-end HEVEA Pro brand certification to increase market share among premium customers[38]. - The company is actively pursuing market expansion and product innovation in the agricultural chemicals sector, aiming to maintain its competitive edge[37]. - The company reported a significant increase in research and development expenditure, reflecting its focus on innovation and long-term growth[76]. Environmental Management - The company has implemented strict environmental protection measures, ensuring compliance with regulations and enhancing pollution control capabilities[88]. - The company has not reported any environmental pollution incidents in the first half of 2018, indicating effective environmental risk management[88]. - Jiangsu Yangnong Chemical Group has implemented strict environmental management measures for construction projects, ensuring compliance with environmental assessment and monitoring requirements[89]. - The company has established a comprehensive wastewater treatment system using Honeywell's fixed biofilm reaction technology, resulting in wastewater discharge concentrations significantly below standard limits[89]. - Key monitoring indicators include COD and ammonia nitrogen in wastewater, and SO2 and NOx in flue gas, with all emissions well below regulatory limits[90]. - The company has a waste management strategy that includes lifecycle monitoring of hazardous waste and initiatives for waste reduction and recycling[90]. - The company has publicly disclosed environmental information, including pollutant discharge and monitoring plans, to enhance transparency and public oversight[89]. - The company has adopted advanced treatment processes for flue gas, achieving emissions of dust and SO2 far below discharge standards[90]. - The company is actively engaged in environmental monitoring and has established a robust system for public reporting of environmental performance[89]. Shareholder and Capital Structure - Total number of ordinary shareholders at the end of the reporting period was 69,797[114]. - The largest shareholder, China National Chemical Corporation, holds 1,152,988,931 shares, representing 55.35% of total shares[117]. - The second largest shareholder, National Social Security Fund 103 Portfolio, increased its holdings by 22,989,901 shares to a total of 50,998,327 shares, accounting for 2.45%[117]. - Central Huijin Asset Management Company holds 50,611,100 shares, representing 2.43% of total shares[117]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest three shareholders alone accounting for over 60%[117]. - No changes in the company's share capital structure were reported during the period[114]. - The company has undergone significant restructuring, with a major shareholder holding 55.17% of the equity after a recent acquisition[178]. Financial Position and Liquidity - The company's liquidity ratios showed a current ratio of 1.36 and a quick ratio of 0.72, reflecting a decrease of 7.48% and 10% respectively compared to the previous year[136]. - The debt-to-asset ratio stood at 62.27%, a slight increase of 0.01% from the previous year[136]. - The EBITDA interest coverage ratio improved to 7.11, up 13.94% from the previous year[136]. - The company has maintained a consistent interest payment rate of 100% during the reporting period[136]. - The company successfully paid interest on "11 Zhonghua 02" and "16 Zhonghua Bonds" on their respective due dates in March and June 2018[126]. - The company’s credit rating remains stable at AAA, as assessed by Zhongcheng Credit Rating Co., Ltd.[130]. - No overdue debts were reported during the reporting period, indicating a stable financial position[137]. - Total assets increased to CNY 57.20 billion from CNY 55.76 billion, representing a growth of 2.6%[144]. - Current assets totaled CNY 36.37 billion, slightly up from CNY 36.31 billion, indicating a marginal increase of 0.15%[144]. - Cash and cash equivalents decreased to CNY 6.30 billion from CNY 9.44 billion, a decline of 33.5%[143]. Corporate Governance - The company has not reported any major litigation or arbitration matters during the reporting period[63]. - There were no significant changes in the company's accounting firm during the audit period[64]. - The company has not disclosed any new employee stock ownership plans or other incentive measures during the reporting period[64]. - The company has committed to maintaining the independence of its subsidiary, ensuring operational and financial autonomy[62]. - The company has made commitments to avoid unfair competition with Jiangshan Co., ensuring respect for its independent operational autonomy[59]. - The company has established commitments to avoid competition with Sinochem Holdings, ensuring coordination of existing subsidiaries to minimize potential competition[60].