MAS C.L.(SH:600808)2014-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2014 was CNY 28,864,352, a decrease of 21.89% compared to CNY 36,952,562 in the same period last year[26]. - The net profit attributable to shareholders of the listed company was CNY -730,266, compared to CNY -332,823 in the previous year[26]. - The net cash flow from operating activities decreased by 63.07%, amounting to CNY 1,388,044, down from CNY 3,758,529 in the same period last year[26]. - The basic earnings per share for the first half of 2014 was CNY -0.095, compared to CNY -0.043 in the same period last year[25]. - The diluted earnings per share also stood at CNY -0.095, reflecting the same decline as the basic earnings per share[25]. - The weighted average return on net assets was -3.21%, a decrease of 1.76 percentage points from -1.45% in the previous year[25]. - The company reported a loss of CNY 521 from the disposal of non-current assets as part of its non-recurring gains and losses[26]. - The company’s total comprehensive income for the first half of 2014 was a loss of CNY 755.28 million, compared to a loss of CNY 414.57 million in the same period of 2013[93]. Revenue and Costs - The company's operating revenue decreased by 21.89% year-on-year to RMB 28,864,352, primarily due to a decline in steel sales prices[34]. - The company's operating costs also fell by 21.06% year-on-year to RMB 27,822,934, mainly due to a drop in prices of raw materials like iron ore and coal[34]. - Total revenue for the first half of 2014 was RMB 27,968 million, with the steel industry contributing RMB 26,954 million, accounting for 96% of total revenue[39]. - The gross profit margin for the steel industry was 1.75%, a decrease of 1.12 percentage points compared to the same period last year[39]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 73,299,178, an increase of 2.06% from CNY 71,821,618 at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company decreased by 3.11%, totaling CNY 22,411,803 compared to CNY 23,131,446 at the end of the previous year[26]. - Total current liabilities as of June 30, 2014, were RMB 39.76 billion, an increase from RMB 37.09 billion as of December 31, 2013[86]. - Total liabilities as of June 30, 2014, were RMB 48.37 billion, compared to RMB 46.12 billion as of December 31, 2013[86]. - The company reported a decrease in inventory to RMB 10.42 billion as of June 30, 2014, from RMB 10.05 billion as of December 31, 2013[83]. Cash Flow - Cash and cash equivalents increased by 38.39%, with non-restricted funds rising by RMB 2,718,858,634 due to cash inflows from operating activities[37]. - The net cash flow from operating activities for the first half of 2014 was CNY 1.39 billion, down 63.0% from CNY 3.76 billion in the first half of 2013[96]. - The cash inflow from investment activities for the first half of 2014 was CNY 2.85 billion, significantly higher than CNY 485.06 million in the same period of 2013[96]. - The company recorded a decrease in cash outflow for purchasing goods and services, which was CNY 30.97 billion in 2014 compared to CNY 36.48 billion in 2013, reflecting a reduction of 15.0%[96]. Shareholder Information - The total number of shareholders at the end of the reporting period is 328,797[72]. - The largest shareholder, Maanshan Iron & Steel Holding Co., Ltd., holds 50.47% of the shares, totaling 3,886,423,927 shares[72]. - The total number of unrestricted shares is 7,700,681,186, representing 100% of the total shares[72]. - The total number of shares held by the top 10 shareholders accounts for a significant portion of the company's equity structure[72]. Management and Strategy - The company plans to focus on improving efficiency, expanding markets, adjusting structure, stabilizing production, reducing costs, and strengthening management in the second half of the year[33]. - Management expenses decreased by 12.49% year-on-year, mainly due to the disposal of certain subsidiaries and reduced operational costs of investments[37]. - The company established a regional sales company to enhance its marketing service network and transition towards a service-oriented model[30]. Investments and Acquisitions - The company acquired French company Vatten to facilitate entry into the Chinese high-speed rail market[30]. - The company has a total borrowing of RMB 22,444 million, with RMB 16,977 million in short-term loans and RMB 5,467 million in long-term loans[29]. Financial Reporting and Compliance - The company’s financial statements for the first half of 2014 are unaudited and include a consolidated balance sheet, income statement, and cash flow statement[81]. - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the financial position and operating results accurately[128]. - The group’s reporting currency is Renminbi, with all financial statements presented in RMB[131]. Accounting Policies - Revenue is recognized when it is probable that economic benefits will flow to the company and the amount can be reliably measured[192]. - The group recognizes revenue from the sale of goods when the significant risks and rewards of ownership have been transferred to the buyer, with revenue determined based on the contract price received or receivable[193]. - The company recognizes provisions for liabilities when there is a present obligation that is likely to result in an outflow of economic benefits[192].