CISC(SH:601005)2015-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2015 was CNY 4,505,619, a decrease of 25.22% compared to CNY 6,024,856 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2015 was a loss of CNY 2,227,578, representing a decline of 135.66% from a loss of CNY 945,237 in the previous year[20]. - The net cash flow from operating activities was a negative CNY 731,329, a decrease of 147.00% compared to CNY 1,556,024 in the same period last year[20]. - The company's total assets at the end of the reporting period were CNY 46,413,390, a decrease of 1.57% from CNY 47,152,433 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 22.33% to CNY 7,746,769 from CNY 9,973,914 at the end of the previous year[20]. - The basic earnings per share for the first half of 2015 was -CNY 0.502, a decline of 135.68% from -CNY 0.213 in the same period last year[21]. - The company's gross profit margin for main business decreased significantly, with a total gross loss of RMB 1,102,325 thousand, a year-on-year decrease of RMB 790,938 thousand[31]. - The company reported a total comprehensive income for the first half of 2015 was a loss of RMB 2,225,737 thousand, compared to a loss of RMB 927,090 thousand in 2014[126]. Production and Sales - The company produced 87,000 tons of coke, 3.21 million tons of sintered ore, 1.77 million tons of pig iron, 1.79 million tons of steel, and 1.62 million tons of steel products, with production volumes for iron, steel, and steel products decreasing by 15.68%, 13.55%, and 15.62% respectively compared to the same period last year[26]. - The average selling price of steel products was RMB 2,450 per ton, a decrease of 22% year-on-year, leading to a total sales revenue of RMB 4.55 billion, down 25% from the previous year[26][29]. - The company’s sales of steel billets generated revenue of RMB 3,982,409 thousand, a decrease of RMB 1,578,758 thousand year-on-year, with sales volume down 7.85%[29]. - The company engaged in transactions for purchasing fixed assets totaling 17,525 thousand RMB, which is 10.58% of similar transactions[66]. Cost Management - The company implemented cost control measures that improved the cost of iron and steel production, with the energy cost per ton of steel reaching a historical low of CNY 311 in May 2015[24]. - The company’s total operating expenses for the first half of 2015 were RMB 1,128,469 thousand, a decrease of RMB 24,596 thousand compared to the previous year[32]. - Operating costs for the first half of 2015 were RMB 5,376,947 thousand, down from RMB 6,303,510 thousand in 2014, reflecting a reduction of 14.7%[123]. Research and Development - The company’s R&D expenditure was RMB 142,570 thousand, down 18.4% from RMB 174,721 thousand in the previous year[28]. - The company implemented product structure adjustments, increasing the proportion of high value-added products, with the proportion of specialty steel reaching 48.41%[25]. Legal Matters - The company reported a total of 4,145.69 thousand yuan in a lawsuit settlement related to a sales contract dispute with Dazhong Steel, which has been resolved[55]. - A total of 2,818.35 thousand yuan was settled in a similar dispute with Shenglin Steel, indicating ongoing efforts to resolve outstanding debts[55]. - The company has ongoing litigation with potential impacts on financial performance, with amounts in dispute totaling CNY 770.43 thousand and CNY 514.69 thousand[58][60]. - The company is actively managing its legal disputes to mitigate financial impacts and ensure compliance with regulatory requirements[58][60]. Shareholder Information - The company reported a total of 230,028 shareholders as of the end of the reporting period[89]. - The company has pledged 590,000,000 A shares, accounting for 13.30% of the total share capital[84]. - The company has committed to a minimum cash dividend distribution of 10% of the distributable profits for the year, with a cumulative distribution of at least 30% of the average distributable profits over the last three years[83]. Financial Position - Total liabilities as of June 30, 2015, amounted to RMB 38,634,251 thousand, an increase from RMB 37,167,375 thousand at the beginning of the year[110]. - Current liabilities totaled RMB 29,244,042 thousand, up from RMB 26,866,807 thousand at the beginning of the year, reflecting an 8.5% increase[110]. - The company's total equity attributable to shareholders decreased to RMB 7,766,014 thousand by the end of June 2015, down from RMB 9,993,126 thousand at the beginning of the year[140]. Corporate Governance - The company has established a robust corporate governance system in compliance with relevant regulations and standards[82]. - The company has not experienced any penalties or corrective actions involving its directors, supervisors, senior management, or major shareholders during the reporting period[80]. - The company has committed to disclosing related party transactions in accordance with regulatory requirements[75]. Asset Management - The company has not reported any major asset transactions or corporate mergers during this period[59]. - The company has not disclosed any temporary announcements regarding undisclosed matters during the reporting period[69]. - The company has no significant guarantees provided to external parties, excluding subsidiaries[72]. Inventory and Fixed Assets - The company uses the weighted average method for inventory cost measurement and applies different amortization methods for low-value consumables[182]. - Fixed assets are depreciated using the straight-line method over their useful lives, with annual depreciation rates ranging from 1.94% to 12.13% depending on the asset category[196].