HX GROUP(SH:600851)2014-08-18 16:00Financial Performance - In the first half of 2014, the company achieved operating revenue of CNY 455.61 million, a decrease of 9.34% compared to CNY 502.71 million in the same period last year[15]. - The net profit attributable to shareholders was CNY 20.36 million, down 59.77% from CNY 50.60 million year-on-year[15]. - The weighted average return on net assets was 0.69%, a decrease of 1.12 percentage points from 1.81% in the same period last year[15]. - The company reported a significant decrease in net cash flow from investment activities, down 88.67% year-on-year, mainly due to reduced income from the sale of Changjiang Securities[24]. - The overall financial performance reflects a challenging environment, with multiple subsidiaries reporting losses, necessitating strategic reassessment[39]. - The net profit for the first half of 2014 was CNY 14,085,712.13, a decline of 68.8% from CNY 45,013,212.61 in the previous year[63]. - The profit attributable to the parent company's shareholders was CNY 20,355,851.14, down 59.83% from CNY 50,601,257.33 year-on-year[63]. - The company reported a net loss of 11,831,525.60 RMB from its subsidiary Shanghai Haixin Long Plush Co., Ltd., indicating challenges in the textile sector[39]. - The company reported a loss of CNY 225,887,236.73 in comprehensive income for the period[79]. - The company experienced a comprehensive loss of RMB 227,165,957.11 during the reporting period, impacting overall financial performance[85]. Segment Performance - The textile segment reported operating revenue of CNY 99.89 million, a decline of CNY 8.37 million year-on-year, with a net loss of CNY 10.86 million, an increase in loss of CNY 4.24 million[19]. - The apparel segment reported revenue of CNY 63.516 million, a year-on-year decrease of CNY 7.7 million; net loss was CNY 6.358 million, an increase in loss of CNY 1.077 million year-on-year[20]. - The pharmaceutical segment achieved revenue of CNY 279.167 million, an increase of CNY 22.28 million year-on-year; net profit was CNY 10.504 million, a decrease of CNY 0.74 million year-on-year[20]. - The company closed 12 subsidiaries, resulting in a consolidated net loss of CNY 13.518 million from January to June, a reduction in loss of CNY 5.373 million year-on-year[20]. Cash Flow and Assets - The company reported a net cash flow from operating activities of CNY -72.60 million, compared to CNY -86.94 million in the previous year[16]. - The total assets at the end of the reporting period were CNY 4.25 billion, a decrease of 3.19% from CNY 4.39 billion at the end of the previous year[16]. - The net assets attributable to shareholders were CNY 2.92 billion, down 2.51% from CNY 2.99 billion at the end of the previous year[16]. - The total cash inflow from operating activities was CNY 46,078,447.34, an increase of 55.5% from CNY 29,606,839.05 in the previous period[70]. - The ending cash and cash equivalents balance was CNY 212,946,608.64, down from CNY 238,144,513.77 in the previous period[68]. Strategic Focus and Development - The company plans to accelerate adjustments and transformation to improve growth quality, emphasizing the urgency of this task[19]. - The company is focusing on internal development and external expansion, particularly in the pharmaceutical and financial sectors, which have shown stable growth[19]. - The company has initiated the closure process for Shanghai Long Plush, establishing multiple task forces to ensure smooth implementation and employee transition[20]. - The company is advancing the new site planning and construction project for Jiangxi Gannan Haixin Pharmaceutical Co., with land acquisition costs of over CNY 5.5 million[21]. - The company completed the equity restructuring of Shanghai Haixin Pharmaceutical Co. and its listing on the New Third Board, enhancing its operational foundation[22]. Shareholder and Equity Information - The total number of shareholders at the end of the reporting period was 145,727, with 102,879 holding A shares and 42,848 holding B shares[46]. - The largest shareholder, Shanghai Songjiang Dongjing Industrial Company, held 7.51% of the shares, totaling 90,613,819 shares[46]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[48]. - The total owner's equity at the end of the reporting period was CNY 3,606,683,139.13, reflecting a change in capital structure[83]. Investment and Financial Strategy - The total investment in financial enterprises amounted to 1,456,320,000.00 RMB, reflecting a strategic focus on financial investments[33]. - The company has no reported fundraising or non-fundraising investment projects during the reporting period, indicating a conservative approach to capital allocation[36]. - The investment income from major associates contributed significantly, with Changjiang Securities providing 47,250,188.55 RMB and Changxin Fund Management contributing 8,229,838.25 RMB[38]. - The company’s major subsidiaries, including Jiangsu Suzhong Pharmaceutical Group, contributed a total of 8,101,310.98 RMB in investment income, highlighting diversification in revenue sources[38]. Compliance and Reporting - The financial statements are prepared in accordance with the Chinese Accounting Standards, ensuring compliance and accuracy in reporting[90]. - The company has maintained its accounting policies and estimates, ensuring consistency in financial reporting practices[94]. - The company has not disclosed any new product launches or technological advancements in this reporting period[88]. - The company has not reported any major litigation, arbitration, or media disputes during the reporting period[40].