CFHI(SH:601106)2016-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2016 was ¥1,504,250,375.60, a decrease of 37.48% compared to ¥2,405,885,587.03 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was -¥678,475,316.18, compared to -¥517,266,731.20 in the previous year, indicating a worsening financial performance[15]. - The net cash flow from operating activities was -¥1,713,257,003.11, significantly lower than -¥408,064,927.25 in the same period last year[15]. - The total assets at the end of the reporting period were ¥36,367,479,123.52, down 4.47% from ¥38,067,770,519.49 at the end of the previous year[15]. - The net assets attributable to shareholders of the listed company decreased by 4.54% to ¥14,225,282,087.80 from ¥14,901,560,309.42 at the end of the previous year[15]. - The basic earnings per share for the first half of 2016 was -¥0.1038, compared to -¥0.0791 in the same period last year[16]. - The weighted average return on net assets was -4.6591%, a decrease of 1.5249 percentage points from -3.1342% in the previous year[16]. - The net loss for the period was CNY 678 million, an increase in loss of 31.84% compared to the previous year[29]. - Cash flow from operating activities was a net outflow of CNY 1.713 billion, an increase in outflow of CNY 1.305 billion year-on-year[28]. - The gross profit margin for the first half was CNY 73 million, a decline of 79.55% year-on-year[30]. Revenue and Costs - The company achieved operating revenue of CNY 1.504 billion in the first half of 2016, a year-on-year decrease of 37.48%[25]. - Total operating revenue for the first half of 2016 was CNY 1,504,250,375.60, a decrease of 37.4% compared to CNY 2,405,885,587.03 in the same period last year[93]. - Total operating costs decreased to CNY 2,188,791,836.15, down 27.0% from CNY 2,997,929,696.63 year-on-year[93]. - Revenue from the machinery manufacturing segment was CNY 1,439,505,795.66, down 38.46% year-on-year, with a gross margin of 1.57%[33]. - The design and transportation business saw a revenue increase of 30,345.84% and 231.17% respectively, but the gross margin for design services decreased by 40.92%[33]. - The international revenue was CNY 13,911,171.16, reflecting a significant decline of 62.18% year-on-year[39]. - The gross margin for metallurgical complete equipment was -0.27%, with a revenue decrease of 5.30%[33]. - The nuclear equipment segment's revenue decreased by 77.91%, with a gross margin of 25.41%[33]. - Heavy pressure vessels experienced a revenue decline of 56.87%, with a gross margin of 7.89%[33]. Investments and Capital Expenditure - The company has committed to invest a total of RMB 1,120,211.94 million in fundraising projects, with actual investment amounting to RMB 1,081,747.23 million, achieving a utilization rate of approximately 96.6%[46]. - The company reported an unused fundraising amount (including interest) of RMB 202,840.90 million, which will be used to permanently supplement working capital[46]. - The "Large Petrochemical Container and 1 Million Kilowatt Nuclear Power First Loop Main Equipment Manufacturing Project" has an actual investment of RMB 92,381.97 million, with a projected annual return of RMB 36,425.00 million, achieving 100% progress[45]. - The "Construction of Forged Steel Base and Large Casting and Forging Parts Autonomy Transformation Project" has an actual investment of RMB 204,950.32 million, with a projected annual return of RMB 23,412.00 million, also achieving 100% progress[45]. - The "China First Heavy Machinery Binhai Manufacturing Base Project" has an actual investment of RMB 156,289.60 million, with a projected annual return of RMB 73,072.00 million, achieving 100% progress[45]. Subsidiaries and Corporate Structure - The company has a total of 13 subsidiaries, with registered capital ranging from RMB 176.72 million to RMB 204,868.00 million, focusing on various sectors including heavy machinery, design, and engineering services[48]. - The company’s subsidiary, "Dalian Heavy Machinery Group Hydrogenation Reactor Manufacturing Co., Ltd." has a registered capital of RMB 204,868.00 million, specializing in the design and manufacturing of heavy machinery and large petrochemical equipment[48]. - The company’s subsidiary, "Tianjin Heavy Equipment Engineering Research Co., Ltd." has a registered capital of RMB 13,000.00 million, focusing on heavy equipment technology development and consulting services[48]. - The company has a total of RMB 431,349.94 million in working capital, with a portion allocated for various operational needs[46]. - The company has 15 subsidiaries included in the consolidated financial statements, with no changes compared to the previous period[121]. Shareholder Information - The total number of shareholders as of the end of the reporting period is 483,026[66]. - The largest shareholder, China First Heavy Industries Group, holds 4,060,780,961 shares, representing 62.11% of the total shares[68]. - The second largest shareholder, China Securities Finance Corporation, holds 88,493,032 shares, accounting for 1.5% of the total shares[68]. - The parent group holds 406,078,100 shares, representing 62.11% of the total shares, while public and other institutions hold 247,721,900 shares, representing 37.89%[119]. Governance and Compliance - The governance structure complies with the requirements set by the China Securities Regulatory Commission and the Shanghai Stock Exchange[60]. - There are no penalties or rectifications reported for the company or its major stakeholders during the period[60]. - The company has established a modern corporate governance system with clear responsibilities and checks and balances[60]. - The company has not disclosed any major litigation or bankruptcy restructuring matters during the reporting period[54]. Financial Ratios and Liquidity - The company reported a current ratio of 1.69, an increase of 4.32% compared to the previous year's 1.62[80]. - The quick ratio improved slightly to 1.24, up 0.81% from 1.23 in the previous year[80]. - The debt-to-asset ratio was 60.43%, a marginal increase of 0.1% from 60.37% at the end of the previous year[80]. - The company maintained a loan repayment rate of 100% during the reporting period[80]. - The company has sufficient credit limits from banks, ensuring liquidity[84]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations[123]. - The company adheres to the relevant accounting standards, ensuring that the financial statements accurately reflect its financial position and operating results[125]. - The company recognizes deferred tax assets related to deductible temporary differences if new information indicates that the economic benefits can be realized within 12 months post-acquisition, reducing goodwill accordingly[132]. - The company uses CNY as the functional currency for its domestic operations, while its overseas subsidiaries use the Euro[128]. Impairment and Asset Management - The company conducts impairment testing for long-term non-financial assets, including fixed assets and intangible assets, at the balance sheet date to determine if there are any impairment indicators[195]. - Impairment losses are recognized when the recoverable amount of an asset is less than its carrying amount, with the recoverable amount being the higher of fair value less costs to sell and the present value of expected future cash flows[196]. - The company does not allow for the reversal of impairment losses in subsequent periods once recognized[197]. Employee Compensation and Benefits - Employee compensation includes short-term employee benefits, post-employment benefits, and other long-term employee benefits, with short-term benefits recognized as liabilities during the accounting period in which services are rendered[199]. - Post-employment benefits mainly consist of defined contribution plans, including basic pension insurance and unemployment insurance, with corresponding amounts recognized when incurred[200].