Jinduicheng Molybdenum (SH:601958)2015-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2015 was CNY 4,855,363,747.71, an increase of 17.49% compared to CNY 4,132,736,738.33 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was CNY 5,575,116.43, a decrease of 93.95% from CNY 92,082,981.49 year-on-year[15]. - The net cash flow from operating activities was negative CNY 135,333,264.77, worsening by 71.46% compared to negative CNY 78,931,406.24 in the previous year[15]. - The company achieved a profit total of CNY 15,841,000, completing 6.34% of the annual operational target, but this represented a decline of 89.35% year-on-year[19]. - The company's total revenue for the first half of 2015 was approximately RMB 4.8 billion, representing a year-on-year increase of 17.79%, with domestic revenue increasing by 31.62% and foreign revenue decreasing by 29.91%[33]. - The total profit for the period was RMB 15.88 million, achieving only 6% of the annual target due to significant market price declines[27]. - The net profit for the first half of 2015 was CNY 36,536,590.74, down 12.5% from CNY 41,777,442.97 in the previous year[83]. - The total comprehensive income for the first half of 2015 was CNY 36,536,590.74, a decrease from CNY 41,777,442.97 in the previous year[83]. - The company reported a net profit margin decline due to increased costs, impacting overall profitability[80]. Market Conditions - The average price of molybdenum oxide in the international market dropped to USD 7.99 per pound, a year-on-year decline of 32.3%[20]. - The domestic price of 60% grade molybdenum iron averaged CNY 78,000 per ton, down 19.5% year-on-year[20]. - The revenue from molybdenum furnace materials and molybdenum metal series products decreased by 40.59% and 47.82% respectively compared to the previous year[20]. - The company adjusted its product structure in response to market conditions, resulting in a less significant decline in revenue from molybdenum chemical products, which fell by only 0.6%[20]. Costs and Expenses - Operating costs rose to RMB 4.64 billion, reflecting a 22.78% increase from RMB 3.78 billion year-on-year[24]. - Research and development expenses decreased by 48.75% to RMB 17.94 million, down from RMB 35 million in the previous year[24]. - The company's investment income decreased by 32.63% to RMB 7.22 million compared to RMB 10.72 million in the previous year[24]. - The company incurred an asset impairment loss of CNY 31,927,566.55 in the first half of 2015, compared to a gain of CNY -5,818,850.96 in the same period of 2014[83]. Assets and Liabilities - The company's total assets as of June 30, 2015, were CNY 14,455,812,429.91, slightly up from CNY 14,402,099,271.69 at the beginning of the year[78]. - The company's current assets totaled RMB 6.54 billion, down from RMB 7.15 billion, indicating a reduction of approximately 8.66%[73]. - The total liabilities of the company were CNY 1,447,658,418.59, which is an increase of 13.0% compared to CNY 1,280,958,434.88 in the previous period[78]. - The total equity attributable to shareholders was CNY 13,008,154,011.32, down from CNY 13,121,140,836.81, indicating a decrease of 0.9%[78]. Investments and Projects - The company has made a total long-term equity investment of RMB 839.2 million, with no changes during the reporting period[36]. - The company committed a total investment of RMB 477 million for the ore dressing process upgrade project, with cumulative investment reaching RMB 476.89 million by the end of the reporting period[43]. - The molybdenum metal deep processing project has a total committed investment of RMB 2.22 billion, with cumulative investment reaching RMB 1.47 billion by the end of the reporting period[43]. - The company has completed the acquisition of 65% equity in Ruyang Company, with a total investment of CNY 916.69 million[48]. Governance and Compliance - The company maintains a complete and independent governance structure, ensuring no interference from its controlling shareholder in decision-making[61]. - The company has established effective performance evaluation and incentive mechanisms for its executives, with compensation linked to the achievement of annual operational goals[62]. - The company has implemented a comprehensive information disclosure management system to ensure timely and accurate reporting[62]. - The company confirms its ability to continue as a going concern for at least 12 months from the end of the reporting period[102]. Cash Flow and Financing - The net cash flow from operating activities for the first half of 2015 was -169,514,629.34 RMB, compared to -31,301,015.65 RMB in the same period of the previous year, indicating a decline in operational cash flow[88]. - Cash inflow from financing activities was 260,000,000.00 RMB, with a net cash flow from financing activities of -25,677,687.53 RMB, compared to -389,150,842.85 RMB in the previous year[89]. - The ending balance of cash and cash equivalents was 2,926,719,813.70 RMB, down from 3,310,102,276.44 RMB at the end of the previous year[89]. - The company reported a total cash outflow of 779,437,121.85 RMB in the first half of 2015, compared to 453,097,151.32 RMB in the same period last year[86]. Taxation and Regulatory Environment - The company's main products are subject to a value-added tax rate of 17% and a reduced rate of 11% for transportation services[192]. - The company’s mining subsidiary benefits from a reduced corporate income tax rate of 15% if its main business income exceeds 70% of total income from 2011 to 2020[194]. - The chemical subsidiary can apply a 15% corporate income tax rate if high-tech product revenue exceeds 60% of total income from 2012 to 2014[194]. Research and Development - The company obtained 14 authorized patents, including 7 invention patents and 7 utility model patents during the reporting period[21]. - The company applied for 14 patents and received 14 patents in the first half of 2015, bringing the total number of authorized patents to 112, including 55 invention patents[34].