*ST天山(300313) - 2014 Q2 - 季度财报

Financial Performance - Total operating revenue for the first half of 2014 was CNY 43,102,329, representing a 14.72% increase compared to CNY 37,572,717.62 in the same period last year[17]. - Net profit attributable to ordinary shareholders was CNY 4,626,124.52, a 3.16% increase from CNY 4,484,294.58 year-on-year[17]. - Net profit after deducting non-recurring gains and losses decreased by 21.60% to CNY 3,006,817.83 from CNY 3,835,232.17 in the previous year[17]. - Basic earnings per share increased by 4.08% to CNY 0.051 from CNY 0.049 year-on-year[17]. - The company reported a net profit of CNY 4,697,795.77, reflecting a slight increase from CNY 4,618,029.30 in the same period last year[40]. - The company’s total operating revenue for the first half of 2014 was CNY 43,102,329, an increase from CNY 37,572,717.62 in the same period of 2013[41]. - The company reported a total profit for the current period of ¥7,418,677.76, an increase of 25.5% from ¥5,931,971.48 in the previous period[122]. Cash Flow and Assets - Net cash flow from operating activities dropped by 62.56% to CNY 788,978.99, down from CNY 2,107,529.24 in the same period last year[17]. - The company’s cash and cash equivalents increased by 333.20% to CNY 51,176,717.32, driven by a 709.67% increase in cash flow from financing activities[40]. - Cash flow from operating activities increased significantly to ¥147,319,298.78, compared to ¥41,896,155.95 in the previous period[124]. - The company’s total assets decreased by 8.13% to CNY 490,935,755.50 compared to CNY 534,374,399.58 at the end of the previous year[17]. - The company’s fixed assets rose to CNY 91,670,011.34 from CNY 74,931,198.51, reflecting an increase of about 22.3%[111]. - The total liabilities decreased to CNY 344,337,228.36 from CNY 397,282,940.37, a decline of approximately 13.3%[110]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - The company is focusing on promoting the use of high-quality frozen semen to improve cattle breeding efficiency[9]. - The company is actively involved in the national livestock quality subsidy project to enhance the genetic quality of dairy cattle[10]. - The company plans to stabilize milk production and sales while expanding frozen semen and sheep product sales to mitigate performance decline[23]. - The company is undergoing strategic adjustments to enhance market share through product line expansion and vertical integration, although new projects have yet to yield economic benefits[22]. - The company plans to acquire assets from the Clark family ranch in Victoria, Australia, to enhance its breeding base and improve the quality of its cattle[30]. Risks and Challenges - The company faced a net profit decline of 29.45% and 46.78% in 2012 and 2013, respectively, highlighting ongoing performance risks[22]. - The company is exposed to risks from government subsidy policies, which could impact production and operations if altered or removed[22]. - The company acknowledges the risk of seasonal revenue fluctuations due to the uncertainty of government procurement timelines[21]. - The company faces significant risks from animal diseases, which could severely impact production and operational capabilities[25]. - The company is implementing measures to improve management and control costs to reduce operational risks[25]. Investment and Development - The company is committed to improving internal controls and management systems to adapt to rapid business expansion and mitigate management risks[25]. - The company is focused on enhancing its breeding capabilities by collaborating with international breeding companies to adopt advanced technologies[31]. - The company is implementing a five-in-one model for its cattle breeding project, integrating government support, financial backing, insurance services, enterprise operations, and farmer participation[32]. - The company has plans for future expansion and investment in new projects, including the establishment of a breeding base in Australia[62]. - The company has a total fundraising amount of 260.9982 million RMB, with 11.31833 million RMB already invested by the end of the reporting period[55]. Market Position and Shareholder Information - The company holds a 10.5% market share in the agricultural department's subsidy project for frozen semen products, ranking among the top in the country[49]. - The company is the largest provider of bull breeding products and services in China and the only national-level frozen semen production enterprise in Xinjiang[49]. - The total number of shareholders at the end of the reporting period was 4,825[99]. - The largest shareholder, Tianshan Animal Husbandry Development Co., Ltd., holds 30.84% of the shares, totaling 28,040,000 shares[99]. - The company reported a total of 90,910,000 shares outstanding, with no new shares issued during the reporting period[97]. Financial Management and Accounting Policies - The financial statements are prepared based on the principle of going concern and comply with the relevant accounting standards[143]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with monetary items converted at the exchange rate on the balance sheet date, resulting in exchange differences recognized in the current profit or loss[151]. - The company uses market quotes to determine the fair value of financial assets or liabilities in active markets, while other assets are valued using valuation techniques such as discounted cash flow methods[158]. - The company recognizes gains or losses from fair value changes of financial assets or liabilities measured at fair value through profit or loss in the current period, with interest or dividends recognized as investment income[155]. - The company assesses impairment for equity investments when the fair value is below cost by more than 50% or has been below cost for over 12 months, indicating potential impairment[160].