FASTEN(SZ:000890)2018-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2018 was ¥992,065,410.44, a decrease of 17.15% compared to ¥1,197,397,871.32 in the same period last year[17]. - The net profit attributable to shareholders of the listed company increased by 47.67% to ¥43,441,554.94, up from ¥29,418,019.40 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses rose by 62.09% to ¥43,492,371.18, compared to ¥26,831,734.05 in the same period last year[17]. - The net cash flow from operating activities was ¥746,370,882.84, a significant improvement of 211.20% from -¥671,192,824.31 in the previous year[17]. - The total operating revenue for the first half of 2018 was CNY 992,065,410.44, a decrease from CNY 1,197,397,871.32 in the same period of 2017, representing a decline of approximately 17.1%[123]. - Net profit attributable to shareholders increased by 47.67% to CNY 43.44 million[35]. - The company reported a significant increase in investment income, which rose to CNY 21,679,224.52 from CNY 6,261,820.03, marking an increase of about 246.5%[123]. - The basic and diluted earnings per share improved to CNY 0.1144 from CNY 0.0775, reflecting an increase of approximately 47.5%[124]. Assets and Liabilities - The total assets at the end of the reporting period were ¥8,725,286,237.45, a decrease of 9.94% from ¥9,688,054,513.09 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased by 4.18% to ¥905,871,302.95 from ¥945,383,961.64 at the end of the previous year[17]. - Cash and cash equivalents decreased to ¥517.66 million, accounting for 5.93% of total assets, down from 9.34% year-on-year, a decrease of 3.41%[45]. - Accounts receivable decreased to ¥278.99 million, representing 3.20% of total assets, down from 6.97% year-on-year, a decrease of 3.77%[45]. - Inventory decreased to ¥59.20 million, accounting for 0.68% of total assets, down from 3.78% year-on-year, a decrease of 3.10%[45]. - Short-term borrowings decreased to ¥3.56 billion, representing 40.76% of total liabilities, down from 48.46% year-on-year, a decrease of 7.70%[45]. - Long-term borrowings increased to ¥489 million, accounting for 5.60% of total liabilities, up from 4.42% year-on-year, an increase of 1.18%[45]. - Total liabilities decreased from CNY 8,742,670,551.45 to CNY 7,819,414,934.50, a decline of approximately 10.52%[115]. Cash Flow - The company reported a net cash flow from operating activities of CNY 1,247,555,091.16, compared to CNY 1,255,806,650.08 in the previous period, indicating a slight decrease[130]. - The net cash flow from operating activities was 746,370,882.84 CNY, a significant improvement compared to a net outflow of -671,192,824.31 CNY in the previous period[131]. - Total cash inflow from investment activities reached 5,127,537,873.59 CNY, while cash outflow was 5,228,210,788.60 CNY, resulting in a net cash flow of -100,672,915.01 CNY[132]. - Cash inflow from financing activities amounted to 3,360,849,630.42 CNY, with cash outflow totaling 4,246,953,194.14 CNY, leading to a net cash flow of -886,103,563.72 CNY[132]. - The ending balance of cash and cash equivalents was 190,651,269.66 CNY, down from 504,922,255.18 CNY in the previous period[132]. Dividends and Shareholder Information - The company plans to not distribute cash dividends or issue bonus shares[6]. - The total number of ordinary shareholders at the end of the reporting period was 36,466[98]. - The largest shareholder, Farshing Hongsheng Group Co., Ltd., holds 21.07% of the shares, totaling 79,973,918 shares, which are pledged[98]. - The second-largest shareholder, Jiangyin Yaobo Taibang Investment Center, holds 15.00% of the shares, totaling 56,946,224 shares, which are also pledged[98]. Related Party Transactions - Jiangyin Farsheng Co., Ltd. reported a total of 2,474.66 million yuan in related party transactions for purchasing raw materials, with an approved limit of 3,000 million yuan[69]. - The company engaged in related party transactions for service fees amounting to 46.84 million yuan, with a limit of 200 million yuan[69]. - The procurement of materials and services from Jiangyin Huaxin Steel Cable Co., Ltd. totaled 18,770.87 million yuan, exceeding the approved limit of 28,000 million yuan[71]. - The sale of products and materials to Jiangsu Farsheng Group Import and Export Co., Ltd. reached 4,304.14 million yuan, with an approved limit of 15,250 million yuan[71]. - The company reported a related party transaction for patent licensing amounting to 296.28 million yuan, with a limit of 450 million yuan[71]. - Jiangyin Farsheng Co., Ltd. has established fair pricing principles for all related party transactions, ensuring compliance with market prices[69]. Compliance and Governance - The company continues to enhance its internal control systems in compliance with regulatory requirements[36]. - The company has committed to avoiding any direct or indirect competition with its subsidiaries, ensuring that no competitive business activities will be undertaken in the future[61]. - There were no significant legal disputes or arbitration matters reported during the reporting period, indicating a stable legal environment for the company[65]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period, maintaining a straightforward compensation structure[68]. - The half-year financial report for 2018 was not audited, which may affect the reliability of the financial data presented[63]. Operational Changes - The factoring business remains strong despite rising financing costs, with a focus on expanding financing channels and optimizing operational models[25]. - The company is transitioning its factoring business model from a single debt-based approach to a combination of debt and equity services[25]. - The metal products business saw improved sales due to rising product prices and better market conditions, despite increased raw material costs[26]. - The financial services segment saw a 31.17% increase in factoring business revenue, while costs rose by 43.65%, leading to a slight net profit decline of 1.99%[35]. Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that the financial statements accurately reflect its financial condition and operating results[161]. - The company’s accounting policies are tailored to its operational characteristics, particularly regarding revenue recognition[160]. - The company’s financial statements are prepared based on the assumption of ongoing operations, following the relevant accounting standards and regulations[158]. - The company utilizes RMB as its functional currency for accounting purposes, reflecting its primary economic environment[164].