司尔特(002538) - 2018 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, outlines the report structure, and defines key terms used throughout the document Important Notice The company's board of directors, supervisory board, and all senior executives guarantee the truthfulness, accuracy, and completeness of this semi-annual report, free from false statements, misleading representations, or material omissions - The company's board of directors and senior executives guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility[4] - The company plans no cash dividends, bonus shares, or capital increase from provident funds[4] Table of Contents The report comprises eleven chapters, including company profile, business overview, operational discussion, significant events, and financial reports Definitions This chapter defines professional terms used in the report, covering fertilizer types (e.g., slow-release, compound fertilizers), chemical products (e.g., MAP), business models (e.g., soil testing and customized fertilization), and company-related entities (e.g., industrial holding, Bozhou subsidiary) Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance and position for the reporting period Company Profile Anhui Sierte Fertilizer Co., Ltd. (stock code: 002538) is a company listed on the Shenzhen Stock Exchange, with Jin Guoqing as its legal representative Key Accounting Data and Financial Indicators In the first half of 2018, the company achieved operating revenue of 1.22 billion Yuan, a 20.35% increase year-on-year, and net profit attributable to shareholders of 102.17 million Yuan, up 12.41% Key Financial Indicators for H1 2018 | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,221,494,099.73 | 1,014,914,923.36 | 20.35% | | Net Profit Attributable to Shareholders (Yuan) | 102,165,086.27 | 90,883,327.25 | 12.41% | | Net Profit Attributable to Shareholders After Non-recurring Items (Yuan) | 90,663,263.83 | 43,069,347.12 | 110.51% | | Net Cash Flow from Operating Activities (Yuan) | -163,999,971.04 | -231,218,644.59 | 29.07% | | Basic Earnings Per Share (Yuan/share) | 0.14 | 0.13 | 7.69% | | Total Assets (Yuan) | 4,989,126,416.43 | 4,491,714,464.86 | 11.07% | - During the reporting period, the company's total non-recurring gains and losses amounted to 11.50 million Yuan, primarily from government subsidies, capital occupation fees from non-financial enterprises, and investment income[20] Company Business Overview This section details the company's primary operations, significant asset changes, and core competitive advantages Primary Business The company's main business involves the R&D, production, and sales of compound and specialty fertilizers, forming an integrated industrial chain from pyrite and phosphate rock mining to phosphate compound fertilizer production and sales - The company's core business is compound fertilizers, building an integrated industrial chain from raw materials to finished products, relying on its own pyrite and phosphate rock resources[23] - The company adopts a 'production based on sales' strategy and utilizes data from the 'China Agricultural University - Sierte Soil Testing and Customized Fertilization Research Base' to support product structure adjustments[24][25] - The company established a wholly-owned subsidiary, Anhui Xinhong Health Industry Management Co., Ltd., to actively expand into the medical and health industry, seeking dual-main business development[27] Significant Changes in Major Assets During the reporting period, there were no significant changes in the company's major assets; the increase in accounts receivable was primarily due to increased shipments within credit terms Analysis of Core Competitiveness The company's core competitiveness is multifaceted, including 67 patented technologies (inventions, utility models, and designs), multiple licensed operating rights for compound fertilizer, sulfuric acid, hazardous chemicals production, and phosphate mining, and extensive land use rights for industrial and commercial services - The company holds 67 patents, including several invention patents such as compound fertilizer anti-caking agents and high-nitrogen sulfur-based compound fertilizer production methods[29][30][31] - The company holds key production and safety licenses, including compound fertilizer production permits, safety production permits, and phosphate mining licenses[32][33] - The company was awarded the 'Anhui Provincial Government Quality Award,' the highest quality award established by the Anhui Provincial Government, and recognized as a National Enterprise Technology Center, reflecting its technological and quality advantages[35][36] Discussion and Analysis of Operations This section provides an overview of the company's operational progress, analyzes its main and non-main business performance, asset and liability status, investment activities, future outlook, and risk management strategies Overview In the first half of 2018, the company systematically advanced its work under the theme of 'seeking progress while maintaining stability and achieving leapfrog development,' focusing on the completion and commissioning of the first phase of the Xuanzhou 300,000-ton new compound fertilizer project, collaboration with Nanjing Agricultural University to develop bio-organic fertilizers, deepening 'Internet+Agriculture' initiatives with dual-integration management system certification, innovating sales models through e-commerce platforms, and actively promoting medical and health industry development via its subsidiary Xinhong Health - The first phase of Xuanzhou Branch's 300,000-ton new compound fertilizer project is largely complete, expected to enhance resource utilization efficiency and company profitability[39] - The company plans to publicly issue convertible bonds to raise funds for a 650,000-ton new fertilizer and 400,000-ton soil conditioner project, vigorously developing new fertilizers like bio-organic fertilizers[40] - The company obtained the 'Integration of Informatization and Industrialization Management System Assessment Certificate,' demonstrating its competitiveness in integrating informatization and industrialization, particularly in building precise customized fertilizer service capabilities[42] - By establishing its subsidiary Xinhong Health, the company is actively promoting the development of the medical and health industry, seeking a new dual-driven situation with compound fertilizers and health industries[44] Main Business Analysis During the reporting period, the company's operating revenue increased by 20.35% year-on-year, primarily driven by the steady growth of its chemical fertilizer business Year-on-Year Changes in Key Financial Data | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,221,494,099.73 | 1,014,914,923.36 | 20.35% | | Operating Cost | 943,745,225.36 | 793,979,913.62 | 18.86% | | Net Cash Flow from Investing Activities | -152,196,253.54 | 239,981,165.28 | -163.42% | Operating Revenue by Product | Product | Operating Revenue (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Ternary Compound Fertilizer | 636,435,035.17 | 52.10% | 11.87% | | Monoammonium Phosphate | 504,166,358.32 | 41.27% | 28.29% | Gross Margin Changes of Main Products | Product | Gross Margin | Gross Margin Change from Prior Year | | :--- | :--- | :--- | | Ternary Compound Fertilizer | 22.44% | 2.72% | | Monoammonium Phosphate | 23.47% | 3.08% | Non-Main Business Analysis During the reporting period, non-main business activities had a minor impact on total profit, with investment income primarily from wealth management product interest and asset impairment mainly from bad debt losses Non-Main Business Profit and Loss | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 1,259,722.10 | 1.02% | Interest from wealth management products | | Asset Impairment | -2,757,343.64 | -2.23% | Bad debt losses | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets increased by 11.07% from the beginning of the period; monetary funds increased due to a reduction in wealth management products, and fixed assets increased due to the capitalization of fundraising projects - Monetary funds as a proportion of total assets increased from 4.76% to 12.21%, primarily due to a decrease in purchased wealth management products[60] - Fixed assets as a proportion of total assets increased from 23.31% to 26.70%, primarily due to the capitalization of fundraising projects into fixed assets[60] - Short-term borrowings increased from 0 Yuan at the beginning of the period to 460 million Yuan, mainly due to an increase in bank credit borrowings[60] Analysis of Investment Status The company's investment activities primarily revolved around the use of raised funds, with 98.11 million Yuan invested during the reporting period, totaling 749.87 million Yuan cumulatively - During the reporting period, the company cumulatively invested 750 million Yuan in raised funds, accounting for 72.98% of the total raised funds (749.87 million Yuan / 1.028 billion Yuan)[66][69] - The Bozhou 900,000-ton new compound fertilizer project did not meet expected returns due to market development falling short of expectations[69] - The company changed the use of 400 million Yuan in raised funds, reallocating them from the Bozhou project to the Xuanzhou 'annual 900,000-ton new compound fertilizer and annual 250,000-ton pyrite-based sulfuric acid project'[66][71] 2018 Q1-Q3 Operating Performance Forecast The company forecasts a 0% to 50% year-on-year increase in net profit attributable to shareholders for January-September 2018, with a range of 131.24 million Yuan to 196.86 million Yuan 2018 Q1-Q3 Performance Forecast | Item | Forecast Data | | :--- | :--- | | Net Profit Attributable to Shareholders Change Range | 0.00% to 50.00% | | Net Profit Attributable to Shareholders Range (Ten Thousand Yuan) | 13,124.17 to 19,686.26 | | Net Profit Attributable to Shareholders in Prior Period 2017 (Ten Thousand Yuan) | 13,124.17 | Risks and Countermeasures The company faces key risks such as intensified industry competition, market sales pressure from new capacity, raw material price fluctuations, tightening environmental policies, and production safety risks, which it addresses by extending the industrial chain, strengthening marketing capabilities, increasing environmental protection investments, and strict production management - Key risks include industry development risk, market sales risk due to capacity expansion, raw material price fluctuation risk, environmental protection policy risk, and production safety risk[79][80][81][82][83] Significant Events This section details major related party transactions and the company's environmental social responsibility performance Significant Related Party Transactions During the reporting period, the company's primary ordinary related party transaction involved purchasing raw materials from its associate, Guizhou Lufa Industrial Co., Ltd., totaling 81.18 million Yuan, which was within the annual approved limit - The company purchased raw materials from its associate, Guizhou Lufa, with 81.18 million Yuan transacted in H1 2018, remaining within the annual approved limit of 328 million Yuan[98][99] - The company's subsidiary, Xinhong Health, took over 100% equity of Dongchen Health Company and provided a total of 110 million Yuan in working capital support[103][104][105] Social Responsibility The company and its subsidiaries are listed as key pollutant-discharging units by environmental protection authorities - The company and its subsidiaries (Anhui Sierte, Xuanzhou Branch, Bozhou Sierte) are all key pollutant-discharging units, with main pollutants being sulfur dioxide and COD, and all emissions were within limits during the reporting period[112][113] - The company actively undertakes technical upgrades of environmental facilities, including 'de-whitening' and demisting of sulfuric acid plant tail gas, upgrading wastewater treatment plants, and constructing dilute acid recycling facilities, to reduce pollutant emissions[114][115][116] Share Changes and Shareholder Information This section outlines changes in the company's share capital and provides details on its shareholders Share Change Status During the reporting period, the company's total share capital of 718,120,283 shares remained unchanged, with a minor shift between restricted and unrestricted shares due to Director Li Gang's acquisition of 184,100 shares Shareholder Numbers and Shareholding Status As of the end of the reporting period, the company had 41,759 common shareholders Top Two Shareholders' Shareholding Status | Shareholder Name | Shareholding Proportion | Number of Common Shares Held | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | Guogou Industrial Holding Co., Ltd. | 25.35% | 182,050,800 | Pledged 179,530,000 | | Anhui Ningguo Agricultural Production Materials Co., Ltd. | 11.41% | 81,951,500 | Pledged 10,000,000 | Preferred Share Information This section confirms the absence of preferred shares during the reporting period Preferred Shares During the reporting period, the company had no preferred shares Directors, Supervisors, and Senior Management Information This section details changes in shareholdings and personnel within the company's board, supervisory board, and senior management Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Director Li Gang increased his shareholding by 184,100 shares, bringing his total holdings to 299,800 shares at period-end, while other directors, supervisors, and senior management had no changes in their shareholdings Changes in Directors, Supervisors, and Senior Management Personnel During the reporting period, the company experienced several changes in senior management personnel: Vice General Manager Li Shiduo passed away due to illness, Vice General Manager Yu Shaobin retired, and Vice General Manager and Board Secretary Wu Yong resigned Corporate Bond Information This section provides an overview of the company's outstanding corporate bonds, including their basic information, credit ratings, and key financial indicators related to bond repayment Basic Information on Corporate Bonds As of the end of the reporting period, the company had two publicly issued and unexpired corporate bonds, '14 Sierte 01' and '15 Sierte Bond,' with a total outstanding balance of 503.3 million Yuan Corporate Bond Overview | Bond Abbreviation | Bond Code | Maturity Date | Bond Balance (Ten Thousand Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 14 Sierte 01 | 112230 | 2019-10-21 | 20,330 | 6.50% | | 15 Sierte Bond | 112295 | 2020-11-18 | 30,000 | 4.98% | - Pengyuan Credit Rating Co., Ltd. maintained the company's long-term corporate credit rating at AA with a stable outlook[149] - Due to increased current liabilities, the company's current ratio decreased from 371.75% at the end of the previous year to 221.33%, and its quick ratio decreased from 288.22% to 151.08%[154][155] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes and supplementary information Audit Report The company's 2018 semi-annual financial report is unaudited Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of June 30, 2018 Consolidated Balance Sheet Parent Company Balance Sheet Consolidated Income Statement Parent Company Income Statement Consolidated Cash Flow Statement Parent Company Cash Flow Statement Consolidated Statement of Changes in Owners' Equity Parent Company Statement of Changes in Owners' Equity Notes to Consolidated Financial Statement Items This section provides detailed explanations for key items in the consolidated financial statements, including 134.9 million Yuan in endorsed or discounted but unexpired notes receivable at period-end, a significant increase in accounts receivable from the beginning of the period, construction in progress primarily for the Maweishan pyrite and phosphate mine technical upgrade and expansion projects, and the controlling shareholder, Guogou Industrial Holding Co., Ltd., pledging 25% of its company shares - At period-end, the amount of bank acceptance bills endorsed or discounted but not yet due on the balance sheet date was 134.9 million Yuan[346] - The book balance of accounts receivable significantly increased from 53.64 million Yuan at the beginning of the period to 124.89 million Yuan at period-end[347] - The balance of construction in progress at period-end was 293 million Yuan, with the largest project being the Maweishan pyrite project, totaling 183 million Yuan[383] - The controlling shareholder, Guogou Industrial Holding Co., Ltd., pledged 25% of its company shares to provide guarantees for related party debt restructuring[435] Supplementary Information This section provides supplementary financial information, including details of non-recurring gains and losses and return on net assets Details of Non-recurring Gains and Losses for the Current Period | Item | Amount (Yuan) | | :--- | :--- | | Government Subsidies Included in Current Profit and Loss | 9,131,063.51 | | Capital Occupation Fees from Non-financial Enterprises Included in Current Profit and Loss | 2,488,692.17 | | Investment Income from Disposal of Available-for-Sale Financial Assets, etc. | 1,385,267.51 | | Other Non-operating Income and Expenses | 732,520.68 | | Less: Income Tax and Minority Interest Impact | 2,235,721.43 | | Total | 11,501,822.44 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (Yuan/share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 3.04% | 0.14 | | Net Profit Attributable to Common Shareholders After Deducting Non-recurring Gains and Losses | 2.70% | 0.13 | Reference Documents Catalog This section lists all documents available for inspection, including the signed semi-annual report, financial statements, and other publicly disclosed materials Reference Documents This chapter lists documents available for inspection, including the semi-annual report and accounting statements bearing the signatures of the chairman and senior executives, originals of all publicly disclosed documents during the reporting period, and other relevant materials, all kept at the company's Securities Department