KCGJ(SH:600097)2019-08-21 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,052,468,553.73, representing a 12.52% increase compared to CNY 935,369,670.15 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2019 was CNY 8,680,107.37, a decrease of 50.62% from CNY 17,576,798.67 in the previous year[18]. - The net cash flow from operating activities increased by 46.88% to CNY 192,317,228.89, compared to CNY 130,937,697.40 in the same period last year[18]. - The basic earnings per share for the first half of 2019 was CNY 0.04, down 42.86% from CNY 0.07 in the same period last year[19]. - The company achieved a total catch of 75,467 tons during the reporting period, an increase of 16,749 tons year-on-year[28]. - Revenue for the period reached 1,052,468,553.73 CNY, representing a year-on-year increase of 12.52%[32]. - The company’s sales volume for ALBO canned products increased to 398 million CNY, up by 0.45 million CNY compared to the previous year[29]. - The company’s sales expenses increased by 12.70% to 244,574,534.82 CNY due to higher transportation costs[32]. - The company’s total investment in FCS Co. is CAD 7.7 million, with total assets reported at CNY 49.66 million and a net profit of CNY 1.63 million as of June 30, 2019[41]. - The company reported a significant increase in accounts payable, which rose to RMB 248,158,078.70 from RMB 182,723,455.22, an increase of approximately 36%[81]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,490,883,734.90, reflecting a 7.98% increase from CNY 2,306,723,053.71 at the end of the previous year[18]. - The company’s foreign assets accounted for 59.18% of total assets, amounting to 1,474,128,577.28 CNY[25]. - The company’s fixed assets decreased by 28,197,400 CNY due to depreciation and consolidation of FCS[25]. - The company’s total current assets reached RMB 1,275,364,495.06, up from RMB 1,124,289,553.56 at the end of 2018, indicating an increase of about 13.4%[80]. - Total liabilities increased to RMB 834,799,660.42 from RMB 641,365,439.16, representing a growth of around 30%[82]. - The company's equity attributable to shareholders decreased to RMB 1,608,677,708.84 from RMB 1,643,356,796.74, a decline of about 2.1%[82]. - The total equity at the end of the reporting period is CNY 1,800,056,351.33, a decrease of CNY 44,416,453.05 compared to the previous period[104]. Investments and Acquisitions - The company completed the acquisition of 70% of French Creek Seafood Ltd. for CAD 7.7 million on January 31, 2019, with plans to acquire the remaining 30% within five years[37]. - The company holds 100% ownership in Shanghai Kaichuang Ocean Fishing Co., with a registered capital of CNY 410 million and an actual investment of CNY 1,731.83 million as of the reporting period[35]. - The company plans to invest CNY 160 million to build a tuna purse seine vessel, with funding sourced from 40% self-owned funds and 60% bank loans[45]. Operational Risks - The company has detailed potential industry and operational risks in its report, advising investors to be cautious[6]. - The company faces risks related to changes in national policies supporting the distant water fishing industry, which could significantly impact its operational and profitability capabilities[42]. - The company faces significant operational risks due to the volatility in the fishing industry, influenced by climate, fishing policies, and market conditions[43]. - Integration risks exist from acquisitions and new projects, which may affect profitability if management cannot keep pace with expansion[43]. - The company is expanding its tuna industry chain but lacks experience in market development and sales channel construction, posing market expansion risks[44]. Community Engagement - The company will provide annual assistance of RMB 100,000 to the villagers of Yuanyi Village from January 2019 to December 2022 as part of its poverty alleviation efforts[61]. - The company is actively engaging in community support through various initiatives, including agricultural infrastructure maintenance and environmental improvement projects[62]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,681[68]. - The top ten shareholders held a total of 42.26% of the shares, with Shanghai Ocean Fishery Co., Ltd. holding 101,811,538 shares[69]. - The company plans to reduce shares held by major shareholder Dalian Longtai Venture Investment Co., Ltd. by up to 13,267,731 shares, or 5.50% of the total share capital[70]. Accounting and Financial Reporting - The company operates under the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[114]. - The company confirmed that there were no changes in significant accounting policies or estimates during the reporting period[188]. - The company’s tax rate for corporate income tax is 25%, with certain income from deep-sea fishing exempt from corporate income tax[196]. - The company applies a straight-line method for amortizing intangible assets with a finite useful life, while those with indefinite useful lives are not amortized[166]. Cash Flow and Dividends - The company distributed a cash dividend of CNY 0.18 per share, totaling CNY 43,368,580.62, based on a total share capital of 240,936,559 shares[47]. - The company received a government subsidy of CNY 66,809,700, which is expected to positively impact the 2019 financial results[47]. - The company paid out ¥52,545,830.96 in dividends and interest, which is an increase of 242.5% compared to ¥15,356,921.66 in the same period of 2018[96].