KCGJ(SH:600097)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was approximately ¥773.3 million, a decrease of 0.91% compared to ¥780.4 million in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2023 was a loss of approximately ¥27.06 million, representing a decline of 171.89% from a profit of ¥37.65 million in the same period last year[18]. - The basic earnings per share for the first half of 2023 was -¥0.11, down 168.75% from ¥0.16 in the same period last year[18]. - The company reported a net cash flow from operating activities of approximately -¥214.7 million, a significant decrease of 314.08% compared to ¥100.3 million in the same period last year[18]. - The total assets at the end of the reporting period were approximately ¥3.27 billion, down 4.89% from ¥3.43 billion at the end of the previous year[18]. - The company reported a total revenue of 773.30 million yuan, a slight decrease of 0.91% year-on-year, while the net profit attributable to shareholders was -27.06 million yuan, a decrease of 171.89%[26]. - The company’s cash flow from operating activities showed a net outflow of 214.70 million yuan, a decline of 314.08% compared to the previous year[28]. - The total comprehensive income for the first half of 2023 was ¥26.7 million, down from ¥60.8 million in the same period of 2022[89]. Business Development and Strategy - The company is focusing on developing the tuna industry chain, with its fishing fleet primarily operating in the Central and Western Pacific regions[21]. - The company has initiated cooperation with Jiangsu Deep Blue Fisheries Co., Ltd. for the first domestic professional Antarctic krill fishing vessel, which has commenced its maiden fishing operation[21]. - The company aims to expand its international market share through its subsidiary Estelas Trading, which participates in international exhibitions[21]. - The company is actively seeking opportunities for diversified business development to achieve long-term stable returns[21]. - The company plans to leverage its overseas subsidiaries and partnerships to expand domestic and international markets, aiming to convert resource advantages into market advantages[23]. - The company is focusing on improving product quality and accelerating sales in response to the underperformance of the deep blue shrimp project, which yielded a catch of 36,195 tons during the reporting period[25]. - The company is expanding its business into downstream seafood processing and sales, which may involve integration risks if management cannot keep pace with expansion[42]. Inventory and Assets - The inventory increased by 39.10% year-on-year, reaching 714.67 million yuan, primarily due to an increase in stock of krill powder and tuna products[31]. - The company’s overseas assets amounted to 1.74 billion yuan, accounting for 53.29% of total assets[33]. - The total assets of Shanghai Kaichuang Ocean Fishing Co., Ltd. reached RMB 2,146.22 million, with a net asset of RMB 1,194.48 million as of June 30, 2023[37]. - The total assets of Pan-Pacific Foods (Marshall Islands) Co., Ltd. were RMB 24.91 million, with a net asset of RMB -27.20 million, and a net loss of RMB 11.99 million, increasing the loss by RMB 6.15 million year-on-year[38]. - The total assets of Pan-Pacific Fisheries (Marshall Islands) Co., Ltd. were RMB 736.69 million, with a net profit of RMB 26.32 million, a decrease of RMB 25.39 million compared to the same period last year[38]. - The total assets of Zhoushan Huan Pacific Ocean Food Co., Ltd. were RMB 302.66 million, with a net profit of RMB 4.93 million, an increase of RMB 11.36 million year-on-year[39]. Financial Management - The company’s financial expenses increased by 56.64% year-on-year, totaling 15.72 million yuan, mainly due to interest expenses on lease liabilities and increased exchange losses[28]. - The company’s sales expenses decreased by 14.11% year-on-year, amounting to 169.72 million yuan, attributed to reduced transportation costs due to lower catch and sales volumes[28]. - The company reported non-recurring gains of approximately ¥38.34 million, primarily from the disposal of non-current assets and government subsidies[20]. - The company has significant goodwill and intangible assets from the acquisition of ALBO, which may be subject to impairment if ALBO's operating conditions deteriorate[43]. - The company’s retained earnings decreased from CNY 930,553,422.92 to CNY 871,444,551.23, a decline of about 6.4%[82]. Market and Customer Relations - In the first half of 2023, the company's sales in the Chinese market amounted to 1,113.75 million yuan, accounting for 56.57% of the main business revenue[44]. - The sales amount from the key customer, Taohua Bairun, was 823.41 million yuan, representing 41.82% of the main business revenue in 2021[44]. - The concentration of tuna sales is primarily in the Chinese market, with a focus on long-term cooperation with key customers to mitigate single customer risk[44]. Governance and Compliance - There were changes in the board of directors, with the election of Wang Haifeng as a new director following the resignation of Duan Junheng[50]. - The company has no significant litigation or arbitration matters during the reporting period[58]. - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of 2023[52]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[75]. - The company has not issued any new equity incentives to directors, supervisors, or senior management during the reporting period[75]. Taxation and Regulatory Environment - The corporate income tax rate for Shanghai Kaichuang International Ocean Resources Co., Ltd. is 25%[200]. - The corporate income tax rate for Asia Pacific Tuna Private Limited is 17%[200]. - The corporate income tax rate for Kanglong (Hong Kong) Shipping Co., Ltd. is 16.5%[200]. - The corporate income tax rate for FRENCH CREEK SEAFOOD LTD. is 27%[200]. - The corporate income tax rate for Estelas Trading, S.L. is 25%[200]. - The overseas income tax rate for Pan-Pacific Fisheries and related companies is 3%[200]. Accounting Policies and Practices - The company’s financial statements are prepared based on the assumption of going concern, with no significant doubts about its ability to continue operations[116]. - The company’s accounting policies comply with the latest enterprise accounting standards issued by the Ministry of Finance[117]. - The company recognizes revenue primarily from the sale of goods and provision of services, confirming revenue when control of the goods is transferred to the customer[184]. - The company does not apply different accounting policies for revenue recognition across similar business models[188]. - The company recognizes deferred tax assets and liabilities based on the difference between the book value of assets and liabilities and their tax bases, calculated at applicable tax rates[190].