XSS(SH:600117)2023-08-30 16:00Financial Position - The company reported a current liability exceeding current assets by RMB 8.259 billion, with a debt-to-asset ratio of 96.64% as of December 31, 2022[11]. - The company’s total equity attributable to shareholders was reported at negative RMB 0.857 billion as of December 31, 2022[11]. - The total liabilities of the company reached CNY 13.12 billion, slightly decreasing from CNY 13.20 billion in the previous period, indicating a reduction of approximately 0.6%[105]. - The company's total current liabilities were reported at CNY 12.75 billion, up from CNY 12.23 billion, representing an increase of around 4.3%[105]. - The company’s total assets were reported at CNY 10.72 billion, a decrease from CNY 11.82 billion in the previous period, indicating a decline of approximately 9.3%[105]. - The net assets attributable to shareholders of the listed company were -¥1,906,620,836.30, compared to -¥857,278,876.46 at the end of the previous year[181]. Bankruptcy and Reorganization - As of June 20, 2023, the company is undergoing bankruptcy reorganization, with the court allowing it to continue operations during this period[11]. - The company aims to restore its profitability through the reorganization process, which is designed to resolve debt risks and return to a healthy development track[11]. Revenue and Profitability - The company reported a significant increase in revenue from steel, coke, and limestone sales, contributing to overall financial performance[149]. - The company's operating revenue for the first half of 2023 was ¥2,599,829,356.39, a decrease of 53.16% compared to ¥5,550,522,459.43 in the same period last year[181]. - The net profit attributable to shareholders of the listed company was -¥1,057,181,694.26, compared to -¥414,740,562.92 in the previous year[181]. - The total comprehensive income for the period was a loss of 383,630,659.48 CNY[72]. Subsidiaries and Structure - The company has a total of 7 first-level subsidiaries and 2 second-level subsidiaries included in the consolidated financial statements[7]. - The company has experienced a decrease in the number of first-level subsidiaries compared to the previous period[8]. Accounting Policies and Financial Reporting - The company prepares its financial statements based on the going concern assumption, which is deemed appropriate[13]. - The company uses historical cost as the measurement basis for its financial statements, except for certain financial instruments measured at fair value[13]. - The company recognizes deferred tax assets for unused tax losses, requiring management to estimate future taxable profits[16]. - The company recognizes other comprehensive income based on equity method accounting until the investment is disposed of, using the same basis as the direct disposal of related assets or liabilities[24]. - The company includes all subsidiaries in the consolidated financial statements based on control, ensuring consistent accounting policies and periods across all entities[25]. Inventory and Receivables Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs assessed on an individual basis or by category for numerous low-cost items[63]. - The company employs a perpetual inventory system combined with physical inventory counts to manage inventory[63]. - The total accounts receivable balance for the company is CNY 373,412,950.51, with a bad debt provision of CNY 28,607,670.20, resulting in a provision ratio of 7.66%[198]. - The company has recognized bad debt provisions for specific clients, including CNY 3,477,257.32 for Wuhan Shigang Metal Materials Co., with a 100% provision ratio due to expected collectability issues[198]. Employee Compensation and Benefits - The company’s employee compensation payable increased to CNY 111.12 million from CNY 89.08 million, reflecting a growth of approximately 24.8%[105]. - The company has established a defined contribution plan for post-employment benefits, which includes participation in social basic pension and unemployment insurance, with liabilities recognized based on the calculated contributions during the accounting period[130]. Taxation - The company has a tax rate of 15% for its main business in the western region, applicable from January 1, 2021, to December 31, 2030[166]. - The company is subject to a corporate income tax rate of 25% for other tax entities[165]. Cash Flow and Liquidity - The company reported a cash balance of RMB 572.11 million at the end of the period, down from RMB 1,229.66 million at the beginning of the period[167]. - The company has a total of RMB 547.74 million in other monetary funds, a decrease from RMB 1,169.91 million at the beginning of the period[167]. Risk Management and Compliance - The management has outlined potential risks in future plans and strategies, advising investors to be cautious[142]. - There are no non-operational fund occupations by controlling shareholders or related parties, ensuring financial integrity[143]. - The company has not violated decision-making procedures for external guarantees, maintaining compliance with regulations[143]. Investment and Asset Management - The company applies the cost method for long-term equity investments where it can exert control, adjusting the investment cost for additional or recovered investments[81]. - The company recognizes expected liabilities for additional obligations under investment contracts, which are included in current investment losses[84]. - The company recognizes gains or losses on the disposal of long-term equity investments based on the difference between the book value and the actual proceeds received[84].