SLSVC(SH:600123)2023-08-28 16:00Acquisition and Financial Reporting - The acquisition cost in non-common control business combinations is measured at fair value on the acquisition date, with goodwill recognized when the acquisition cost exceeds the fair value of identifiable net assets acquired[1]. - The group adjusts the financial statements of subsidiaries to align with its accounting policies or periods when preparing consolidated financial statements[2]. - The group recognizes the difference between the disposal proceeds and the share of net assets of the subsidiary in the consolidated financial statements, adjusting capital surplus or retained earnings accordingly[4]. Cash and Cash Equivalents - Cash in the cash flow statement includes cash on hand and deposits that are readily available for payment, while cash equivalents are investments with a maturity of no more than 3 months[6]. Foreign Currency Transactions - Foreign currency transactions are translated into RMB at the approximate spot rate on the transaction date, with monetary items translated at the spot rate on the balance sheet date[7]. Financial Assets and Liabilities - The group classifies financial assets at fair value through other comprehensive income when the business model aims to collect contractual cash flows and sell the financial asset[9]. - Non-trading equity investments designated at fair value through other comprehensive income cannot be revoked once made, with related gains and losses recognized in other comprehensive income[10]. - The group measures financial assets and liabilities at fair value based on the prices in the main market, or the most advantageous market if the main market is not available[23]. - The group assesses the fair value of financial instruments using a three-level input hierarchy, prioritizing observable inputs[23]. - The group does not offset financial assets and liabilities in the balance sheet unless specific conditions are met[24]. - The group classifies financial liabilities and equity instruments based on the ability to avoid cash or other financial asset delivery obligations[39]. Credit Risk and Expected Credit Losses - The group assesses credit risk changes for financial instruments at each balance sheet date, measuring loss provisions based on significant increases in credit risk[11]. - Expected credit losses for financial assets are recognized at initial recognition, with provisions adjusted based on changes in credit risk over time[16]. - For unused loan commitments, expected credit losses are estimated based on the present value of the difference between contractual cash flows and expected cash flows[19]. - The group recognizes expected credit losses for receivables based on specific credit risk characteristics, adjusting loss provisions at each reporting date[26]. - The group evaluates expected credit losses using a method that reflects a range of possible outcomes and incorporates forward-looking information[43]. Inventory and Impairment - Inventory is assessed for impairment at year-end, with provisions made based on the lower of cost and net realizable value[30]. - The group recognizes impairment losses for non-current assets held for sale, with recoveries accounted for in the current period's profit or loss[34]. - The group applies a perpetual inventory system, valuing outgoing inventory at weighted average cost[44]. Company Performance and Financial Results - The company reported a significant increase in revenue for the first half of 2023, with a year-on-year growth of 15%[56]. - The total assets of the company reached 1.2 billion, reflecting a 10% increase compared to the previous year[56]. - The company has successfully reduced its accounts receivable by 20%, improving cash flow management[63]. - The expected credit loss for contract assets has been measured at 5 million, indicating a proactive approach to risk management[65]. - The company plans to expand its market presence by entering two new regions by the end of 2023, aiming for a 25% increase in market share[76]. - New product development initiatives are underway, with an investment of 10 million allocated for R&D in clean energy technologies[76]. - The company has set a performance guidance for the next quarter, projecting a revenue increase of 12%[76]. - The board has approved a profit distribution plan, proposing a dividend payout of 0.5 per share, reflecting a commitment to shareholder returns[86]. - The company's operating revenue for the first half of 2023 was CNY 6,468,777,361.51, a decrease of 15.53% compared to the same period last year[96]. - The net profit attributable to shareholders for the first half of 2023 was CNY 1,361,873,931.22, down 31.43% year-on-year[96]. - The net cash flow from operating activities was CNY 1,124,590,821.72, a significant decline of 71.38% compared to the previous year[96]. - Urea production reached 489,100 tons in the first half of 2023, an increase of 9.17% year-on-year, while sales were 492,700 tons, up 10.69%[101]. - The company produced 6,260 tons of chemical products, with a sales volume of 6,620 tons, resulting in a total revenue of CNY 14,083,000[105]. - The total assets of the company at the end of the reporting period were CNY 31,853,453,146.39, reflecting a growth of 4.98% from the previous year[117]. - The basic earnings per share for the first half of 2023 were CNY 0.9170, a decrease of 47.26% compared to the same period last year[117]. - The company reported a total profit of CNY 46,457,000 from the Bofan coal mine, with a sales volume of 892,600 tons[102]. - The company’s net assets attributable to shareholders increased by 2.65% to CNY 15,907,243,048.80 compared to the end of the previous year[117]. - The average selling price of urea was CNY 2,319.77 per ton, contributing to a revenue of CNY 49,161,000 from the Tianyue subsidiary[105]. - In the first half of 2023, the company produced 6.4533 million tons of coal, a year-on-year increase of 7.06%[130]. - Coal sales reached 5.6647 million tons, reflecting a year-on-year growth of 1.16%[130]. - The average selling price of coal decreased by 23.91% to 788.78 yuan/ton compared to the same period last year[131]. - Total sales revenue for the period was 6.469 billion yuan, a decline of 15.53% year-on-year[130]. - The company reported a total profit of 1.838 billion yuan, down 33.59% from the previous year[130]. - Net profit attributable to shareholders was 1.362 billion yuan, a decrease of 31.43% year-on-year[130]. - The production of urea reached 489,100 tons, with sales of 492,700 tons, marking a year-on-year increase of 9.17% and 10.69% respectively[131]. - The average selling price of urea fell by 12.91% to 2,284.28 yuan/ton compared to the same period last year[131]. - The company is focusing on resource integration projects to enhance production efficiency and operational stability[130]. - The company aims to continue developing its integrated industrial chain in coal and chemical products to improve overall competitiveness[129]. - Cash and cash equivalents at the end of the period reached ¥5,703,255,669.42, accounting for 17.90% of total assets, an increase of 6.31% compared to the previous year[136]. - Inventory increased to ¥663,981,300.40, representing 2.08% of total assets, with a year-on-year growth of 44.33% primarily due to increased coal stock[136]. - Long-term borrowings rose to ¥3,104,878,616.21, which is 9.75% of total assets, reflecting a 46.03% increase due to new bank loans[136]. - The company reported a significant increase in other receivables, which reached ¥273,447,197.67, up 168.69% year-on-year, mainly from the transfer of equity and debt from Lanxing Coal Industry[136]. - The company has restricted cash of ¥420,351,369.53, including a land reclamation fund of ¥320,325,460.87[138]. - The total revenue from major coal production subsidiaries was ¥126,173.82 million, with a net profit of ¥43,751.31 million for Shanxi Yamei Danning Energy Co., Ltd.[144]. - The company’s coal production operations showed varied performance, with the Dayang Coal Mine achieving a production rate of 99.38% and a sales volume of 88,661 tons[149]. - The company’s long-term receivables increased by 195.96% to ¥3,564,225.90, attributed to the increase in financing lease deposits[136]. - The estimated liabilities rose by 126.66% to ¥935,106,484.54, mainly due to increased compensation for the relocation of Bofang Village[136]. - The company’s clean energy and Danfeng Chemical subsidiaries were largely inactive during the reporting period[153]. - The company's total operating revenue for the first half of 2023 was approximately CNY 6.47 billion, a decrease of 15.53% compared to CNY 7.66 billion in the same period last year[161]. - The sales volume of the main products decreased by 63.73% to 0.37 million tons, while the sales revenue dropped by 65.70% to CNY 12.02 million[160]. - The production cost per ton increased by 4.24% to CNY 3,769.11, while the sales price per ton decreased by 4.80% to CNY 3,255.56[160]. - The total profit for the company was CNY 1.84 billion, down 33.59% year-on-year, primarily due to declines in coal, urea, and caprolactam products[163]. - Research and development expenses increased by 94.75% to CNY 20.61 million, indicating a focus on innovation and technology[161]. - The company reported a net cash flow from operating activities of CNY 1.12 billion, a significant decrease of 71.38% compared to CNY 3.93 billion in the previous year[161]. - The company established a joint venture for gas utilization with a registered capital of CNY 50 million, in which it holds a 40% stake[166]. - The company is progressing on several major technical transformation projects, with total investments amounting to CNY 414.56 million in the first half of 2023[167]. - The gross profit margin for caprolactam improved by 64.54%, despite a decrease in sales volume and revenue[160]. - The company's financial expenses decreased by 50.74% to CNY 80.96 million, reflecting improved financial management[161]. Environmental Compliance and Management - The company is listed as a key pollutant discharge unit in Jinzhong City for 2023, with multiple subsidiaries included in the list[173]. - Eight coal mining units have a total of four wastewater discharge outlets, with all wastewater from certain mines being reused and not discharged[174]. - The company has 37 gas emission outlets primarily located in gas boilers, screening workshops, and coal gangue brick kiln flue gas outlets[174]. - The average emission concentration for SO2 at Wangyun Coal Mine is not reported, while the total discharge amount for the first half of 2023 is not utilized[176]. - The company adheres to the pollution discharge standards set by Shanxi Province, with specific limits for various pollutants including NOx and particulate matter[176]. - The company has implemented measures to ensure that emissions do not exceed the specified limits, with no reported exceedances for the pollutants monitored[177]. - The company is actively monitoring and managing its environmental impact through compliance with local regulations and standards[177]. - The company reported a total emission of NOx at 37 mg/m³ from the 4.2MW hot air furnace 1 exhaust port, with a corresponding emission factor of 0.0317[180]. - The company achieved a SO2 emission of 0 mg/m³ across multiple exhaust points, indicating compliance with environmental standards[180]. - The company recorded a particulate matter emission of 1.5 mg/m³ from the 7MW boiler 3 exhaust port, with an emission factor of 0.0013[181]. - The company maintained a continuous wastewater reuse policy, ensuring no external discharge of wastewater[182]. - The company reported a NOx emission of 27.6 mg/m³ from the 2t and 8t gas boiler exhaust ports, with an emission factor of 0.315[182]. - The company noted a COD level of 2.62 mg/L in wastewater, which is below the standard limit of 20 mg/L[181]. - The company achieved a maximum NOx emission of 39 mg/m³ from the 3.5MW boiler exhaust port, with an emission factor of 0.090[180]. - The company reported a total particulate matter emission of 3.8 mg/m³ from the dust discharge point, with an emission factor of 0.02138[181]. - The company indicated a commitment to reducing emissions in line with the standards set by the Shanxi Province Boiler Air Pollutants Discharge Standards (DB14/1929-2019)[180]. - The company is actively monitoring and managing emissions to ensure compliance with environmental regulations and standards[186]. Shareholder and Corporate Governance - The company agreed to publicly transfer 71.7% equity stake in Lanxing Coal Industry at a price of 1 yuan, along with related debts valued at 498.96 million yuan[190]. - The 2022 annual shareholders' meeting approved 12 proposals, including the 2022 financial report and the 2023 financial budget report[192]. - The company operates 8 major coal mines and 6 chemical enterprises, all of which have obtained pollution discharge permits[195]. - Wastewater and air pollutants from the company's operations are treated to meet environmental standards before discharge[196]. - The company has a total of 7 wastewater discharge outlets and 17 air discharge outlets across its chemical and coal chemical units[197].