NSWRC(SH:600165)2020-08-20 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥57,327,391.30, a decrease of 46.45% compared to ¥107,056,088.61 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2020 was -¥5,475,988.78, compared to -¥23,183,730.78 in the same period last year[19]. - The net cash flow from operating activities was -¥46,889,813.19, slightly improved from -¥50,963,019.71 in the previous year[20]. - The basic earnings per share for the first half of 2020 was -¥0.008, an improvement from -¥0.034 in the same period last year[21]. - The weighted average return on net assets was -0.611%, an improvement from -2.635% in the same period last year[21]. - Operating revenue for the reporting period is 57.33 million RMB, a decrease of 46.45% compared to the previous year[37]. - Operating costs decreased by 42.16% to 54.47 million RMB, primarily due to a significant drop in sales volume at the subsidiary Ningxia Huahui[38]. - The company reported a net profit of 0.9172 million[34]. - The company reported a net loss of ¥239,380,348.04, compared to a loss of ¥233,904,359.26 in the previous period, indicating a worsening of approximately 2%[90]. - The company reported a comprehensive loss of 9,420,635.08 CNY during the period, indicating a decrease in profitability compared to previous periods[117]. Assets and Liabilities - Total assets increased by 11.32% to ¥2,502,258,220.53 from ¥2,247,718,828.91 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 0.62% to ¥893,999,518.73 from ¥899,553,326.37 at the end of the previous year[20]. - The total liabilities as of June 30, 2020, are not explicitly stated but are essential for assessing the company's financial health[88]. - Total liabilities rose to ¥1,582,531,170.80, compared to ¥1,322,613,065.01, indicating an increase of about 19.7%[90]. - Current liabilities decreased to ¥628,886,271.06 from ¥686,402,499.18, a reduction of approximately 8.4%[89]. - Non-current liabilities increased significantly to ¥953,644,899.74 from ¥636,210,565.83, reflecting a growth of around 49.8%[90]. - The company has a total of CNY 610,508,405.97 in other payables, which includes interest payable of CNY 13,242,490.08[194]. Cash Flow - The net cash flow from investment activities is -315.32 million RMB, a decline of 356.74% compared to the previous year[37]. - The net cash flow from financing activities was CNY 369,055,361.04, a substantial improvement from negative CNY 79,586,213.68 in the first half of 2019[105]. - The total cash and cash equivalents at the end of the period increased to CNY 137,550,665.79 from CNY 14,427,971.31 at the end of the first half of 2019[105]. - The cash inflow from sales of goods and services was CNY 43,041,322.73, down from CNY 52,208,654.44 in the first half of 2019, reflecting a decrease of approximately 17.5%[104]. - The company experienced a decrease in cash outflows for employee payments, totaling CNY 12,696,729.18, compared to CNY 13,989,371.01 in the previous year[104]. Investments and Projects - The construction of the 50,000 tons/year dodecanedioic acid project is ongoing, with a total investment of 321.6573 million[29]. - The total fixed asset investment for the 50,000 tons/year lauric acid project is 1.68 billion RMB, with all construction funds secured[35]. - As of the reporting period, the project construction progress is 72.53%, with actual investment completed at 982.79 million RMB[35]. - The company holds 19 patents, including 15 utility model patents and 4 invention patents related to activated carbon production[26]. - The company’s active carbon production capacity is expected to expand due to increasing downstream demand and environmental regulations[27]. Government Subsidies and Financial Support - Government subsidies received increased by 5.0811 million compared to the previous year[34]. - Debt restructuring income increased by 2.6851 million compared to the previous year[34]. - The company received 800 million RMB of the total 1.05 billion RMB from the sale of 80% equity in Boya Stem Cells to Shanghai Zhongneng[44]. - The company benefits from a 15% preferential tax rate for its subsidiary Ningxia Huahui under the Western Development policy until December 31, 2020[199]. Risk Management - The company has detailed the risks it faces in the report, advising investors to review the relevant sections for more information[6]. - Ningxia Huahui's main products are affected by fluctuations in international and domestic economic conditions, with a significant decline in orders due to the pandemic and trade tensions, impacting export business[47]. - The company faces risks from potential changes in government subsidy policies, which could impact operational performance[47]. - Ningxia Huahui is committed to improving its main business profitability through product structure adjustments, increased labor productivity, and enhanced R&D efforts[48]. Corporate Governance and Compliance - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period, indicating a focus on reinvestment[51]. - The company emphasizes the importance of not harming the interests of minority shareholders in its operations and activities[53]. - The company has not engaged in any competitive business activities that conflict with its main operations, ensuring compliance with commitments made by shareholders[52]. - The company has disclosed its commitment to uphold transparency and fulfill information disclosure obligations as per legal requirements[53]. Legal Matters - The company has faced a lawsuit from Ningxia High Court regarding a significant asset acquisition proposal, which is currently under review[53]. - The company is committed to fulfilling its obligations under the equity acquisition agreement, ensuring timely payments and compliance with all terms[54]. - The company has initiated legal proceedings to increase claims related to performance compensation from the 2017 fiscal year, which is currently under review[54]. - The company has ongoing significant litigation matters, including a lawsuit seeking compensation of 157 million yuan for unfulfilled performance commitments[59]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,224[76]. - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, accounting for 29.20% of the total shares[77]. - The company has not reported any changes in major shareholders or strategic investors during the reporting period[79]. Accounting and Financial Reporting - The financial statements comply with the requirements of the Enterprise Accounting Standards, accurately reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[129]. - The company recognizes revenue when control of goods or services is transferred to the customer, with specific criteria for domestic and international sales[180]. - The company has established a comprehensive management structure, including departments such as planning, securities, finance, and legal affairs[124].