HZSY(SH:600191)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥59,961,491.22, representing an increase of 80.59% compared to ¥33,202,934.70 in the same period last year[15]. - The net profit attributable to shareholders for the first half of 2020 was ¥18,621,768.96, a decrease of 65.90% from ¥54,602,150.13 in the previous year[15]. - The net cash flow from operating activities was -¥5,363,616.76, a decline of 202.93% compared to ¥5,211,174.49 in the same period last year[15]. - The total assets at the end of the reporting period were ¥1,925,574,013.23, down 4.78% from ¥2,022,276,786.27 at the end of the previous year[15]. - The net assets attributable to shareholders decreased by 3.60% to ¥1,819,290,704.80 from ¥1,887,275,311.20 at the end of the previous year[15]. - Basic earnings per share for the first half of 2020 were ¥0.0384, a decrease of 65.90% compared to ¥0.1126 in the same period last year[16]. - The weighted average return on net assets was 1.00%, down 1.93 percentage points from 2.93% in the previous year[16]. - Total operating revenue for the first half of 2020 was CNY 59,961,491.22, a significant increase from CNY 33,202,934.70 in the same period of 2019, representing an increase of approximately 80.5%[63]. - Total operating costs rose to CNY 64,365,484.79 from CNY 58,088,034.52, indicating an increase of about 10.4%[63]. - Net profit for the first half of 2020 was CNY 18,621,768.96, down from CNY 54,602,150.13 in the previous year, reflecting a decrease of approximately 65.9%[64]. Cash Flow and Investments - Cash flow from investment activities showed a net inflow of CNY 39.06 million, a 710.71% increase year-on-year, attributed to increased cash dividends and the sale of Huaxia Bank shares[25]. - The company's cash and cash equivalents increased by 320.56% to CNY 45.05 million, mainly due to the disposal of other equity investments[28]. - The company reported a net cash outflow from operating activities of CNY 5.36 million, a decline of 202.93% compared to the previous year[25]. - The company reported a cash inflow from investment activities of 39,079,250.36 RMB in 2020, compared to 4,817,545.63 RMB in 2019, indicating a substantial increase in investment returns[72]. - The net increase in cash and cash equivalents for the first half of 2020 was 26,542,688.94 RMB, compared to 6,643,900.27 RMB in the same period of 2019, showing a significant improvement in liquidity[71]. Shareholder and Equity Information - The company plans no profit distribution or capital reserve transfer for the half-year period[34]. - The total equity attributable to the parent company at the end of the reporting period was CNY 1,819,290,704.80, a decrease from CNY 1,829,095,766.90 at the end of the previous period, reflecting a decline of approximately 0.15%[78]. - The company reported a decrease in retained earnings by CNY 7,273,980.00 due to distributions to owners, which highlights a shift in profit allocation strategy[78]. - The total owner's equity at the end of the reporting period is CNY 1,963,246,257.15, showing a decrease from the previous period[85]. - The company extracted CNY 7,273,980.00 for profit distribution to shareholders, which indicates a reduction in shareholder returns[82]. Operational Focus and Business Activities - The company continues to focus on sugar production and storage as its main business operations[21]. - The company operates in the sugar production and storage industry, primarily engaged in the reprocessing of raw sugar and storage of white sugar and raw sugar[89]. - The company is involved in the production and sale of sugar and molasses, as well as the import and export of related products and technologies[88]. Governance and Compliance - The company has committed to avoiding any competition with its controlling shareholders and related parties post-acquisition, ensuring no potential conflicts arise[35]. - The acquisition of Weifang Chuangke Industrial Co., Ltd. was completed on July 22, 2013, with a commitment to eliminate any industry competition[35]. - The company has pledged to adhere to fair market principles in any unavoidable related transactions, ensuring compliance with national laws and regulations[35]. - There were no significant lawsuits or arbitration matters during the reporting period[38]. - The company reported no changes in its share capital structure during the reporting period[43]. - The company has not disclosed any environmental information due to not being classified as a key pollutant discharge unit[41]. Accounting Policies and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial statements accurately reflect its financial position and operating results[95]. - The company's accounting period runs from January 1 to December 31 each year, with a business cycle of 12 months[96][97]. - The company has not made any changes to accounting policies or estimates that would impact financial reporting[42]. - The company prepares consolidated financial statements based on control, including itself and all subsidiaries[104]. - The accounting policies and periods of all subsidiaries included in the consolidated financial statements are consistent with the company[105]. Asset Management and Valuation - The company utilizes a perpetual inventory system for inventory management, ensuring accurate tracking of stock levels[154]. - Inventory is measured at the lower of cost and net realizable value, with impairment provisions made for individual inventory items[153]. - The company measures non-current assets held for sale at the lower of carrying amount and fair value less costs to sell, recognizing impairment losses as necessary[161]. - The company recognizes intangible assets at cost, with subsequent measurement based on useful life, applying straight-line amortization for finite-life intangible assets[182]. - The company conducts annual reviews of the useful life of intangible assets, adjusting estimates as necessary based on evidence[183]. Financial Instruments and Risk Management - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[122]. - The company recognizes expected credit losses based on the weighted average of credit losses for financial instruments, reflecting the difference between contractual cash flows and expected cash flows[139]. - The company assesses whether credit risk has significantly increased by considering factors such as changes in the debtor's operating results and economic environment[142]. - The company measures loss provisions for financial instruments based on observable inputs whenever possible[136]. Employee Compensation and Benefits - Short-term employee compensation is recognized as a liability and included in the current period's profit or loss[192]. - The company recognizes liabilities for employee benefits upon termination when it cannot unilaterally withdraw the benefits or when it recognizes costs related to restructuring[195]. - Share-based payments are measured at fair value on the grant date and recognized as an expense over the service period[200].