JSSS(SH:600220)2019-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,083,070,419.18, representing a 2.50% increase compared to CNY 1,056,611,721.20 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 39,741,628.35, a decrease of 3.99% from CNY 41,391,724.88 in the previous year[17]. - The net cash flow from operating activities increased by 23.20% to CNY 220,444,231.51, compared to CNY 178,930,713.35 in the same period last year[17]. - Basic earnings per share for the first half of 2019 were CNY 0.0223, down 3.88% from CNY 0.0232 in the same period last year[18]. - The weighted average return on net assets was 1.81%, a decrease of 0.17 percentage points compared to 1.98% in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 37,868,579.37, which is a 4.65% increase from CNY 36,186,990.99 in the same period last year[17]. - The diluted earnings per share were also CNY 0.0223, consistent with the basic earnings per share[18]. - Operating profit reached 74 million RMB, up 17.76% compared to the previous year[32]. - The company achieved operating revenue of 1.08 billion RMB, an increase of 2.50% year-on-year[33]. - The textile segment generated operating revenue of 757 million RMB, a slight increase of 0.42% year-on-year, with a gross margin of 19.36%, down 2.25 percentage points[32]. - The thermal power segment reported operating revenue of 303 million RMB, an increase of 7.87% year-on-year, with a gross margin of 24.29%, up 9.71 percentage points[32]. - The comprehensive income attributable to the parent company increased by 77.17% to 51 million RMB, driven by foreign currency translation adjustments[33]. - The company reported a net profit margin of approximately 6.06% for the first half of 2019, compared to 5.3% in the same period of 2018[91]. - The total profit for the first half of 2019 was CNY 75,041,844.43, an increase from CNY 64,303,134.16 in the same period of 2018, representing a growth of about 16.9%[95]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,107,116,203.97, reflecting a 4.77% increase from CNY 4,874,565,537.26 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were CNY 2,189,543,811.37, showing a slight decrease of 0.10% from CNY 2,191,689,725.76 at the end of the previous year[17]. - Current assets totaled RMB 2,319,039,283.75, up from RMB 2,085,393,703.43 at the end of 2018, reflecting a growth of approximately 11.2%[83]. - The company's cash and cash equivalents increased to RMB 646,683,859.21 from RMB 405,981,303.99, representing a growth of about 59.2%[83]. - Total current liabilities increased to RMB 2,414,034,010.36 from RMB 2,333,895,016.30, marking a rise of about 3.4%[84]. - The total amount of related party transactions reached 32,575 million RMB, with a significant portion being for purchasing goods and services[52]. - The total amount of related party debts at the end of the reporting period was approximately 1,045.21 million RMB, with an increase of 164.93 million RMB during the period[56]. - The company reported a significant decrease in related party loans, with the balance dropping from 328.74 million RMB to 291.12 million RMB[55]. Investments and Projects - The company has invested $350 million in a wool textile dyeing project in Ethiopia, with significant progress in construction and equipment installation[31]. - The company is responding to the "Belt and Road" initiative by expanding its global footprint, particularly in Africa[31]. - The company is constructing a facility in Ethiopia, facing challenges due to differences in legal, economic, and cultural environments, which may negatively affect future operations[42]. Environmental Compliance - The company reported a total of 8.47 tons of particulate matter emissions, which is below the standard limit of 20 mg/m3, with an annual emission of 53.77 tons[61]. - Sulfur dioxide emissions from the company were recorded at 12.94 tons, significantly lower than the standard limit of 50 mg/m3, with an annual emission of 134.42 tons[61]. - Nitrogen oxides emissions were 77.02 tons, below the standard limit of 100 mg/m3, with an annual emission of 268.84 tons[61]. - The company has established wastewater treatment facilities to pre-treat wastewater before centralized processing, ensuring compliance with environmental standards[62]. - New Bridge Thermal Power has implemented dust removal, desulfurization, and denitrification facilities, ensuring normal operation and compliance with emission standards[62]. - The company has obtained pollution discharge permits for its thermal power plants, ensuring legal compliance in environmental management[63]. - Emergency response plans for environmental incidents have been developed and filed with the Jiangsu Provincial Environmental Protection Department[64]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 128,327[72]. - The largest shareholder, Jiangsu Sunshine Group Co., Ltd., holds 169,302,133 shares, accounting for 9.49% of the total shares[74]. - The company has not disclosed any plans for profit distribution or capital reserve transfer to increase share capital during the reporting period[4]. - The company did not distribute any dividends to shareholders during this reporting period[113]. Related Party Transactions - The company engaged in various related transactions, including purchasing raw materials for 303.60 million RMB and accepting services for 332.36 million RMB[51]. - The pricing for related transactions was based on market prices at the time of contract signing, ensuring fairness and competitiveness[52]. - The company emphasized that related party transactions are essential for daily operations, helping to reduce costs and enhance competitiveness[52]. - The company has no ongoing or undisclosed significant related transactions that could affect its independence or harm minority shareholders[54]. - The company’s related party transactions do not involve any profit transfer or encroachment on the interests of the listed company[52]. Risks and Challenges - The company faces challenges from external factors such as trade tensions and fluctuating market conditions, impacting the textile consumption market[30]. - The company faces risks from rising raw material prices, particularly wool and coal, which could impact production costs and increase operational risks[42]. - Labor costs are rising in the labor-intensive industry, which may adversely affect profit growth; the company plans to enhance automation and invest abroad to reduce production costs[42]. - The company is exposed to financial risks from currency and interest rate fluctuations, necessitating vigilance in a volatile macroeconomic environment[43]. - The company reported a significant impact on net profit from its subsidiary, with a loss of approximately 2.24 million USD affecting over 10% of net profit[44]. Accounting and Financial Reporting - The company adheres to the accounting standards for enterprises, ensuring that financial reports accurately reflect its financial status and operating results[125]. - The financial statements are prepared based on the principle of going concern, indicating no significant issues affecting the company's ability to continue operations for at least 12 months[123]. - The company adopted new financial instrument accounting standards effective January 1, 2019, impacting financial reporting but not requiring retrospective adjustments[197]. - The company’s accounting policies include specific treatments for government grants, deferred tax assets, and lease liabilities, ensuring compliance with relevant standards[195]. - The company recognizes revenue from sales of goods when the risks and rewards of ownership have transferred to the buyer, and the amount can be reliably measured[188].