FLDT(SH:600228)2019-08-09 16:00Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥214.85 million, a decrease of 19.88% compared to ¥268.17 million in the same period last year[20]. - The net profit attributable to shareholders was a loss of approximately ¥5.06 million, a decline of 236.18% compared to a profit of ¥3.71 million in the same period last year[20]. - The net cash flow from operating activities was negative at approximately ¥906,698.33, down 115.58% from ¥5.82 million in the previous year[20]. - The total assets decreased by 14.42% to approximately ¥245.61 million from ¥287.01 million at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 7.65% to approximately ¥56.52 million from ¥61.21 million at the end of the previous year[20]. - Basic earnings per share were negative at ¥-0.02, a decrease of 200% compared to ¥0.02 in the same period last year[21]. - The weighted average return on net assets was -8.59%, a decrease of 15.41 percentage points from 6.82% in the previous year[21]. - The production of acrylamide decreased by 16.46% compared to the same period last year, and sales volume decreased by 17.31%[21]. - The company reported a total non-operating income of 175,744.89 million, with government subsidies contributing 170,924.33 million[25]. - The decline in net profit was primarily due to decreased sales volume and average selling prices of acrylamide, alongside the absence of revenue from Hangda Fund Management Company[40]. - The company reported a total comprehensive income of -2,801,890.40 RMB for the first half of 2019, compared to 8,414,416.23 RMB in the previous year, reflecting a downturn in overall financial performance[94]. Operational Challenges - The company did not realize any revenue from the business development of Hangda Fund Management Company during the reporting period[21]. - The private equity management business did not generate revenue during the reporting period, significantly affecting the overall net profit[29]. - Sales volume decreased due to lower operating rates among downstream customers and increased maintenance frequency of production lines[29]. - The company anticipates potential net losses for the year due to challenges in the chemical industry and competition in the acrylamide market[46]. - The company is facing potential challenges in upgrading and expanding its business, particularly in the production management and talent development related to acrylamide, which may lead to a "bottleneck" period[49]. Market and Industry Trends - The price of upstream raw material acrylonitrile showed a downward trend compared to the same period last year, impacting the company's performance[29]. - The domestic market for acrylamide is experiencing a phase of fluctuating growth due to environmental protection demands and cost sensitivity among customers[31]. - The company aims to enhance product development and extend downstream applications in response to growing demand in the water treatment market[31]. - The company plans to capitalize on opportunities in the water treatment sector to support its transformation and upgrade efforts[31]. Financial Position - Cash and cash equivalents decreased by 34.65% to ¥40,408,390.51, down from ¥61,834,457.32 due to profit distribution and loan repayment[42]. - Accounts receivable decreased by 53.10% to ¥8,295,019.77, down from ¥17,686,642.85, attributed to a decline in sales[42]. - Inventory increased by 39.53% to ¥16,584,575.85, up from ¥11,886,022.41, due to temporary production stoppages for maintenance[42]. - Short-term borrowings decreased by 33.33% to ¥20,000,000.00, down from ¥30,000,000.00, as part of loan repayments[42]. - The company has significant assets pledged for bank loans, including bank acceptance bills of ¥6,144,454.07 and real estate valued at ¥36,514,382.43[43]. Environmental Compliance - The company has established an automatic online monitoring system for wastewater discharge, ensuring effective monitoring of key environmental indicators[65]. - The wastewater discharge from Jiangsu Changjiu Agricultural Science and Technology met the relevant discharge standards, with chemical oxygen demand (COD) at 12 mg/L, well below the limit of 500 mg/L[66]. - The company reported zero pollution incidents during the reporting period at its Nanchang base, with pollutant emissions being negligible[64]. - The company has actively engaged third-party testing agencies for continuous monitoring of its production environment, ensuring compliance with environmental standards[65]. - The company has implemented measures to reduce noise pollution, achieving compliance with emission standards[64]. Corporate Governance - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of the year[52]. - The company has renewed the appointment of Zhongxing Cai Guanghua Accounting Firm for the 2019 financial report audit and internal control audit[54]. - There are no significant litigation or arbitration matters reported during the reporting period[54]. - The company has committed to maintaining the independence of Changjiu's operations and avoiding competition with listed companies[53]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,019[75]. - The largest shareholder, Jiangxi Changjiu Group Co., Ltd., holds 25.58% of the shares, amounting to 61,733,394 shares, with 43,980,000 shares pledged[77]. - The company has not experienced any changes in share capital structure during the reporting period[73]. - The company has confirmed that some shares of the largest shareholder are in a pledged state, but other top shareholders hold less than 5% and their status is not fully verified[78]. Accounting and Financial Reporting - The company adheres to the new financial instrument accounting standards and has made retrospective adjustments to its financial statement formats[130]. - The financial statements are prepared based on the going concern assumption, with no identified issues affecting the company's ability to continue operations[129]. - The company uses the effective interest method for measuring held-to-maturity investments at amortized cost, recognizing gains or losses in the current period upon derecognition, impairment, or amortization[172]. - The company recognizes expected credit losses based on the weighted average of credit losses for financial instruments, considering the risk of default[157]. - The company employs valuation techniques that are appropriate and supported by sufficient data, including market, income, and cost approaches[168].