FLDT(SH:600228)2020-09-17 16:00Financial Performance - The company's operating revenue for the first half of the year was ¥161,642,819.06, a decrease of 24.77% compared to ¥214,853,898.95 in the same period last year [22]. - The net profit attributable to shareholders was a loss of ¥1,524,132.89, improving from a loss of ¥5,057,707.24 in the previous year [22]. - The net cash flow from operating activities was ¥39,867,120.16, a significant improvement from a negative cash flow of ¥906,698.33 in the same period last year [22]. - The weighted average return on equity increased by 5.79 percentage points to -2.80% from -8.59% year-on-year [22]. - The company's gross profit margin improved due to the sales price decline of products being less than the decline in major raw material prices [43]. - The company's cumulative net profit for the year may be negative compared to the same period last year, primarily due to the impact of macroeconomic conditions, fluctuations in international oil prices, and public health policies affecting downstream customer demand [55]. - The company reported a total comprehensive income loss of 1,524,132.89 CNY during the period, impacting overall equity negatively [118]. - The total comprehensive income for the current period decreased by CNY 5,057,707.24, reflecting a significant decline compared to the previous period [120]. Asset Restructuring - The company reported a significant asset restructuring initiative currently in progress, with specific details available in the report's section on major related transactions [8]. - The company is undergoing a significant asset restructuring, which is expected to increase related expenses and impact net profit [55]. - The ongoing major asset restructuring involves uncertainties regarding the completion of auditing and evaluation work, as well as the need for board and regulatory approvals [59]. - The company initiated a major asset restructuring during the reporting period, with the board approving related intermediary institutions for the audit [67]. - The company is planning a major asset restructuring, which involves auditing and evaluating the target assets, pending board and shareholder approval [71]. Risk Management - The company has acknowledged potential risks in its forward-looking statements, indicating that actual results may differ due to various unpredictable factors [6]. - The company emphasizes the importance of investor awareness regarding potential risks associated with operational changes and market conditions [7]. - The company faces risks related to safety production and environmental compliance, emphasizing the need for continuous improvement in process management and safety supervision [56]. - The company recognizes the risk of product singularity and market volatility, as a significant portion of revenue comes from acrylamide products and the Chinese market, leading to high dependency on upstream and downstream [57]. - The company has maintained its commitment to transparency and timely disclosure of any identified risks as they arise [7]. Production and Market Strategy - The company's main product, acrylamide, is produced using a biological method, with upstream raw material being acrylonitrile [28][29]. - The company focuses on a market-oriented strategy, implementing an integrated production and sales model to enhance product quality and control costs [30]. - The price of acrylonitrile, a key raw material, significantly impacts the sales price of acrylamide, affecting overall performance [30]. - The report indicates a significant decline in the price of acrylamide products compared to the previous year due to macroeconomic fluctuations and decreased demand [33]. - The water treatment market accounted for nearly 25% of the total demand for polyacrylamide, indicating strong growth potential in this sector [35]. - The company is actively exploring new applications for acrylamide in water treatment and soil remediation, expanding its market opportunities [38]. Compliance and Governance - The board of directors and senior management confirmed the accuracy and completeness of the financial report, ensuring no misleading statements or omissions [4]. - The company has not proposed any profit distribution or capital reserve transfer to increase share capital during the reporting period [5]. - There are no non-operating fund occupations by controlling shareholders or related parties reported [7]. - The company has made commitments to maintain independence and avoid competition with related parties, but some commitments have not been fulfilled [64]. - The company appointed Zhongxing Cai Guanghua Accounting Firm for the 2020 financial report audit and internal control audit [65]. Environmental Compliance - Jiangxi Changjiu Agricultural Science and Technology has not been recognized as a key pollutant discharge unit [74]. - Jiangsu Changjiu Agricultural Science and Technology has obtained a discharge permit with total pollutant discharge limits including 113.44 tons/year of COD and 252,125.88 tons/year of wastewater [74][75]. - The company has established an automatic online monitoring system for wastewater discharge, connected to local environmental protection monitoring platforms [75]. - The company reported no detectable levels of acrylonitrile in wastewater samples, with a standard limit of 5.0 mg/L [76]. - The company’s major noise sources were production-related, with daytime noise levels recorded at 58 dB, below the national standard of 65 dB [78]. Financial Position - As of June 30, 2020, the company's total assets amounted to CNY 251,370,784.12, a slight decrease from CNY 252,371,436.34 at the end of 2019 [94]. - The company's total liabilities increased to CNY 126,582,559.32 from CNY 124,686,144.87, indicating a rise of about 1.5% [96]. - The total equity attributable to shareholders decreased to CNY 53,696,133.71 from CNY 55,199,780.53, reflecting a decline of approximately 2.7% [96]. - The company's cash and cash equivalents decreased to CNY 40,941,885.04 from CNY 54,448,964.42, representing a decline of approximately 25% [94]. - The company's short-term borrowings decreased significantly to CNY 11,000,000.00 from CNY 20,000,000.00, a reduction of 45% [95]. Research and Development - Research and development expenses decreased by 21.58% to 5.93 million RMB, mainly due to the decline in the price of key raw materials [45]. - The company holds 14 patents in the field of acrylamide, including 5 invention patents, demonstrating its commitment to innovation and technology leadership [40]. - The company has implemented a comprehensive production management system, achieving certifications such as ISO9001 and ISO14001 [40].