ZSIG(SH:600313)2022-07-20 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 2,435,620,407.44, representing an increase of 18.57% compared to CNY 2,054,210,962.64 in the same period last year [23]. - The net profit attributable to shareholders of the listed company reached CNY 46,840,651.87, a significant turnaround from a loss of CNY 3,512,184.00 in the previous year, marking an increase of 1,433.66% [23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 40,360,937.72, compared to a loss of CNY 10,708,649.39 in the same period last year, reflecting a growth of 476.90% [23]. - The net cash flow from operating activities improved to -CNY 132,279,775.45, an increase of 21.46% from -CNY 168,422,854.42 in the previous year [23]. - The total assets of the company at the end of the reporting period were CNY 3,673,950,458.70, up 9.22% from CNY 3,363,747,553.55 at the end of the previous year [23]. - The net assets attributable to shareholders of the listed company increased to CNY 1,551,067,811.52, a rise of 3.14% from CNY 1,503,827,917.24 at the end of the previous year [23]. - Basic earnings per share for the first half of 2022 were CNY 0.0433, compared to a loss of CNY 0.0032 in the same period last year, representing an increase of 1,453.13% [23]. - The weighted average return on net assets was 3.07%, an increase of 3.31 percentage points from -0.24% in the previous year [23]. Business Operations - The company’s main business includes the research, production, and sales of crop seeds, with a focus on corn, rice, and wheat seeds [30]. - The company has established a comprehensive commercial R&D system and a regional testing platform for wheat and rice [30]. - The fertilizer trading business is primarily conducted by Huakan Company, focusing on high-quality compound fertilizers and green efficient special fertilizers [33]. - The company is positioned as a leading player in the seed industry, with a AAA credit rating and several subsidiaries recognized as key credit enterprises [32]. - The agricultural sector is experiencing a shift towards integrated agricultural services, with the company adapting to provide comprehensive services to new agricultural operators [32]. - The demand for feed corn and deep-processing corn has expanded, leading to an increase in corn prices during the reporting period [32]. - The company is actively involved in the national seed industry revitalization actions, benefiting from favorable policies aimed at enhancing agricultural production and seed quality [32]. - In the first half of 2022, the global fertilizer market faced supply constraints and price increases due to geopolitical conflicts and the COVID-19 pandemic, leading to a significant rise in domestic fertilizer prices [34]. - The price of potassium fertilizer imports reached a historical high in 2022, driven by limited global supply due to the Russia-Ukraine conflict [36]. Risk Management - The report includes a risk statement regarding macro policy risks and natural disaster risks that the company may face [7]. - The company faces risks from rising land leasing costs and adjustments in planting structures due to national policies, impacting the seed industry [60]. - The company plans to enhance its seed quality control system and improve disaster resistance capabilities to mitigate risks from natural disasters [61]. - The company aims to increase R&D investment and strengthen cooperation with research institutions to address risks related to variety development [62]. Environmental Compliance - The company is committed to safety and environmental protection, implementing comprehensive management measures to prevent accidents and environmental incidents [67]. - The company’s subsidiary, Henan Agricultural Chemical, is listed as a key pollutant discharge unit by environmental protection authorities [74]. - The total emissions of NOx from the company were recorded at 2.365 tons, with a compliance rate of 100% against the national standards [77]. - The company reported a total wastewater discharge of 7.4079 tons for COD, with a compliance rate of 100% [79]. - 河南农化通过优化生产工艺，降低了污水排放量，废水各项指标均达标排放 [81]. - 河南农化新建的焚烧炉装置提升了固废处理能力，提高了企业效益 [81]. - 河南农化目前建设有年产1万吨2-甲基-6-乙基苯胺（MEA）、年产1万吨2,6-二乙基苯胺（DEA）、年产1万吨乙草胺、年产1000吨喹草酸装置，均已通过建设项目环境保护竣工验收 [82]. - 河南农化制定了环境自行监测方案，包括7套尾气处理装置和5套废气在线监测系统 [84]. - 河南农化的废水在线监测系统每小时自动监测一次，确保废水污染因子的合规性 [86]. Corporate Governance - The company has not disclosed any plans for new products, technologies, market expansion, or mergers and acquisitions in the report [6]. - There were no changes in the management team during the reporting period [72]. - The company has not initiated any employee stock ownership plans or other incentive measures [72]. - The company has not announced any market expansion or acquisition strategies in the recent reports [71]. - The company has made progress in its three-year state-owned enterprise reform action plan, enhancing management and operational efficiency [44]. - The company has implemented a comprehensive compliance management system, including the issuance of compliance handbooks and risk self-assessments [45]. Legal Matters - The company is involved in significant litigation regarding debt recovery, including a claim for RMB 43.4 million against Yichang Jiahua Real Estate Co., Ltd. since 2006, with no substantial progress reported [108]. - The company has initiated legal action against Guo Wenjiang for unpaid performance compensation related to Henan Agricultural Chemical's unfulfilled profit commitments for 2016 and 2017, with a court ruling in December 2021 requiring payment of the remaining compensation [108]. - The company has received partial debt repayments from Guo Wenjiang, including RMB 67.98 million in December 2021 and other amounts in previous years [110]. - The company has reported that the performance commitments of its subsidiaries have not been met in several instances, leading to legal actions for compensation [105]. - The company has ongoing litigation regarding a debt of RMB 3,612,240.86 owed by Guo Wenjiang and others, with the case currently accepted by the court [112]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 196,440 [125]. - The largest shareholder, China Agricultural Reclamation Group, holds 250,250,000 shares, representing 23.12% of the total shares [127]. - The second largest shareholder, China Agricultural Development Group, holds 157,718,120 shares, representing 14.57% of the total shares [127]. - The company has not reported any changes in its share capital structure during the reporting period [124]. - The company has provided a total of RMB 50 million in guarantees to its subsidiaries during the reporting period [122]. Research and Development - The company has established research stations in multiple countries, including Bangladesh and Indonesia, to support its breeding programs [39]. - The company’s wheat seed sales rank among the top in the country, with significant advancements in the development of weak gluten and drought-resistant wheat varieties [39]. - The company has been recognized as a "Beijing Agricultural Industrialization Technology Innovation Demonstration Leading Enterprise" for its technological achievements [43]. - The company is actively expanding its product line to include high-quality green fertilizers and specialized fertilizers, enhancing its market position [37]. - Research and development expenses for the first half of 2022 were CNY 15,217,848.37, a slight decrease from CNY 16,261,712.94 in the previous year [150].