LZCIC(SH:600423)2021-07-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 59,849,259.86, representing a 37.12% increase compared to CNY 43,646,634.18 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 21,303,089.90, a significant recovery from a loss of CNY 5,377,594.91 in the previous year[17]. - The net cash flow from operating activities was CNY 23,234,814.72, a turnaround from a negative cash flow of CNY -131,164,877.18 in the same period last year[17]. - The basic earnings per share for the first half of 2021 was CNY 0.03, compared to a loss of CNY -0.01 in the same period last year[18]. - The weighted average return on net assets increased by 6.71 percentage points to 5.28% from -1.43% in the previous year[18]. - The company's net profit for the period was 2,130.31 million RMB, a significant recovery from a loss of 537.76 million RMB in the same period last year[28]. - The company achieved operating revenue of CNY 59.85 million and net profit of CNY 21.30 million during the reporting period, indicating an improvement in operational conditions[49]. - The net cash flow from operating activities was CNY 23.23 million, reflecting a positive trend in cash generation[49]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 486,085,523.25, an increase of 3.56% from CNY 469,370,097.96 at the end of the previous year[17]. - The total liabilities decreased to ¥71,247,631.51 from ¥76,448,135.13, reflecting a reduction of approximately 6.5%[69]. - The total owner's equity increased to ¥414,837,891.74 from ¥392,921,962.83, marking an increase of approximately 5.6%[69]. - The company's total assets as of June 30, 2021, amounted to ¥486,085,523.25, an increase from ¥469,370,097.96 at the end of 2020, representing a growth of approximately 3.3%[69]. - The company's inventory increased to ¥2,884,486.62 from ¥1,415,177.36, reflecting a growth of approximately 103.3%, which may indicate increased production or stockpiling strategies[68]. - The total accounts receivable at the end of the period is 2,591,828.17, with 76.62% being due within one year[170]. Production and Sales - The company primarily engaged in the production and sales of 27.5% hydrogen peroxide, which is widely used across various industries[23]. - The company's 27.5% hydrogen peroxide production increased by 5.90% year-on-year to 50,700 tons, while sales volume rose by 7.79% to 47,548 tons[27]. - The average selling price of 27.5% hydrogen peroxide increased by 21.42% year-on-year, reaching 1,113.88 RMB per ton, contributing to a revenue increase of 37.12% to 59.85 million RMB[28]. - Operating costs increased by 13.30% year-on-year, primarily due to higher sales volume and transportation costs[30]. Management and Strategy - The company plans to enhance internal management and expand marketing channels to mitigate risks and improve profitability[36]. - Management expenses decreased significantly by 64.48% year-on-year, attributed to reduced employee compensation following previous layoffs[30]. - The company faces ongoing risks related to its single product line and market fluctuations, which could impact profitability[36]. - The company expects intensified market competition in the second half of the year due to the addition of 116,000 tons of new production capacity[25]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 24,199[60]. - The largest shareholder, Liuzhou Yuantong Investment Development Co., Ltd., holds 201,452,434 shares, representing 25.22% of the total shares[62]. - The second-largest shareholder, China Construction Bank Corporation Guangxi Branch, holds 49,256,529 shares, accounting for 6.17%[62]. - The company has not reported any changes in its share capital structure during the reporting period[58]. Legal and Compliance - The company has not faced any administrative penalties related to environmental protection laws during the reporting period[45]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[50]. - The company is currently involved in a significant lawsuit with Fujian Sanneng Energy Conservation and Environmental Protection Technology Co., Ltd., which is demanding a penalty of RMB 25.8898 million, accounting for 6.59% of the company's latest audited net assets[56]. - The company has not made any profit distribution or capital reserve transfer plans for the half-year period[43]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect true and complete information[89]. - The company’s accounting period aligns with the calendar year, from January 1 to December 31[90]. - The company’s accounting currency is the Renminbi (RMB)[92]. - The company has not reported any changes in significant accounting policies or estimates during the reporting period[44]. Cash Flow and Financial Position - The cash and cash equivalents increased to ¥377,686,126.38 from ¥354,187,490.14, showing a growth of about 6.6%[68]. - Total cash inflow from operating activities reached ¥70,740,251.74, while cash outflow was ¥47,505,437.02, resulting in a positive cash flow[73]. - The company received cash from operating activities related to tax refunds amounting to ¥7,026,414.74, up from ¥1,764,093.14 in the previous year[73]. - The company reported a total of 798,695,026.00 RMB in retained earnings at the end of the period[79]. Risks and Uncertainties - The company faces ongoing risks related to its ability to continue as a going concern due to its single product line and limited market resilience[88]. - The financial statements are prepared based on the going concern assumption, with measures to enhance profitability and reduce risks[88].