LZCIC(SH:600423)2022-07-28 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 66,157,909.10, representing a 10.54% increase compared to CNY 59,849,259.86 in the same period last year[15]. - The net profit attributable to shareholders decreased by 50.14% to CNY 10,622,208.43 from CNY 21,303,089.90 year-on-year[15]. - The basic earnings per share decreased by 51.85% to CNY 0.013 from CNY 0.027 in the previous year[15]. - Operating profit for the first half of 2022 was CNY 10,592,228.06, down 49.1% from CNY 20,804,773.77 in the first half of 2021[73]. - Net profit for the first half of 2022 was CNY 10,622,208.43, a decrease of 50.1% compared to CNY 21,303,089.90 in the first half of 2021[73]. Cash Flow and Liquidity - The net cash flow from operating activities fell by 58.56% to CNY 9,628,771.61, primarily due to a significant reduction in cash received from sales[16][17]. - The company faced a cash flow challenge, with net cash flow from operating activities dropping by 58.56% to CNY 9,628,771.61[27]. - The company's cash flow from operating activities for the first half of 2022 was CNY 9,628,771.61, down 58.6% from CNY 23,234,814.72 in the first half of 2021[76]. - The company has a frozen account balance of ¥25,889,840.00 at the Construction Bank, which may impact liquidity[168]. Production and Sales - The company's production of 27.5% hydrogen peroxide increased by 14.90% year-on-year to 58,252 tons, while sales volume rose by 21.73% to 57,878 tons[25]. - The average selling price of 27.5% hydrogen peroxide decreased by 9.43% year-on-year to CNY 1,008.83 per ton, leading to a revenue increase of only 10.54% to CNY 66,157,909.10[25][27]. - The company's net profit fell by 50.14% year-on-year to CNY 1,062,220.00 due to rising production costs and declining product prices[25]. - Operating costs surged by 43.21% year-on-year to CNY 58,089,133.87, primarily driven by increased prices of electricity and raw materials[27]. Assets and Liabilities - The company's total assets increased by 2.16% to CNY 495,645,347.97 from CNY 485,161,409.73 at the end of the previous year[16]. - The net assets attributable to shareholders rose by 2.49% to CNY 433,040,968.91 from CNY 422,518,809.47 at the end of the previous year[16]. - Total liabilities remained stable at CNY 62,604,379.06 compared to CNY 62,642,600.26 in the previous period[71]. - The total owner's equity at the end of the period was 414,837,891.74 RMB, reflecting a decrease from 422,518,809.47 RMB at the end of the previous period[82]. Market Conditions and Risks - The decline in profitability was attributed to rising costs of electricity and raw materials, coupled with weak downstream demand for hydrogen peroxide, leading to compressed profit margins[15][17]. - The market for hydrogen peroxide remains weak, with an expected oversupply in the second half of the year due to additional production capacity coming online[23]. - The company is facing risks related to market price fluctuations and high raw material costs, which could further impact profitability[34]. Legal and Regulatory Issues - A court has frozen CNY 25,889,800.00 of the company's bank deposits due to a lawsuit regarding contract breach[32]. - The company faced a lawsuit from Fujian Sanneng Energy Technology Co., Ltd. involving a principal amount of CNY 25.8898 million, with the court ruling against the company in the first instance[53]. - The company is currently involved in another lawsuit with Shanxi Huaxin Blue Ocean Industry Co., Ltd. regarding a contract dispute, with a principal amount of CNY 66.0422 million, which is still under trial[53]. Environmental and Sustainability Practices - The company has established a 100% operational rate for its environmental protection facilities, ensuring compliance with pollution discharge standards[47]. - The company promotes green practices among employees, such as paperless offices and energy-saving lighting, to contribute to sustainable development[48]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[46]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 22,568[62]. - The top shareholder, Liuzhou Yuantong Investment Development Co., Ltd., holds 201,452,434 shares, representing 25.22% of the total shares[64]. - The total number of shares held by the top ten shareholders includes significant stakes from state-owned enterprises, indicating a strong institutional presence[65]. Accounting Policies and Financial Reporting - The financial statements reflect the company's financial position as of June 30, 2022, and the operating results and cash flows for the first half of 2022[93]. - The accounting policies comply with the requirements of the "Enterprise Accounting Standards" and provide a true and complete reflection of the company's financial status[93]. - The company includes all subsidiaries in its consolidated financial statements, ensuring comprehensive financial reporting[99].