LZCIC(SH:600423)2023-07-27 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥56,266,043.18, a decrease of 14.95% compared to ¥66,157,909.10 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2023 was ¥2,232,306.66, down 78.98% from ¥10,622,208.43 in the previous year[19]. - The basic earnings per share for the first half of 2023 was ¥0.003, a decrease of 76.92% from ¥0.013 in the same period last year[21]. - The weighted average return on net assets decreased by 1.97 percentage points to 0.51% from 2.48% in the previous year[21]. - The operating profit for the first half of 2023 was ¥2,232,306.66, down from ¥10,592,228.06 in the first half of 2022, indicating a significant decline in profitability[89]. - The net profit for the first half of 2023 was also ¥2,232,306.66, compared to ¥10,622,208.43 in the same period of 2022, reflecting a decrease of approximately 79%[89]. Cash Flow and Assets - The net cash flow from operating activities increased by 75.88% to ¥16,934,868.95, compared to ¥9,628,771.61 in the same period last year[22]. - Cash and cash equivalents at the end of the period reached ¥418,755,795.07, accounting for 80.58% of total assets, an increase of 2.49% compared to the previous year[39]. - The total assets at the end of the reporting period were ¥519,708,496.80, an increase of 1.28% from ¥513,141,913.12 at the end of the previous year[20]. - The company's total non-current assets reached ¥73,818,273.10, an increase from ¥57,914,985.73 at the end of 2022, indicating a growth of approximately 27.4%[85]. - The company's cash and cash equivalents were ¥418,755,795.07 as of June 30, 2023, compared to ¥408,580,137.82 at the end of 2022, showing a slight increase[84]. Market Conditions and Challenges - The company faced significant challenges due to oversupply in the hydrogen peroxide industry, leading to a substantial decrease in profitability[21]. - The overall market for hydrogen peroxide remains weak, with an expected continuation of low prices due to excess supply and insufficient demand[29]. - The overall market competition for hydrogen peroxide has intensified due to increased production capacity and low downstream demand[28]. Production and Technical Upgrades - The company completed a technical upgrade of its 20,000 tons/year concentrated hydrogen peroxide production system, significantly reducing steam consumption and improving market competitiveness[32]. - The company plans to expand its hydrogen peroxide production capacity by 60,000 tons/year through technical upgrades[31]. - The company is undertaking a technical upgrade project for its 100,000 tons/year hydrogen peroxide facility, with a total investment of approximately ¥22,870,000, expected to enhance production capacity from 100,000 tons to 160,000 tons annually[42]. Environmental Impact and Compliance - The company’s Luozhai subsidiary has been included in the 2023 Liuzhou Environmental Supervision Key Units List, with major pollutants including wastewater, waste gas, and hazardous waste[52]. - Total emissions during the reporting period were 0.0937 tons of volatile organic compounds, 0.000042 tons of ammonia nitrogen, and 0.0043 tons of chemical oxygen demand[52]. - The subsidiary achieved a 100% operational rate for environmental protection facilities in sync with production equipment, ensuring real-time monitoring of emissions[54]. - The company has implemented energy-saving measures, optimizing hydrogen peroxide production processes and eliminating high-energy-consuming equipment, contributing to effective greenhouse gas emission control[60]. - There were no instances of exceeding emission standards during the reporting period[53]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 20,645[74]. - The largest shareholder, LiuZhou YuanTong Investment Development Co., Ltd., holds 201,452,434 shares, representing 25.22% of the total shares[76]. - The second largest shareholder, China Construction Bank, holds 49,256,529 shares, accounting for 6.17%[76]. Related Party Transactions - The company expects to engage in related party transactions amounting to approximately 41 million RMB for the purchase of hydrogen and steam, with actual transactions recorded at 15.8 million RMB[68]. - The company sold 0.4 million RMB worth of hydrogen peroxide to a related party, with actual sales amounting to 98.73 thousand RMB[68]. Financial Stability and Governance - The company operates on a continuous basis with no significant doubts regarding its ability to continue operations for the next 12 months[106]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance[107]. - The company has not reported any changes in significant accounting policies or estimates for the current period[173]. Inventory and Receivables Management - Inventory rose by 43.33% to ¥7,094,407.76, mainly due to an increase in spare parts and product stock[39]. - The total accounts receivable at the end of the period amounted to CNY 3,591,088.24, with a bad debt provision of CNY 525,345.47, resulting in a net value of CNY 3,065,742.77[182]. - The provision for bad debts increased from CNY 456,447.90 to CNY 525,345.47 during the reporting period[186].