TYGF(SH:600506)2019-08-12 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 4,442,804.29, a decrease of 80.25% compared to CNY 22,492,414.28 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of CNY 2,814,736.50, slightly improved from a loss of CNY 2,920,410.51 in the previous year[17]. - The net cash flow from operating activities was a negative CNY 2,810,277.00, a significant decline of 115.39% compared to a positive CNY 18,265,632.97 in the same period last year[17]. - The total assets at the end of the reporting period were CNY 294,535,424.83, down 1.64% from CNY 299,455,444.68 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased by 1.00% to CNY 278,975,324.01 from CNY 281,790,060.51 at the end of the previous year[17]. - The basic earnings per share for the first half of 2019 was -CNY 0.019, slightly improved from -CNY 0.020 in the same period last year[18]. - The weighted average return on net assets was -1.00%, compared to -1.06% in the previous year[18]. - The company's operating revenue was 4,442,804.29 CNY, a decrease of 80.25% year-on-year, with main business revenue at 3,762,100 CNY, down 83.01%[29]. - The net profit attributable to shareholders was -2,814,700 CNY, a loss reduction of 10,570 CNY compared to the same period last year[29]. - The company reported a net cash flow from operating activities of -2,810,277 CNY, a decrease of 115.39% year-on-year[31]. - The company’s management expenses decreased by 14.95% to 3,167,941.66 CNY due to reduced litigation and evaluation fees[32]. - The company’s financial expenses decreased significantly by 339.07% due to increased interest income from bank deposits[32]. - The company recorded a financial expense of CNY -1,118,477.63 in the first half of 2019, compared to CNY -254,736.06 in the same period of 2018, indicating a significant increase in financial costs[79]. - The company reported a comprehensive income total of RMB -2,980,735.17 for the current period, indicating a decline in profitability[86]. Sales and Production - The company continues to engage in the cultivation, processing, and sales of Korla pears, maintaining its established agricultural industrialization model[22]. - The company is actively adjusting its sales strategies based on local production conditions and market changes to enhance profitability[23]. - The unique climate and resources in Xinjiang provide a strong foundation for the development of the pear industry, with significant domestic and international market demand potential[24]. - The company sold 510.26 tons of fruit during the reporting period, a decrease of 85.31% compared to the same period last year[28]. - The company faced significant challenges due to natural disasters, which led to a substantial decrease in fruit production[29]. - The company plans to enhance production base management and implement water-saving irrigation measures to reduce production costs and improve fruit yield and quality, ensuring stable revenue[40]. Asset Management - The company plans to strengthen the management of existing assets and explore various sales models to enhance profitability[26]. - The company’s accounts receivable increased by 100% due to the rise in customer payments[35]. - The company transferred 25% equity of Xinjiang Jiahe Real Estate Development Co., Ltd. for CNY 27.3554 million, with a first payment of CNY 14 million received[43]. - The company also transferred 15% equity of Jiahe Real Estate for CNY 17.136 million, with a first payment of CNY 8.6 million received[44]. - A total of CNY 60.7309 million was received for the transfer of 100% equity of Bazhou Changda Real Estate Development Co., Ltd., with CNY 30.7796 million in assets received as the first payment[45]. - As of the report date, two companies have not made the agreed payments for equity transfers, prompting the company to send payment reminders[46]. Governance and Compliance - The company held its first extraordinary shareholders' meeting on February 21, 2019, and the annual shareholders' meeting on May 16, 2019, approving various reports and proposals[48][49]. - There are no plans for profit distribution or capital reserve conversion for the half-year period[50]. - The company ensures compliance with regulations and maintains equal shareholder rights, committing not to engage in competing businesses post-equity changes[51]. - The company appointed Zhongxing Caiguanghua Accounting Firm as the financial audit institution for 2019, with an audit fee of CNY 300,000[53]. - The company has no significant litigation or arbitration matters during the reporting period[54]. - The company has committed to maintaining the independence of its operations, assets, finances, and personnel[55]. - There are no significant related party transactions reported during the period[56]. - The company has not disclosed any stock incentive plans or employee stock ownership plans during the reporting period[55]. - The company has not made any significant asset acquisitions or disposals during the reporting period[56]. - The company has not reported any changes in its accounting firm during the audit period[54]. - The company has not faced any penalties or corrective actions involving its directors, supervisors, or senior management during the reporting period[54]. Social Responsibility - The company is involved in targeted poverty alleviation efforts, supporting villages in Keping County and Hejing County through technology and funding[58]. - Total funding for poverty alleviation efforts amounted to 49,435.34 million RMB[61]. - The company provided 49,435.34 million RMB specifically for employment transfer poverty alleviation[61]. - No funds were allocated for vocational skills training, with only 2 individuals receiving training[61]. - The company plans to strengthen management and actively engage in business operations to enhance profitability and fulfill social responsibilities related to poverty alleviation[62]. Shareholder Information - There were no changes in the total number of shares or share structure during the reporting period[65]. - The largest shareholder, Xinjiang Rongsheng Investment Co., Ltd., holds 35,278,015 shares, representing 23.88% of total shares[68]. - The company experienced changes in its board of directors, with new appointments including a new financial director and chairman of the supervisory board[73]. Accounting Policies - No significant accounting policy changes or errors requiring restatement were reported during the period[64]. - The company did not disclose any environmental information as it is not classified as a key pollutant discharge unit[63]. - There were no strategic investments or changes in the actual controller of the company during the reporting period[70]. - The financial statements are prepared based on the accrual basis of accounting, in accordance with the relevant accounting standards[91]. - The company applies the balance sheet liability method to recognize deferred tax assets and liabilities based on temporary differences between the book value and tax base of certain assets and liabilities[198]. - Deferred tax liabilities are not recognized for temporary differences related to goodwill and certain investments in subsidiaries, associates, and joint ventures if the company can control the timing of reversal[199]. - The company recognizes deferred tax assets for deductible temporary differences only to the extent that it is probable that future taxable income will be available[199]. Financial Instruments and Risk Management - Financial risk primarily arises from concentrated purchasing of fruits, leading to significant short-term cash flow requirements during harvest seasons; the company will prepare procurement and funding plans in advance to mitigate this risk[41]. - The company adopts an expected credit loss model for financial assets measured at amortized cost, recognizing loss provisions based on expected credit losses[126]. - Expected credit losses are calculated as the weighted average of credit losses on financial instruments, considering the risk of default[127]. - The company measures expected credit losses for financial instruments in different stages, with stage one using a 12-month expected loss and stage two and three using the entire expected life of the financial instrument[128]. - For accounts receivable, the company applies a simplified model to measure expected credit losses over the entire expected life, with specific loss ratios based on aging[130]. - The expected credit loss ratios for accounts receivable are set at 5% for within 1 year, 10% for 1-2 years, 20% for 2-3 years, 30% for 3-4 years, 50% for 4-5 years, and 100% for over 5 years[132]. - The company assesses expected credit losses for other receivables similarly, with a 5% expected loss ratio for within 1 year[133]. Asset Valuation and Impairment - The company assesses inventory impairment when the cost exceeds its net realizable value, typically on an individual item basis[152]. - Non-current assets held for sale are classified if they are expected to be sold within one year and have a firm purchase commitment[155]. - The company recognizes impairment losses for non-current assets held for sale when their carrying amount exceeds the fair value less costs to sell, which is recorded in the current profit and loss[156]. - The company applies the equity method for long-term equity investments where it has joint control or significant influence, while controlling investments are accounted for using the cost method[163]. - Long-term equity investments are initially measured at cost, which includes cash paid, liabilities assumed, and the fair value of equity securities issued[162]. - The company recognizes investment income and other comprehensive income based on the share of net profit or loss and other comprehensive income of the invested entity, adjusting the carrying value of long-term equity investments accordingly[167].