FANGDA S.Steel(SH:600507)2022-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2022 was RMB 13,306,489,985.17, representing a 34.85% increase compared to RMB 9,867,492,127.12 in the same period last year[16]. - The net profit attributable to shareholders of the listed company decreased by 37.25% to RMB 926,860,695.53 from RMB 1,477,046,269.78 year-on-year[16]. - The net profit after deducting non-recurring gains and losses was RMB 918,848,268.32, down 35.22% from RMB 1,418,362,165.62 in the previous year[16]. - The net cash flow from operating activities was RMB 2,144,060,789.75, a decrease of 6.76% compared to RMB 2,299,572,393.57 in the same period last year[16]. - Basic earnings per share for the first half of 2022 were RMB 0.42, down 39.13% from RMB 0.69 in the same period last year[16]. - The weighted average return on net assets was 9.34%, a decrease of 6.31 percentage points compared to 15.65% in the previous year[16]. - The company's operating costs increased by 56.28% year-on-year, primarily due to rising raw material prices and increased trade activities[31]. - The company achieved operating revenue of 13.306 billion RMB, a year-on-year growth of 34.85%[31]. - The net profit attributable to shareholders was 927 million RMB, a year-on-year decline of 37.25%[29]. - The company reported a net loss of 2,588,303,797.53 CNY during the first half of 2022, significantly impacting the retained earnings[156]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 22,653,682,990.59, an increase of 12.66% from RMB 20,107,525,358.80 at the end of the previous year[16]. - The total liabilities increased to CNY 15,160,338,238.12 from CNY 12,895,274,146.64, reflecting a growth of 17.6%[136]. - The company's equity attributable to shareholders decreased to CNY 7.80 billion from CNY 9.47 billion, a decline of approximately 17.7%[129]. - The total owner's equity at the end of the reporting period is 8,529,329,069.75 CNY, a decrease of 913,887,386.93 CNY compared to the previous period[153]. - The total liabilities and owner's equity at the end of the period is 5,431,490,761.07 CNY, reflecting the company's financial position[156]. Production and Sales - In the first half of 2022, the company produced and sold 2.0911 million tons and 2.0809 million tons of steel products, respectively, representing year-on-year increases of 1.42% and 1.20%[29]. - The company operates in the manufacturing sector, specifically in the black metal smelting and rolling industry, producing products such as rebar, high-quality wire, and spring flat steel[21]. - The company maintains a high market share and brand recognition in Jiangxi Province, particularly for rebar and high-quality wire[21]. - The company has extended its product line to include a full range of automotive leaf springs, catering primarily to the commercial vehicle market[21]. Market Conditions - In the first half of 2022, China's crude steel production was 527 million tons, a year-on-year decrease of 36.45 million tons, or 6.5%[22]. - The steel price index decreased by 7.0% compared to the beginning of the year and dropped by 14.0% from its peak in mid-April 2022[22]. - Steel inventory among key enterprises reached 16.95 million tons, a year-on-year increase of 23.1%[22]. - The profit of the black metal smelting and rolling industry fell by 68.7% in the first half of 2022, with total losses for loss-making enterprises increasing by 442.4%[22]. - The outlook for the second half of 2022 suggests a potential improvement in supply-demand dynamics due to ongoing infrastructure investments[23]. Investments and Subsidiaries - The company transferred 60% equity of Jiangxi Special Automobile Co., Ltd. for a price of 22.92 million yuan[38]. - The company transferred 70% equity of Chenzhou Xinglong Mining Co., Ltd. for a price of 20.63 million yuan, while waiving all debts owed by the company to Chenzhou Xinglong Mining[38]. - The company established Nanchang Huxu Steel Industry Investment Partnership with a total fund size expected to be 10 billion yuan, with the company contributing 4 billion yuan[39]. - The company reported total assets of Jiangxi Fangda Special Steel Automotive Suspension Group Co., Ltd. at 2.26 billion yuan, with a net profit of -5.28 million yuan for the reporting period[42]. - The company reported total assets of Ningbo Fangda Seagull Trading Co., Ltd. at 1.46 billion yuan, with a net profit of 241.03 million yuan for the reporting period[42]. Environmental and Safety Measures - The company is committed to safety and environmental protection, implementing ultra-low emission transformations and improving environmental indicators[28]. - The company maintained stable and compliant emissions for wastewater and waste gas during the reporting period, with all discharge points meeting standards[58]. - The company has a total of 163 environmental protection facilities, including 68 for air treatment and 10 for water treatment, achieving a 100% compliance rate for emissions in the first half of 2022[61]. - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential pollution accidents[63]. - The company has implemented measures to reduce carbon emissions by utilizing waste heat and gas for power generation, with a total installed capacity of 116 MW[67]. Corporate Governance and Shareholder Information - The company appointed Wu Aiping as the secretary of the board and Tang Chun as the deputy general manager, while Zhang Baidan and Dai Xinmin resigned from their positions[51]. - The company did not distribute profits or increase capital reserves in the first half of 2022, with no dividends or bonus shares issued[52]. - The total number of shares held by directors and senior management increased significantly due to stock incentive grants, with notable increases for several key executives[114]. - The total number of common shareholders as of the end of the reporting period is 117,548[106]. - The top ten shareholders collectively hold 38.71% of the company's shares, a decrease from 43.72%[110]. Related Party Transactions - The company expects to have related party transactions amounting to approximately 2,845.36 million RMB for the year 2022[77]. - The company anticipates additional related party transactions of 11 million RMB with its subsidiary Gansu Fangda Yourta Animal Husbandry Development Co., Ltd.[77]. - The company projects an additional related party transaction amounting to 250 million RMB with Beijing Fangda Carbon Technology Co., Ltd.[77]. - The total sales amount from related party transactions reached CNY 2,525,412.33 thousand[81]. - The company has established various asset management agreements with its controlling shareholder, Fangda Steel[86]. Financial Instruments and Accounting Policies - The company's financial statements are prepared based on the going concern principle, in accordance with the accounting standards set by the Ministry of Finance of the People's Republic of China[165]. - The company applies specific accounting treatments for mergers under common control and non-common control, ensuring fair value measurement for acquired assets and liabilities[174]. - The company recognizes investment income from the difference between the fair value and book value of equity held prior to the acquisition date when acquiring subsidiaries not under common control[178]. - The company assesses credit risk based on the nature of financial instruments, determining significant increases in credit risk if overdue by more than 30 days[192]. - The company uses historical credit loss experience to adjust the expected credit loss calculations based on current and future economic conditions[190].