ZFTC(SH:600794)2021-08-16 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,211,118,183.40, representing a 66.85% increase compared to CNY 725,894,147.08 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was CNY 78,407,441.87, a decrease of 28.50% from CNY 109,658,050.06 in the previous year[20]. - The net cash flow from operating activities reached CNY 488,572,689.49, a significant improvement from a negative cash flow of CNY -28,655,273.77 in the same period last year, marking a 1,805.00% increase[20]. - The company achieved a total profit of 123.92 million yuan, a year-on-year decrease of 19.01%[43]. - The net profit attributable to shareholders was 78.41 million yuan, down 28.50% year-on-year[43]. - The revenue from the liquid chemical storage segment was 150.56 million yuan, a decrease of 23.26% year-on-year[43]. - The solid storage segment reported revenue of 35.53 million yuan, an increase of 26.82% year-on-year[43]. - The bonded trade segment generated revenue of 993.32 million yuan, a year-on-year increase of 58.76%[44]. - The e-commerce platform, Sujiao Network, achieved revenue of 12.52 million yuan, a growth of 20.26% year-on-year[44]. - The company reported a significant decrease in accounts payable by 58.98% to ¥32,582,864.79, accounting for 0.96% of total assets, primarily due to reduced procurement payments in bonded trade[51]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,404,182,173.86, a slight decrease of 0.13% from CNY 3,408,671,669.42 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 2.85% to CNY 2,227,285,011.37 from CNY 2,165,607,241.33 at the end of the previous year[20]. - Cash and cash equivalents increased by 35.48% to ¥1,098,332,447.01, accounting for 32.26% of total assets, primarily due to cash recovery from hedged goods in bonded trade[51]. - Trading financial assets rose by 62.49% to ¥515,600,733.11, representing 15.15% of total assets, mainly from increases in government bond reverse repos and structured deposits[51]. - Total liabilities decreased to ¥858,544,329.30 from ¥925,158,584.36[104]. - Total equity increased to ¥2,545,637,844.56 from ¥2,483,513,085.06[104]. Operational Highlights - The company operates in the transportation, warehousing, and postal industry, specifically focusing on warehousing services for liquid chemicals and bulk dry goods[25][26]. - The company has developed a smart logistics e-commerce platform that integrates online ordering, payment settlement, and self-service pickup, enhancing customer experience and operational efficiency[32][34]. - The company owns 214 storage tanks with a total capacity of 110.79 million cubic meters, establishing itself as a leading player in liquid chemical storage[35]. - The company’s location in the Zhangjiagang Free Trade Zone provides strategic advantages for liquid chemical imports, with a significant customer base of over 10,000 chemical traders[29][37]. - The company has a self-owned wharf with a throughput capacity of 4.5 million tons per year, facilitating efficient logistics operations[38]. - The company’s core business includes providing supply chain financial services and participating in chemical trading, enhancing its market position[26][30]. Risks and Challenges - The company has outlined various risks in its operations, including business management risks and market competition risks, which are detailed in the management discussion section[6]. - The company faces risks related to dependence on the chemical industry, limited dock and land resources, and fluctuations in demand for ethylene glycol, which could impact profitability[60]. - The company has faced market competition risks due to a shift in import volumes to other domestic regions and increased inventory destocking by downstream factories, impacting revenue[61]. - Management risks have increased as the company transitions from traditional warehousing to smart logistics, necessitating a stronger focus on attracting and retaining professional talent[61]. - The company is actively pursuing a transformation towards smart logistics services for bulk commodities, which may involve risks due to the lack of established e-commerce service models in this sector[61]. Legal Matters - Longjiang International is involved in multiple lawsuits, including a contract dispute with Xinxing Jihua International Trade Co., claiming the return of 110,608 tons of ethylene glycol or compensation of 480,528,300 RMB[74]. - Another lawsuit involves Tianjin Lingang International Trade Co., which demands the delivery of 23,500 tons of ethylene glycol or compensation of 100,348,000 RMB[74]. - Longjiang International is also facing a lawsuit from Shandong Highway Hainan Development Co., seeking the return of 15,886.371 tons of ethylene glycol or equivalent compensation of 81,973,674.36 RMB[74]. - The company reported a civil ruling where it was ordered to pay 671,847.4 RMB due to a traffic accident liability case, with a total compensation of 67.18 million RMB paid in March 2020[74]. - Longjiang International has reported ongoing criminal investigations related to the forgery of company seals, with cases currently under police investigation[74]. - The company is involved in a civil lawsuit where the plaintiff demands 526,994,500 RMB for a storage contract dispute, with a request for asset freezing and seizure[76]. - The court has dismissed a lawsuit against Longjiang International regarding a contract fraud case, indicating a favorable outcome for the company[76]. - The company is actively managing its legal risks and has reported on the status of various ongoing lawsuits in its financial disclosures[75]. Governance and Compliance - The company has not disclosed any significant changes in its governance structure or management personnel during the reporting period[67]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[73]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[71]. - The company has not disclosed any major contracts or significant events during the reporting period[84]. - There are no reported violations or penalties against the company or its major stakeholders during the reporting period[81]. Financial Management - The company executed new leasing standards from January 1, 2021, resulting in the recognition of lease liabilities and the reclassification of long-term payables[52]. - The company has committed to resolving competition issues with its subsidiaries, ensuring no conflicts arise in its operations[72]. - The company is actively managing its legal and financial obligations, as evidenced by multiple ongoing lawsuits and claims[78][79][80]. - The company has not reported any major contracts or guarantees that remain unfulfilled during the reporting period[82]. - The company continues to monitor its financial relationships and associated risks with related parties[82].