FJC(SH:600802)2020-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,273,223,012.18, a decrease of 3.15% compared to CNY 1,314,698,767.41 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 201,007,600.62, down 4.62% from CNY 210,738,255.63 in the previous year[18]. - The net cash flow from operating activities was CNY 88,550,793.14, a significant decline of 67.43% compared to CNY 271,860,929.23 in the same period last year[18]. - Basic earnings per share for the first half of 2020 were CNY 0.526, a decrease of 4.62% compared to CNY 0.552 in the same period last year[19]. - The weighted average return on equity decreased by 6.22 percentage points to 14.16% from 20.38% in the previous year[19]. - The company reported a non-recurring profit of CNY 3,471,504.28 for the period, primarily from government subsidies[22]. - The company's revenue for the reporting period was 1,273.22 million yuan, a decrease of 3.15% compared to the same period last year, primarily due to a 9.38% drop in sales volume[30][32]. - The net profit attributable to shareholders was 201.01 million yuan, down 4.62% year-on-year, while the net profit after deducting non-recurring items increased by 3.48% to 197.54 million yuan[30]. - The company experienced a significant decline in net cash flow from operating activities, which decreased by 67.43% to 88.55 million yuan due to increased cash payments for goods and services[30][32]. - The company’s sales expenses decreased by 23.95% to 19.40 million yuan, attributed to reduced logistics costs due to lower sales volume[31][32]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 4,145,985,874.85, an increase of 5.40% from CNY 3,933,549,370.87 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 7.62% to CNY 1,501,718,743.02 from CNY 1,395,365,288.04 at the end of the previous year[18]. - The company's total liabilities were ¥2,522,074,977.59, representing 60.83% of total assets, which is an increase of 3.64% from the previous year[40]. - Cash and cash equivalents decreased by 17.33% to ¥525,045,714.60, down from ¥635,141,422.33 in the previous year[38]. - Inventory increased by 39.04% to ¥183,625,955.77, primarily due to increased reserves of raw materials and finished goods[38]. - The total amount of guarantees provided by the company, excluding subsidiaries, is CNY 9,900 million, which accounts for 6.59% of the company's net assets[67]. Production and Operations - The company produced 318.63 million tons of clinker and 405.21 million tons of cement, representing a year-on-year decrease of 12.08% and 3.37% respectively[30]. - The company is currently constructing two new clinker production lines with a total capacity of 303.5 thousand tons, which will enhance its production capabilities[26]. - The company’s clinker production line upgrade project has completed the cement grinding system construction and is expected to start trial production by the end of October this year[30]. - The company holds a leading position in the Fujian cement industry, being the only listed company in the sector and recognized as a key enterprise for structural adjustment by the national government[26][27]. - The company’s sales volume saw a significant recovery in the second quarter, achieving a historical high after a 33.18% decline in the first quarter due to the pandemic[29]. Investments and Future Plans - The company plans to continue expanding its market presence and investing in new projects, particularly in the renovation of the refining plant and the second phase of the sand project[38]. - The company reported a total investment of 158,900,000 CNY in ongoing projects, with 30,557,230 CNY invested in the current year[46]. - The company has invested 25,618,620 CNY in the comprehensive technical reform project at the Lian Shi plant, which is expected to yield a return of 10,330,500 CNY[46]. Social Responsibility and Community Engagement - The company has provided a total of CNY 3,500 million in transportation public welfare funds to support regional development, with CNY 350 million paid in the current period[69]. - The company has committed to compensating local governments and villagers CNY 1,100,000 annually from 2018 to 2023 for ecological protection, with CNY 550,000 paid in the current period[69]. - The company has provided CNY 66,830 in rent reductions to 25 small and micro enterprises during the COVID-19 pandemic[69]. - The company has donated CNY 12,000,000 to support rural revitalization efforts in the local government[69]. - The company has agreed to donate 50,000 tons of cement for the construction of a senior care facility and other community projects[69]. Legal and Regulatory Matters - The company is involved in a significant lawsuit regarding a contract dispute with Shandong Shida Energy Engineering Co., with a first-instance judgment requiring the company to repurchase a production line and pay damages totaling RMB 22,651,846[56]. - The company has ongoing arbitration proceedings with Yangchun Mining regarding historical debts, with a claim amounting to RMB 21,592,300[58]. - The company has reported significant related party transactions, including purchasing coal from Fujian Yong'an Coal Industry Co., with an expected amount of RMB 27,200 million and actual transactions of RMB 1,500.96 million in the first half of 2020[63]. Environmental Management - The company has established emergency response plans for environmental incidents and conducted drills to minimize environmental hazards[78]. - All production bases have obtained national pollution discharge permits and strictly adhere to the monitoring of pollutant emissions[77]. - The company has invested in environmental protection equipment and projects, ensuring compliance with national and local regulations[76]. - The company’s nitrogen oxide emissions at various plants were reported as follows: 611.52 t at Fujian Yong'an Jianfu Cement Co., 480.48 t at Fujian Strait Cement Co., and 431.18 t at Fujian Cement Co.[76]. - The company’s sulfur dioxide emissions were reported at 10.31 t for Fujian Ansha Jianfu Cement Co. and 6.28 t for Fujian Yong'an Jianfu Cement Co., all within regulatory limits[76]. Shareholder Information - The largest shareholder, Fujian Building Materials (Holding) Co., Ltd., holds 28.78% of the shares, totaling 109,913,089 shares[90]. - Fujian Coal and Electricity Co., Ltd. is the second largest shareholder with 3.17% of the shares, totaling 12,100,833 shares[90]. - The report indicates no changes in the shareholding of the top shareholders during the reporting period[91]. - There are no pledges or freezes on the shares held by the top shareholders[90]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[92]. Financial Reporting and Accounting Policies - The financial report is prepared in RMB, with the balance sheet as of June 30, 2020, yet to be detailed[100]. - The company adheres to the Chinese Accounting Standards, ensuring that its financial statements reflect a true and complete picture of its financial status[134]. - The company has a continuous operating capability for at least 12 months from the end of the reporting period[132]. - The preparation of consolidated financial statements is based on control, including subsidiaries determined by voting rights or contractual arrangements[141].