DHCT(SH:600844)2020-08-28 16:00Financial Performance - The company's total revenue for the first half of 2020 was RMB 484.85 million, a decrease of 6.27% compared to the same period last year[21]. - The net profit attributable to shareholders was a loss of RMB 136.63 million, representing a decline of 22.63% year-on-year[21]. - Basic earnings per share were RMB -0.1344, down 22.64% from the previous year[23]. - The weighted average return on net assets was -6.25%, a decrease of 0.87 percentage points compared to the same period last year[23]. - The company reported a net loss of CNY -1,277,714,523.15, compared to a loss of CNY -1,143,045,805.41 in the previous period[83]. - The total comprehensive income for the current period decreased by 5,108.11 million RMB compared to the previous period[114]. - The company reported a total comprehensive loss of CNY 176,277,496.00 for the first half of 2020, compared to a loss of CNY 143,043,825.73 in the same period last year[91]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 111.19 million, significantly improving from RMB 0.84 million in the previous year[21]. - Cash inflow from operating activities was CNY 541,207,791.81, down from CNY 738,258,916.31 in the first half of 2019[96]. - The net cash flow from operating activities was 111,187,357.77 RMB, a significant increase compared to 844,902.28 RMB in the previous period[97]. - The ending cash and cash equivalents balance was 225,781,380.88 RMB, compared to 268,169,635.04 RMB at the end of the previous period[97]. - The total current assets amounted to CNY 100,825,788.49, an increase from CNY 72,752,060.39, representing a growth of approximately 38.5%[85]. Operational Challenges - The company faced significant operational challenges due to the COVID-19 pandemic and economic downturn, leading to a difficult business environment[33]. - Revenue decreased by 6.27% to CNY 484.85 million, primarily due to lower prices of products from Tongliao Jinmei and reduced sales of catalysts from its subsidiary[35]. - The average price of ethylene glycol dropped by 39% in the first half of 2020, impacting market conditions[28]. - The company faces significant risks including policy, market, and operational risks[8]. Investments and Subsidiaries - The company reported a net cash outflow from investment activities of CNY 24.51 million, an improvement of 28.31% compared to the previous period[35]. - The company has not made any new external investments during the reporting period[40]. - The company reported an investment of RMB 1.7 billion in Inner Mongolia Yilin Chemical Co., Ltd. and RMB 250 million in Inner Mongolia Yilin Jupeng New Energy Co., Ltd. for projects that have been non-operational for over three months[49]. - The company has a total of 7 subsidiaries included in the consolidated financial statements for the year 2020[120]. Environmental Compliance - The wastewater and flue gas emissions meet the relevant environmental standards, with all discharge indicators complying with environmental assessment requirements[60]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[66]. - The desulfurization rate of the boiler's flue gas treatment system has reached over 95%, and the dust removal efficiency is 99.9%[61]. Shareholder Information - The company has 44,008 common stock shareholders as of the end of the reporting period[70]. - Jiangsu Danhua Group holds 17.71% of the shares, totaling 180,050,050 shares, with 44,000,000 shares pledged[72]. - The company did not report any changes in the shareholding of directors, supervisors, and senior management during the reporting period[76]. Financial Position - Total assets at the end of the reporting period were RMB 3,093.81 million, an increase of 3.55% from the end of the previous year[21]. - The total owner's equity decreased to CNY 2,078,750,827.12 from CNY 2,253,065,080.83, reflecting a decline of approximately 7.7%[83]. - Total liabilities rose to CNY 1,015,059,420.72, compared to CNY 734,782,712.13, indicating an increase of about 38.2%[83]. Future Outlook - The company anticipates a recovery in the next quarter, with performance guidance suggesting a potential increase in revenue by 10%[106]. - The company plans to provide financial support of up to RMB 500 million to its subsidiary Tongliao Jinneng Coal over the next three years for daily operations and technical upgrades[58]. Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, changes in shareholders' equity, and cash flows[124]. - The company's accounting currency is Renminbi (RMB)[127]. - The company employs specific accounting policies and estimates based on its operational characteristics, as detailed in the financial report[128].