DHCT(SH:600844)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 530.46 million, representing a year-on-year increase of 9.41% compared to RMB 484.85 million in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 23.96 million, an improvement from a loss of RMB 136.63 million in the previous year[19]. - The net cash flow from operating activities was approximately RMB 88.14 million, down 20.73% from RMB 111.19 million in the same period last year[19]. - The total assets at the end of the reporting period were approximately RMB 2.41 billion, a decrease of 7.05% from RMB 2.59 billion at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company were approximately RMB 1.30 billion, down 1.81% from RMB 1.33 billion at the end of the previous year[19]. - Basic earnings per share for the reporting period were -0.0236 yuan, compared to -0.1344 yuan in the same period last year[20]. - The company's gross profit margin improved as operating costs decreased by 9.78% to CNY 451,237,000.34 from CNY 500,131,548.95[28]. - The company reported a net loss in the first half of the year, but the operational loss situation has improved with the gradual recovery of chemical product prices[27]. - The company reported a total comprehensive loss of RMB 29,138,160.20 for the first half of 2021, compared to a loss of RMB 176,277,496.00 in the previous year[88]. Cash Flow and Liquidity - Cash and cash equivalents decreased by 33.13% to ¥98,611,450.42, down from ¥147,474,592.27 in the previous year[31]. - Accounts receivable decreased by 40.94% to ¥57,740,362.84, compared to ¥97,758,276.96 last year[31]. - Inventory decreased by 10.30% to ¥115,127,987.79, down from ¥128,349,788.09 in the previous year[31]. - Short-term borrowings decreased by 25.94% to ¥296,609,583.33, compared to ¥400,477,083.37 last year[31]. - The company’s cash flow from operating activities was negatively impacted by increased payments to employees, which rose to CNY 66,803,968.08 in the first half of 2021 from CNY 58,946,390.41 in the first half of 2020[94]. - The company reported a significant decrease in cash flow from tax refunds, which fell to CNY 5,015.89 in the first half of 2021 from CNY 124,068.06 in the same period of 2020[94]. Environmental Compliance - The total annual emissions for the boiler in 2020 were: particulate matter 73.33 tons, sulfur dioxide 488.92 tons, and nitrogen oxides 340 tons[46]. - In the first half of 2021, the actual emissions were: sulfur dioxide 37.67 tons, nitrogen oxides 193.18 tons, and particulate matter 29.09 tons, all meeting the required standards[46]. - The total actual discharge of wastewater in the first half of 2021 was: chemical oxygen demand 57.9 tons and ammonia nitrogen 3.25 tons, complying with the relevant discharge standards[46]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[51]. - The company has reported no environmental pollution accidents or violations during the reporting period[51]. Shareholder and Capital Structure - The company has a total of 66,666 common shareholders as of the end of the reporting period[68]. - The company is in the process of negotiating a share transfer agreement that may involve a change in control, with a potential transfer of 15% of shares to Beiwai Tan Group[64]. - There were no significant changes in the company's share capital structure during the reporting period[66]. - The company has not reported any changes in its controlling shareholder or actual controller during the reporting period[72]. Risks and Future Outlook - The company faces significant risks including policy, market, and operational risks[6]. - The company indicated a future outlook focused on market expansion and new product development, although specific figures were not disclosed[101]. - The company plans to enhance its capital structure by increasing its capital reserves, with a focus on long-term growth strategies[111]. - The company aims to improve its financial performance by implementing cost-cutting measures and optimizing resource allocation[101]. Related Party Transactions - The company reported a total of 678.42 million RMB in related party transactions during the reporting period, with the largest transaction being the purchase of chemical agents for water treatment at 394.73 million RMB[59]. - The company provided guarantees totaling 5 million RMB, which accounts for 3.84% of the company's net assets[63]. Legal and Compliance Matters - The company is involved in ongoing litigation related to investment disputes, with claims amounting to 25 million yuan and 89.15 million yuan against associated companies[54]. - The company has not reported any significant legal disputes or penalties against its directors or major shareholders[58]. Accounting Policies and Financial Reporting - The company adheres to the accounting standards for enterprises, ensuring that its financial statements accurately reflect its financial position and operating results[132]. - The company’s accounting records are maintained in RMB, which is the functional currency for financial reporting[135]. - The company recognizes expected credit losses for financial assets based on the assessment of credit risk since initial recognition, with significant increases in credit risk leading to lifetime expected loss provisions[159].