CISC(SH:601005)2020-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 10,927,367,000, a decrease of 4.84% compared to CNY 11,483,560,000 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 121,355,000, down 80.29% from CNY 615,728,000 in the previous year[23]. - The net cash flow from operating activities was CNY 82,586,000, a decrease of 6.59% compared to CNY 88,417,000 in the same period last year[23]. - The company achieved a total profit of 121 million RMB in the first half of 2020, a decrease of 80.33% year-on-year, primarily due to a 4.62% drop in average steel sales price to 3,348 RMB/ton, resulting in a revenue loss of 485 million RMB[39]. - The company's main business revenue was 10.876 billion RMB, down 4.94% year-on-year, with steel sales contributing 10.502 billion RMB, a decrease of 4.48%[40]. - Basic earnings per share for the first half of 2020 were CNY 0.01, down 85.71% from CNY 0.07 in the same period last year[24]. - The weighted average return on net assets was 0.62%, a decrease of 2.65 percentage points from 3.27% in the previous year[24]. - The total comprehensive income for the first half of 2020 was CNY 120,009, significantly lower than CNY 616,195 in the same period of 2019[145]. - The company's financial expenses increased to CNY 90,157 in the first half of 2020 from CNY 75,989 in the same period of 2019, reflecting a rise of 18.8%[145]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 28,611,251,000, an increase of 6.06% from CNY 26,975,726,000 at the end of the previous year[23]. - The total equity of shareholders was reported at CNY 19,520,184 thousand RMB, slightly up from CNY 19,396,003 thousand RMB, indicating a growth of approximately 0.64%[131]. - Total liabilities reached 9,091,067 thousand RMB, up from 7,579,723 thousand RMB, which is an increase of about 19.93%[131]. - Current assets totaled 9,388,417 thousand RMB, up from 7,855,283 thousand RMB, indicating an increase of about 19.5%[127]. - The company's cash and cash equivalents were reported at 3,208,632 thousand RMB, compared to 1,783,747 thousand RMB, reflecting a significant increase of approximately 80.0%[127]. - The company's accounts receivable rose to 11,747 thousand RMB from 5,610 thousand RMB, marking an increase of approximately 109.5%[127]. - The total non-current assets amounted to 19,222,834 thousand RMB, slightly up from 19,120,443 thousand RMB, reflecting an increase of about 0.54%[127]. Cash Flow - The net cash flow from operating activities for the first half of 2020 was CNY 82,586,000, slightly lower than CNY 88,417,000 in the same period of 2019[161]. - The company reported a net cash flow from investing activities of CNY 251,153,000, compared to a negative cash flow of CNY (214,233,000) in the previous year[161]. - The net cash flow from financing activities for the first half of 2020 was CNY 1,039,510 thousand, compared to CNY 370,217 thousand in the same period of 2019, representing an increase of approximately 180%[173]. - The total cash inflow from financing activities in the first half of 2020 was CNY 2,004,500 thousand, compared to CNY 900,088 thousand in the same period of 2019, reflecting a significant increase of approximately 122%[173]. - Cash and cash equivalents at the end of June 2020 amounted to CNY 2,962,792 thousand, up from CNY 2,211,359 thousand at the end of June 2019, indicating a growth of about 34%[173]. Investments and Shareholder Actions - The company completed a share purchase of 10% in Luoyang Chemical for RMB 11,237 thousand, marking a significant investment in the first half of 2020[52]. - The company completed the first phase of its employee stock ownership plan, purchasing 24,791,400 shares, representing approximately 0.28% of the total share capital, with a total transaction amount of approximately RMB 48.78 million[75]. - The company has repurchased a total of 50,000,000 A shares, accounting for approximately 0.56% of the total share capital, with an average transaction price of RMB 1.69 per share, totaling RMB 84,333,550.00 (excluding transaction fees)[104]. - The company approved a financing proposal from Chongqing Changshou Steel for up to RMB 1 billion, with a three-year term and interest based on the Loan Prime Rate (LPR)[84]. - The company plans to participate in the establishment of a special fund for acquiring 100% equity of Chongqing Iron and Steel Group, with the investment details to be finalized[107]. Corporate Governance - The company is actively involved in corporate governance, with several board members being re-elected during the recent shareholder meetings[63]. - The company has established a structured commitment to avoid conflicts of interest and maintain competitive integrity in its operations[69]. - The company renewed the appointment of Ernst & Young Hua Ming as the financial and internal control audit institution for the year 2020, with an audit fee of RMB 2.95 million, consistent with the previous year's fee[72]. - The company has complied with the Hong Kong Stock Exchange's Corporate Governance Code and has not identified any deviations from the code during the reporting period[104]. - The company's audit committee consists of three independent non-executive directors and one non-executive director, ensuring oversight of the financial reporting process[104]. Environmental Compliance - The company has a total of 1,671 tons of sulfur dioxide emissions, which is below the permitted total emissions[91]. - The company achieved a total particulate matter emission of 48 tons from its continuous discharge points, complying with the iron-making industry air pollutant discharge standards[91]. - The company completed the ultra-low emission transformation of its sintering flue gas desulfurization facilities, ensuring stable compliance with emission requirements[95]. - The company has established an environmental risk prevention system and developed an emergency response plan for environmental incidents, valid until January 16, 2021[96]. - The company has completed the public participation process for the environmental impact assessment of its new wastewater treatment system expansion[100]. Market and Industry Context - The average price index for steel in June was 103.1 points, a year-on-year decrease of 5.4%[32]. - The steel industry reported a revenue of RMB 10,875,755 thousand, down 4.94% year-on-year, with a gross margin of 5.14%, which decreased by 4.77% compared to the previous year[44]. - The average selling price of steel products decreased in the first half of 2020, with an overall decline of 4.62% compared to the same period in 2019, resulting in a revenue loss of RMB 485,484 thousand[43]. - Steel sales volume slightly increased by 0.15% year-on-year, totaling 3.137 million tons, but the overall revenue impact was a loss of RMB 7,506 thousand[43].