海南橡胶(601118) - 2021 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators This chapter provides basic company information and key financial data for H1 2021, highlighting revenue growth and narrowed net losses Key Financial Indicators The company's H1 2021 revenue grew 10.52% to RMB 6.51 billion, with narrowed net losses and a 9.19% increase in total assets | Indicator | Current Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 6,509,399,856.51 | 5,889,909,139.95 | 10.52 | | Net Profit Attributable to Shareholders (RMB) | -115,782,348.39 | -203,206,057.60 | N/A | | Net Profit Attributable to Shareholders (Non-recurring items deducted) (RMB) | -224,667,121.88 | -393,405,462.56 | N/A | | Net Cash Flow from Operating Activities (RMB) | -575,614,767.67 | -570,842,592.98 | N/A | | Basic Earnings Per Share (RMB/Share) | -0.0271 | -0.0475 | N/A | | Weighted Average Return on Equity (%) | -1.21 | -2.11 | Increased by 0.90 percentage points | | Indicator | End of Current Period | End of Last Year | Change (%) | | Total Assets (RMB) | 19,366,642,843.91 | 17,736,724,997.11 | 9.19 | | Net Assets Attributable to Shareholders (RMB) | 9,352,625,619.09 | 9,776,180,502.19 | -4.33 | Non-recurring Profit and Loss Items The company recorded total non-recurring gains of RMB 109 million, primarily from fair value changes in financial assets and government subsidies | Non-recurring P&L Item | Amount (RMB) | | :--- | :--- | | Gains from fair value changes and investment income from trading financial assets/liabilities | 128,292,830.06 | | Government grants recognized in current profit or loss | 9,308,295.85 | | Other non-operating income and expenses | 3,729,851.56 | | Reversal of impairment provision for individually tested receivables | 1,273,795.83 | | Gains/losses on disposal of non-current assets | 241,838.07 | | Effect on minority interests | -3,351,254.36 | | Effect of income tax | -30,610,583.52 | | Total | 108,884,773.49 | Management Discussion and Analysis This section analyzes the company's operating environment, core competencies, and risks, highlighting its focus on the natural rubber business Industry and Core Business The company's core business is natural rubber, with revenue growing 10.52% amid recovering global demand and volatile prices - The company's core business includes natural rubber, rubberwood processing, warehousing logistics, and agricultural materials, making it China's largest natural rubber producer[16][17][18] - In H1 2021, global natural rubber production grew by 6.8% and consumption grew by 19.3% year-on-year, indicating a market recovery[23][25] - During the reporting period, the company achieved steady performance growth, with operating revenue reaching RMB 6.51 billion, a 10.52% year-on-year increase; dry rubber output was 24,100 tons, up 25%; and natural rubber processing volume was 88,100 tons, up 152.43%[22] Core Competency Analysis The company's core strengths lie in its vast plantation area, advanced technology, and industry leadership in standard-setting - The company possesses the largest rubber plantation area in China, giving it significant competitive advantages in resources, scale, management, and technology, solidifying its industry leadership[29] - The company excels in technological innovation, having established the first fully automated standard rubber production line in China, and is the country's largest producer of ammonia-free and low-ammonia concentrated latex with a ten-thousand-ton production capacity for nano-clay rubber[29] Discussion and Analysis of Operations In H1 2021, the company focused on risk prevention and its core business, achieving significant growth in rubber production and processing - Through optimized management and technical standards, state-owned rubber production reached 24,100 tons in H1 2021, a 25% year-on-year increase[31][32] - The capacity utilization of processing plants on the island was effectively improved, completing 60,000 tons of rubber processing in the first half of the year, a 162% year-on-year increase[32] - The company has made progress in innovation and new business expansion, including establishing a joint venture with Wangfujing to enter the duty-free business and forming a company to develop intelligent rubber tapping machines[34][35] Analysis of Key Operations This part details financial performance, impacts of the new lease standard, and investments in new joint ventures Potential Risks The company faces major risks from natural disasters, commodity price volatility, and global pandemic-related supply chain disruptions - The company is exposed to natural disaster risks such as typhoons, droughts, cold spells, and pests; although agricultural insurance is in place, these risks remain a significant challenge[47] - As a commodity, natural rubber prices are subject to sharp fluctuations due to global economic conditions, trade policies, exchange rates, and capital market activities, posing a risk to the company's performance[47] - The recurring global COVID-19 pandemic, especially in major Southeast Asian producing countries, along with a shortage of shipping containers and soaring freight costs, impacts the company's import and export trade[47] Corporate Governance This section outlines the company's governance structure and significant changes in its board and senior management during the period Changes in Directors, Supervisors, and Senior Management The company experienced several changes in key personnel, including the appointment of a new president and the departure of several directors | Name | Position | Type of Change | | :--- | :--- | :--- | | Li Xiaoping | Director | Elected | | Jiang Hongtao | Director, President | Elected, Appointed | | Lin Fengyuan | Vice President | Appointed | | Li Chao | Director, President | Resigned | | Wang Bing | Director | Resigned | | Chen Shengwen | Vice President | Resigned | Environmental and Social Responsibility This section details the company's environmental protection practices, social responsibility initiatives, and rural revitalization efforts Environmental Information The company discloses pollutant emissions from its key facilities, an administrative penalty received by a subsidiary, and its carbon reduction measures - Several of the company's subsidiary rubber processing plants are designated as key pollutant-discharging units, all equipped with wastewater and exhaust gas treatment facilities and holding valid pollutant discharge permits, with no major pollutant emissions exceeding standards during the period[55][57][58] - Subsidiary Jiangsu AIDEFU Latex Products Co, Ltd was fined RMB 200,000 by the Yangzhou Ecological Environment Bureau for continuing to use a biomass boiler's supporting exhaust gas treatment facility that had not completed its acceptance inspection on time[61] - The company actively implements carbon reduction measures; 10 subsidiary processing plants use an anaerobic fermentation process to produce biogas from wastewater as a supplementary energy source, with a maximum annual output of 1.53 million cubic meters[64] Social Responsibility and Rural Revitalization In H1 2021, the company invested in poverty alleviation through consumption-based programs and leveraged its industry to boost local employment - In H1 2021, the company invested a cumulative RMB 527,700 in poverty alleviation through online and offline consumption-based initiatives[65] - The company leverages its industrial advantages to drive employment and increase income for local farmers and employees through a model centered on "industrial development + employment"[65] Significant Matters This section covers key events including commitment fulfillment, major litigation, related-party transactions, and significant contracts Fulfillment of Commitments The controlling shareholder continues to fulfill commitments regarding non-competition, related-party transactions, and performance compensation for R1 Company - The controlling shareholder has committed that R1 Company's cumulative net profit for 2019-2021 will be no less than USD 13.13 million, with a cash compensation clause if the target is not met[68] - To resolve potential competition with KM Company and ART Company, the controlling shareholder has committed to a resolution via equity transfer or other means by December 31, 2025, with the related equity entrusted to the listed company's management in the interim[70] Major Litigation and Arbitration The company is involved in two major lawsuits concerning capital contribution and equity transfer disputes, both currently under trial | Plaintiff | Defendant | Amount Claimed (RMB) | Status | | :--- | :--- | :--- | :--- | | Hainan Rubber | Hainan Huayang Investment Group | 106,252,287.81 | Hearing held, verdict pending | | Yunnan Haijiao | Hong Kong Dawei Co, Ltd | 30,000,000.00 | Hearing held, verdict pending | - After losing the second-instance appeal in the lawsuit against Huayang Group concerning the return of equity in four deep-processing companies, the company applied for a retrial by the Supreme People's Court, which was formally accepted on May 18, 2021[74] Significant Related-Party Transactions Key related-party transactions include financial services with an affiliate finance company and the ongoing performance commitment for R1 Company - R1 Company's cumulative committed net profit (non-recurring items deducted) for 2019-2021 is no less than USD 13.13 million; as of H1 2021, the cumulative realized profit was USD 12.15 million (2021 data is unaudited)[79] | Related Party | Business Type | Closing Balance (RMB) | | :--- | :--- | :--- | | Hainan State Farms Group Finance Co, Ltd | Deposit Services | 279,096,649.02 | | Hainan State Farms Group Finance Co, Ltd | Loan Services | 530,000,000.00 | Significant Contracts and Their Performance The company's significant contracts include a land use rights agreement and guarantees provided for subsidiaries and associates - The company has signed a "Land Use Rights Contract Agreement" with its controlling shareholder to lease land for rubber plantation and other agricultural activities, valid until December 31, 2038[83] | Guarantee Details | Amount (RMB) | | :--- | :--- | | Total outstanding guarantees for subsidiaries at period end | 675,821,250.68 | | Total outstanding external guarantees at period end | 9,160,000.00 | | Total Guarantees | 684,981,250.68 | | Total Guarantees as a Percentage of Net Assets (%) | 7.32 | Changes in Share Capital and Shareholders This section details the company's share capital structure, which remained unchanged, and key shareholder information as of the period end Shareholder Information As of June 30, 2021, the company had 109,749 shareholders, with the controlling shareholder holding a 64.35% stake - During the reporting period, the company's total number of shares and share capital structure remained unchanged[89] | Shareholder Name | Shares Held at Period End | Percentage (%) | | :--- | :--- | :--- | | Hainan State Farms Investment Holding Group Co, Ltd | 2,754,012,024 | 64.35 | | Great Wall (Tianjin) Equity Investment Fund Management Co, Ltd - Great Wall Guotai - High-end Equipment M&A Private Equity Fund | 54,113,480 | 1.26 | | Guangdong Yuecai Trust Co, Ltd - Yuecai Trust Hongfu No 10 Collective Fund Trust Plan | 46,829,612 | 1.09 | | Guoxin Guotou Fund Management (Beijing) Co, Ltd - Beijing Huayu Ruitai Equity Investment Partnership (Limited Partnership) | 45,750,000 | 1.07 | Information on Preference Shares - The company had no preference shares during the reporting period[93] Information on Bonds - The company had no corporate bonds, company bonds, or non-financial enterprise debt financing instruments during the reporting period[94] Financial Report This section presents the unaudited H1 2021 financial statements, reflecting the initial adoption of the new lease accounting standard Financial Statements The statements show total assets of RMB 19.37 billion, H1 revenue of RMB 6.51 billion, and a net operating cash outflow | Key Consolidated Balance Sheet Items | June 30, 2021 (RMB) | December 31, 2020 (RMB) | | :--- | :--- | :--- | | Total Assets | 19,366,642,843.91 | 17,736,724,997.11 | | Total Liabilities | 9,652,401,622.29 | 7,609,371,675.76 | | Total Equity Attributable to Parent Company | 9,352,625,619.09 | 9,776,180,502.19 | | Key Consolidated Income Statement Items | H1 2021 (RMB) | H1 2020 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 6,509,399,856.51 | 5,889,909,139.95 | | Operating Profit | -117,843,025.29 | -246,190,347.58 | | Net Profit | -118,708,487.07 | -205,401,511.80 | | Net Profit Attributable to Parent Company Shareholders | -115,782,348.39 | -203,206,057.60 | | Key Consolidated Cash Flow Statement Items | H1 2021 (RMB) | H1 2020 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -575,614,767.67 | -570,842,592.98 | | Net Cash Flow from Investing Activities | 105,419,885.91 | -150,031,917.18 | | Net Cash Flow from Financing Activities | 67,762,685.12 | 1,075,154,569.38 | Significant Accounting Policy Changes Effective January 1, 2021, the company adopted the new lease standard, recognizing right-of-use assets and lease liabilities - From January 1, 2021, the company implemented the new lease standard, which no longer distinguishes between finance and operating leases, and requires the recognition of right-of-use assets and lease liabilities for all leases (except for short-term and low-value leases)[186] | Impact on Consolidated Balance Sheet as of January 1, 2021 | Adjustment (RMB) | | :--- | :--- | | Assets | | | Right-of-use assets | +1,865,700,867.81 | | Productive biological assets | +79,302,360.57 | | Long-term deferred expenses | -11,887,551.54 | | Liabilities | | | Lease liabilities | +1,987,403,747.69 | | Non-current liabilities due within one year | +219,963,035.29 | | Equity | | | Undistributed profits | -276,313,606.11 |