AsAc(SH:601890)2023-08-28 16:00Foreign Currency Transactions and Exchange Rates - The company uses the market exchange rate published by the People's Bank of China on the transaction date to convert foreign currency transactions into the functional currency[1]. - For the balance sheet date, foreign monetary assets and liabilities are converted at the exchange rate published by the People's Bank of China, with the resulting exchange gains or losses recognized accordingly[1]. - The average exchange rate for the period is used to convert income and expense items in the profit and loss statement for foreign operations[2]. - The company reports the impact of exchange rate fluctuations on cash as an adjustment item in the cash flow statement[2]. - Approximately 40% of the company's products are exported, exposing it to significant exchange rate risks[181]. - The company plans to mitigate exchange rate fluctuations through forward foreign exchange contracts with banks[181]. - The company faced a foreign exchange loss of CNY 21.14 million, impacting financial expenses[178]. Financial Assets and Liabilities - Financial assets are classified at initial recognition based on the business model and cash flow characteristics, including those measured at amortized cost and those measured at fair value[6]. - Financial liabilities are classified at initial recognition as either measured at fair value with changes recognized in profit or loss or measured at amortized cost[13]. - The company applies the effective interest method to calculate interest on financial assets measured at amortized cost, with gains or losses recognized upon disposal[7]. - For financial assets transferred, if the risks and rewards of ownership are substantially transferred, the asset is derecognized, and the difference is recognized in profit or loss[14]. - The company terminates recognition of financial liabilities when the current obligations are fully or partially discharged, or when the terms are substantially modified[18]. Inventory and Impairment - The company applies a lower of cost or net realizable value principle for inventory valuation, with provisions for inventory write-downs based on the difference between cost and net realizable value[27]. - The company assesses inventory impairment based on the lower of cost and net realizable value, with provisions made for obsolete and slow-moving inventory[124]. - The company conducts annual goodwill impairment tests, requiring estimates of future cash flows and appropriate discount rates[126]. - The company assesses whether non-current assets show signs of impairment, requiring tests when the carrying amount exceeds recoverable amounts[136]. - The company assesses impairment indicators for non-current non-financial assets on the balance sheet date and estimates recoverable amounts if indicators are present[49]. Revenue Recognition - The company recognizes revenue when control of the related goods or services is transferred to the customer, allowing the company to direct the use of the goods and obtain almost all economic benefits[84]. - The company recognizes revenue when the customer obtains control of the related goods or services[86]. - The company recognizes contract liabilities for received or receivable customer consideration that obligates the company to transfer goods to customers[52]. Taxation and Deferred Tax - The company confirms deferred tax assets based on the likelihood of future taxable income to utilize the benefits[117]. - The company evaluates the carrying amount of deferred tax assets at the balance sheet date[117]. - The company recognizes deferred tax assets based on future profitability and temporary differences, with some unrecognized due to uncertainty[139]. - The company recognizes government grants related to assets as deferred income and amortizes them over the asset's useful life[92]. - Government grants are recognized when the conditions attached are met and the grants are receivable[91]. Operating Performance - The company's operating revenue increased by 52.90% compared to the same period last year, driven by a significant increase in sales volume[170]. - Net profit attributable to shareholders rose by 88.06% year-on-year, reflecting the growth in operating revenue and corresponding gross profit[170]. - Basic earnings per share reached CNY 0.1143, an increase of 87.99% compared to CNY 0.0608 in the same period last year[168]. - The production of marine chains and accessories totaled 61,998 tons, a year-on-year increase of 40.25%[177]. - Total sales volume reached 84,800 tons, up 44.43% from the previous year, with marine chains and accessories sales increasing by 36.86%[178]. - The company's operating revenue for the first half of 2023 reached ¥1,012,852,456.41, representing a 52.90% increase compared to the same period last year[187]. - Net profit attributable to shareholders increased by 88.06% year-on-year, amounting to ¥109,654,872.34[187]. - The net profit after deducting non-recurring gains and losses rose by 36.59% to ¥84,175,286.97 compared to the previous year[190]. - The company's total assets at the end of the reporting period were ¥4,663,927,783.97, a 1.06% increase from the end of the previous year[187]. - The cash flow from operating activities showed a significant decline of 2,796.24%, resulting in a net outflow of ¥128,900,892.94[187]. Research and Development - Research and development expenses increased during the reporting period, indicating a commitment to innovation[178]. Corporate Structure and Tax Benefits - The company is recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15% for three years starting from January 1, 2020[143]. - The company applies a 13% VAT rate on taxable income and a corporate income tax rate of 15%, 20%, or 25% depending on the entity[128]. Manufacturing and Production - The company is the largest chain production enterprise globally, benefiting from significant scale advantages that enhance equipment utilization and production efficiency[195]. - The company has developed advanced manufacturing and testing equipment, achieving breakthroughs in ultra-high strength R5 mooring chains, filling domestic technological gaps[196]. - The marine engineering mooring system connection components have gained recognition from leading global oil companies, establishing a solid production capacity[196]. - The shipbuilding industry in China showed robust growth in the first half of 2023, with a completed shipbuilding volume of 21.13 million deadweight tons, a year-on-year increase of 14.2%[193]. - During the reporting period, the company secured orders totaling 92,300 tons, including 69,200 tons for marine anchor chains and 23,100 tons for offshore oil platform mooring chains[197].