EBEM(SH:603002)2019-08-14 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 778,376,945.44, a decrease of 7.09% compared to CNY 837,771,235.64 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 21,190,750.70, down 39.05% from CNY 34,769,035.78 year-on-year[22]. - The net profit after deducting non-recurring gains and losses was CNY 14,400,408.84, a decline of 56.09% compared to CNY 32,795,004.87 in the previous year[22]. - The net cash flow from operating activities was negative at CNY -174,147,031.15, a significant decrease from CNY 21,359,573.55 in the same period last year, representing a decline of 915.31%[22]. - Basic earnings per share for the first half of 2019 were CNY 0.03, a decrease of 50.00% compared to CNY 0.06 in the same period last year[23]. - The diluted earnings per share were also CNY 0.03, reflecting the same 50.00% decline year-on-year[23]. - The weighted average return on net assets was 1.89%, down 1.23 percentage points from 3.12% in the previous year[23]. - The company reported a significant decrease in short-term borrowings from CNY 45,000,000.00 to CNY 40,000,000.00, a reduction of about 11.1%[121]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,704,235,975.68, down 13.04% from CNY 1,959,752,264.88 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were CNY 1,106,113,773.51, a slight decrease of 0.36% from CNY 1,110,110,071.37 at the end of the previous year[22]. - The company’s cash and cash equivalents decreased by 46.23% to 232,974,912.18 RMB, primarily due to increased payments for raw materials[51]. - The company’s inventory decreased by 37.33% to 104,977,470.95 RMB, reflecting a reduction in raw materials, work-in-progress, and finished goods[51]. - The company’s liabilities included a significant increase in short-term bank loans, rising by 575% to 54,000,000.00 RMB[53]. - Total liabilities decreased from CNY 849,642,193.51 to CNY 598,122,202.17, a reduction of about 29.6%[121]. Operational Highlights - The company achieved a production volume of 43,649.90 tons and sales volume of 45,050.66 tons of epoxy resin in the first half of 2019, maintaining a balance between production and sales[41]. - The average selling price of epoxy resin was 17,239.33 RMB/ton (excluding tax), a decrease of 10.23% compared to 19,204.16 RMB/ton in the same period last year[41]. - The company maintains a direct sales model, closely aligning with market demand and providing high-quality technical services[36]. - The company has a strong technical service capability, providing timely support and training to clients post-delivery[37]. - The company utilizes a DCS automated control system in production, enhancing efficiency and product quality[37]. Risks and Challenges - The company faces risks from significant increases in fixed assets leading to potential profit declines due to depreciation as the Zhuhai plant commences production[58]. - Fluctuations in raw material prices and changes in downstream industry demand pose risks to the growth and profit levels of the epoxy resin industry[58]. - The company is subject to increased safety and environmental regulations, which may raise operational costs and compliance risks[58]. - The international economic environment presents uncertainties, including trade protectionism and currency fluctuations, impacting the epoxy resin industry[58]. Environmental and Social Responsibility - The company has centralized the production of products with waste gas emissions to its Zhuhai plant, resulting in no waste gas emissions from the Guangzhou plant[84]. - The Zhuhai plant has implemented three sets of waste gas treatment devices and a wastewater treatment station, ensuring compliance with environmental standards[88]. - The company has achieved zero discharge of process wastewater through its saltwater treatment system, which recycles industrial salt and reuses condensate water[88]. - The company has established a complete environmental monitoring system, with quarterly emissions monitoring conducted by a qualified third-party testing company[88]. - The company has provided a total of CNY 12.5 million in educational assistance to 7 outstanding students from impoverished families[80]. Shareholder Information - The total number of shares after the recent changes is 614,411,700, with 99.28% being unrestricted circulating shares[96]. - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 41.29% of total shares[104]. - Total number of common shareholders at the end of the reporting period is 36,613[101]. Corporate Governance - The company has not disclosed any significant related party transactions or changes in related party transactions during the reporting period[68]. - The company has fulfilled commitments to avoid competition with its actual controllers, ensuring compliance with competitive regulations[61]. - The company appointed Tianzhi International Accounting Firm for the 2019 audit services as per the shareholders' meeting resolution[62]. - There are no significant litigation or arbitration matters reported during the reporting period[64].