Wujin Stainless(603878)2022-08-18 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,268,144,780.90, a decrease of 5.69% compared to CNY 1,344,687,802.92 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2022 was CNY 82,426,201.28, down 17.42% from CNY 99,811,204.18 in the previous year[19]. - The net cash flow from operating activities was negative at CNY -153,677,662.24, a decline of 153.83% compared to CNY 285,511,359.17 in the same period last year[19]. - Basic earnings per share for the first half of 2022 were CNY 0.21, a decrease of 16.00% from CNY 0.25 in the same period last year[20]. - The weighted average return on net assets was 3.30%, down 0.8 percentage points from 4.10% in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 56,277,205.49, a decrease of 34.93% from CNY 86,493,025.00 in the same period last year[19]. - The diluted earnings per share also stood at CNY 0.21, reflecting a 16.00% decline compared to the previous year[20]. - The company reported a total profit of RMB 94,712,283.81, down 16.91% from RMB 114,034,488.01 in the first half of 2021[84]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,619,313,617.29, an increase of 1.96% from CNY 3,549,741,122.46 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 0.97% to CNY 2,448,185,602.48 from CNY 2,472,264,180.05 at the end of the previous year[19]. - Current liabilities rose to CNY 1,142,432,414.26, compared to CNY 1,044,382,239.75, reflecting an increase of about 9.39%[77]. - Total liabilities reached CNY 1,171,128,014.81, up from CNY 1,077,476,942.41, indicating a growth of approximately 8.69%[77]. - Total equity decreased to CNY 2,448,185,602.48 from CNY 2,472,264,180.05, a decline of about 0.97%[77]. Cash Flow - Operating cash flow turned negative at -¥153,677,662.24, a decline of 153.83% from ¥285,511,359.17 in the previous year[30]. - Investment cash flow improved significantly to ¥192,566,424.90, compared to a negative cash flow of -¥145,246,093.59 in the same period last year, marking a 232.58% increase[30]. - Total cash inflow from operating activities decreased to 966,195,834.95 RMB, down from 1,301,549,459.63 RMB year-over-year, representing a decline of approximately 25.8%[94]. - Cash outflow from operating activities was 1,005,497,116.23 RMB, slightly lower than 1,035,953,040.59 RMB in the previous year, indicating a decrease of about 2.9%[94]. - Cash inflow from investment activities totaled 442,582,203.74 RMB, significantly higher than 227,908,899.87 RMB in the prior year, marking an increase of approximately 94%[92]. Market and Industry Conditions - The stainless steel pipe industry saw a production decrease of 5.26%, with a total output of 16.354 million tons in the first half of 2022 compared to the same period in 2021[25]. - The apparent consumption of stainless steel in China decreased by 5.38%, totaling 14.005 million tons in the first half of 2022[25]. - The company faces risks from macroeconomic fluctuations, which could lead to reduced domestic and international orders[38]. - The company is facing intensified competition in the domestic market, particularly in the mid-to-high-end stainless steel pipe segment, due to the pandemic and external uncertainties[40]. Research and Development - The company holds 70 patents, including 24 invention patents and 45 utility model patents, with 10 new patents applied for during the reporting period[26]. - Research and development expenses were RMB 16,115,467.88, a decrease of 7.91% compared to RMB 17,501,576.31 in the first half of 2021[83]. Environmental and Regulatory Compliance - The company is actively increasing environmental protection investments to comply with new environmental laws and standards, aiming for a green, low-carbon, and high-quality development in the steel industry[41]. - The company has achieved stable emissions of wastewater, noise, and waste gas, with zero industrial wastewater discharge in the first half of 2022[50]. - The company has established an emergency response plan for environmental pollution incidents to minimize potential damages and ensure public safety[52]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[55]. Corporate Governance and Shareholder Information - The actual controller, the Zhu Guoliang family, holds a total of 157,418,267 shares, accounting for 39.28% of the company's total share capital, posing a control risk for the company[39]. - The company committed to not transferring more than 25% of its shares during the tenure of its directors and senior management, ensuring compliance with internal regulations[58]. - The total number of shares and capital structure of the company remained unchanged during the reporting period[66]. - The total number of common shareholders as of the end of the reporting period is 15,559[67]. Financial Reporting and Accounting Policies - The company’s accounting policies comply with the requirements of enterprise accounting standards, ensuring accurate financial reporting[121]. - The company applies a unified accounting policy for the preparation of consolidated financial statements, ensuring consistency across its subsidiaries[127]. - Deferred tax assets and liabilities are recognized based on temporary differences between tax bases and book values, with specific conditions for recognition[190]. - The company recognizes impairment losses for non-current assets held for sale when their carrying amount exceeds fair value less costs to sell[151].