Wujin Stainless(603878)2022-08-24 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 non-recurring profit of 26,148,995.79, after accounting for income tax effects of -4,614,614.21[22]. 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]. - The company's 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]. - Current liabilities rose to CNY 1,142,432,414.26, compared to CNY 1,044,382,239.75, marking an increase of about 9.39%[77]. - Total equity decreased to CNY 2,448,185,602.48 from CNY 2,472,264,180.05, reflecting 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 -¥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 down from 1,035,953,040.59 RMB in the previous year[94]. - Cash inflow from investment activities totaled 442,582,203.74 RMB, compared to 227,908,899.87 RMB in the same period last year, marking an increase of approximately 94%[92]. Market and Industry Trends - 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 exposed to foreign exchange risks, particularly with USD as the settlement currency, which may affect profit margins and competitiveness[38]. - The company faces risks from increased competition in the industrial stainless steel pipe market, particularly in high-end products, due to a low production concentration and numerous manufacturers[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 ¥16,115,467.88, a decrease of 7.91% from ¥17,501,576.31 in the first half of 2021[83]. Environmental and Compliance - The company is actively increasing its investment in environmental protection to comply with new national environmental laws and standards, aiming for a sustainable development model[41]. - The company has implemented measures to ensure that all industrial wastewater is treated and discharged in compliance with environmental standards, achieving zero discharge of industrial wastewater[50]. - The company has received approval for a project to produce 20,000 tons of high-end stainless steel seamless pipes, indicating ongoing expansion in production capacity[51]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[55]. - The company maintains a blue credit rating as a general creditworthy enterprise according to the Jiangsu Provincial Ecological Environment Department[55]. Corporate Governance - The actual controller, the Zhu Guoliang family, holds a total of 157,418,267 shares, accounting for 39.28% of the company's total equity, posing a control risk for the company[39]. - The company’s actual controller and major shareholders have committed to not engaging in competitive businesses during their tenure[58]. - The company has established a linkage between the performance of its compensation measures and the execution of its commitments[58]. - The company reported no significant litigation or arbitration matters during the reporting period[62]. - There were no major related party transactions disclosed during the reporting period[63]. 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’s financial statements are prepared based on a 12-month operating cycle[123]. - The company recognizes the difference between the disposal price and the net asset share of the subsidiary in the consolidated financial statements as other comprehensive income before losing control[130]. - The company adopts a perpetual inventory system for inventory management[151]. - The company recognizes expected credit losses for financial assets using historical data and current economic conditions, with significant increases in credit risk leading to lifetime expected loss measurement[141].