COFC(SZ:000798)2021-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 201,447,199.47, representing a 31.89% increase compared to CNY 152,737,323.46 in the same period last year[20]. - The net profit attributable to shareholders was CNY 4,418,634.91, a significant recovery from a loss of CNY 42,990,364.07 in the previous year[20]. - The net cash flow from operating activities improved to CNY 47,741,948.01, compared to a negative cash flow of CNY 100,492,045.34 in the same period last year[20]. - The company's operating revenue for the first half of the year reached ¥201,447,199.47, representing a year-on-year increase of 31.89% due to increased sales volume and higher prices for ultra-low temperature tuna[32]. - The company reported a significant reduction in selling expenses, down 66.62% to ¥5,320,901.55, as shipping costs for ultra-low temperature tuna were adjusted to be included in the cost of goods sold[32]. - The company reported a net profit of CNY 2,712,965.59, a significant recovery from a net loss of CNY 44,424,672.25 in the first half of 2020[121]. - The company achieved an operating profit of CNY 1,048,928.34, a turnaround from an operating loss of CNY 44,842,946.23 in the first half of 2020[120]. - The company’s total comprehensive income for the first half of 2021 was CNY 11,224,194.54, compared to a loss of CNY 41,326,185.54 in the same period of 2020, indicating a significant recovery[136]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 1,141,042,104.96, a slight increase of 0.01% from CNY 1,140,954,212.64 at the end of the previous year[20]. - The company's total liabilities decreased slightly to CNY 488,637,570.29 from CNY 490,392,077.67[117]. - The company's short-term borrowings rose to ¥137,425,000.00, making up 12.04% of total assets, an increase of 1.69% from 10.35% last year[40]. - The total equity at the end of the reporting period is CNY 652,404,534.67, reflecting a decrease from CNY 650,562,134.97 at the end of the previous period[129]. - The company's current liabilities exceeded current assets by 34.45 million RMB, primarily due to short-term bank loans of 137.425 million RMB[144]. Operational Developments - The company has focused on expanding its tuna fishing industry and has become the largest tuna longline fishing enterprise in the central and western Pacific and Atlantic regions of China[26]. - The integration of the ultra-low temperature tuna project and the Fenghui project has enhanced the company's product structure and operational efficiency[26]. - The company has enhanced its production capacity by investing in two new ultra-low temperature tuna longline fishing vessels, which are now operating in the North Atlantic[28]. - The company aims to expand rapidly and strengthen its professional team and industry chain integration as part of its strategic development plan[28]. - The company has established representative offices in Fiji, Vanuatu, and the Solomon Islands to support its fishing fleet operations and improve production efficiency[29]. Market Strategy - The company plans to continue strengthening its core business and enhancing its competitive advantages in the global market[26]. - The company has expanded its sales market, focusing on the South Pacific and Southeast Asia, to shorten sales cycles and improve profit margins amid changing market conditions[54]. - The company is focusing on expanding its market presence and enhancing product offerings, particularly in the seafood sector[81]. - The overall market strategy includes strengthening partnerships and exploring potential acquisitions to enhance growth prospects[81]. - Future guidance suggests a cautious but optimistic outlook for revenue growth, driven by increased consumer demand and strategic initiatives[82]. Financial Management - The company will not distribute cash dividends or issue bonus shares for the reporting period[6]. - The company has not engaged in any securities or derivative investments during the reporting period[46][47]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[70]. - There were no instances of illegal external guarantees during the reporting period[71]. - The financial report for the first half of the year was not audited[114]. Risks and Challenges - The company faces risks from fluctuating fishery resources, with a potential decrease in tuna resources impacting profitability[53]. - The company is subject to stricter fishing quotas and increased costs for fishing permits due to tightening regulations in international waters[53]. - The company is facing a labor shortage, particularly for skilled crew members, due to increased competition for domestic labor and a high turnover rate[54]. Legal and Compliance - The company has not faced any administrative penalties related to environmental issues during the reporting period[64]. - The company has engaged in social responsibility initiatives, including environmental protection and support for local communities[64]. - The company has submitted arbitration applications regarding the performance compensation shortfalls for 2016 and 2017[68]. - The company is actively monitoring the progress of Xinyangzhou's bankruptcy proceedings and will disclose information accordingly[68]. Accounting Policies - The company adheres to the accounting principles set forth by the Ministry of Finance, ensuring that financial statements reflect true and complete information[146]. - The company has established specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition based on its operational characteristics[145]. - The company recognizes fixed assets that are tangible and have a useful life exceeding one accounting year, provided that economic benefits are likely to flow in and costs can be reliably measured[192]. - The company applies a combination of individual and portfolio assessments for expected credit losses on financial assets[174]. - The company recognizes impairment losses for financial assets when the expected credit loss exceeds the current provision amount[174].