尤夫股份(002427) - 2020 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section presents the company's board, supervisory board, and management's declarations on the semi-annual report's integrity, outlines the report's structure and definitions, and confirms no profit distribution for the period - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content and bear legal responsibility[3] - Company's head, chief accountant, and head of accounting department declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Company Profile and Key Financial Indicators This section provides the company's basic information and key financial indicators, noting a 18.22% revenue decrease, a 733.43% net profit loss, and declines in total and net assets Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | ST Youfu | | Stock Code | 002427 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Zhejiang Youfu High-Tech Fiber Co., Ltd. | | Legal Representative | Yang Meifang | Key Financial Data for H1 2020 | Indicator | Current Period (yuan) | Prior Year (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,316,827,391.19 | 1,610,251,951.30 | -18.22% | | Net Profit Attributable to Shareholders | -98,428,599.47 | 15,539,031.79 | -733.43% | | Net Cash Flow from Operating Activities | 89,570,868.23 | 138,664,523.14 | -35.40% | | Basic Earnings Per Share | -0.2247 | 0.0390 | -676.15% | | Weighted Average Return on Net Assets | -13.00% | 2.06% | -15.06% | Key Financial Indicators as of H1 2020 | Indicator | End of Current Period (yuan) | End of Prior Year (yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,813,951,710.75 | 5,909,745,732.46 | -1.62% | | Net Assets Attributable to Shareholders | 708,709,364.18 | 807,137,963.65 | -12.19% | - Total non-recurring gains and losses amounted to 4,775,128.27 yuan[20] Business Overview This section outlines the company's polyester industrial yarn, lithium battery, and hydrogen fuel cell businesses, highlighting leadership in industrial yarn and hydrogen fuel cells, while noting ongoing losses and planned divestment in lithium batteries Main Businesses During the Reporting Period The company primarily operates in polyester industrial yarn and lithium battery segments, with strategic investment in hydrogen fuel cells, focusing on diverse industrial applications and new energy vehicle components - The company has two major business segments: polyester industrial yarn and lithium batteries, and has strategically invested in the hydrogen fuel cell industry[23] - Polyester industrial yarn products are widely used in tire cord fabric, conveyor belt canvas, PVC coated fabrics, automotive seat belts, and other industrial fields[24] - The lithium battery business primarily involves the design, R&D, production, sales, and service of ternary power lithium batteries for new energy vehicles[25] - The hydrogen fuel cell business, through its investment in Wuhan Zhongyu, focuses on the development, production, sales, and technical services of fuel cell stacks and system products[26] Significant Changes in Major Assets Major assets changed significantly, with increases in construction in progress and development expenditures, decreases in fixed and intangible assets due to amortization, and net losses recorded by overseas entities Major Asset Changes | Major Asset | Explanation of Change | | :--- | :--- | | Fixed Assets | Decreased by 6.18% from the beginning of the period, mainly due to fixed asset amortization | | Intangible Assets | Decreased by 2.37% from the beginning of the period, mainly due to intangible asset amortization | | Construction in Progress | Increased by 9.75% from the beginning of the period, mainly due to investment in boiler renovation | | Notes Receivable | Increased by 31.95% from the beginning of the period, mainly due to an increase in received letters of credit | | Receivables Financing | Increased by 16.54% from the beginning of the period, mainly due to an increase in received bills | | Development Expenditures | Increased by 1201.72% from the beginning of the period, mainly because some early R&D projects met capitalization conditions in this period | Profitability of Major Overseas Assets | Overseas Subsidiary | Net Profit for Current Period (yuan) | Undistributed Profit at Period-End (yuan) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | | Hong Kong Zhanyu Co., Ltd. | -47,871.50 | -3,260,202.91 | 0.47% | | UNIFULL AMERICA, INC. | -377,716.08 | -3,345,837.82 | 9.05% | | Unifull Europe GmbH | -148,658.67 | -842,689.51 | 0.09% | Analysis of Core Competitiveness The company excels in polyester industrial yarn and hydrogen fuel cell technologies, but its lithium battery segment faces continuous losses, prompting a planned equity sale - The polyester industrial yarn business has new technology and cost advantages, utilizing melt direct spinning technology to reduce energy consumption, improve efficiency, and enhance product quality[31] - The polyester industrial yarn business has formed a complete industrial chain from polymerization to industrial yarn and industrial textiles, enhancing its ability to resist risks and generate profits[32] - The hydrogen fuel cell business (Wuhan Zhongyu) has cumulatively applied for nearly 170 patents, with 34 granted, including 7 US or EU invention patents[36] - Wuhan Zhongyu's core technical personnel participated in the drafting of 24 fuel cell standards and specifications, leading the development of the national standard "Fuel Cell Power Generation System for UAVs"[37] - Wuhan Zhongyu has fully mastered core technologies in key segments of the industrial chain, with some technologies being internationally leading[38] - The lithium battery business, due to industrial policy adjustments and subsidy reductions, led to continuous losses for Zhihang New Energy, and the company plans to transfer 65% of Zhihang New Energy's equity for 474.5 million yuan[39] Management Discussion and Analysis This section details the company's operating performance, noting revenue and margin declines in industrial yarn, growth in lithium battery contract manufacturing, and a significant overall net loss, alongside asset changes, fund use, equity sales, and risk management Overview Polyester industrial yarn revenue and margins declined due to market factors and the pandemic, while lithium battery revenue grew via contract manufacturing; total assets slightly decreased, and net profit attributable to shareholders dropped by 733.43% - The polyester industrial yarn segment's production and operation were generally normal, but operating revenue and gross profit margin declined, and net profit decreased year-on-year, due to intensified industry competition, the pandemic, and falling crude oil prices[42] - The lithium battery segment achieved an increase in operating revenue year-on-year through a "toll manufacturing" model[42] Key Financial Data for H1 2020 | Indicator | Amount (yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Total Assets | 5,813,951,710.75 | -1.62% | | Operating Revenue | 1,316,827,391.19 | -18.22% | | Net Profit Attributable to Shareholders | -98,428,599.47 | -733.43% | | Basic Earnings Per Share | -0.22 | -675.84% | Analysis of Main Business Main business revenue decreased by 18.22% due to chemical fiber decline, despite a 564.68% surge in lithium battery revenue; management and R&D expenses fell, while financial and income tax expenses rose, with operating cash flow down 35.40% Year-on-Year Changes in Key Financial Data | Item | Current Period (yuan) | Prior Year (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,316,827,391.19 | 1,610,251,951.30 | -18.22% | | | Operating Cost | 1,078,586,724.88 | 1,290,385,280.59 | -16.41% | | | Administrative Expenses | 56,263,729.95 | 76,807,545.65 | -26.75% | | | Financial Expenses | 162,608,791.89 | 141,583,649.38 | 14.85% | | | Net Cash Flow from Operating Activities | 89,570,868.23 | 138,664,523.14 | -35.40% | Mainly due to decreased sales revenue | | Net Cash Flow from Investing Activities | -46,498,139.93 | -66,874,149.85 | -30.47% | Mainly due to decreased investment in construction in progress in this period | | Net Cash Flow from Financing Activities | -126,081,348.14 | -295,355,524.67 | -57.31% | Mainly due to decreased repayment of loan principal and interest in this period | Operating Revenue Composition (by Industry) | Industry | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Chemical Fiber Manufacturing | 1,200,439,086.93 | 91.16% | 1,592,741,468.07 | 98.91% | -24.63% | | Lithium Battery Industry | 116,388,304.26 | 8.84% | 17,510,483.23 | 1.09% | 564.68% | - The higher indicators for the lithium battery industry compared to the previous year were mainly due to the recognition of contract manufacturing revenue, and the higher indicators for power lithium batteries were mainly due to sales prices exceeding costs after impairment provisions[48] Analysis of Non-Core Business The company had no non-core business analysis during the reporting period - The company had no non-core business analysis during the reporting period[49] Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders decreased; inventory fell due to subsidiary sales, fixed assets and construction in progress changed due to project capitalization, and new accounting standards introduced receivables financing and contract liabilities Significant Changes in Asset Composition | Item | Amount at End of Current Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inventory | 254,642,163.65 | 4.38% | 415,982,357.56 | 6.86% | -2.48% | Mainly due to sales of subsidiary Zhihang New Energy's inventory during the reporting period | | Fixed Assets | 1,731,246,422.69 | 29.78% | 1,664,606,730.15 | 27.45% | 2.33% | Mainly due to capitalization of the ceiling film project | | Construction in Progress | 380,148,280.37 | 6.54% | 546,425,226.79 | 9.01% | -2.47% | Mainly due to capitalization of the ceiling film project | | Short-term Borrowings | 1,827,157,044.48 | 31.43% | 2,164,199,252.11 | 35.68% | -4.25% | | | Long-term Borrowings | 516,000,000.00 | 8.88% | 511,500,000.00 | 8.43% | 0.45% | | | Notes Receivable | 29,333,418.82 | 0.50% | 96,790,351.32 | 1.60% | -1.10% | Adjusted due to implementation of new financial instrument standards | | Receivables Financing | 148,211,568.35 | 2.55% | | | 2.55% | Adjusted due to implementation of new financial instrument standards | | Contract Liabilities | 175,199,183.57 | 3.01% | | | 3.01% | Adjusted due to implementation of new revenue standards | - Details of restricted assets at the end of the reporting period can be found in "Section XI Financial Report, VII. Notes to Consolidated Financial Statements, Note 81"[52] Analysis of Investment Status No major investments occurred; 950.673 million yuan in raised funds were mostly invested, with 48.10% reallocated; the ceiling film project was delayed by frozen funds and underperformed, while another project was terminated, with funds used for equity acquisition and working capital Overall Use of Raised Funds | Indicator | Amount (million yuan) | | :--- | :--- | | Total Raised Funds | 950.673 | | Total Raised Funds Invested in Current Period | 0 | | Total Raised Funds Cumulatively Invested | 867.281 | | Total Cumulatively Changed Use of Raised Funds | 457.3 | | Proportion of Total Cumulatively Changed Use of Raised Funds | 48.10% | - The ceiling film project has a cumulative investment of 209.981 million yuan, an investment progress of 70.75%, and has reached its intended usable state but has not achieved expected benefits, mainly due to trial production and gradual capacity release[57][59] - The high-end light box advertising material project has been terminated, with 400 million yuan used to pay for the acquisition of 51% equity in Jiangsu Zhihang New Energy Co., Ltd., and the remaining 57.3 million yuan used to permanently supplement working capital[57][62][63] - The balance of the special raised funds account is 95.3474 million yuan, which has been entirely frozen[56] Major Asset and Equity Sales No major assets were sold; the planned 474.5 million yuan sale of 65% of Jiangsu Zhihang New Energy is incomplete, with control retained and payment delays from the buyer - The company did not sell any major assets during the reporting period[66] - The company plans to transfer 65% of Zhihang New Energy's equity to Jiangsu Ruihong Lithium Industry Co., Ltd. for 474.5 million yuan[68] - As of the end of the reporting period, the equity transfer has not met the closing conditions, and the company has not lost control over Zhihang New Energy, thus it is still included in the consolidated financial statements for this period[68] - The counterparty has not paid the equity transfer payment as planned due to financial constraints, and the company has sent notices to the transferee and guarantor for collection[68] Analysis of Major Holding and Associate Companies Key subsidiaries include Zhejiang Unifull Technology Industrial, Zhejiang Unifull Industrial Fiber, Jiangsu Zhihang New Energy, and Huzhou Unifull High-Performance Fiber; Jiangsu Zhihang New Energy reported a -14.58 million yuan net loss, with its planned sale not yet impacting current operations Financial Status of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Unifull Technology Industrial Co., Ltd. | Subsidiary | Cord fabric, canvas for engineering, etc. | 24.5786 million USD | 940,605,910.07 | 208,199,810.08 | 194,490,004.22 | 3,139,160.03 | | Zhejiang Unifull Industrial Fiber Co., Ltd. | Subsidiary | Production and processing of polyester industrial filament | 60 million yuan | 1,814,688,712.16 | 105,219,655.18 | 1,449,161,382.12 | 14,250,096.12 | | Jiangsu Zhihang New Energy Co., Ltd. | Subsidiary | Lithium battery production, sales | 114.67 million yuan | 1,606,148,807.85 | -305,862,428.17 | 116,388,304.26 | -14,584,043.34 | | Huzhou Unifull High-Performance Fiber Co., Ltd. | Subsidiary | Industrial yarn production, processing, sales | 100 million yuan | 522,969,469.94 | 2,455,324.88 | | 10,998,880.10 | - The company plans to sell its controlling stake in Jiangsu Zhihang New Energy Co., Ltd., but the closing conditions have not been met, thus having no impact on the current period's operations[71] Structured Entities Controlled by the Company The company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[72] Forecast of Operating Performance for January-September 2020 The company did not issue any warning forecasts for losses or significant changes in operating performance for January-September 2020 - The company did not issue any warning forecasts for losses or significant changes in operating performance for January-September 2020[73] Risks Faced by the Company and Countermeasures The company faces diverse operational risks, including market, raw material, foreign exchange, and pandemic impacts, alongside regulatory investigations, lawsuits, and shareholder issues, with various countermeasures planned or implemented - The company faces market sales risks from capacity expansion and will respond by improving technology, optimizing core processes, enhancing product structure, strengthening brand building, and deepening marketing efforts[73] - The company faces risks from raw material price fluctuations and will respond by implementing strict inventory management systems and actively developing high-margin, high-value-added differentiated and functional yarns[74] - The company faces foreign exchange risks and will respond by closely monitoring foreign exchange market trends, utilizing methods such as inward processing and exchange rate locking, and by increasing product selling prices and timely collection of payments[75] - The company faces impacts from the novel coronavirus pandemic and will actively respond and strictly implement prevention and control regulations to minimize adverse effects on its operations[81] - The company is under investigation by the China Securities Regulatory Commission (CSRC) and has received a "Prior Notice of Administrative Penalty and Market Ban", but it is judged not to trigger mandatory delisting due to major violations, and the company will timely fulfill its information disclosure obligations[82] - Multiple bank accounts of the company and its wholly-owned subsidiaries have been frozen, and some other assets have been seized or transferred for appraisal and auction; the company will continue to monitor subsequent developments and actively litigate to protect its legitimate rights and interests[82] - The company's stock trading had its delisting risk warning removed on August 4, 2020, but it continues to be subject to other risk warnings; investors are advised to be aware of investment risks[84] - The company plans to sell 65% equity of Jiangsu Zhihang New Energy Co., Ltd., but faces risks such as equity pledge, freezing, payment risk of equity transfer funds, and the company bearing guarantee liabilities[85][86] Significant Matters This section covers general meetings, profit distribution, commitment fulfillment, auditor appointments, bankruptcy, major litigation, media scrutiny, penalties, integrity, incentives, related party transactions, shareholder fund occupation, contract performance, social responsibility, and other significant matters General Meetings of Shareholders and Extraordinary General Meetings During the Reporting Period The company held two extraordinary general meetings and one annual general meeting, approving multiple proposals with investor participation rates of 27.80% and 47.85% respectively - The first extraordinary general meeting of 2020 was held on January 7, 2020, with an investor participation rate of 27.80%[89] - The second extraordinary general meeting of 2020 was held on February 4, 2020, with an investor participation rate of 27.80%[89] - The 2019 annual general meeting was held on May 13, 2020, with an investor participation rate of 47.85%[89] Profit Distribution and Capital Reserve Conversion to Share Capital for the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[91] Fulfillment of Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and Beyond the Reporting Period Mr. Zhou Fazhang failed to meet Jiangsu Zhihang New Energy's 2017-2018 performance commitments, with a -38.20% cumulative net profit completion rate, owing 1,009.8 million yuan in compensation, of which 730.39 million yuan remains unpaid, leading to company arbitration - Zhihang New Energy failed to meet its committed performance for both 2017 and 2018, with a cumulative net profit completion rate of -38.20% of the committed amount[92] - According to the "Equity Acquisition Agreement", Mr. Zhou Fazhang should pay performance compensation of 1,009.8 million yuan to the company[92] - As of the disclosure date of this report, Mr. Zhou Fazhang still owes the company a total of 730,392,615 yuan in performance commitment compensation[92] - Given that the company has initiated arbitration regarding Mr. Zhou Fazhang's performance commitment compensation, the final amount of performance compensation Mr. Zhou Fazhang should pay to the company will be subject to the arbitration result[92] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[93] Explanations by the Board of Directors and Supervisory Board on "Non-Standard Audit Report" The company had no "non-standard audit report" issued by an accounting firm during the reporting period - The company had no "non-standard audit report" issued by an accounting firm during the reporting period[20] Explanations by the Board of Directors on "Non-Standard Audit Report" for the Previous Year The company had no explanations regarding "non-standard audit report" for the previous year during the reporting period - The company had no explanations regarding "non-standard audit report" for the previous year during the reporting period[95] Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during the reporting period - The company had no bankruptcy reorganization matters during the reporting period[95] Litigation Matters The company and its subsidiaries face numerous significant lawsuits and arbitrations, involving substantial amounts, with some cases adjudicated or settled, but many still pending, adversely affecting operations - The company and its subsidiaries are involved in multiple significant lawsuits and arbitrations, with amounts ranging from several million to hundreds of millions of yuan[96][97][98][99][100][101][102][103][104][105][106][107][108] - Some cases have been finally adjudicated, with the company ordered to bear joint and several liability or pay sums, and some cases are under enforcement[96][97][98][99][100][101][102][103][104][105][106][107][108] - Some cases have reached civil settlement agreements and are currently being executed[96][97][98][99][100][101][102][103][104][105][106][107][108] - Some cases are still pending and have not yet resulted in a judgment[96][97][98][99][100][101][102][103][104][105][106][107][108] Media Scrutiny The company had no widespread media scrutiny during the reporting period - The company had no widespread media scrutiny during the reporting period[110] Penalties and Rectifications The company and several directors, supervisors, and senior management personnel face CSRC investigation and proposed warnings/fines for non-disclosure of related party transactions, external guarantees, and contingent liabilities, with the former actual controller banned for life - The company was investigated by the China Securities Regulatory Commission (CSRC) for failing to disclose related party transactions with the actual controller in periodic reports, failing to timely disclose and not disclosing external guarantees in periodic reports, and failing to disclose contingent liabilities in periodic reports; it is proposed to be ordered to rectify, given a warning, and fined 0.6 million yuan[112] - The former actual controller, Yan Jinggang, was warned, fined 0.6 million yuan, and banned from the securities market for life due to similar violations[112] - Several directors, supervisors, senior management personnel, and other relevant individuals were warned and fined varying amounts for similar violations[112][113] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[114] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[114] Major Related Party Transactions The company had no related party transactions concerning daily operations, asset/equity acquisition/disposal, joint external investments, or other major related party transactions - The company had no related party transactions related to daily operations during the reporting period[115] - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[116] - The company had no related party transactions involving joint external investment during the reporting period[117] - The company had no other major related party transactions during the reporting period[119] Non-Operating Funds Occupied by Controlling Shareholder and its Related Parties from the Listed Company The company had no non-operating funds occupied by its controlling shareholder and related parties during the reporting period - The company had no non-operating funds occupied by its controlling shareholder and its related parties from the listed company during the reporting period[120] Major Contracts and Their Performance The company had no entrustment, contracting, leasing, or wealth management; it and its subsidiaries have multiple external guarantees, primarily for subsidiaries, totaling 73.23% of net assets, with some for Jiangsu Zhihang New Energy potentially incurring joint liability - The company had no entrustment, contracting, leasing, or wealth management situations during the reporting period[121][122][123][130] External Guarantees by the Company and its Subsidiaries (Guarantees for Subsidiaries) | Guarantor Name | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Zhihang New Energy Co., Ltd. | 200 | 200 | Joint and several liability guarantee | Two years from the maturity date of the main contract's principal debt or two years from the date the lessor repossesses the leased item early according to the main contract | No | | Jiangsu Zhihang New Energy Co., Ltd. | 59 | 59 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | No | | Jiangsu Zhihang New Energy Co., Ltd. | 100 | 100 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | Yes | | Zhejiang Unifull Technology Industrial Co., Ltd. | 60 | 60 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | Yes | | Jiangsu Zhihang New Energy Co., Ltd. | 49 | 0 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | No | | Jiangsu Zhihang New Energy Co., Ltd. | 97 | 97 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | No | | Jiangsu Zhihang New Energy Co., Ltd. | 3 | 3 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | No | | Zhejiang Unifull Technology Industrial Co., Ltd. | 60 | 60 | Joint and several liability guarantee | From the date of signing the guarantee contract until two years from the maturity date of all debts under the main contract | No | - As of the end of the reporting period, the total approved guarantee amount for subsidiaries was 468 million yuan, with an actual guarantee balance of 419 million yuan[125][126] - The company's total guarantee amount (i.e., A4+B4+C4) accounted for 73.23% of the company's net assets[127] - The company provided a guarantee for Zhihang New Energy's loan from Guangdong Yichuang Hengjian Financial Leasing Co., Ltd., for which arbitration has been initiated but not yet heard[128] - The company provided a guarantee for Zhihang New Energy's loan from Shanghai Pudong Development Bank Co., Ltd. Taizhou Branch, and the first-instance judgment ruled that the company bears joint and several liability for Zhihang New Energy's debt[129] Social Responsibility The company prioritizes environmental protection, ensuring compliance and no pollution incidents, but has not yet initiated targeted poverty alleviation efforts or planned future actions - The company highly values environmental protection, ensures pollutant discharge meets standards, and has not experienced any environmental pollution incidents or administrative penalties[132] - The company has not yet carried out targeted poverty alleviation work during the semi-annual reporting period and has no subsequent targeted poverty alleviation plans[133] Explanation of Other Significant Matters Controlling shareholder Unifull Holdings experienced passive share reductions due to forced liquidation of 7.998 million shares, with 2,402 shares remaining unliquidated, not expected to significantly impact stock trading - The company's controlling shareholder, Unifull Holdings, experienced passive share reductions due to forced liquidation of some company shares pledged to China Post Securities Co., Ltd[134] - As of the disclosure date of this report, China Post Securities Co., Ltd. has cumulatively forcibly liquidated 7,997,598 shares of the company's stock, with 2,402 shares remaining unliquidated[134] - The remaining unliquidated shares are not expected to have a significant impact on the company's stock trading[134] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[135] Share Changes and Shareholder Information This section details the increase in total shares due to capital reserve conversion and changes in restricted shares, along with shareholder numbers, top ten shareholdings, related party relationships, and controlling shareholder's pledged/frozen shares Share Change Status Total share capital increased from 398.15 million to 437.97 million shares due to the 2019 equity distribution, impacting H1 2020 EPS and net assets per share; restricted shares, mainly executive lock-up shares, also increased - The company's 2019 annual equity distribution plan was to convert capital reserves into 1.000000 share for every 10 shares based on the company's existing total share capital of 398,154,658 shares[138] Changes in Total Share Capital | Number of Shares Before Change (shares) | Number of Shares After Change (shares) | | :--- | :--- | | 398,154,658 | 437,970,123 | - After the share change, basic earnings per share for H1 2020 increased by 0.0225 yuan, diluted earnings per share increased by 0.0225 yuan, and net assets per share attributable to shareholders decreased by 0.1618 yuan[139] - Restricted shares are primarily high-level executive restricted shares, with an increase of 87,930 restricted shares in this period, bringing the total restricted shares at period-end to 967,234 shares[138][141] Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[52] Number of Shareholders and Shareholding Status At period-end, common shareholders totaled 9,400; controlling shareholder Huzhou Unifull Holdings held 27.79% of shares, all pledged and frozen, while Shanghai Yaokou held 17.13%, with some shareholders having related party or concerted action relationships - The total number of common shareholders at the end of the reporting period was 9,400[143] Shareholding of Common Shareholders Holding 5% or More or Top 10 Common Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Common Shares Held at Period-End | Pledge or Freeze Status (Share Status) | Pledged or Frozen Amount | | :--- | :--- | :--- | :--- | :--- | :--- | | Huzhou Unifull Holdings Co., Ltd. | Domestic Non-State-Owned Legal Person | 27.79% | 121,717,682 | Pledged | 121,715,000 | | | | | | Frozen | 121,717,682 | | Shanghai Yaokou Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 17.13% | 75,030,285 | | | | Jiayuan Co., Ltd. | Overseas Legal Person | 7.22% | 31,625,880 | Pledged | 30,613,000 | | Zhongrong International Trust Co., Ltd. - Zhongrong - Zhengying No. 130 Collective Fund Trust Plan | Other | 6.99% | 30,613,000 | | | | Huaxin International Trust Co., Ltd. - Huaxin Trust · Xinhui No. 2 Collective Fund Trust Plan | Other | 4.22% | 18,497,204 | | | | Yunnan International Trust Co., Ltd. - Shengjin No. 43 Collective Fund Trust Plan | Other | 3.68% | 16,122,486 | | | | AVIC Trust Co., Ltd. - AVIC Trust · Tianshun [2019] No. 22 Shanghai Yaokou Investment Single Fund Trust | Other | 2.17% | 9,494,380 | | | | Tibet Boen Asset Management Co., Ltd. - Boen Guanghua Phase VI Private Securities Investment Fund | Other | 0.48% | 2,110,000 | | | | Zheng Wanwan | Domestic Natural Person | 0.43% | 1,902,780 | | | | Xu Jianxin | Domestic Natural Person | 0.39% | 1,724,580 | | | - Yunnan International Trust Co., Ltd. - Shengjin No. 43 Collective Fund Trust Plan was established by Mr. Zhou Fazhang; Shanghai Yaokou Enterprise Management Center (Limited Partnership), Zhongrong International Trust Co., Ltd. - Zhongrong - Zhengying No. 130 Collective Fund Trust Plan, and AVIC Trust Co., Ltd. - AVIC Trust · Tianshun [2019] No. 22 Shanghai Yaokou Investment Single Fund Trust are parties acting in concert[144][145][146] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller did not change during the reporting period - The company's controlling shareholder did not change during the reporting period[147] - The company's actual controller did not change during the reporting period[147] Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[150] Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[153] Directors, Supervisors, and Senior Management This section discloses changes in shareholdings of directors, supervisors, and senior management, primarily due to capital reserve conversion, with no personnel changes during the reporting period Changes in Shareholdings of Directors, Supervisors, and Senior Management Shareholdings of directors, supervisors, and senior management increased due to capital reserve conversion, with Vice Chairman and Co-President Weng Zhonghua's stake rising by 112,180 shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Weng Zhonghua | Vice Chairman and Co-President | 1,121,800 | 112,180 | 1,233,980 | | Meng Xiangong | Deputy General Manager | 5,906 | 591 | 6,497 | | Lv Bin | CFO (Resigned) | 28,700 | 2,870 | 31,570 | | Lai Jianqing | Board Secretary and Deputy General Manager (Resigned) | 16,000 | 1,600 | 17,600 | Changes in the Company's Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[156] Corporate Bonds The company has no publicly issued and listed corporate bonds that are either not yet due or have not been fully redeemed as of the semi-annual report approval date - The company has no publicly issued and listed corporate bonds that are either not yet due or have not been fully redeemed as of the approval date of the semi-annual report[159] Financial Report This section includes the company's unaudited consolidated and parent company financial statements, covering balance sheets, income statements, cash flows, and equity changes, along with detailed disclosures on company basics, accounting policies, taxation, financial statement notes, consolidation scope, interests in other entities, financial instrument risks, fair value, related parties, commitments, post-balance sheet events, other significant matters, and supplementary information Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[161] Financial Statements This section presents the company's H1 2020 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, illustrating financial position and operating results Consolidated Balance Sheet (June 30, 2020) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 5,813,951,710.75 | | Total Liabilities | 5,105,230,929.58 | | Total Owners' Equity Attributable to Parent Company | 708,709,364.18 | Consolidated Income Statement (H1 2020) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 1,316,827,391.19 | | Total Operating Costs | 1,404,808,758.85 | | Operating Profit | -79,828,540.80 | | Net Profit | -98,362,731.97 | | Net Profit Attributable to Parent Company Owners | -98,428,599.47 | | Basic Earnings Per Share | -0.2247 | Consolidated Cash Flow Statement (H1 2020) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 89,570,868.23 | | Net Cash Flow from Investing Activities | -46,498,139.93 | | Net Cash Flow from Financing Activities | -126,081,348.14 | | Net Increase in Cash and Cash Equivalents | -82,446,590.42 | Company Basic Information Zhejiang Unifull High-Performance Fiber Co., Ltd., listed in 2010, specializes in differentiated polyester fiber, industrial fabrics, and energy technology; it now has no actual controller, consolidating 15 subsidiaries - The company's shares were listed and traded on the Shenzhen Stock Exchange on June 8, 2010[202] - The company's business scope includes the production and sales of differentiated FDY polyester fiber, special industrial fabrics, polyester tapes, and ceiling films, sales of purified terephthalic acid and ethylene glycol, and technical development, consulting, and services for energy technology[202] - The company's actual controller has changed to no actual controller[204] - The company's consolidation scope for 2020 includes 15 subsidiaries[205] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to accounting standards and CSRC regulations, using accrual accounting and historical cost, with an assessment of its going concern ability - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and "Reporting Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission, based on actual transactions and events[207] - The company's accounting is based on the accrual basis, and except for certain financial instruments, these financial statements are measured at historical cost[207] - The company's management has assessed the company's ability to continue as a going concern for at least 12 months from the end of the reporting period and believes there are no matters or circumstances that could cause significant doubt about its ability to continue as a going concern[208] Significant Accounting Policies and Estimates This section details significant accounting policies and estimates, including business combinations, financial instruments, assets, revenue recognition, and deferred tax, noting the adoption of new revenue standards from January 1, 2020, and related adjustments - The company adopted new revenue standards from January 1, 2020, and adjusted relevant items in the opening balance sheet[309][310] Consolidated Balance Sheet Adjustment (January 1, 2020) | Item | December 31, 2019 (yuan) | January 1, 2020 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Advance Receipts | 123,930,189.00 | 0 | -123,930,189.00 | | Contract Liabilities | 0 | 123,930,189.00 | 123,930,189.00 | Parent Company Balance Sheet Adjustment (January 1, 2020) | Item | December 31, 2019 (yuan) | January 1, 2020 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Advance Receipts | 12,625,043.92 | 0 | -12,625,043.92 | | Contract Liabilities | 0 | 12,625,043.92 | 12,625,043.92 | - The company primarily sells polyester industrial filament, cord fabric, canvas, new energy vehicle lithium batteries, and other goods; revenue recognition policies have been adjusted according to the new revenue standards[295] - The recognition method for financial asset impairment provisions is based on expected credit losses, using general or simplified methods, and considering all reasonable and evidence-based information, including forward-looking information[239][241] Fixed Asset Depreciation Methods | Category | Depreciation Method | Depreciation Period | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 20 years | 5% | 4.75% | | Machinery and Equipment | Straight-line method | 5, 10 years | 5% | 9.50%, 19.00% | Intangible Asset Amortization Methods | Item | Useful Life | Amortization Method | | :--- | :--- | :--- | | Land Use Rights | Based on remaining usable years at acquisition | Straight-line amortization | | Patent Rights | 5 years | Straight-line amortization | | Emission Rights | 3 years | Straight-line amortization | | Software | 10 years | Straight-line amortization | Taxation This section lists the company's main tax types and rates, including VAT, urban maintenance tax, corporate income tax, property tax, and land use tax, noting preferential rates for high-tech subsidiaries and consumption tax exemption for some battery products Main Tax Categories and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods or provision of taxable services | 13%, 9%, 6%, 0% (Export tax refund rate 13%) | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Enterprise Income Tax | Taxable income | 25%, 15%, 8.25% | | Property Tax | Based on value/rent | 1.2%/12% | | Land Use Tax | Actual occupied land area | 8 yuan/sqm/year, 5 yuan/sqm/year | - The company, Zhejiang Unifull Technology Industrial Co., Ltd., and Jiangsu Zhihang New Energy Co., Ltd. enjoy a preferential enterprise income tax rate of 15% as high-tech enterprises[319][320][321] - Jiangsu Zhihang New Energy Co., Ltd. is exempt from consumption tax for some battery products[321] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including assets, liabilities, and equity, with period-end and opening balances, changes, and explanations for each account - Period-end monetary funds amounted to 276,132,612.28 yuan, of which 113,880,303.15 yuan was frozen due to pending lawsuits[323][324] - Accounts receivable period-end balance was 1,450,402,761.04 yuan, with bad debt provision of 670,212,955.58 yuan; major customers include Taizhou Yingtai Lithium Battery Technology Co., Ltd. and Yantai Shuchi Bus Co., Ltd[341][358] - Inventory period-end book value was 254,642,163.65 yuan, with inventory impairment provision of 24,265,308.23 yuan[390] - Long-term equity investment period-end book value was 105,839,164.82 yuan, primarily an investment in associate Wuhan Zhongyu Power System Technology Co., Ltd[413] - Fixed assets period-end book value was 1,731,246,422.69 yuan, of which buildings with a net value of 105.3688 million yuan and machinery with a net value of 195.0930 million yuan were pledged for some short-term borrowings and bank acceptance bills, and machinery with a net value of 279.3298 million yuan was pledged for long-term payables[423][431] - Construction in progress period-end book value was 378,942,252.23 yuan, mainly including the ceiling film project and the third-phase high-performance lithium-ion battery production project[437] - Short-term borrowings period-end balance was 1,827,157,044.48 yuan, of which 818,691,927.47 yuan was overdue and unpaid[470][475] - Long-term borrowings period-end balance was 516,000,000.00 yuan, including pledged borrowings of 1,119,000,000.00 yuan[510] - Accounts payable period-end balance was 818,453,768.89 yuan, primarily for material costs, engineering costs, and equipment costs[481] - Share capital increased by 39,815,465.00 yuan due to the 2019 annual equity distribution plan converting capital reserves into share capital, with period-end share capital of 437,970,123.00 yuan[534] Changes in Consolidation Scope The company had no business combinations under non-common control, common control, or reverse acquisitions, nor any disposals leading to loss of control over subsidiaries during the reporting period - There were no business combinations under non-common control in this period[590] - There were no business combinations under common control in this period[595] - The company had no transactions involving step-by-step achievement of business combinations through multiple transactions and obtaining control during the reporting period[593] - The company had no single disposal of investment in subsidiaries resulting in loss of control[598] - The company had no step-by-step disposal of investment in subsidiaries through multiple transactions resulting in loss of control during this period[598] Interests in Other Entities This section lists the company's interests in 15 subsidiaries and associate Wuhan Zhongyu Power System Technology Co., Ltd., with the latter accounted for by the equity method, showing a 105.84 million yuan book value and a -16.98 million yuan net loss - The company has 15 subsidiaries, including Zhejiang Unifull Technology Industrial Co., Ltd. and Jiangsu Zhihang New Energy Co., Ltd[599] - Huzhou Nanxun Taihe Paper Co., Ltd. is a significant non-wholly-owned subsidiary, with a minority shareholder stake of 30.00% and net profit attributable to minority shareholders of 65,867.50 yuan for this period[601] - The company holds a 25.00% stake in associate Wuhan Zhongyu Power System Technology Co., Ltd. and accounts for it using the equity method[604] Key Financial Information of Wuhan Zhongyu Power System Technology Co., Ltd. (June 30, 2020) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 188,285,969.18 | | Total Liabilities | 95,161,291.81 | | Equity Attributable to Parent Company Shareholders | 92,577,437.86 | | Book Value of Equity Investment in Joint Ventures | 105,839,164.82 | | Net Profit | -16,982,546.11 | Risks Related to Financial Instruments The company manages market, credit, and liquidity risks through floating-rate borrowings, credit policies, and monitoring cash and cash equivalents - The company's foreign exchange risk is primarily related to foreign currencies such as the US dollar and Euro, but its impact on the company's operating performance is relatively small[612] - The company's risk of changes in financial instrument cash flows due to interest rate fluctuations is primarily related to floating-rate bank borrowings[613] - The company has established appropriate credit policies and continuously monitors its exposure to these credit risks[614] - The company manages liquidity risk by maintaining and monitoring cash and cash equivalents that management deems sufficient to meet the company's operating needs and mitigate the impact of cash flow fluctuations[614] Fair Value Disclosure This section discloses period-end fair values for assets and liabilities measured at fair value, with notes receivable financing valued at face amount - The fair value of notes receivable financing at period-end was 148,211,568.35 yuan[616] - Notes receivable financing uses its face amount as fair value because its remaining term is short, and its book value is close to its fair value[617] Related Parties and Related Party Transactions This section details related parties, including the 27.79% stake held by controlling shareholder Huzhou Unifull Holdings, the change to no actual controller, and various related party guarantees and borrowings, notably a 200 million yuan loan from Zhongrong International Trust - The parent company, Huzhou Unifull Holdings Co., Ltd., holds a 27.79% stake in the company[620] - The ultimate controlling party of the company is no actual controller[622] - Other related parties include Beijing Aerospace Zhirong Technology Center (Limited Partnership), Shanghai Yaokou Enterprise Management Center (Limited Partnership), and Zhongrong International Trust Co., Ltd[623] - The company, as guarantor, provides multiple guarantees for its subsidiaries Zhejiang Unifull Technology Industrial Co., Ltd. and Jiangsu Zhihang New Energy Co., Ltd[629][631] - The company, as guarantee recipient, receives multiple guarantees from Huzhou Unifull Holdings Co., Ltd., Yan Jinggang, Shanghai Zhongji Enterprise Group Co., Ltd., Jiangsu Zhihang New Energy Co., Ltd., and others[632][633] - Zhongrong International Trust Co., Ltd. lent 200,000,000.00 yuan to the company, with a start date of September 25, 2019, and a maturity date of September 25, 2020[635] - At period-end, accounts receivable from Shanghai Yaokou Enterprise Management Center (Limited Partnership) for restructuring amounted to 684,300,996.55 yuan[641] Share-Based Payment The company had no overall, equity-settled, or cash-settled share-based payment, nor any modifications or terminations of share-based payment during the reporting period - The company had no overall share-based payment situation, equity-settled share-based payment, cash-settled share-based payment, or modifications/terminations of share-based payment during the reporting period[114] Commitments and Contingencies The company faces multiple pending and adjudicated lawsuits and arbitrations, involving contingent liabilities, with some resulting in adverse judgments and joint liability, though the company disputes some claims; no significant contingent matters require disclosure at period-end - The company has multiple pending lawsuits and arbitrations, including contingent borrowings and contingent bills, with the company losing in the first instance in some cases[644][645] - In adjudicated lawsuits and arbitrations, the company lost in multiple loan and factoring contract disputes and was ordered to bear joint and several liability[646][647][648] - The company believes that some borrowing and guarantee matters conducted in its name were not subject to internal review procedures and are unrelated to the company[648][649] - The company had no significant contingent matters requiring disclosure[650] Post-Balance Sheet Events This section discloses no significant non-adjusting events, profit distribution, or sales returns after the balance sheet date - The company had no significant non-adjusting events, profit distribution, or sales returns after the balance sheet date[652][653] Other Significant Matters This section covers debt restructuring, segment information, judicial freezing of controlling shareholder shares (121.72 million shares), litigation progress, bank account unfreezing, debt restructuring agreement status, and unfulfilled performance commitments, with some subsidiary assets ordered for appraisal and auction - In January 2020, Jiangsu Zhihang New Energy Co., Ltd., Shenzhen Lianchang Electronics Co., Ltd., and Zhou Fazhang signed a supplementary repayment agreement, where Zhihang New Energy offered a 30% discount on the remaining payment to Shenzhen Lianchang; after the discount, Shenzhen Lianchang still owed 1.44 million yuan, with a bad debt provision of 1.16 million yuan recognized at period-end, 1.4 million yuan to be repaid by Zhou Fazhang on behalf, and the remainder by Shenzhen Lianchang[656] - The company's business operations are divided into three reporting segments: polyester industrial yarn, industrial textiles, and lithium batteries[658] - The company's controlling shareholder, Huzhou Unifull Holdings Co., Ltd., has 121,717,682 shares frozen, representing a 27.79% stake[662] - The company and its subsidiaries are involved in numerous pending and adjudicated litigation matters, including demands for deposit refunds, payment for goods, and bearing joint and several liability[663][664][665][666][667][668][669][670][671][672][673][674][675][676][677][678][679] - As of the date of issuance of these financial statements, the company had 71 bank accounts frozen, and 5 bank accounts were unfrozen on July 7, 2020[680][681] - The "Debt and Equity Restructuring Agreement" signed with Shanghai Yaokou Enterprise Management Center (Limited Partnership) has been partially unfulfilled, with 469 million yuan in contingent liabilities unresolved, of which 170 million yuan resulted in the company losing in final judgment[682][683] - Zhou Fazhang failed to meet the performance commitment for Jiangsu Zhihang New Energy, with a total compensation of 1,009.8 million yuan due; 279.41 million yuan has been paid, and the company has initiated arbitration for the remaining amount[686][687] - The houses, state-owned land use rights, and ma