KINGENTA(SZ:002470)2020-08-26 16:00Financial Performance - Kingenta reported a significant financial challenge with an audit report indicating an inability to express an opinion on the 2019 financial statements due to substantial transactions with related parties[5]. - The company plans not to distribute cash dividends or issue bonus shares for the current fiscal year[7]. - The company's operating revenue for the first half of 2020 was ¥5,586,362,029.75, a decrease of 28.17% compared to the same period last year[19]. - The net profit attributable to shareholders was ¥31,519,029.36, down 92.66% year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥12,535,381.52, a decline of 96.88% compared to the previous year[19]. - The net cash flow from operating activities was -¥472,878,919.05, an improvement of 11.10% from -¥531,899,515.76 in the previous year[19]. - Total assets at the end of the reporting period were ¥21,599,126,892.86, a decrease of 5.27% from the end of the previous year[19]. - The company's total equity attributable to shareholders increased by 0.45% to ¥9,781,938,865.29 compared to the end of the previous year[19]. - The company achieved a revenue of ¥5,586,362,029.75, a decrease of 28.17% compared to the previous year due to the impact of the COVID-19 pandemic[40]. - The total operating revenue for the first half of 2020 was CNY 5,586,362,029.75, a decrease of 28.17% compared to CNY 7,776,974,765.65 in the same period last year[47]. - The operating cost decreased by 29.39% to CNY 4,167,327,692.08 from CNY 5,901,957,092.19 year-on-year[48]. - Research and development expenses were reduced by 51.98% to CNY 73,604,568.69 from CNY 153,269,674.29 in the previous year[48]. - The company reported a significant increase in cash flow from financing activities, which rose by 5,237.94% to CNY 813,717,296.78 from CNY 15,244,028.13 in the previous year[48]. - The company reported a total cash inflow from operating activities of 12,657,803.80 CNY, slightly down from 13,325,597.57 CNY in the previous year[167]. Governance and Compliance - Kingenta's management has committed to ensuring the accuracy and completeness of the financial report, emphasizing accountability[5]. - The board of directors and supervisory board have confirmed their attendance at the meeting discussing the report, indicating governance transparency[5]. - The company is currently addressing previous financial reporting issues, which may lead to adjustments in accounting entries[5]. - The company has not disclosed specific user data or performance metrics in the provided content, focusing instead on governance and financial integrity[5]. - The company is actively verifying its financial transactions with Nobefeng and enhancing internal controls to mitigate risks[81]. - The company aims to improve supplier credit assessments and strengthen internal approval processes for significant agreements and payments[81]. - The board will continue to monitor and supervise management's actions to resolve the issues affecting the audit opinion[81]. - The company will conduct a comprehensive self-examination of its relationships with related parties according to the Shenzhen Stock Exchange listing rules[82]. - The finance department is required to strengthen training on the Accounting Standards for Enterprises and ensure compliance, including verifying trade income without actual logistics from previous years[82]. - The board will organize a thorough review of internal controls across various operational areas, including financial reporting and internal auditing[83]. - The company received a warning letter for failing to timely disclose performance forecasts and for discrepancies in reported operating performance for 2019 compared to 2018[87]. Market and Strategic Developments - Kingenta's future plans and strategic developments are subject to market risks, which investors should be aware of[6]. - The company aims to enhance agricultural services through the establishment of Shandong Tiancheng Agricultural Co., Ltd., providing integrated services from planting to sales[31]. - The company has established production bases across multiple provinces, covering over 100 types of fertilizer products[28]. - The company is focused on developing functional compound fertilizers and has initiated research on resource-efficient applications in response to regional climate and soil conditions[42]. - The company aims to enhance agricultural sustainability by promoting reduced fertilizer usage and ecological agriculture practices[42]. - The company has established long-term cooperative relationships with over 40 universities and research institutions for innovative fertilizer development[33]. - The company emphasizes a "customer value creation" service philosophy, enhancing its service marketing strategy to better meet customer needs[36]. - The company plans to enhance inventory management and reduce raw material stock to mitigate risks associated with price volatility, while also implementing a pricing strategy based on actual market conditions[67]. - The company plans to expand its market presence and invest in new product development to drive future growth[176]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[107]. - The total emissions of SO2 from the company were 1.59 tons, with a concentration of 2.54 mg/m³, well below the standard of 50 mg/m³[107]. - The company reported a total of 0.511 tons of NOX emissions, with a concentration of 1.85 mg/m³, also below the standard of 100 mg/m³[107]. - The company maintained compliance with pollution discharge standards across various emission points[107]. - The company has successfully implemented environmental protection facilities in accordance with the Environmental Impact Assessment Law and has passed the necessary evaluations[111]. - All existing construction projects have received environmental impact assessment approvals from local environmental protection bureaus[112]. - The company has established emergency response plans for environmental incidents, which have been reviewed and filed by environmental authorities[113]. - Regular monitoring of "three wastes" (wastewater, waste gas, and solid waste) is conducted by third-party agencies to ensure compliance with environmental regulations[114]. - The company has committed to transparency by publicly displaying monitoring data within the factory premises[114]. Shareholder Information - The total number of shares is 3,286,027,742, with 449,470,412 shares subject to restrictions, accounting for 13.68% of the total[123]. - The unrestricted shares amount to 2,836,557,330, representing 86.32% of the total shares[123]. - The company has not reported any changes in shareholding structure or significant shareholder movements during the period[123]. - The largest shareholder, Linyi Jinzhen Investment Holding Co., Ltd., holds 34.99% of the shares, totaling 1,149,661,529 shares[127]. - Wan Lianbu, a natural person, holds 18.04% of the shares, amounting to 592,743,874 shares[127]. - The company has not disclosed any impact of share changes on earnings per share or net asset value per share[123]. - The total number of common shareholders at the end of the reporting period was 76,668[126]. Related Party Transactions - The total amount of related party transactions for the first half of 2020 was disclosed, indicating ongoing operational relationships[91]. - The company emphasized fair market pricing in all related party transactions, ensuring compliance with regulatory standards[90]. - The company plans to continue monitoring and reporting on related party transactions to maintain transparency and accountability[91]. - Future transactions are expected to align with market conditions and regulatory approvals to optimize operational efficiency[90]. Subsidiaries and Investments - The company has established several new subsidiaries during the reporting period, which had no significant impact on overall operations and performance[65]. - The company has lost control over multiple subsidiaries, including Hubei Wolfte Ecological Engineering Co., Ltd. and Jinfeng Agricultural Service Co., Ltd., but these changes have no significant impact on overall production and performance[66]. - The subsidiary Anhui Jinzhengda reported a net profit of CNY 7,709,068.54 with an operating income of CNY 198,753,283.57[65]. - Yunnan Zhongzhenghua reported a net profit of CNY 14,696,244.96 with an operating income of CNY 255,723,717.79[65]. - The subsidiary Guangdong Jinzhengda reported a net profit of CNY 6,888,820.85 with an operating income of CNY 129,426,616.19[65]. - The subsidiary Xinjiang Puhuinong reported a net profit of CNY 9,271,007.55 with an operating income of CNY 88,617,517.24[65]. - The subsidiary Jinzhengda Nuotai reported a net loss of CNY 71,378,083.57 with an operating income of CNY 927,597,002.81[65]. Financial Position and Assets - The company's current assets totaled CNY 12,459,211,320.15, down from CNY 13,537,744,257.86 at the end of 2019, indicating a decline of approximately 7.95%[148]. - Cash and cash equivalents decreased to CNY 1,184,050,349.51 from CNY 1,885,947,791.74, representing a decline of about 37.09%[147]. - Accounts receivable increased significantly to CNY 1,309,056,306.05 from CNY 894,158,576.46, marking an increase of approximately 46.36%[147]. - Inventory decreased to CNY 5,199,167,505.84 from CNY 5,610,569,014.17, reflecting a decline of about 7.31%[148]. - Total liabilities rose to CNY 11,753,173,826.44 from CNY 11,083,601,284.50, indicating an increase of approximately 6.05%[149]. - The company's short-term borrowings increased to CNY 4,103,133,320.09 from CNY 3,114,721,722.20, representing an increase of about 31.73%[149]. - Prepayments increased significantly to CNY 1,639,032,049.78 from CNY 873,080,301.86, marking an increase of approximately 87.67%[149]. - The company reported a total of 3,286,000,000 CNY in common stock at the end of the reporting period[179].