LHM(SZ:002535)2020-07-10 16:00Financial Performance - The company's operating revenue for the first half of 2019 was ¥770,849,024.25, a decrease of 19.68% compared to ¥959,682,573.28 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥5,128,318.22, down 92.22% from ¥65,906,016.60 year-on-year[22]. - The net cash flow from operating activities was ¥27,914,164.91, a significant decline of 93.89% compared to ¥456,633,041.43 in the previous year[22]. - Basic earnings per share decreased to ¥0.0064, down 92.21% from ¥0.0822 in the same period last year[22]. - Total operating revenue for the first half of 2019 was CNY 770,849,024.25, a decrease of 19.6% compared to CNY 959,682,573.28 in the same period of 2018[148]. - Net profit for the first half of 2019 was CNY 6,449,892.34, a significant decline of 90.4% from CNY 67,052,026.81 in the previous year[149]. - The company's total liabilities increased to CNY 3,678,185,174.76, up from CNY 3,585,444,360.75, reflecting a rise of 2.6%[146]. - The total equity of the company as of the end of the first half of 2019 was CNY 2,933,447,835.46, slightly up from CNY 2,922,325,156.32[146]. Revenue Breakdown - Revenue from coal mining machinery and comprehensive services was CNY 447.94 million, an increase of 6.10% year-on-year, with a gross margin of 22.43%[40]. - Revenue from the pig iron business was CNY 291.92 million, a year-on-year decrease of 36.80%, with a gross margin of 0.77%[40]. - The coal machinery and comprehensive services segment contributed RMB 447.94 million, representing 58.11% of total revenue, showing a 6.10% increase year-on-year[46]. - The iron production segment saw a significant decline of 36.80%, generating RMB 291.92 million, down from RMB 461.90 million[46]. Assets and Liabilities - Total assets at the end of the reporting period were ¥7,882,226,415.70, an increase of 4.94% from ¥7,511,443,182.18 at the end of the previous year[22]. - Cash and cash equivalents increased to ¥1,707,552,280, representing 21.66% of total assets, up from 12.43% in the previous year, a significant increase of 9.23%[51]. - Accounts receivable decreased to ¥804,236,795.8, accounting for 10.20% of total assets, down from 11.02%, a decline of 0.82%[51]. - Inventory decreased to ¥667,230,499.2, representing 8.47% of total assets, down from 11.17%, a reduction of 2.70% due to a decrease in raw material inventory[51]. - Total liabilities rose to CNY 5,068,249,449.54 as of June 30, 2019, compared to CNY 4,703,916,108.36 at the end of 2018, an increase of about 7.75%[141]. Corporate Governance and Risk Management - The company has established a relatively complete and effective corporate governance structure to mitigate management risks[11]. - The company faces risks related to industry fluctuations, management, and raw material price volatility[10][11][12]. - The company has committed to avoiding competition with its own subsidiaries and ensuring that controlled entities do not engage in competing activities[78]. - The company has established a comprehensive governance structure and is committed to improving management practices to adapt to industry changes[73]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[105]. - The company completed upgrades to pollution control facilities, ensuring particulate matter concentration is below 20 mg/Nm3 and sulfur dioxide concentration is below 50 mg/Nm3[105]. - The company has implemented stringent emission standards, with limits set for particulate matter at 20 mg/m³ for various processes, and nitrogen oxides capped at 300 mg/m³[110]. - The company has achieved a significant reduction of approximately 200 tons of unorganized particulate emissions annually through environmental upgrades at the blast furnace tapping area[106]. - The company has established an emergency response plan for environmental incidents, ensuring timely communication and evacuation procedures in case of fire hazards[107]. Investment and Capital Allocation - The company plans to invest in projects such as "Industrial Robot Industrialization (Phase I)" and "Coal Machine Equipment Technology Upgrade and Transformation" with allocated funds of ¥10,191 million and ¥33,845.50 million respectively[57]. - The company aims to enhance the efficiency of fund utilization and reduce financial costs by reallocating raised funds[61]. - The company has not made any significant equity or non-equity investments during the reporting period[53][54]. - The company has signed a tripartite supervision agreement for the commercial factoring project with its subsidiary, which is responsible for implementation[62]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 58,296[123]. - The largest shareholder, Guo Xiansheng, holds 29.81% of the shares, amounting to 238,970,614 ordinary shares[123]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[125]. - The company did not issue any preferred shares during the reporting period[128]. Audit and Compliance - The financial report for the first half of 2019 has not been audited[81]. - The company is actively addressing the issues raised in the non-standard audit report from 2018[84]. - The company has received a non-standard audit report with reserved opinions regarding certain receivables[83]. - There were no major litigation or arbitration matters during the reporting period[87]. Research and Development - Research and development expenses were RMB 13.76 million, down 21.43% from RMB 17.51 million, indicating a potential impact on future innovation[44]. - The company has developed over 100 types of hydraulic supports and other mining equipment, with key technical performance indicators at a leading level domestically[36]. Market Expansion - The company has strengthened its market expansion efforts in regions such as Inner Mongolia and Gansu, achieving positive results in sales growth[41]. - The company maintains a stable customer base, including large state-owned coal enterprises and various small and medium-sized coal companies[37].