亚玛顿(002623) - 2019 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, lists the report's structure, and defines key terms for clarity Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report, advising investors to note forward-looking statements and risk factors - The company's Board of Directors, Supervisory Board, and its directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[4] - Forward-looking statements regarding future development plans in this report do not constitute a substantive commitment by the company to investors; investors are advised to note investment risks, detailed in "Section IV Management Discussion and Analysis" under "X. Risks Faced by the Company and Countermeasures"[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[6] Table of Contents This section lists the eleven main chapters of the report and their corresponding starting page numbers, covering various aspects of the company's operations and financials - The report comprises eleven sections, covering important notes, company profile, business overview, operational analysis, significant matters, share changes, preferred shares, directors/supervisors/senior management, corporate bonds, financial reports, and reference documents[8] Definitions This section defines common terms used in the report, including company names, shareholders, subsidiaries, reporting period, and specific product types, to ensure clear understanding Report Period Key Definitions | Definition Item | Definition Content | | :--- | :--- | | The Company, Company, Almaden | Changzhou Almaden Co., Ltd | | Controlling Shareholder, Almaden Technology | Changzhou Almaden Technology Group Co., Ltd | | Actual Controller | Lin Jinxi, Lin Jinhan | | Reporting Period | January 1, 2019 to June 30, 2019 | | PV Anti-Reflective Glass | High-efficiency anti-reflective coated glass, referring to ultra-white glass coated with an anti-reflective film, which enhances light transmittance and increases the overall output power of PV modules; also known as PV AR glass | | BIPV | Building Integrated Photovoltaics, referring to the installation of PV modules on building envelopes to provide electricity, while also serving as functional parts of the building structure; this integrated technology can be widely applied to building shading, curtain walls, roofs, doors, and windows, providing clean and environmentally friendly electricity while meeting conventional lighting and architectural aesthetics | | Ultra-Thin Double-Glass Module | Composed of a cover plate of ≤2.0mm PV anti-reflective glass, a back plate of ≤2.0mm ultra-thin coated glass, with solar cells laminated in between, connected by wires in series/parallel to lead terminals; this module does not require an aluminum frame for fixation | | Ultra-Thin Large-Size Display Glass | Ultra-thin large displays use ≤2mm glass light guide plates and ≤1.1mm glass cover plates; glass processing utilizes the company's unique thin glass physical tempering, large-format full-plate coating, and large-scale automated glass deep processing technology; this product is used in ultra-thin large 42"~90" TFT LCD and OLED screens | Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial performance and position during the reporting period Company Profile This section outlines the company's basic information, including stock ticker, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Almaden | | Stock Code | 002623 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Changzhou Almaden Co., Ltd | | Company's Legal Representative | Lin Jinxi | Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including name, address, phone, fax, and email Board Secretary Contact Information | | Board Secretary | | :--- | :--- | | Name | Liu Qin | | Contact Address | No. 639, Qinglong East Road, Tianning District, Changzhou City, Jiangsu Province | | Phone | 0519-88880015-8301 | | Fax | 0519-88880017 | | Email | lq@czamd.com | Other Information The company's contact information, information disclosure, and document placement locations remained unchanged during the reporting period, consistent with the 2018 annual report - The company's registered address, office address and postal code, website, and email address remained unchanged during the reporting period, as detailed in the 2018 annual report[13] - The name of the information disclosure newspaper selected by the company, the website of the China Securities Regulatory Commission designated for semi-annual reports, and the location for placing the company's semi-annual report remained unchanged during the reporting period, as detailed in the 2018 annual report[15] Key Accounting Data and Financial Indicators During the reporting period, the company experienced a significant decline in revenue and net profit, with a net loss attributable to shareholders, while operating cash flow increased Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 517,240,870.49 | 954,990,844.11 | -45.84% | | Net Profit Attributable to Shareholders of Listed Company | -7,794,333.24 | 18,901,885.37 | -141.24% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -10,392,126.25 | 11,640,979.49 | -189.27% | | Net Cash Flow from Operating Activities | 87,386,266.61 | 71,390,268.12 | 22.41% | | Basic Earnings Per Share (RMB/share) | -0.05 | 0.12 | -141.67% | | Diluted Earnings Per Share (RMB/share) | -0.05 | 0.12 | -141.67% | | Weighted Average Return on Net Assets | -0.35% | 0.88% | -1.23% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | Current Period End (RMB) | Prior Year End (RMB) | Period-End Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,003,490,807.07 | 4,229,345,164.14 | -5.34% | | Net Assets Attributable to Shareholders of Listed Company | 2,208,873,815.49 | 2,216,421,092.52 | -0.34% | Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no differences in net profit and net assets between financial statements prepared under international/overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and Chinese accounting standards during the reporting period[17] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[19] Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled RMB 2,597,793.01, primarily from government subsidies, with no reclassification of non-recurring items as recurring Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off of impairment provisions) | -2,557,882.97 | | Government subsidies recognized in current profit or loss (excluding those closely related to the company's business and enjoyed at fixed or quantitative standards set by the state) | 5,635,138.88 | | Other non-operating income and expenses apart from the above | 20,210.10 | | Less: Income tax impact | 499,673.00 | | Total | 2,597,793.01 | - The company reported no reclassification of non-recurring gains and losses, as defined and listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public – Non-Recurring Gains and Losses," as recurring gains and losses during the reporting period[21] Business Overview The company focuses on new materials and technologies, with core businesses in photovoltaic glass, modules, power plants, and electronic glass, maintaining its primary operations Main Businesses During the Reporting Period The company's main businesses include PV anti-reflective glass, ultra-thin double-glass modules, PV power plants, and electronic glass products, with no significant changes in operations or business model - The company's main products are PV anti-reflective glass, ultra-thin double-glass modules, PV power station business, and electronic glass and display series products, with no significant changes in main business or products during the reporting period[24] - The company's product manufacturing operates on a "production-to-order" model, enhancing profitability through continuous technological innovation and personalized services; the PV power station business adopts a cooperation model with EPC contractors, with ownership of the power station reverting to the company upon completion[24][25] - The company's performance drivers include the controlling shareholder's construction of an ultra-white ultra-thin glass production line (expected to commence operation in Q4 2019) to alleviate raw material supply constraints, and the formation of a "PV + Electronic Glass and Display Devices" dual-industry structure, bringing new profit growth points[26] Significant Changes in Major Assets Equity assets, fixed assets, intangible assets, and construction in progress remained stable, while inventory increased by 28.68%, and a Dubai subsidiary reported a net loss - Equity assets, fixed assets, intangible assets, and construction in progress showed no significant changes during the reporting period[27] - Inventory increased by 28.68% compared to the beginning of the period, primarily due to an increase in raw materials and inventory goods at the end of the period[27] Major Overseas Asset Information | Specific Asset Content | Asset Scale (RMB) | Location | Operating Model | Profit/Loss Status (RMB) | Proportion of Overseas Assets to Company's Net Assets | Significant Impairment Risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Almaden Middle East North Africa Co., Ltd | 126,191,013.26 | Dubai | Production and sales of ultra-thin double-glass modules | -3,799,130.52 | 5.71% | No | Analysis of Core Competencies The company's core strengths lie in its leading technology (AR film, ultra-thin tempered glass), strong brand reputation, efficient management systems, and skilled talent pool - The company possesses leading technological advantages in large-area PV glass anti-reflective films made of nanomaterials, ≤2.0mm ultra-thin physically tempered glass, and ultra-thin double-glass modules, and has been recognized as a National High-Tech Enterprise and a National Torch Program Key High-Tech Enterprise[29][30] - The "Almaden" brand enjoys high recognition and reputation in the industry due to its high-quality products and services, having received numerous honors, which serves as a strong impetus for the company's sustained and stable development[30][31] - The company implements flat management, is certified with ISO9001 and ISO14001 quality and environmental management systems, and has introduced information systems and ERP management systems to achieve efficient management and effective resource allocation[33] - The company boasts a united, capable, proactive, and multidisciplinary management team and specialized technical personnel, laying a reliable human resource foundation for its standardized management, R&D innovation, and stable production[33] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, and future outlook, including key business segments and risk factors Overview In H1 2019, the company's revenue decreased by 45.84% and net profit was a loss of RMB 7.79 million, primarily due to reduced PV installations and a strategic shift from low-margin orders - In the first half of 2019, domestic new PV installations decreased by over 50% compared to the same period last year, with centralized power stations decreasing by 43.3% and distributed PV by 61.7%, significantly impacting the company's operating performance[36] H1 2019 Key Operating Performance | Indicator | Amount (RMB 10,000) | YoY Decrease (%) | | :--- | :--- | :--- | | Operating Revenue | 51,724.09 | 45.84% | | Operating Profit | -1,060.25 | 152.97% | | Net Profit Attributable to Shareholders of Listed Company | -779.43 | 141.24% | - The decline in the company's performance was mainly due to insufficient capacity utilization in Q1 leading to operating losses, and the impact of the "531 PV New Policy" last year, which led the company to reduce sales orders for modules with lower gross margins and longer collection periods, resulting in a significant decrease in module product sales[36] - In the second half of 2019, management will further expand domestic and international markets for PV anti-reflective glass and ultra-thin double-glass modules; continue to sell self-built and held PV power stations to reduce debt and generate cash flow; and vigorously promote market expansion for electronic glass and display series products, transitioning from a "product design manufacturer" to a "solution provider"[37] Main Business Analysis Main business revenue declined by 45.84% due to PV policy impacts and reduced module sales, while solar glass revenue grew 9.07% and international market revenue increased 87.53% Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 517,240,870.49 | 954,990,844.11 | -45.84% | Insufficient capacity utilization, PV new policy impacted module sales volume | | Operating Cost | 446,519,245.39 | 825,181,091.37 | -45.89% | Decrease in product sales scale | | Selling Expenses | 14,483,887.48 | 22,279,131.45 | -34.99% | Decrease in sales volume, significant reduction in corresponding transportation costs | | Financial Expenses | 30,522,357.97 | 40,219,051.91 | -24.11% | Decrease in total borrowings in current period led to reduced interest expenses | | Income Tax Expense | -4,040,710.86 | 157,700.78 | -2,662.26% | Decrease in total profit during the reporting period | | Net Cash Flow from Investment Activities | 64,614,523.79 | -213,659,521.60 | 130.24% | Received partial compensation for government expropriation of company land use rights and above-ground buildings, proceeds from disposal of power station equity, and reduced fixed asset investment | | Net Cash Flow from Financing Activities | -270,059,819.00 | 55,670,507.51 | -585.10% | Decrease in company's borrowing scale compared to the same period last year due to power station sales | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | By Industry | New Energy | 504,484,166.52 | 97.53% | -46.61% | | | Electronic Glass and Display Devices Industry | 9,514,770.85 | 1.84% | N/A | | By Product | Solar Glass | 303,763,249.30 | 58.73% | 9.07% | | | Solar Modules | 118,288,695.65 | 22.87% | -78.82% | | | Electricity Sales | 82,432,221.57 | 15.94% | -23.57% | | | Electronic Glass and Display Devices | 9,514,770.85 | 1.84% | N/A | | By Region | Domestic | 442,353,297.53 | 85.52% | -51.66% | | | International | 74,887,572.96 | 14.48% | 87.53% | - During the reporting period, the company's solar module operating revenue, operating cost, and gross margin decreased by 78.82%, 77.33%, and 6.43% respectively compared to the same period last year, primarily due to the "531 PV New Policy" which led to a significant drop in module product prices, the company's reduction of sales orders for modules with lower gross margins and longer collection periods, and higher fixed cost allocation due to insufficient capacity utilization[43] Non-Core Business Analysis Non-core operations, including negative investment income and positive asset impairment (bad debt provision reduction), impacted total profit but are not sustainable Impact of Non-Core Business on Total Profit | Item | Amount (RMB) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -2,152,300.98 | 21.39% | Primarily due to investment losses from long-term equity investments during the reporting period | No | | Asset Impairment | 7,383,558.81 | -73.37% | Primarily due to a reduction in bad debt provisions from the recovery of accounts receivable | No | | Non-Operating Income | 576,359.24 | -5.73% | | No | | Non-Operating Expenses | 37,149.14 | -0.37% | | No | Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders decreased, with notable changes in cash, inventory, and borrowings, while a significant portion of assets remains restricted Significant Changes in Asset Composition | Item | Current Period End (RMB) | Proportion of Total Assets (%) | Prior Year Period End (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 470,949,643.94 | 11.76% | 822,178,931.40 | 15.65% | -3.89% | | Accounts Receivable | 620,491,531.41 | 15.50% | 563,983,647.53 | 10.74% | 4.76% | | Inventory | 169,799,403.06 | 4.24% | 305,773,214.87 | 5.82% | -1.58% | | Long-Term Equity Investments | 18,445,668.43 | 0.46% | 0.00 | 0.00% | 0.46% | | Fixed Assets | 1,928,038,042.77 | 48.16% | 2,289,737,733.39 | 43.60% | 4.56% | | Construction in Progress | 58,029,767.91 | 1.45% | 272,357,468.48 | 5.19% | -3.74% | | Short-Term Borrowings | 454,247,240.00 | 11.35% | 796,316,200.00 | 15.16% | -3.81% | | Long-Term Borrowings | 158,000,000.00 | 3.95% | 378,000,000.00 | 7.20% | -3.25% | Asset Rights Restricted as of Reporting Period End | Item | Book Value at Period End (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 145,351,112.00 | Bank acceptance bill deposits, letter of guarantee deposits, litigation freeze | | Notes Receivable | 36,414,844.21 | Pledged for bank loans | | Fixed Assets | 489,721,311.60 | Fixed assets leased under finance leases | | Long-Term Equity Investments | 99,250,366.43 | Equity pledged for finance lease business | | Long-Term Equity Investments | 6,000,000.00 | Other | | Total | 776,737,634.24 | | Investment Analysis The company reported zero investment during the period, a 100% decrease year-over-year, with no significant equity, non-equity, or derivative investments, nor any use of raised funds Investment Amount During Reporting Period | Indicator | Investment Amount During Reporting Period (RMB) | Investment Amount in Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Amount | 0.00 | 385,865,971.73 | -100.00% | - The company reported no significant equity investments, non-equity investments, financial assets measured at fair value, securities investments, or derivative investments during the reporting period[50][51] - The company had no use of raised funds or significant non-raised fund investment projects during the reporting period[52][53] Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[54] - The company did not sell significant equity during the reporting period[55] Analysis of Major Holding and Participating Companies Key subsidiaries include Jiangsu Amerton Power Investment and Ningbo Bonded Area Amerton New Energy, with some subsidiaries reporting losses, and one subsidiary was deregistered for resource optimization Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Almaden Power Investment Co., Ltd | Subsidiary | Investment, construction, and operation management of solar power station projects | 2,000 | 529,530,557.17 | 71,861,992.31 | 22,821,906.77 | 814,056.63 | 635,412.94 | | Almaden (Middle East North Africa) Co., Ltd | Subsidiary | Production and sales of ultra-thin double-glass modules | N/A | 126,191,013.26 | 104,505,231.44 | 5,858,024.69 | -3,799,130.52 | -3,799,130.52 | | Ningbo Bonded Area Almaden New Energy Investment Partnership (Limited Partnership) | Subsidiary | Industrial investment, venture capital, investment consulting | 50,000 | 891,507,532.25 | 484,863,855.11 | 62,619,135.69 | 26,008,012.78 | 24,127,361.02 | | Gui'an New Area Almaden Optoelectronic Materials Co., Ltd | Subsidiary | Manufacturing and sales of high-efficiency solar cells, modules, and system integration products | 5,000 | 127,677,315.63 | 52,661,360.89 | 6,763,643.34 | -6,922,735.73 | -7,008,432.39 | - The company deregistered its wholly-owned subsidiary, Changzhou Almaden Electronic Glass Co., Ltd., to integrate and optimize existing resource allocation, reduce management costs, and improve the company's overall operating efficiency[57] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no structured entities under its control during the reporting period[58] Forecast of Operating Performance for January-September 2019 The company expects positive net profit for Jan-Sep 2019, but a decline of over 50% year-over-year, ranging from RMB 0 to 10 million, due to the absence of prior-year power station sale gains - The company expects net profit attributable to shareholders of the listed company for January-September 2019 to be positive, but to decrease by over 50% year-on-year, with a range of RMB 0 to 10 million[58][59] - The reason for the performance change is that the company realized equity transfer gains from power station sales in the same period last year, which increased the company's net profit, while the net profit for the current reporting period does not include other gains[59] - The company expects net profit attributable to shareholders of the listed company for July-September 2019 to range from RMB 7.7943 million to 17.7943 million, representing a decrease of 70.52% to 32.69% compared to the same period last year[59] Risks Faced by the Company and Countermeasures The company faces risks from raw material supply, intense competition, policy changes, and accounts receivable, addressed by securing supply, enhancing competitiveness, adapting to policies, and strengthening credit management - The company faces risks of insufficient raw material supply and intensified industry competition, including increased competition in the PV industry, industry overheating, short-term changes in market supply and demand, and short-term pressure from declining gross margins[60] - To address raw material shortages, the company's controlling shareholder is constructing its first ultra-white ultra-thin glass production line in Fengyang, Anhui, expected to commence operation in Q4 2019; the company will control and further reduce production costs through continuous process technology improvements, quality control, equipment upgrades, and personnel training[61] - The company faces policy risks, as the PV industry is significantly affected by policy and economic fluctuations; accelerated de-subsidization may lead to market price and demand volatility, adversely impacting the company's operating performance[63] - The company will closely monitor changes in the macroeconomic environment and industry developments, actively track and research market environment changes brought about by industrial policy adjustments, improve the company's industrial structure and business model, and focus more on cost optimization, technological innovation, and new technology development[63] - The company faces accounts receivable recovery risks, as the PV industry has a customary long payment cycle; with the expansion of its operating scale, accounts receivable are gradually increasing, and if downstream customers' operating or financial conditions experience significant adverse changes, it may lead to bad debt risks[64] - The company will strictly implement credit management and accounts receivable management systems, real-time tracking of accounts receivable at all stages of sales and collection, establish accounts receivable collection performance indicators for sales personnel, and optimize accounts receivable settlement methods and credit period systems[64] Significant Matters This section details significant corporate events, including shareholder meetings, profit distribution, commitment fulfillment, and other material disclosures during the reporting period Information on Annual and Extraordinary General Meetings Held During the Reporting Period The company held its 2018 Annual General Meeting on May 17, 2019, with 45.03% investor participation, and no requests for extraordinary general meetings from preferred shareholders 2018 Annual General Meeting Information | Session | Meeting Type | Investor Participation Rate | Meeting Date | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | | 2018 Annual General Meeting | Annual General Meeting | 45.03% | May 17, 2019 | May 18, 2019 | Published in "China Securities Journal", "Securities Times", and Juchao Information Network (www.cninfo.com.cn) | - There were no requests from preferred shareholders with restored voting rights to convene an extraordinary general meeting during the reporting period[68] Profit Distribution or Capital Reserve Conversion to Share Capital During 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[68] Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Overdue Unfulfilled Commitments as of the End of the Reporting Period The company, its actual controllers, and controlling shareholders have fulfilled all commitments regarding share lock-ups, non-competition, social security contributions, fund occupation, and cash dividend policies - The company's actual controllers, Lin Jinxi and Lin Jinhan, committed not to transfer shares within thirty-six months from the date of the company's stock listing, and not to transfer more than 25% of their directly and indirectly held shares in the issuer annually during their tenure[70] - The company's controlling shareholder, Changzhou Almaden Technology Group Co., Ltd., actual controllers Lin Jinxi and Lin Jinhan, and natural person shareholder Lin Jinkun, committed to avoid engaging in businesses that are identical, similar, or constitute substantial competition with Almaden's business scope[70][71][72] - The company's actual controllers, Lin Jinxi and Lin Jinhan, committed to bear the expenses incurred by the company due to its failure to pay social insurance premiums and housing provident funds in accordance with national laws and regulations[72] - The company's actual controllers, Lin Jinxi and Lin Jinhan, committed to avoid occupying the company's funds through loans, debt repayment, advance payments, or other means[73] - The company committed that, when cash dividend conditions are met, the profit distributed in cash annually shall not be less than 10% of the distributable profit realized in that year, and within any three consecutive accounting years, the cumulative profit distributed in cash by the company shall not be less than 30% of the average annual distributable profit realized over those three years[73][74] - Whether commitments were fulfilled on time: Yes. If commitments were overdue and unfulfilled, a detailed explanation of the specific reasons for non-fulfillment and the next work plan: Not applicable[74] 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[75] Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for the Current Period Not applicable, as the company's semi-annual report was not audited and thus has no non-standard audit report - Not applicable, as the company's semi-annual report was not audited, there is no non-standard audit report[76] Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year Not applicable, as the company had no non-standard audit report for the previous year - Not applicable, as the company had no non-standard audit report for the previous year[76] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization-related matters during the reporting period - The company had no bankruptcy or reorganization-related matters during the reporting period[76] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during this reporting period[77] Media Scrutiny The company was not subject to widespread media scrutiny during the reporting period - The company was not subject to widespread media scrutiny during this reporting period[77] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[78] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[79] 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 in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[79] Significant Related Party Transactions The company did not engage in any significant related party transactions during the reporting period, including those related to daily operations, asset/equity acquisitions/disposals, or joint investments - The company had no related party transactions related to daily operations during the reporting period[80] - The company had no related party transactions involving asset or equity acquisitions or sales during the reporting period[81] - The company had no related party transactions involving joint external investments during the reporting period[82] - The company had no related party creditor-debtor transactions during the reporting period[83] - The company had no other significant related party transactions during the reporting period[84] Significant Contracts and Their Performance The company had no trust, contracting, or leasing arrangements, but provided external and subsidiary guarantees totaling RMB 897.32 million, representing 40.62% of net assets, with no violations - The company had no trust, contracting, or leasing arrangements during the reporting period[85][86][87] Company External Guarantees | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total external guarantee limit approved during the reporting period (A1) | 0 | | Total actual external guarantees incurred during the reporting period (A2) | 0 | | Total external guarantee limit approved as of the end of the reporting period (A3) | 38,722.22 | | Total actual external guarantee balance as of the end of the reporting period (A4) | 19,231.53 | Company Guarantees to Subsidiaries | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total guarantee limit to subsidiaries approved during the reporting period (B1) | 0 | | Total actual guarantees to subsidiaries incurred during the reporting period (B2) | 0 | | Total guarantee limit to subsidiaries approved as of the end of the reporting period (B3) | 130,000 | | Total actual guarantee balance to subsidiaries as of the end of the reporting period (B4) | 70,500.42 | - The total actual guarantee amount (i.e., A4+B4+C4) accounts for 40.62% of the company's net assets[92] - The company had no illegal external guarantees during the reporting period[93] - The company had no other significant contracts during the reporting period[94] Social Responsibility The company is not classified as a key polluting entity by environmental authorities, and the report does not detail specific poverty alleviation plans or achievements - The listed company and its subsidiaries are not classified as key polluting entities by environmental protection authorities[95] - The report does not disclose specific precise poverty alleviation plans, overviews, achievements, or subsequent plans[95][96][97] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[97] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[98] Share Changes and Shareholder Information This section details changes in the company's share capital structure and provides information on its shareholders, including major holders and their pledge/freeze status Share Change Status The company's total share capital remained unchanged at 160 million shares, with 0.27% restricted and 99.73% unrestricted shares Share Change Status | | Before This Change | After This Change | | :--- | :--- | :--- | | | Quantity (shares) | Proportion (%) | Quantity (shares) | Proportion (%) | | I. Restricted Shares | 426,375 | 0.27% | 426,375 | 0.27% | | 3. Other Domestic Shares | 426,375 | 0.27% | 426,375 | 0.27% | | Domestic Natural Person Shares | 426,375 | 0.27% | 426,375 | 0.27% | | II. Unrestricted Shares | 159,573,625 | 99.73% | 159,573,625 | 99.73% | | 1. RMB Ordinary Shares | 159,573,625 | 99.73% | 159,573,625 | 99.73% | | III. Total Shares | 160,000,000 | 100.00% | 160,000,000 | 100.00% | - Reasons for share changes, approval status, transfer status, progress of share repurchases, and impact on basic and diluted earnings per share, and net assets per common share for the most recent year and period are not applicable or show no significant changes[101][102] Number of Shareholders and Shareholding Status As of the reporting period end, there were 19,937 common shareholders, with the controlling shareholder holding 45.00% (partially pledged) and a related individual holding 6.53% (partially frozen) - As of the end of the reporting period, the total number of common shareholders was 19,937[103] Shareholding Status of Common Shareholders Holding 5% or More, or Top 10 Common Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Common Shares Held (shares) | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Changzhou Almaden Technology Group Co., Ltd | Domestic Non-State-Owned Legal Person | 45.00% | 72,000,000 | Pledged 57,100,000 | | Lin Jinkun | Domestic Natural Person | 6.53% | 10,449,000 | Frozen 2,400,000 | | Changzhou High-Tech Venture Capital Co., Ltd | State-Owned Legal Person | 2.71% | 4,342,160 | | | Central Huijin Asset Management Co., Ltd | State-Owned Legal Person | 1.35% | 2,161,500 | | | Yan Cuiying | Domestic Natural Person | 0.91% | 1,455,001 | | | Zou Cunbo | Domestic Natural Person | 0.70% | 1,112,800 | | | Wu Jun | Domestic Natural Person | 0.61% | 976,300 | | | Jiang Caijuan | Domestic Natural Person | 0.38% | 604,848 | | | Lin Jinxi | Domestic Natural Person | 0.36% | 568,500 | | | Dong Lijuan | Domestic Natural Person | 0.34% | 540,000 | | - Lin Jinxi and Lin Jinhan, the actual controllers of the company's controlling shareholder, Changzhou Almaden Technology Group Co., Ltd., are brothers of Mr. Lin Jinkun[104] - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[104] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[106] - The company's actual controller did not change during the reporting period[106] Preferred Share Information This section confirms that the company has no preferred shares Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[109] Information on Directors, Supervisors, and Senior Management This section provides details on the shareholdings and any changes in the company's directors, supervisors, and senior management Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2018 annual report[111] Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - The company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2018 annual report[112] Corporate Bond Information This section confirms that the company has no outstanding corporate bonds Corporate Bond Information The company had no publicly issued and listed corporate bonds that were unexpired or not fully redeemed as of the semi-annual report approval date - The company had no publicly issued and listed corporate bonds that were unexpired or not fully redeemed as of the approval date of the semi-annual report[115] Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[118] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2019 - The consolidated balance sheet as of June 30, 2019, shows total assets of RMB 4,003,490,807.07, total liabilities of RMB 1,786,590,955.50, and total owners' equity of RMB 2,216,899,851.57[123] - The consolidated income statement for the first half of 2019 shows total operating revenue of RMB 517,240,870.49, net profit of RMB -6,022,600.62, and net profit attributable to parent company owners of RMB -7,794,333.24[132] - The consolidated cash flow statement for the first half of 2019 shows net cash flow from operating activities of RMB 87,386,266.61, net cash flow from investment activities of RMB 64,614,523.79, and net cash flow from financing activities of RMB -270,059,819.00[139] Company Basic Information Changzhou Almaden Co., Ltd., established on June 29, 2010, and listed on Oct 13, 2011 (stock code 002623), specializes in PV glass and double-glass module R&D, production, and sales - Changzhou Almaden Co., Ltd. was established by the overall conversion of Changzhou Almaden Photovoltaic Glass Co., Ltd., obtained its business license on June 29, 2010, and was listed on the Shenzhen Stock Exchange on October 13, 2011, with stock code 002623[159] - As of June 30, 2019, the company's total issued share capital was 160 million shares, and its registered capital was RMB 160 million. The parent company is Changzhou Almaden Technology Group Co., Ltd., and the actual controllers are Lin Jinxi and Lin Jinhan[159][161] - The company specializes in the research and development of PV glass coating technology and double-glass modules, as well as the production and sales of PV coated glass and double-glass modules, with its main product being PV AR glass coated with anti-reflective film, primarily used in crystalline silicon PV cell module encapsulation and solar PV modules[161] - The scope of consolidation for the company's consolidated financial statements is determined based on control, including the financial statements of the company and all its subsidiaries[162] Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and key accounting policies, with no significant factors affecting going concern within 12 months - These financial statements are prepared on a going concern basis, in accordance with actual transactions, relevant provisions of enterprise accounting standards, and the significant accounting policies and estimates described below[165] - The company has no factors that significantly affect its ability to continue as a going concern within 12 months from the end of the reporting period, and these financial statements are prepared on a going concern basis[166] Significant Accounting Policies and Estimates This section details the company's adherence to enterprise accounting standards, accounting periods, currency, business combinations, financial instruments, revenue recognition, and the impact of new financial instrument standards - The financial statements prepared by the company based on the aforementioned preparation basis comply with the requirements of the latest Enterprise Accounting Standards and their application guidelines, interpretations, and other relevant regulations (collectively referred to as "Enterprise Accounting Standards") issued by the Ministry of Finance, and truly and completely reflect the company's financial position, operating results, and cash flows[168] - The company adopted the new financial instrument standards from January 1, 2019, and in accordance with the requirements of the new financial instrument standards, adjusted the investment in SolarMax Technology, INC, originally accounted for under "Available-for-sale financial assets," to "Other equity instrument investments"[264] - The company adopted the relevant provisions of the "Notice on Revising and Issuing the Format of Financial Statements for General Enterprises in 2019" (Cai Kuai [2019] No. 6) issued by the Ministry of Finance from January 1, 2019, and adjusted the financial statement format, item presentation, and accounting subjects accordingly, while also adjusting comparable data for the comparable accounting period[265] - The company classifies financial assets based on its business model for managing financial assets and the characteristics of the financial assets' cash flows, including financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[183][184][185][186][187] - For accounts receivable, the company adopts the simplified model of expected credit losses, always measuring loss provisions at the amount of expected credit losses over the entire lifetime, and accrues bad debt provisions based on individually significant amounts and by credit risk characteristics (aging portfolio, new energy subsidy portfolio)[198][199] - Fixed assets are recognized at actual cost upon acquisition and depreciated using the straight-line method from the month following their readiness for intended use, with depreciation periods of 20 years for buildings and structures, 10 years for machinery and equipment, and 20 years for power stations[221] - For revenue recognition, domestic sales of goods are recognized when the goods are dispatched and signed for by the customer, while export sales are recognized when the bill of lading is obtained as the point of transfer of risks and rewards; electricity sales are recognized when the generated electricity is connected to the power company's collection station as the point of transfer of risks and rewards[253] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, and land use tax, with some subsidiaries enjoying preferential high-tech enterprise and "three-year exemption, three-year half reduction" tax policies Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount | 5.00, 6.00, 9.00, 10.00, 11.00, 13.00, 16.00 | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 5.00, 7.00 | | Corporate Income Tax | Taxable income | Exemption, 12.50, 15.00, 20.00, 25.00 | | Property Tax | For value-based assessment, 1.20% of the remaining value after a one-time deduction of 30.00% from the original value of the property; for rent-based assessment, 12.00% of rental income | 1.20, 12.00 | | Land Use Tax | Actual occupied area | 2.00 RMB/sqm, 5.00 RMB/sqm, 6.00 RMB/sqm, 8.00 RMB/sqm, 9.00 RMB/sqm | | Education Surcharge | Amount of turnover tax payable | 3.00 | | Local Education Surcharge | Amount of turnover tax payable | 2.00 | - As a high-tech enterprise, the company is subject to a 15% corporate income tax rate from 2017 to 2020[280] - New PV power station projects of subsidiaries such as Jiangsu Almaden Power Investment Co., Ltd. and Xiangshui Almaden Solar Power Co., Ltd. are exempt from corporate income tax for the first three years and subject to a 50% reduction for the fourth to sixth years, starting from the tax year in which they obtain their first production and operation income[281] - Almaden Middle East North Africa Co., Ltd., an overseas subsidiary, follows the tax policies of its host country, with the main tax being a 5.00% VAT[282] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including cash, receivables, inventory, fixed assets, borrowings, and revenue, with explanations for changes and restrictions - Monetary funds at period-end totaled RMB 470,949,643.94, of which RMB 145,351,112.00 were restricted due to pledges, freezes, or other limitations on use[284] - Notes receivable at period-end totaled RMB 130,168,723.74, including pledged bank acceptance bills of RMB 36,414,844.21 and bank acceptance bills endorsed or discounted but not yet due at the balance sheet date of RMB 200,207,732.80[286][289][291] - Accounts receivable at period-end totaled RMB 620,491,531.41, with a bad debt provision of RMB 31,767,933.87, and a reversal of bad debt provision of RMB -4,673,082.33 for the current period[295][305] - Inventory at period-end had a book value of RMB 169,799,403.06, an increase from the beginning of the period, primarily due to an increase in raw materials and inventory goods[324] - Fixed assets at period-end had a book value of RMB 1,928,038,042.77, of which fixed assets leased under finance leases amounted to RMB 489,721,311.60[339][345] - Short-term borrowings at period-end totaled RMB 454,247,240.00, a decrease from the beginning of the period, primarily consisting of pledged and guaranteed borrowings[372] - Long-term borrowings at period-end totaled RMB 158,000,000.00, a decrease from the beginning of the period, primarily consisting of secured and guaranteed borrowings[406] - Deferred income at period-end totaled RMB 30,677,635.33, primarily from government subsidies, with new additions of RMB 1,050,000.00 and reductions of RMB 4,866,138.88 in the current period[414] - Operating revenue for the current period was RMB 517,240,870.49, and operating cost was RMB 446,519,245.39[429] - Financial expenses for the current period totaled RMB 30,522,357.97, primarily including interest expenses of RMB 35,026,697.93 and exchange gains/losses of RMB -876,522.13[441] - Credit impairment losses for the current period totaled RMB 7,383,558.81, primarily from bad debt losses on other receivables and accounts receivable[448] - Net cash flow from operating activities was RMB 87,386,266.61, net cash flow from investment activities was RMB 64,614,523.79, and net cash flow from financing activities was RMB -270,059,819.00[473] Changes in Consolidation Scope The company did not lose control over any subsidiaries through single or multiple transactions but deregistered Changzhou Almaden Electronic Glass Co., Ltd. to optimize resources - The company reported no single disposal of investment in a subsidiary resulting in loss of control during the reporting period[485] - The company deregistered its wholly-owned subsidiary, Changzhou Almaden Electronic Glass Co., Ltd., to integrate and optimize existing resource allocation, reduce management costs, and improve the company's overall operating efficiency[486] Interests in Other Entities The company holds interests in various wholly-owned or controlled subsidiaries and a significant associate, Qianxinan Yilong Almaden New Energy Co., Ltd., accounted for using the equity method - The company owns wholly-owned or controlling subsidiaries such as Jiangsu Almaden Power Investment Co., Ltd., Almaden (Middle East North Africa) Co., Ltd., and Ningbo Bonded Area Almaden New Energy Investment Partnership, primarily engaged in investment, construction, and operation management of solar power station projects and manufacturing[487][488][489] - The significant associate is Qianxinan Yilong Almaden New Energy Co., Ltd., in which the company holds a 30.00% equity interest and accounts for it using the equity method[490] - Qianxinan Yilong Almaden New Energy Co., Ltd. had total assets of RMB 246,465,125.48, total liabilities of RMB 172,416,833.80, and a net profit of RMB 2,017,362.50 at period-end[492][493] Risks Associated with Financial Instruments The company faces credit, liquidity, and market risks (interest rate, foreign exchange), managed through credit monitoring and diversified financing, with sensitivity analysis showing potential impacts on profit and equity - The company's main financial instruments include bank borrowings, monetary funds, etc., with primary risks being credit risk, liquidity risk, and market risk (interest rate risk, foreign exchange risk)[494][495] - The company manages credit risk by transacting with recognized and reputable third parties and continuously monitoring accounts receivable balances[498] - The company manages liquidity risk by maintaining a balance between funding continuity and flexibility through bank borrowings, finance leases, and other interest-bearing borrowings; the current ratio at period-end was 1.26, indicating sufficient liquidity[499](i