Haixin Foods (SZ:002702)2019-08-05 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 541,681,742.39, representing an increase of 18.15% compared to CNY 458,482,766.01 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 32.95% to CNY 7,014,687.76 from CNY 10,461,760.62 in the previous year[19]. - The net profit after deducting non-recurring gains and losses fell by 36.16% to CNY 4,583,774.27 compared to CNY 7,179,910.73 in the same period last year[19]. - Basic and diluted earnings per share decreased by 33.03% to CNY 0.0146 from CNY 0.0218 in the same period last year[19]. - The total profit for the first half of 2019 was CNY 17,139,828.70, up from CNY 16,387,015.95 in the same period of 2018, reflecting a growth of 4.6%[130]. - The company reported a net profit of CNY 4,685,731.61 for the first half of 2019, compared to CNY 5,410,702.39 in the same period of 2018, reflecting a decline of 13.4%[125]. - The total comprehensive income for the first half of 2019 was CNY 7,014,687.76, down from CNY 10,711,963.81 in the first half of 2018, reflecting a decrease of 34.1%[127]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -38,845,881.74, a decline of 252.05% from CNY 25,548,357.56 in the previous year[19]. - The company's cash and cash equivalents decreased to CNY 59,383,090.01, accounting for 5.81% of total assets, down from 7.24% in the previous year[43]. - The total assets at the end of the reporting period were CNY 1,021,570,196.58, down 11.46% from CNY 1,153,778,616.71 at the end of the previous year[19]. - The company's current assets totaled CNY 593,066,511.05 as of June 30, 2019, down from CNY 736,873,033.36 at the end of 2018, indicating a decrease of about 19.5%[116]. - The total liabilities decreased to CNY 234,941,358.10 in the first half of 2019 from CNY 349,479,835.80 at the end of 2018, a reduction of 32.7%[118]. - The total cash and cash equivalents at the end of the period were 48,155,995.32 CNY, down from 64,278,181.70 CNY at the end of the previous year[136]. Revenue Breakdown - The high-end fish paste products, including the "Yuj" and premium series, generated RMB 135.77 million in revenue, up 41.82% and accounting for 25% of total revenue[35]. - Revenue from frozen meat products was ¥110,115,590.72, up 27.75% from ¥86,193,269.66, while frozen fish products generated ¥398,871,042.82, an 18.67% increase from ¥336,127,798.53[40]. - The Northeast region saw a revenue increase of 24.29%, totaling ¥38,732,154.39, while the South China region's revenue increased by 11.95% to ¥51,593,391.43[40]. - Revenue from Dongshan Tengxin increased by CNY 59.63 million, a growth of 42.48%, primarily due to frozen product series revenue of CNY 166.25 million, which rose by CNY 63.23 million, or 61.37%[57]. - Revenue from Zhoushan Tengxin increased by CNY 14.39 million, a growth of 67.03%, with operating profit increasing by 208.66% and net profit by 205.71% due to increased internal fish paste procurement and improved product gross margin[58]. Research and Development - The company invested RMB 7.21 million in R&D, a slight decrease of 1.93% year-on-year[38]. - The company's strong R&D capability, with a dedicated team and advanced equipment, allows for a high success rate in new product development[31]. - Research and development expenses for the first half of 2019 were CNY 7,214,012.16, slightly down from CNY 7,356,276.74 in the first half of 2018, indicating a decrease of 1.9%[125]. Risk Management and Strategy - The company has detailed the major risks it will face in the future and the corresponding countermeasures in the report[6]. - The report emphasizes the importance of investors understanding the differences between plans, forecasts, and commitments, and encourages prudent decision-making[6]. - The company is actively seeking to mitigate raw material price volatility through market research, developing new suppliers, and strategic procurement[60]. - The company adopts a cautious approach to mergers and acquisitions, focusing on targets that align with its strategic planning and can achieve industrial synergies[60]. Environmental and Social Responsibility - The company has a wastewater treatment system with a processing capacity of 1,500 m³/d, and its subsidiaries have capacities of 120 m³/d and 2,000 m³/d respectively, all meeting environmental discharge standards[85]. - The company has invested 40.13 million CNY in targeted poverty alleviation efforts, purchasing seasoning products from a local company[91]. - A total of 34 individuals from registered impoverished households were employed through labor cooperation initiatives during the reporting period[93]. - The company has established an emergency response plan for environmental incidents, which has been approved and filed with relevant authorities[88]. Shareholder Information - The company has maintained a total of 50,926 common stock shareholders by the end of the reporting period[99]. - The company has not reported any major guarantees or significant contracts during the reporting period[82][83]. - The company has not issued any preferred shares during the reporting period[105]. Accounting and Financial Reporting - The financial report for the first half of 2019 was not audited[113]. - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows[159]. - The financial statements are prepared based on the going concern assumption, indicating no significant issues affecting the company's ability to continue operations for at least 12 months from the reporting date[157].