OXGF(SZ:300082)2023-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥2,040,052,741.10, a decrease of 30.10% compared to ¥2,918,733,978.94 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was a loss of ¥150,119,945.46, a decline of 414.24% from a profit of ¥47,772,219.73 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥159,127,058.38, down 549.79% from ¥35,377,898.72 in the same period last year[24]. - The basic earnings per share for the reporting period was -¥0.22, compared to ¥0.07 in the previous year, reflecting a decrease of 414.29%[24]. - The total assets at the end of the reporting period were ¥5,958,451,254.09, a decrease of 7.14% from ¥6,416,452,608.88 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were ¥3,101,011,876.14, down 4.47% from ¥3,246,157,096.43 at the end of the previous year[24]. - The net cash flow from operating activities was ¥41,883,606.16, a slight decrease of 3.17% compared to ¥43,252,569.17 in the same period last year[24]. - The weighted average return on net assets was -4.73%, a decline of 6.15% from 1.42% in the previous year[24]. - The company achieved operating revenue of CNY 204,005.27 million in the first half of 2023, a year-on-year decline of 30.10%[47]. - The net profit attributable to shareholders was CNY -15,011.99 million, primarily due to decreased sales revenue from the main product, polycarboxylate superplasticizer, resulting in a significant drop in gross profit[47]. Market and Industry Trends - In the first half of 2023, China's GDP grew by 5.5%, while fixed asset investment increased by 3.8% to 243.113 billion yuan[36]. - The real estate development investment in China decreased by 7.9% to 58.55 billion yuan in the first half of 2023, with new construction area down by 24.91%[36]. - The demand for lithium battery electrolytes has surged due to explosive growth in the lithium battery market, which is one of the four key materials for lithium batteries[34]. - The market demand for polycarboxylic acid superplasticizers is expected to maintain stable growth, with a current market capacity surplus leading to intense price competition[37]. - In the first half of 2023, China's new energy vehicle production and sales reached 3.788 million and 3.745 million units, respectively, representing year-on-year growth of 42.78% and 44.54%[37]. - The cumulative sales of power batteries in China reached 256.5 GWh in the first half of 2023, with a year-on-year growth of 17.5%[37]. - The export of new energy vehicles from China in the first half of 2023 was 534,000 units, a year-on-year increase of 160%[37]. - The domestic pharmaceutical excipients market is expected to grow in line with the rapid growth of the pharmaceutical manufacturing industry, which has seen a compound annual growth rate of over 20% in the past decade[39]. - The demand for non-ionic surfactants is projected to grow steadily, driven by increased consumer hygiene awareness and the rising demand for personal care products[40]. Strategic Initiatives and Innovations - The company has a strategic capacity layout of 1.6 million tons of ethoxylation capacity across Northeast, East China, South China, Central China, and Southwest regions[32]. - The company has an annual production capacity of 300,000 tons of ethylene oxide and possesses world-leading production technology for ethylene carbonate and dimethyl carbonate[32]. - The company is actively adjusting its ethylene import procurement and domestic trade procurement ratios to reduce raw material procurement costs[36]. - The company focuses on high-end technology industrialization in epoxy and green low-carbon fine chemical materials, forming a complete industrial chain from ethylene to epoxy[32]. - The company has developed a proprietary production process for ethylene carbonate and dimethyl carbonate, which is recognized as a world-first and has significant competitive advantages in quality and cost[42]. - The company is focusing on the development of high-end products in the fields of new energy battery materials and green low-carbon series products derived from ethylene oxide and carbon dioxide[43]. - The company has established international platforms in Indonesia and Singapore to implement its international development strategy[33]. - The company has established partnerships with well-known enterprises in the electrolyte industry, enhancing the market competitiveness of its carbonate products[46]. - The company has implemented a centralized procurement model to optimize supply channels and enhance procurement efficiency, significantly reducing production costs[45]. - The company has invested 100 million CNY in R&D for innovative technologies aimed at reducing emissions by 25% over the next three years[110]. Environmental Compliance and Sustainability - The company emphasizes the importance of safety and environmental protection in its operations, particularly in the storage and transportation of hazardous chemicals like ethylene and ethylene oxide[83]. - The company is classified as a key pollutant discharge unit according to environmental protection regulations[96]. - The company has been actively involved in compliance with multiple environmental protection laws and standards, including the Environmental Protection Law and the Water Pollution Prevention Law[96]. - The company has implemented emergency response plans for environmental incidents, valid until May 11, 2026[99]. - The company’s VOCs emissions were recorded at 0.12 tons, which is compliant with the national air pollution discharge standards[99]. - The company has a valid hazardous chemical operation license valid until November 19, 2023, for its Guangdong subsidiary[99]. - The company has established a technical center for environmental impact assessments, with the approval received in 2008[97]. - The company has implemented measures to reduce carbon emissions by utilizing resources efficiently and promoting green development[120]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[119]. - The company has received approval for the environmental impact report of the annual production of 30,000 tons of epoxy ethane-derived fine chemicals, with the approval number 辽市行审发【2017】272号 dated January 2, 2018[97]. Shareholder and Corporate Governance - The company emphasizes the protection of shareholder and creditor rights, ensuring transparency and compliance with legal regulations[121]. - The company has a strong commitment to employee rights, ensuring equal employment opportunities and competitive compensation[122]. - The company maintains good relationships with suppliers and customers, focusing on integrity and high-quality service[123]. - The performance commitment for the acquisition of 67% of the shares in Aoke Pharmaceutical Auxiliary Co., Ltd. includes a net profit of no less than 28 million yuan for 2020, 25.94 million yuan for 2021, 31.03 million yuan for 2022, and 36.10 million yuan for 2023[130]. - If the actual net profit falls below the committed net profit, the controlling shareholders will compensate using shares or cash, with Aoke Group responsible for 51.02% and Dalian Jixing for 48.98%[130]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[133]. - There were no violations regarding external guarantees during the reporting period[134]. - The semi-annual financial report has not been audited[135]. - The company reported a litigation amount of 175.75 million yuan related to performance commitment compensation and equity impairment compensation[137]. - The company has recognized a bad debt provision of 7.5 million yuan for accounts receivable related to ongoing litigation[137]. Future Outlook and Growth Strategies - The company expects a revenue growth of 10% for the second half of 2023, driven by new product launches and market expansion strategies[110]. - New product development includes the launch of a new line of eco-friendly chemical products, projected to contribute 200 million CNY in revenue by the end of 2023[110]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share in the region within the next two years[110]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q4 2023, expected to enhance production capacity by 30%[110]. - The company has implemented cost-cutting measures that are expected to save approximately 50 million CNY annually[110]. - Future guidance indicates a focus on sustainability initiatives, with a goal to achieve carbon neutrality by 2025[110].