HZIS(600126)2020-04-07 16:00Financial Instrument Standards Implementation - The company adjusted its financial statements according to the new financial instrument standards, resulting in a reclassification of receivables and payables. For example, receivables decreased from 1,944,640,872.12 RMB to 1,778,568,967.97 RMB, and payables decreased from 3,630,414,345.87 RMB to 3,630,414,345.87 RMB[79] - The company implemented the new financial instrument standards starting from January 1, 2019, which changed the classification and measurement of financial assets into three main categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[79] - As of January 1, 2019, the company's financial assets and liabilities were reclassified and measured under the new financial instrument standards. For instance, monetary funds remained at 5,779,363,579.78 RMB, while receivables financing was newly classified at 1,420,188,967.97 RMB[81] - The company's total financial assets measured at amortized cost decreased from 9,090,421,948.72 RMB to 7,648,760,180.75 RMB due to reclassification and remeasurement under the new financial instrument standards[82] - The company's total financial liabilities measured at amortized cost remained unchanged at 4,064,337,284.75 RMB after the implementation of the new financial instrument standards[83] - The fair value of financial assets measured at fair value through other comprehensive income is 1,420,188,967.97[84] - The loss provision for accounts receivable under the new financial instrument standards is 11,910,610.29[84] - The loss provision for other receivables under the new financial instrument standards is 4,546,063.78[84] - The company implemented new financial instrument standards starting January 1, 2019, which changed the classification and measurement of financial assets into three main categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[177] - The new financial instrument standards require financial asset impairment measurement to shift from the "incurred loss model" to the "expected credit loss model," applicable to financial assets measured at amortized cost, fair value through other comprehensive income, and lease receivables[177] Environmental Performance and Compliance - Ningbo Iron & Steel achieved significant reductions in pollutant emissions: SO2 down 20.6%, NOx down 20.7%, particulate matter down 5.2%, and dust fall in the plant area down 12.5% compared to 2018[100] - Ningbo Iron & Steel's key environmental indicators for 2019: dust per ton of steel at 0.89 kg/t, SO2 at 0.24 kg/t, NOx at 0.85 kg/t, COD at 0.0041 kg/t, and solid waste utilization rate at 99.58%[100] - The company's pollutant self-monitoring compliance rate reached 99.98%, with a 100% compliance rate for supervisory monitoring and a 99.99% environmental facility operation rate[100] - Ningbo Iron & Steel's total SO2 emissions were 928 tons, NOx emissions were 6.11 tons, and particulate matter emissions were 3,522 tons, all within the approved emission limits[101] - COD emissions from Changshan Fuchun Ziguang Wastewater Treatment Co., Ltd. were 18.74mg/L, with a total emission of 260.81 tons, against a permitted limit of 584 tons[102] - Ammonia nitrogen emissions from Linhai Fuchun Ziguang Wastewater Treatment Co., Ltd. (Jiangnan Plant) were 0.20mg/L, with a total emission of 1.28 tons, against a permitted limit of 20.055 tons[102] - COD emissions from Linhai Fuchun Ziguang Wastewater Treatment Co., Ltd. (Jiangbei Plant) were 5.04mg/L, with a total emission of 118.14 tons, against a permitted limit of 1095 tons[102] - Ammonia nitrogen emissions from Tonglu Ziguang Water Co., Ltd. were 0.27mg/L, with a total emission of 0.81 tons, against a permitted limit of 18.25 tons[102] - COD emissions from Sanmen Fuchun Ziguang Wastewater Treatment Co., Ltd. (Urban Plant) were 17.2mg/L, with a total emission of 199.18 tons, against a permitted limit of 730 tons[102] - Ammonia nitrogen emissions from Sanmen Fuchun Ziguang Wastewater Treatment Co., Ltd. (Coastal Plant) were 0.16mg/L, with a total emission of 0.48 tons, against a permitted limit of 54.75 tons[102] - COD emissions from Suqian Yanghe New District Fuchun Ziguang Wastewater Treatment Co., Ltd. were 22.87mg/L, with a total emission of 249.2 tons, against a permitted limit of 365 tons[102] - Ammonia nitrogen emissions from Suqian Fuchun Ziguang Wastewater Treatment Co., Ltd. were 0.7mg/L, with a total emission of 18.64 tons, against a permitted limit of 130.03 tons[103] - COD emissions from Xuancheng Fuchun Ziguang Wastewater Treatment Co., Ltd. were 16.79mg/L, with a total emission of 504.82 tons, against a permitted limit of 1825 tons[103] - Ammonia nitrogen emissions from Pujiang Fuchun Ziguang Water Co., Ltd. (Plant 1) were 0.21mg/L, with a total emission of 5.82 tons, against a permitted limit of 146 tons[103] - The COD discharge level at Ruian Fuchun Ziguang Water Co., Ltd. was 27.28mg/L, with a corresponding value of 241.22[105] - The ammonia nitrogen discharge level at Kaihua Fuchun Ziguang Water Co., Ltd. (Kaihua Urban Sewage Treatment Plant) was 0.26mg/L, with a corresponding value of 2.0[105] - The COD discharge level at Kaihua Fuchun Ziguang Water Co., Ltd. (Huabu Sewage Treatment Plant) was 38.16mg/L, with a corresponding value of 38.60[105] - The ammonia nitrogen discharge level at Deqing Fuchun Ziguang Water Co., Ltd. was 0.70mg/L, with a corresponding value of 0.81[105] - The COD discharge level at Xiangshan Fuchun Ziguang Sewage Treatment Co., Ltd. was 17.50mg/L, with a corresponding value of 431.06[105] - The ammonia nitrogen discharge level at Gansu Fulannai Environmental Water Co., Ltd. was 0.72mg/L, with a corresponding value of 0.07[105] - Ningbo Iron and Steel built and put into operation 11 sets of environmental protection facilities in 2019, including 8 sets of dust removal facilities and 2 sets of blast furnace slag water treatment facilities[106] - Ziguang Environmental Protection subsidiaries have constructed sewage treatment facilities that meet environmental protection requirements and continuously strengthen the construction and operation management of environmental protection facilities[107] - Ningbo Iron and Steel completed the environmental impact assessment and approval for 7 projects and the environmental protection acceptance for 3 projects in 2019[108] - Ningbo Iron and Steel revised and filed the "Emergency Plan for Sudden Environmental Events of Ningbo Iron and Steel Co., Ltd. (2018 Edition)" in 2018, which continued to be implemented in 2019[109] Financial Performance and Metrics - The net profit attributable to the parent company's owners is -9,603,532.48[86] - The company achieved a revenue of 26.742 billion yuan in 2019, a 1.11% increase compared to 26.450 billion yuan in 2018[145] - Revenue from hot-rolled steel coils and plates accounted for 14.232 billion yuan, representing 53.97% of total revenue[145] - Gross profit from hot-rolled steel products was 1.446 billion yuan, contributing 85.93% of total gross profit[145] - The net book value of fixed assets was 9.219 billion yuan, with a provision for impairment of 0.092 billion yuan, resulting in a carrying amount of 9.127 billion yuan, which accounted for 34.65% of total assets at the end of 2019[146] - The company's monetary funds increased to 6,440,699,788.80 in 2019 from 5,779,363,579.78 in 2018[153] - Trade receivables rose to 222,388,508.17 in 2019 compared to 166,071,904.15 in 2018[153] - Prepayments grew to 246,055,446.11 in 2019 from 171,003,669.97 in 2018[153] - Other receivables decreased significantly to 39,888,823.72 in 2019 from 575,009,083.31 in 2018[153] - Inventory slightly decreased to 1,881,248,691.79 in 2019 from 1,913,276,022.77 in 2018[153] - Total current assets were 11,387,090,455.22 in 2019, a slight decrease from 11,739,858,378.62 in 2018[153] - Total non-current assets increased to 14,955,020,980.45 in 2019 from 14,718,565,826.22 in 2018[154] - Total assets were 26,342,111,435.67 in 2019, a slight decrease from 26,458,424,204.84 in 2018[154] - Accounts payable decreased to 1,782,104,755.29 in 2019 from 2,105,767,332.28 in 2018[154] - Total current liabilities were 6,463,586,415.36 in 2019, an increase from 6,384,109,736.20 in 2018[154] - Total revenue for 2019 reached 26.74 billion RMB, a slight increase from 26.45 billion RMB in 2018[158] - Total liabilities for 2019 amounted to 7.17 billion RMB, slightly higher than 7.16 billion RMB in 2018[155] - Total assets for 2019 were 15.26 billion RMB, up from 14.58 billion RMB in 2018[156] - Long-term loans increased to 595.92 million RMB in 2019 from 657.37 million RMB in 2018[155] - Deferred income rose to 106.15 million RMB in 2019 compared to 97.92 million RMB in 2018[155] - Total owner's equity for 2019 was 19.18 billion RMB, slightly down from 19.30 billion RMB in 2018[155] - Long-term equity investments grew to 10.71 billion RMB in 2019 from 10.11 billion RMB in 2018[156] - Other receivables increased to 1.03 billion RMB in 2019 from 891.89 million RMB in 2018[156] - Total current liabilities for 2019 were 388.14 million RMB, significantly higher than 20.37 million RMB in 2018[157] - Undistributed profits for 2019 were 111.97 million RMB, a significant improvement from a loss of 275.06 million RMB in 2018[157] - Net profit for the year was RMB 932.88 million, a decrease from RMB 1.96 billion in the previous year[159] - R&D expenses increased to RMB 419.16 million, up from RMB 370.34 million in the previous year[159] - Sales expenses rose to RMB 29.85 million, compared to RMB 27.41 million in the previous year[159] - Management expenses decreased to RMB 395.10 million, down from RMB 417.47 million in the previous year[159] - Financial income from interest was RMB 272.89 million, up from RMB 186.99 million in the previous year[159] - Total comprehensive income for the year was RMB 932.88 million, compared to RMB 1.96 billion in the previous year[160] - Basic earnings per share (EPS) were RMB 0.27, down from RMB 0.57 in the previous year[160] - Parent company's net profit was RMB 748.02 million, a significant increase from RMB 120.88 million in the previous year[161] - Parent company's financial income from interest was RMB 147.23 million, up from RMB 93.75 million in the previous year[161] - Parent company's total comprehensive income was RMB 748.02 million, compared to RMB 120.88 million in the previous year[162] - Sales of goods and services received cash of RMB 20.83 billion in 2019, a decrease of 16.1% compared to RMB 24.83 billion in 2018[163] - Net cash flow from operating activities was RMB 1.25 billion in 2019, a decrease of 46.4% compared to RMB 2.33 billion in 2018[163] - Cash received from investment returns was RMB 114.13 million in 2019, an increase of 126.9% compared to RMB 50.33 million in 2018[164] - Net cash flow from investing activities was negative RMB 211.52 million in 2019, an improvement from negative RMB 336.62 million in 2018[164] - Net cash flow from financing activities was negative RMB 459.26 million in 2019, compared to negative RMB 428.14 million in 2018[164] - Cash received from sales of goods and services was RMB 13.07 million in 2019, an increase of 77.2% compared to RMB 7.37 million in 2018[165] - Net cash flow from operating activities was RMB 49.96 million in 2019, a significant improvement from negative RMB 25.40 million in 2018[165] - Cash received from investment returns was RMB 714.14 million in 2019, a substantial increase of 1,419.4% compared to RMB 47.00 million in 2018[166] - Net cash flow from investing activities was RMB 1.29 billion in 2019, a significant improvement from negative RMB 173.21 million in 2018[166] - Net cash flow from financing activities was negative RMB 389.95 million in 2019[166] - Total owner's equity at the end of 2019 was RMB 19,176,451,209.17, an increase from RMB 18,701,377,232.89 at the beginning of the year[167][168] - Capital reserve increased by RMB 22,691,166.96 in 2019, with the same amount used during the year[168] - Undistributed profits grew to RMB 4,858,694,398.63 in 2019, up from RMB 4,319,404,287.60 in 2018[167][168] - Minority interests increased to RMB 213,843,169.52 in 2019, compared to RMB 209,511,791.19 in 2018[167][168] - Capital surplus decreased by RMB 725,961,800.00 in 2019[167] - Comprehensive income for 2019 totaled RMB 932,881,234.05[167] - Owner's equity at the beginning of 2019 was RMB 19,385,494,726.76, after adjustments for accounting policy changes[167] - The company allocated RMB 57,470,653.29 to surplus reserves in 2019[167] - Profit distribution to owners amounted to RMB 433,962,951.64 in 2019[167] - Capital stock remained constant at RMB 3,377,189,083.00 throughout 2019[167][168] - The company's total owner's equity at the end of the period was RMB 14,874,099,787.05, an increase from the beginning of the period[171] - Comprehensive income for the period amounted to RMB 748,021,955.84, contributing significantly to the increase in owner's equity[171] - The company's capital reserve decreased by RMB 128,046,783.31 due to reductions in owner's equity[171] - Profit distribution included RMB 57,470,653.29 allocated to surplus reserves and RMB 405,262,689.96 distributed to owners[171] - The company's registered capital is RMB 3,377,189,083, with all shares being A-shares listed on the Shanghai Stock Exchange[173] - The company operates in the metallurgical industry, with main products including hot-rolled steel coils, hot-rolled steel plates, and waste car dismantling[173] - The consolidated financial statements include subsidiaries such as Ningbo Iron and Steel Co., Ltd. and Zhejiang Fuchun Ziguang Environmental Protection Co., Ltd.[174] - The company's financial statements are prepared on a going concern basis, with no significant concerns about its ability to continue operations for the next 12 months[176] - The company's financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows[180] - The company's accounting year runs from January 1 to December 31[181] - The company's operating cycle is short, with assets and liabilities classified based on a 12-month liquidity standard[182] - The company's functional currency is the Chinese yuan (RMB)[183] - The company follows specific accounting methods for business combinations under common control and non-common control, including the recognition of goodwill and adjustments to capital reserves[185] - The company consolidates all subsidiaries under its control in its consolidated financial statements, prepared in accordance with the Chinese Accounting Standards for Business Enterprises No. 33[186] - Foreign currency transactions are initially recorded at the spot exchange rate on the transaction date, with exchange differences recognized in profit or loss or other comprehensive income depending on the nature of the transaction[188] - Financial liabilities are initially classified into four categories: (1) financial liabilities measured at fair value with changes recognized in profit or loss, (2) financial liabilities formed when financial asset transfers do not meet derecognition criteria or continue to be involved in transferred financial assets, (3) financial guarantee contracts not falling under (1) or (2), and loan commitments with below-market interest rates, and (4)