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沙隆达B:2018年半年度报告摘要(英文版)2018-08-28  

						                                                                                  Abstract of 2018 Semi-Annual Report




Security Code:000553(200553)             Abbreviation:Sanonda A(B)                 Announce Number:2018- 43




                                  Hubei Sanonda Co., Ltd.


                      Abstract of 2018 Semi-Annual Report

I.    Important Notice

This Abstract of 2018 Semi-Annual Report Summary is taken from the full text of the 2018
Semi-Annual Report. Investors are advised to read carefully the full text of the Semi-Annual Report
published on the media designated by China Securities Regulatory Commission in order to fully
understand the Company’s operation results, financial position and future development plan.

None of the directors, supervisors and senior executives gives objection statement.

All directors attended the Meeting for the 2018 Semi-Annual Report deliberation.

Non-standard auditor’s opinion
□ Applicable √ Not applicable

Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital
proposed to the Board during the reporting period.
□Applicable √Not applicable
The Company has no interim dividend distribution plan, either in the form of cash or stock.

Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable

II. Basic information about the company

1. Company profile

Stock name                        Sanonda A, Sanonda B      Stock code                   000553(200553)
Stock exchange                    Shenzhen Stock Exchange
Contact Person                                 Board Secretary                Securities Affairs Representative
Name                              Li Zhongxi                               Liang Jiqin
                                  No. 93, Beijing East Road, Jingzhou, No. 93, Beijing East Road, Jingzhou,
Address
                                  Hubei                                Hubei
Tel                               0716-8208632                             0716-8208232




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Email                                   zhongxi.li@adama.com                           jiqin.liang@adama.com



2. Major accounting data and financial indicators

Whether the Company performed any retroactive adjustment to or restatement of its accounting data
√ Yes □ No
Reason for retroactive adjustment to or restatement: combination under common control


                                                                          Same period of last year                 +/- (%)
                                                 Reporting Period
                                                                    Before adjustment After adjustment         After adjustment
Operating revenues (RMB’000)                      13,026,258          1,465,703           12,770,064              2.01%
Net profit attributable to shareholders of the
Company (RMB’000)                                  2,362,781           169,191            1,316,994               79.41%
Net profit attributable to shareholders of the
Company excluding non-recurring profit and
loss (RMB’000)                                      790,296            167,054             167,054               373.08%
Net cash flow from operating activities
(RMB’000)                                           779,518            221,244            2,249,146              -65.34%
Basic EPS (RMB/share)                                0.9658              0.2849              0.5624                71.73%
Diluted EPS (RMB/share)                               N/A                 N/A                 N/A
Weighted average return on net assets                66.11%              8.09%               7.62%                 4.03%

                                                 End of Reporting            End of last year                      +/- (%)
                                                      Period      Before adjustment After adjustment           After adjustment
                                                                                           39,685,756
Total assets (RMB’000)                            41,577,798          39,613,922                                  4.77%
                                                                                             (Note)
Net assets attributable to shareholders of the                                             18,849,847
                                                   21,543,425          18,778,013                                  14.29%
Company (RMB’000)                                                                           (Note)
Note:
The amounts specified are 2018 opening balance amounts rather than 2017 closing balance amounts. As of January 1, 2018, the
Company began to adopt the revised Accounting Standards for Business Enterprises (“ASBE”) regarding financial instruments and
revenue, promulgated by Ministry of Finance in 2017. According to the transitional requirements of relevant revised ASBEs, the
opening balances of total assets and net assets attributable to the shareholders of the Company have been adjusted. The total assets
and net assets attributable to the shareholders of the Company as at December 31, 2017 were RMB’000 39,613,922 and RMB’000
18,778,013, respectively.



3. Share capital and shareholders

                                                                                                                           Unit: share
                                                  48,361
                                                                            Total number of preferred
Total number of common                (the number of ordinary A share       shareholders that had resumed
shareholders at the end of the             shareholders is 32,348;                                                         0
                                                                            their voting right at the end of
Reporting Period                 the number of B share shareholders is the Reporting Period (if any)
                                 16,013)
                                                          Top 10 shareholders
                              Nature of Holding                                                                   Pledged or frozen
   Name of shareholder       shareholde percentage Number of shares held Number of restricted shares held              shares
                                  r          (%)                                                                  Status     Number
                             State-own
China             National
                              ed legal    74.02%         1,810,883,039                  1,810,883,039               --            --
Agrochemical Co., Ltd.
                               person
Jingzhou           Sanonda State-own
                                           4.89%          119,687,202                  119,687,202                  --            --
Holding Co., Ltd.             ed legal



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                                                                                               Abstract of 2018 Semi-Annual Report



                              person
                            State-own
China      Cinda     Asset
                             ed legal    1.37%           33,557,046                  33,557,046                   --          --
Management Co., Ltd.
                              person
                            State-own
China Structural Reform
                             ed legal    1.37%           33,557,046                  33,557,046                   --          --
Fund Co., Ltd.
                              person
CCB
Principal-ICBC-Avic
Trust, Trust Plan of
Pooled Funds of CCB
                              Others     0.53%           12,885,906                   12,885,906                  --          --
Principal          Private
Placement      Investment,
Tianqi (2016) No. 293 of
Avic Trust
Portfolio    No.118      of
National Social Security Others          0.39%           9,504,717                        0                       --          --
Fund
Industrial Bank Co., Ltd,
Mixed            Securities
Investment           Fund, Others        0.33%           8,053,736                    8,053,736                   --          --
Aegon-Industrial Trend
Investment (LOF)
Portfolio    No.412      of
National Social Security Others          0.20%           4,878,812                        0                       --          --
Fund
GUOTAI            JUNAN Foreign
SECURITIES(HONGKO              legal     0.20%           4,838,647                        0                       --          --
NG) LIMITED                   person
Penghua
Fund-CCB-China        Life
Insurance,         Private
Placement Portfolio of
Penghua              Fund Others         0.19%           4,697,990                    4,697,990                   --          --
Management Co., Ltd
Entrusted by China Life
Insurance         (Group)
Company
                                       Jingzhou Sanonda Holdings Co., Ltd. and CNAC are related parties, and are
                                       acting-in-concert parties as prescribed in the Administrative Methods for Acquisition of
Explanation on associated relationship
                                       Listed Companies. Sanonda Holding is a wholly-controlled subsidiary of CNAC. It is
or/and persons
                                       unknown whether the other shareholders are related parties or acting-in-concert parties as
                                       prescribed in the Administrative Methods for Acquisition of Listed Companies.
Particular about shareholder           Shareholder Wu Feng held 775,726 shares of the Company through a credit collateral
participate in the securities lending  securities trading account and held 1,870,711 shares of the Company through a common
and borrowing business (if any)        securities account, who thus held 2,646,437 shares of the Company in total



4. Change of the Controlling Shareholder or the Actual Controller

Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no change of the controlling shareholder of the Company in the Reporting Period.

Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no change of the actual controller of the Company in the Reporting Period.


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5. Preference Shares and the Top Ten Shareholders of Preference Shares

□ Applicable √ Not applicable
No preference shares in the Reporting Period.

6. Corporate Bonds

Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue
before the date of this Report’s approval or were due but could not be redeemed in full?
No.

III. Business Profile

1. Business Operation summary in the reporting period

Whether the company needs to comply with the disclosure requirements of the particular industry
No
Please see key additional information and further details included in the Annex.

Financial Highlights
Revenues. The increase in revenues was driven by robust volume growth. Especially strong performance was
recorded in the Americas, China and the India, Middle East and Africa region. In Europe, revenues over the
half-year grew slightly, with a recovery in the second quarter after a delayed start to the season in the first
quarter. In addition to the volume growth, improved demand conditions facilitated a stronger pricing
environment, allowing the passing on of some of the impact of the constrained supply and higher procurement
costs.

Gross profit. The increase in gross profit reflects the strong volume growth of a better product mix, as well as
higher prices, which were partially offset by the increased procurement costs of raw materials and
intermediates.

Operating expenses. The increase in Sales and Marketing expenses resulted primarily from an increase in
sales-related personnel marketing and product development teams in growing geographies and an increase in
other variable expenses as a result of the increase in sales volumes. The increase in R&D, General and
Administrative expenses resulted primarily from increased spend on strategic research and development
projects. In addition to these factors, part of the increase in total operating expenses stemmed from the impact
of the strengthening of most currencies against the US dollar, mainly in the first quarter.

Financial expenses and investment income. The increase in financial expenses and investment income in the
half-year period was primarily due to the adoption of a new accounting standard which classifies part of
interest income on sales as revenue, partially offset by foreign exchange income related to balance sheet
positions.

Tax expenses. The higher tax expenses stem from increased profits accrued at the Group’s selling entities
worldwide, as well as the non-cash impact of the devaluation of the Brazilian Real, which resulted in a lower
value of local currency-denominated tax assets. Notably, the comparatively low tax expenses recorded in the
first half of last year reflected a benefit from the utilization of tax loss carryforwards in the first quarter of 2017.

Working capital. Higher working capital served to accommodate the higher sales growth momentum.
Inventories were higher due to significant product preparation in advance of the season in the southern
hemisphere, as well as the higher procurement costs. Receivables were higher due to the strong sales growth,
partially offset by an increase in payables.



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Cash Flow. Notwithstanding the stronger growth momentum requiring increased inventories in advance of
the season, due to the continued implementation of advanced supply chain alignment, the Group maintains its
inventory days at their historically low levels. Additionally, continued tight control of credit allowed the
receivable days of the Group to be at record best mid-year levels. This working capital discipline facilitated
the generation of strong operating cash flow, while accommodating the significant sales growth.
Additions to assets includes investments in product registrations and other intangible and fixed assets,
including the transfer of products in Europe from Syngenta in the first quarter of 2018. Proceeds from disposal
of assets includes the divestment of certain products in Europe in the first quarter of 2018 in connection with
the approval of the European Commission for ChemChina’s acquisition of Syngenta, while in 2017 similarly
includes one-time proceeds resulting from the sale of non-core assets.
Leverage: The significantly reduced balance sheet net debt at the end of June puts the Group’s net
debt/EBITDA ratio at 0.7x, compared to 1.2x at the same time last year.

2. Events relating to the financial report

(1)Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the
financial report for the prior year
√ Applicable □ Not applicable

The contents and reasons for the changes of accounting      Process for management approval
policies

The Group began to adopt the following revised              The changes in the accounting policies were approved
Accounting Standards for Business Enterprises               by the board of directors meeting in April 26, 2018.
(“ASBE”) promulgated by Ministry of Finance from
January 1, 2018:
“ Revised ASBE 22 - Financial Instruments
Recognition and Measurement”, “Revised ASBE 23 -
Transfer of Financial Assets”, “Revised ASBE 24 -
Hedging”, “Revised ASBE 37 - Presentation and
Disclosures of Financial instruments” (“new financial
instrument standards”), and “Revised ASBE 14 -
Revenue” (“new revenue standard”), promulgated on
2017.

Financial Instruments

According to new financial instrument standards,
financial assets are classified as one of the following
three categories: financial assets measured at amortized
cost, financial assets measured at fair value through
other comprehensive income (FVTOCI), and financial
assets measured at fair value through profit and loss
(FVTPL), based on the “business model” and
“contractual cash flow characteristics”. The categories
of loans and receivables, held-to-maturity investments
and available-for-sale financial assets in the old
financial instrument standards are cancelled. Equity
investments are normally classified as financial assets
at FVTPL, while it is permitted to irrevocably designate
non-trading equity investments as financial assets at
FVTOCI, and cumulative gain or loss previously
recognised in other comprehensive income should not



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be classified to profit or loss upon derecognition.

Impairment requirements in new financial instrument
standards are applied to financial assets at amortised
cost and FVTOCI, based on the “expected credit loss
method”. The new impairment model requires a
three-stage model, to recognize 12-month or lifetime
expected credit losses, depending on whether credit risk
on a financial instrument has increased significantly
since initial recognition. An entity shall always measure
the loss allowance at an amount equal to lifetime
expected credit losses for               trade receivables
that do not have a significant financing component.

Revenue

New revenue standards introduced the 5-step approach,
and provides more guidances for special transactions
and events. Refer to Note III.25 for details of the
Group’s revenue recognition and measurement.

According to the new standards, opening balances
should be adjusted for accumulated impact, with
regards to retained earnings and other relevant
accounts, with no adjustments for comparative
information.



 (2) Explain retrospective restatement due to correction of significant accounting errors in the reporting period

□ Applicable √ Not applicable
No such cases in the reporting period.

 (3) Explain change of the consolidation scope as compared with the financial reporting of last year

□Applicable √Not applicable
No such case in the reporting period.




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