Hubei Sanonda Co., Ltd
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2015 Semi-annual Report of Hubei Sanonda Co., Ltd. HUBEI SANONDA CO., LTD. 2015 Semi-annual Report July 2015 1 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Section I. Important Reminders, Contents & Explanation The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Hubei Sanonda Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that. All directors attended the board session for reviewing this report. The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital. An Liru, company principal, Liu Anping, chief of the accounting work, and Tu Zhiwen, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete. This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail. 2 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Contents 2015 Semi-annual Report .................................................................................................................. 1 Section I. Important Reminders, Contents & Explanation ............................................................ 2 Section II. Company Profile .............................................................................................................. 5 Section III. Highlights of Accounting Data & Financial Indicators .............................................. 7 Section IV. Report of the Board of Directors ................................................................................... 9 Section V. Significant Events ........................................................................... 错误!未定义书签。 Section VI. Change in Shares & Shareholders .............................................................................. 28 Section VII. Preferrence Shares ...................................................................................................... 33 Section VIII. Directors, Supervisors & Senior Management Staff .............................................. 34 Section IX. Financial Report ........................................................................................................... 35 Section X. Documents Available for Reference ........................................................................... 153 3 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Explanation Refers Term Contents to Company/the Company Refers Hubei Sanonda Co., Ltd. to Refers CSRC Hubei The Hubei bureau of China Securities Regulatory Commission to Refers CSRC China Securities Regulatory Commission to Refers SSE Shenzhen Stock Exchange to Refers Reporting period/the reporting period 1 Jan. 2015-30 Jun. 2015 to Refers China National Agrochemical Corporation (holding 100% equity of CNAC to Sanonda Group, the Company’s controlling shareholder) Refers ADAMA Celsius B.V., a company incorporated in the Netherlands Celsius to according to its law, once called Celsius Property B.V., holding a stake of 10.6% in the Company Refers ADAMA Agricultural Solutions LTD., a subsidiary indirectly controlled to by CNAC, once called Makhteshim-Agan Industries Ltd., a company ADAMA incorporated in Israel according to its law, indirectly holding the 100% equity of Celsius Refers Jingzhou Sanonda Holdings Co., Ltd., once called Sanonda Group Co., Sanonda Holdings to Ltd., the controlling shareholder of the Company 4 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Section II. Company Profile I. Basic information of the Company Stock abbreviation SLDA (SLDB) Stock code 000553(200553) Stock abbreviation after N/A change (if any) Stock exchange listed with Shenzhen Stock Exchange Chinese name of the Company 湖北沙隆达股份有限公司 Abbr. of the Chinese name of 沙隆达 the Company (if any) English name of the Company HUBEI SANONDA CO., LTD. (if any) Abbr. of the English name of SANONDA the Company (if any) Legal representative of the An Liru Company II. Contact information Company Secretary Securities Affairs Representative Name Li Zhongxi No. 93, Beijing East Road, Jingzhou, Contact address Hubei Province, R.R.China Tel. 0716-8208632 Fax 0716-8321099 E-mail [email protected] III. Other information 1. Ways to contact the Company Did any change occur to the registered address, office address and their postal codes, website address and email address of the Company during the reporting period? □ Applicable √ Inapplicable The registered address, office address and their postal codes, website address and email address of the Company did not change during the reporting period. The said information can be found in the 2014 Annual Report. 5 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. 2. About information disclosure and where this report is placed Did any change occur to information disclosure media and where this report is placed during the reporting period? □ Applicable √ Inapplicable The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report and the location where this report is placed did not change during the reporting period. The said information can be found in the 2014 Annual Report. 3. Change of the registered information Did any change occur to the registered information during the reporting period? □ Applicable √ Inapplicable The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not change during the reporting period. The said information can be found in the 2014 Annual Report. 6 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Section III. Highlights of Accounting Data & Financial Indicators I. Major accounting data and financial indicators Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error? □ Yes √ No Reporting period Same period of last year YoY +/- (%) Operating revenues (RMB Yuan) 1,235,251,682.81 1,700,281,424.68 -27.35% Net profit attributable to shareholders of 117,678,175.59 288,406,597.13 -59.20% the Company (RMB Yuan) Net profit attributable to shareholders of the Company after extraordinary gains and 115,491,779.81 287,537,764.46 -59.83% losses (RMB Yuan) Net cash flows from operating activities -19,276,749.38 374,110,765.75 -105.15% (RMB Yuan) Basic EPS (RMB Yuan/share) 0.1981 0.4856 -59.21% Diluted EPS (RMB Yuan/share) 0.1981 0.4856 -59.21% Weighted average ROE (%) 5.74% 17.15% -11.41% As at the end of the As at the end of last year YoY +/- (%) reporting period Total assets (RMB Yuan) 3,232,902,083.48 2,934,299,657.47 10.18% Net assets attributable to shareholders of 2,071,115,738.60 2,007,631,150.60 3.16% the Company (RMB Yuan) II. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards □ Applicable √ Inapplicable No difference. 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards □ Applicable √ Inapplicable No difference. 7 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. III. Items and amounts of extraordinary gains and losses √Applicable □ Inapplicable Unit: RMB Yuan Item Amount Explanation Gains/losses on the disposal of non-current assets (including the -7,689.72 offset part of asset impairment provisions) Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at 2,909,544.44 certain quotas or amounts according to the country’s unified standards Other non-operating income and expenses other than the above 20,714.65 Less: Income tax effects 730,642.34 Minority interests effects (after tax) 5,531.25 Total 2,186,395.78 -- Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item □ Applicable √ Inapplicable No such cases. 8 2015 Semi-annual Report of Hubei Sanonda Co., Ltd. Section IV. Report of the Board of Directors I. Overview In the first half of 2015, the pesticide market was sluggish with a weak demand while the domestic chemical pesticide output still increased slightly, causing severe oversupply as well as fiercer competition in the pesticide market. As a result, prices of main pesticides kept falling, leaving a strong impact on the production and operation of the Company. In the reporting period, united as one man, all employees of the Company focused on the main tasks of “reduce cost and increase profit” that had been set at the beginning of the year, and proactively dealt with the adverse situation of a depressed industry, decreased orders and falling prices. We tried to capture the market and expand sales by actively conducting marketing competitions; pushed forward system construction and intensified safety and environmental protection management to ensure safe production; carefully arranged