THTF(SH:600100)2018-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2018 was approximately RMB 10.51 billion, an increase of 4.97% compared to RMB 10.01 billion in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 334.99 million, compared to a loss of RMB 120.66 million in the same period last year[17]. - The net cash flow from operating activities was negative at approximately RMB 3.21 billion, slightly improved from a negative RMB 3.33 billion in the previous year[17]. - The total assets at the end of the reporting period were approximately RMB 64.99 billion, an increase of 2.20% from RMB 63.60 billion at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased by 4.00% to approximately RMB 20.42 billion from RMB 21.27 billion at the end of the previous year[17]. - The gross profit margin for the main business was 22.58%, an increase of 2.84 percentage points year-on-year, indicating improved profitability[35]. - The net profit attributable to shareholders was a loss of 335 million RMB, which is a larger loss compared to the same period last year, primarily due to increased financial expenses and exchange losses[35]. - The basic and diluted earnings per share were both -0.1130 RMB, while the earnings per share after deducting non-recurring gains and losses were -0.1522 RMB[18]. - The weighted average return on net assets decreased by 1.05 percentage points to -1.61%[18]. - The company reported a net profit attributable to shareholders of -¥335 million, indicating a larger loss compared to the same period last year[52]. - The company reported a total equity of RMB 23.95 billion at the end of the period, a decrease of 3.3% from RMB 24.77 billion at the end of the previous year[151]. Research and Development - The company is engaged in over 130 ongoing R&D projects, with 40 of them included in national and provincial technology plans[29]. - The company has been awarded 3,426 Chinese patents and 799 foreign invention patents as of June 2018[31]. - Major ongoing R&D projects include the development of a high-stability miniaturized radiation source module and AI chip-based intelligent computing units[30]. - The company launched a new high-end security inspection product, the millimeter-wave holographic imaging body security inspection device, which has passed the highest certification standards in Europe[42]. - Tongfang Weishi increased its R&D investment in intelligent security, integrating cloud computing, big data, and IoT with security inspection technology[65]. Business Operations - The company has a diversified business model encompassing product sales, engineering implementation, and technical services[25]. - In the internet services and terminal sector, the main business revenue was 552.63 million RMB, with a year-on-year increase of 6.50%[36]. - The company launched a new generation of domestic PC products, the Chao Xiang series, which utilizes entirely self-developed technology[37]. - The company signed a strategic cooperation agreement with global technology and supply chain service provider Ingram Micro to promote its gaming brand in China[37]. - The company developed a mobile terminal data collection software production platform to enhance the efficiency of data collection for national statistical projects[41]. - The company signed strategic cooperation agreements with major entities, including a project for a 300-ton fishery patrol vessel and two 40-meter patrol boats[43]. - The company successfully completed several major events' security equipment and solutions, including the G7 Summit and the Boao Forum[42]. - The company is actively exploring various business cooperation models in the urban heating sector, including EMC, BOT, and EPC[47]. Financial Position - Operating costs increased to ¥8,131,050,060.23, reflecting a 1.28% rise year-on-year[49]. - Financial expenses surged by 98.62% to ¥616,379,035.48, primarily due to increased debt and foreign exchange losses[49]. - The asset-liability ratio increased by 2.10 percentage points to 63.15%[54]. - The company’s receivables from interest increased by 130.22% to ¥19,989,041.10, indicating a rise in interest income from subsidiaries[54]. - The company’s payable dividends surged by 612.41% to ¥97,107,845.52, reflecting a significant increase in dividend obligations[54]. - The company’s cash flow from investment activities saw a notable increase due to the disposal of shares in Unisplendour Corporation Limited[53]. - The company reported a significant increase in other income, which rose by 301.23% to ¥120,908,569.68[51]. - The company reported a 73.57% decrease in investment amount, totaling ¥350,144,058.76, compared to ¥1,324,824,283.28 in the same period last year[57]. Environmental Compliance - The wastewater treatment plant in Huai'an has a capacity of 105,000 tons/day, with a total annual discharge limit for COD set at 1,916.3 tons, and in the first half of 2018, it discharged 400.75 tons of COD[95]. - The second wastewater treatment plant in Huai'an has a capacity of 100,000 tons/day, with a total annual discharge limit for COD set at 2,264.83 tons, and in the first half of 2018, it discharged 368.18 tons of COD[96]. - The comprehensive treatment efficiency for COD at the Siqiqing wastewater treatment plant is 72.1%, while the efficiency for NH3-N is 97.9%[100]. - The second wastewater treatment plant achieves a COD treatment efficiency of 94.13% and an NH3-N efficiency of 99.12%[101]. - The Gaoyou wastewater treatment plant has a COD treatment efficiency of 86.5% and a BOD5 efficiency of 94.6%[102]. - The online monitoring system at all four plants includes real-time data for COD, NH3-N, TN, and TP, ensuring compliance with environmental regulations[107]. - The emergency response plans for the wastewater treatment facilities have been developed and are regularly trained and rehearsed[105]. - The facilities have passed environmental assessments and are currently operating within compliance standards[99]. Shareholder Information - The total number of shares before the recent change was 2,963,898,951, with 766,016,713 shares being reduced, resulting in a new total of 2,963,898,951 shares[113]. - The proportion of limited sale shares decreased from 25.84% to 0%, while the proportion of unrestricted shares increased from 74.16% to 100%[113]. - The company raised a total of up to 5.5 billion RMB through the non-public issuance of 766,016,713 shares approved by the Ministry of Finance[114]. - The number of shareholders at the end of the reporting period was 179,681[117]. - Tsinghua Holdings Co., Ltd. held 759,160,988 shares, representing 25.61% of the total shares, with an increase of 5,850,078 shares during the reporting period[119]. - The top ten unrestricted shareholders hold a total of 1,000,000,000 shares, with Tsinghua Holdings owning 759,160,988 shares, representing 75.92% of the total[121]. - The company has maintained a stable shareholder structure with no significant changes in the top ten shareholders[121]. Corporate Governance - The company did not propose any profit distribution or capital reserve transfer plan for the half-year period[81]. - The actual controller and shareholders have fulfilled their commitments during the reporting period, with no delays in execution[82]. - The company continues to employ the accounting firm ShineWing Certified Public Accountants for the 2018 financial report audit[84]. - There were no significant lawsuits or arbitration matters during the reporting period[84]. - The integrity status of the company and its controlling shareholders remains good, with no unfulfilled court judgments or significant overdue debts[85]. - The financial report indicates that the company has no changes in controlling shareholders or actual controllers during the reporting period[122]. - The company has appointed new executives, including a new CFO and two vice presidents, to strengthen its management team[125]. Accounting Policies - The company’s accounting policies comply with the requirements of the enterprise accounting standards, ensuring a true and complete reflection of its financial status[166]. - The company recognizes identifiable assets, liabilities, and contingent liabilities acquired in a business combination at fair value on the acquisition date[167]. - Cash and cash equivalents in the cash flow statement include cash on hand and deposits that are readily available for payment[172]. - Financial assets are classified based on investment purpose and economic substance, including those measured at fair value with changes recognized in profit or loss[174]. - The company applies a provision matrix for accounts receivable, with specific percentages based on aging categories, such as 1% for receivables within 1 year and 100% for those over 5 years[183]. - The company uses the cost method for accounting for investments in subsidiaries and the equity method for joint ventures and associates, adjusting the book value of long-term equity investments based on changes in the investee's equity[189].