BIRD(SH:600130)2017-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2017 was CNY 810,921,871.56, a decrease of 55.25% compared to CNY 1,812,223,468.11 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2017 was a loss of CNY 29,157,113.40, representing a decline of 291.27% from a profit of CNY 15,243,767.96 in the previous year[20]. - The net cash flow from operating activities was CNY 35,898,502.94, a significant improvement from a negative cash flow of CNY -232,982,481.42 in the same period last year[20]. - Basic earnings per share for the first half of 2017 were -CNY 0.04, a decrease of 300.00% compared to CNY 0.02 in the same period last year[21]. - The weighted average return on net assets was -2.97%, a decrease of 4.54 percentage points from 1.57% in the previous year[21]. - The company reported a total operating income of 608.10 million yuan, with an operating profit of -13.61 million yuan[40]. - The company reported a total comprehensive income for the first half of 2017 was a loss of CNY 29,026,432.67, compared to a gain of CNY 15,162,884.20 in the same period last year[75]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,227,464,172.78, down 14.26% from CNY 1,431,668,632.40 at the end of the previous year[20]. - The total liabilities decreased to CNY 261,312,228.43 from CNY 436,490,255.38, indicating a reduction of approximately 40.1%[69]. - The company's cash and cash equivalents at the end of the reporting period were ¥210,629,667.41, representing 17.16% of total assets[34]. - The company's accounts receivable decreased by 58.58% to ¥80,875,271.34, primarily due to reduced operating revenue[34]. - The company's total equity attributable to shareholders decreased to CNY 966,151,944.35 from CNY 995,178,377.02, a decline of approximately 2.9%[69]. Investments and Subsidiaries - The company invested ¥40 million in Shenzhen Huada Beidou Technology Co., acquiring a 10% stake during the reporting period[36]. - The company has seven wholly-owned subsidiaries, with no changes during the reporting period[38]. - The total balance of long-term equity investments at the end of the period reached RMB 102.29 million, with a significant portion in WABS and Huada Beidou[193]. - The company reported a book value of investment properties at the end of the period is RMB 138.19 million, down from RMB 141.87 million at the beginning of the period[198]. Operational Challenges - The company faced challenges in the low-end mobile phone OEM business, leading to significant pressure on operations and profitability[29]. - The overall mobile communications market is experiencing a slowdown in growth, with increased competition among domestic brands[29]. - The company expects a cumulative net profit loss for the period from January to September 2017, primarily due to a significant decline in operating revenue compared to the same period last year[39]. Legal and Regulatory Matters - The company has been involved in a significant lawsuit related to a loan agreement, with ongoing legal proceedings[46]. - The market value of the assets involved in the court case was assessed at 57.76 million yuan, but the assets failed to sell in three public auctions[48]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the assumption of ongoing operations, adhering to relevant accounting standards[96]. - The company has specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition[98]. - The company recognizes revenue from the sale of goods when the risks and rewards of ownership have transferred to the buyer, and the amount of revenue can be reliably measured[147]. - The company applies a straight-line depreciation method for fixed assets, with varying useful lives and residual rates depending on the asset category[132]. Cash Flow and Financial Position - The company experienced a decrease in cash and cash equivalents, ending the period with CNY 210,629,667.41, down from CNY 403,138,164.91 at the beginning of the year[79]. - Cash flow from investment activities showed a net outflow of ¥28,875,877.23, slightly improved from a net outflow of ¥31,691,650.04 in the previous year[81]. - The company reported a government subsidy of ¥3,288,616.32, which was adjusted from "non-operating income" to "other income," with no impact on the current net profit[155]. Inventory and Receivables - The total balance of inventory at the end of the period is 241,877,560.36 CNY, with a total provision for inventory depreciation of 17,903,023.81 CNY[181]. - The accounts receivable at the end of the period amounted to 85,490,199.64 RMB, with a bad debt provision of 4,614,928.30 RMB, representing 5.40% of the total[168]. - The company recorded a provision for bad debts of 5,914,574.44 RMB during the current period, with no recoveries or reversals[170].