NNCI(SH:600301)2015-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2015 was ¥111,658,636.58, a decrease of 72.05% compared to ¥399,436,548.14 in the same period last year[15]. - The net profit attributable to shareholders for the first half of 2015 was -¥10,195,127.60, compared to -¥27,375,063.47 in the same period last year[15]. - The net cash flow from operating activities was -¥43,776,255.05, an improvement from -¥81,018,103.24 in the previous year[15]. - The company reported a net loss of -¥65,372,626.08 after deducting non-recurring gains and losses[15]. - The company reported a revenue of 111.66 million RMB, a decrease of 72.05% compared to the previous year, which was 399.44 million RMB[19]. - Operating profit was -67.22 million RMB, an improvement from -93.47 million RMB in the same period last year, reducing the loss by 26.25 million RMB[19]. - The company recorded a total comprehensive loss of CNY 8,276,710.78 for the first half of 2015, compared to a loss of CNY 38,189,610.77 in the same period last year[68]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,336,915,036.50, a decrease of 5.53% from ¥1,415,164,668.36 at the end of the previous year[15]. - The net assets attributable to shareholders at the end of the reporting period were -¥216,745,826.05, compared to -¥206,542,891.64 at the end of the previous year[15]. - The company's net assets stood at CNY -154,178,056.96, with a debt-to-asset ratio of 116.38%[40]. - Total liabilities decreased to CNY 1,095,422,519.88 from CNY 1,162,635,013.51, a reduction of about 5.8%[61]. - The total equity at the end of the current period is -154,178,056.96, compared to -145,893,539.37 at the end of the previous period, indicating a decrease of approximately 5.5%[79]. Cash Flow - Cash flow from operating activities was -43.78 million RMB, an improvement from -81.02 million RMB in the previous year[24]. - Cash and cash equivalents dropped to CNY 6,786,712.79 from CNY 53,248,122.63, a decline of approximately 87%[55]. - Cash and cash equivalents at the end of the first half of 2015 were CNY 3,355,794.95, down from CNY 96,900,778.92 at the end of the previous year[71]. Government Support and Subsidies - The company received government subsidies amounting to ¥55,176,598.48, which were included in the non-recurring gains and losses[17]. Operational Challenges - The company faced a significant decline in trade volume due to market shrinkage and increased procurement costs[20]. - The company is currently in a phase of policy-mandated shutdown and relocation preparations, actively promoting the relocation project[19]. - The company has been facing continuous operational losses, leading to the long-term idling of its diaphragm evaporation equipment since June 2010 and the shutdown of its PVC production line since the second half of 2012[40]. Shareholder Information - The company has a total of 10,867 shareholders as of the end of the reporting period[46]. - The company has not implemented any profit distribution plan or capital reserve increase plan during the reporting period[33]. Accounting Policies and Estimates - The financial statements are prepared based on the going concern assumption, despite significant uncertainties regarding the company's ability to continue operations[87]. - The company adheres to the accounting policies and estimates in accordance with the relevant accounting standards, ensuring that the financial statements reflect a true and complete view of its financial position as of June 30, 2015[88]. - Management regularly reviews significant accounting judgments and estimates, which can affect the reported amounts of income, expenses, assets, and liabilities[176]. Inventory and Receivables - The company reported accounts receivable of CNY 68,839,404.88, with a provision for bad debts amounting to CNY 33,642,388.91[193]. - The company applies a percentage of receivables method for estimating bad debt provisions, reflecting a proactive approach to credit risk management[194]. - The total amount of prepayments at year-end was CNY 6,568,947.00, an increase from CNY 5,694,788.37 at the beginning of the year[198]. Impairment and Provisions - The company conducts impairment tests for long-term assets, including investment properties and fixed assets, to ensure their carrying amounts are recoverable[143]. - Inventory impairment is recognized when the cost exceeds the net realizable value, requiring management to evaluate the salability and market conditions[178]. - The company recognizes employee benefits as liabilities in the period they are incurred, including short-term compensations such as wages and bonuses[153].