NBYS(SH:600366)2017-08-21 16:00Financial Performance - The company's operating revenue for the first half of 2017 was CNY 831,359,030.38, representing a 10.41% increase compared to CNY 752,994,856.12 in the same period last year[15]. - The net profit attributable to shareholders decreased by 78.19% to CNY 161,846,065.60 from CNY 742,212,463.35 year-on-year[15]. - The net cash flow from operating activities was negative at CNY -94,816,675.33, a significant decline from CNY 1,958,855.43 in the previous year, marking a decrease of 4,940.41%[15]. - The basic earnings per share dropped by 78.36% to CNY 0.2986 from CNY 1.3797 in the same period last year[15]. - The weighted average return on net assets decreased by 14.05 percentage points to 3.66% from 17.71% in the previous year[15]. - The company expects a net profit attributable to shareholders to decrease by over 50% for the period from January to September 2017, compared to the same period last year, due to a significant investment gain in the previous year[40]. - The company reported a total comprehensive income of CNY -22,328,076.16 for the first half of 2017, a significant decrease from CNY 1,300,811,097.81 in the previous year[84]. Assets and Liabilities - The total assets increased by 5.38% to CNY 6,036,183,178.28 from CNY 5,727,896,085.57 at the end of the previous year[15]. - The company's total liabilities amounted to CNY 1,501,631,054.93, up from CNY 1,116,383,629.06, marking a significant increase of around 34.5%[76]. - The total equity attributable to shareholders decreased to CNY 4,441,958,593.26 from CNY 4,522,782,674.36, a decline of about 1.8%[77]. - The company's total assets at the end of the period were reported at 4,855,776,000 RMB, showing a healthy asset base for future growth[101]. - The total liabilities decreased to 2,874,700,000 RMB, down from 3,623,329,000 RMB, indicating improved financial stability[100]. Investment and R&D - The company has undertaken two national 863 projects, reflecting its active engagement in research and development initiatives[19]. - The company is actively expanding its investment business, focusing on new materials and servo control sectors for potential investment and acquisition opportunities[30]. - The company is leveraging its industry advantages and ample cash flow to invest in core technology enterprises, providing substantial and sustainable returns for shareholders[20]. - The company has invested ¥40 million in Ningbo Xingfu Pioneer Investment Partnership during the reporting period[37]. Market and Sales - The company achieved over 30% growth in sales volume of neodymium iron boron magnetic materials and servo motors compared to the same period last year, with net profit increasing by over 40%[28]. - The market share of the company's magnetic steel for iPhone 7s vibration motors remains the highest, with overall sales revenue increasing by approximately 50%[28]. - The demand for VCM magnetic steel grew significantly, with a year-on-year increase of over 50%, driven by rising flash memory prices and inventory replenishment in the industry[30]. Production and Capacity - The company has a production capacity of 8,000 tons of raw materials annually, positioning it as one of China's major manufacturers of rare earth permanent magnet materials[19]. - The company has established a comprehensive procurement system with strict internal controls for raw materials, ensuring quality and efficiency in production[21]. - The company is implementing a customized production model to meet diverse client needs, enhancing customer service and market responsiveness[22]. Shareholder and Equity Changes - The company repurchased and canceled 415,000 restricted stocks at CNY 8.03 per share and 30,000 restricted stocks at CNY 9.46 per share, reducing the total share capital from 557,486,925 shares to 557,071,925 shares[49]. - The total number of shares decreased from 557,486,925 to 557,071,000, a reduction of 415,000 shares, representing a decrease of approximately 0.07%[58]. - The number of restricted shares decreased by 6,692,500, from 28,499,948 to 21,807,448, which is a reduction of approximately 23.5%[61]. - The largest shareholder, Yunsheng Holdings Group Co., Ltd., holds 174,895,630 shares, accounting for 31.40% of total shares[64]. Cash Flow and Financial Management - The company's cash and cash equivalents increased to CNY 840,312,517.22 from CNY 813,996,162.20, representing a growth of about 3.5%[75]. - The company reported a 201.61% increase in financial expenses, amounting to ¥19,924,768.71, mainly due to increased exchange losses from the depreciation of the US dollar[33]. - Cash flow from operating activities showed a net outflow of RMB 94,816,675.33, contrasting with a net inflow of RMB 1,958,855.43 in the previous period[90]. - The ending balance of cash and cash equivalents was RMB 834,174,855.34, up from RMB 457,386,489.39 in the previous period[91]. Compliance and Governance - The financial statements were approved by the board on August 18, 2017[107]. - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[113]. - The company has maintained its continuous operation basis for at least 12 months from the reporting date[111]. Accounting Policies - The company recognizes revenue based on specific accounting policies related to inventory and fixed assets[112]. - The company applies the acquisition method for business combinations, measuring assets and liabilities at their book value for same-control mergers[117]. - The company assesses financial assets for impairment and recognizes losses when the present value of expected future cash flows is less than the carrying amount[126]. - The company recognizes government grants related to assets as deferred income, which is amortized over the useful life of the related assets[170].