CMC(SH:600327)2018-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2018 was approximately RMB 4.52 billion, representing a 6.65% increase compared to RMB 4.24 billion in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2018 was approximately RMB 218.43 million, an increase of 17.66% from RMB 185.64 million in the previous year[20]. - The basic earnings per share for the first half of 2018 was RMB 0.296, down 9.48% from RMB 0.327 in the same period last year[18]. - The net cash flow from operating activities increased significantly by 120.20%, reaching RMB 67.54 million compared to RMB 30.67 million in the previous year[20]. - The company reported a net profit of RMB 206.62 million after deducting non-recurring gains and losses, which is a 13.60% increase from RMB 181.89 million in the previous year[20]. - The company reported a total profit of CNY 296,003,067.55 for the first half of 2018, an increase from CNY 250,795,496.49, which is a growth of about 17.93%[77]. - The company achieved an operating profit of CNY 283,840,280.45 for the first half of 2018, up from CNY 249,625,058.28, marking an increase of approximately 13.68%[77]. - The total comprehensive income for the first half of 2018 was CNY 91,617,391.80, compared to CNY 163,881,981.75 in the previous year, showing a decline of approximately 44.55%[78]. Revenue Breakdown - The department store segment generated revenue of CNY 1.08 billion, a slight decline of 1.79% year-on-year, with a gross profit of CNY 185.48 million, down 5.84%[28]. - The automotive segment reported revenue of CNY 3.17 billion, a year-on-year growth of 10.04%, with a gross profit of CNY 300.12 million, up 19.54%[30]. - The food and beverage segment's revenue was CNY 116 million, a decrease of 6.21% year-on-year, with a gross profit of CNY 51.95 million, down 6.69%[31]. Asset and Liability Management - The company's total assets decreased by 8.17% to approximately RMB 4.80 billion from RMB 5.23 billion at the end of the previous year[20]. - The total current assets as of June 30, 2018, amount to 2,230,241,589.13 RMB, a decrease from 2,434,419,790.45 RMB at the beginning of the period[70]. - The total non-current assets as of June 30, 2018, are 2,568,213,247.95 RMB, down from 2,791,164,523.06 RMB at the beginning of the period[70]. - Total liabilities amounted to CNY 1,871,197,967.40, a decrease of 18.7% from CNY 2,302,269,882.08[71]. - Owner's equity decreased to CNY 2,476,124,902.00 from CNY 2,596,395,888.86, representing a decline of 4.6%[74]. Cash Flow Analysis - Operating cash inflow for the first half of 2018 was CNY 5,095,766,666.66, an increase of 7.05% from CNY 4,759,345,970.14 in the previous period[83]. - Cash inflow from financing activities was CNY 610,346,275.22, a significant rise of 36.66% from CNY 446,479,870.09[84]. - The ending cash and cash equivalents balance was CNY 608,166,164.73, down from CNY 703,089,591.72, reflecting a decrease of 13.51%[84]. Shareholder Information - The company reported a total share capital of 737,316,265 shares after a stock dividend and capital reserve conversion on June 8, 2018, increasing from 567,166,357 shares[57]. - The largest shareholder, Jiangsu Wuxi Commercial Building Group Co., Ltd., holds 320,619,676 shares, accounting for 43.48% of total shares[60]. - The total number of ordinary shareholders reached 30,304 by the end of the reporting period[58]. Risk and Challenges - The company faced a risk of declining growth in the retail sector, with national retail sales growth slowing to 9.4% in the first half of 2018, down 1 percentage point from the previous year[23]. - The company reported a decrease in available-for-sale financial assets, down by 195,148,000 compared to the beginning of the year[38]. - The company did not propose any profit distribution or capital reserve increase plan for the half-year period[45]. Accounting Policies and Compliance - The company adheres to the Chinese Accounting Standards, ensuring that the financial reports accurately reflect its financial position and operating results[109]. - The financial statements are prepared based on the going concern principle, with no significant factors affecting the company's ability to continue operations identified for the next 12 months[107]. - The company has implemented specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition based on its operational characteristics[108]. Inventory and Receivables Management - The inventory increased from 819,762,157.74 RMB to 941,670,312.48 RMB, indicating a rise of approximately 14.8%[70]. - The total accounts receivable at the end of the period amounted to 131,151,543.34 CNY, with a bad debt provision of 87,594.93 CNY, resulting in a provision ratio of 0.07%[195]. - The accounts receivable aged over three years had a provision ratio of 100%[195]. Investment Activities - The company plans to acquire 100% equity of Dongrui Insurance for 50,363,696.91, based on the audited net assets as of the end of 2017[39]. - Long-term equity investments increased to CNY 1,325,851,943.58 from CNY 1,276,804,771.75, showing a growth of 3.8%[73]. Corporate Governance - There were no significant lawsuits or arbitration matters during the reporting period[48]. - The company did not disclose any major related party transactions or changes in related party transactions during the reporting period[50].