WSBE(SH:600421)2016-08-18 16:00Financial Performance - The company's operating revenue for the first half of 2016 was CNY 13,468,663.85, a decrease of 24.92% compared to CNY 17,938,584.68 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2016 was a loss of CNY 828,201.40, compared to a profit of CNY 554,891.89 in the same period last year, representing a decline of 249.25%[15]. - The basic earnings per share for the first half of 2016 was -0.004 CNY, down 233.33% from 0.003 CNY in the same period last year[15]. - The net cash flow from operating activities was -CNY 1,202,660.40, compared to -CNY 10,408,871.02 in the same period last year[15]. - The total assets at the end of the reporting period were CNY 76,850,261.00, a decrease of 2.89% from CNY 79,134,577.68 at the end of the previous year[15]. - The company's net assets attributable to shareholders decreased by 14.67% to CNY 4,815,524.55 from CNY 5,643,725.95 at the end of the previous year[15]. - The sales revenue from the company's main business, internal combustion engine parts, decreased by 24.92% due to reduced demand from upstream industries[20]. - The company reported a significant increase in accounts payable, which rose to CNY 8,887,403.21 from CNY 9,175,007.47[50]. - The total liabilities as of June 30, 2016, were CNY 58,238,666.45, a decrease from CNY 59,666,918.40 at the beginning of the period[50]. - The total equity attributable to shareholders of the parent company was CNY 4,815,524.55, down from CNY 5,643,725.95[50]. - The company reported a net profit for the first half of 2016 was a loss of CNY 856,064.73, compared to a profit of CNY 1,037,507.16 in the previous year, indicating a significant decline[54]. - The total comprehensive income for the current period is RMB -744,023.72, reflecting a decline in profitability[68]. Cash Flow and Assets - Cash and cash equivalents decreased from CNY 3,055,512.91 to CNY 1,749,732.85, a drop of approximately 42.7%[48]. - The total current assets decreased from CNY 25,193,383.73 to CNY 23,989,476.31, a decline of approximately 4.8%[48]. - The total non-current assets decreased from CNY 53,941,193.95 to CNY 52,860,784.69, a decline of about 2.0%[48]. - Cash and cash equivalents at the end of the period were CNY 220,817.62, a decrease from CNY 269,394.67 at the beginning of the period[51]. - The company’s retained earnings showed a negative balance of CNY -414,665,406.95, indicating ongoing financial challenges[50]. - The total accounts receivable at the end of the period was CNY 7,001,190.94, with a bad debt provision of CNY 60,645.53, representing 0.87% of the total[149]. - The company reported a total of CNY 4,804,221.20 in notes receivable at the end of the period, an increase from CNY 3,174,460.12 at the beginning of the period[147]. - The total inventory at the end of the period is CNY 10,843,622.62, a decrease of about 18.09% from CNY 13,242,696.12 at the beginning of the period[158]. - The fixed assets' ending balance is CNY 48,838,141.04, down from CNY 49,070,073.14, indicating a reduction of approximately 0.47%[162]. - The intangible assets' ending balance is CNY 13,823,831.00, down from CNY 14,123,477.48, representing a decrease of about 2.13%[166]. Expenses and Costs - The company's management expenses decreased by 43.52% to CNY 1,872,189.75, attributed to cost control measures and reduced R&D spending[22]. - The company's sales expenses dropped by 89.18% to CNY 299,917.93, primarily due to the previous year's provision for product quality assurance by its subsidiary[22]. - Total operating costs amounted to CNY 14,365,054.43, down from CNY 16,475,857.22, reflecting a reduction of 12.8% year-over-year[54]. - The total cost of sales for the current period was CNY 12,129,257.99, compared to CNY 10,335,734.13 in the previous period, indicating an increase of about 17.3%[198]. Shareholder Information - The top two shareholders, Wuhan New Generation Technology Co., Ltd. and Zhejiang Hengshun Investment Co., Ltd., each hold 17.50% of the shares, totaling 34,234,261 and 34,234,182 shares respectively[41]. - The company did not distribute profits for the fiscal year 2015, with a total distributable profit of -¥413,837,205.55[30]. - The company has not proposed any profit distribution or capital increase plans for the current half-year period[31]. Corporate Governance - There were no changes in the total number of shares or the capital structure during the reporting period[38]. - The company has retained the auditing firm for the 2016 audit following shareholder approval[34]. - The company has not engaged in any significant investment or financial activities outside of its core operations[28]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[42]. - There were no changes in the board of directors, supervisors, or senior management personnel during the reporting period[44]. - The company did not grant any stock incentives to directors, supervisors, or senior management during the reporting period[44]. Accounting Policies - The financial statements are prepared based on the going concern assumption, indicating no significant issues affecting the company's ability to continue operations for at least 12 months from the reporting date[80]. - The company adheres to the enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows[81]. - The company's accounting currency is Renminbi (RMB)[84]. - The company recognizes impairment losses for financial assets if there is objective evidence of impairment, particularly for available-for-sale financial assets with significant declines in fair value[104]. - The company assesses receivables for impairment based on significant individual amounts or by grouping them according to credit risk characteristics, with a threshold of 10 million yuan for significant amounts[105][106]. Future Outlook - The company anticipates a potential net loss for the upcoming reporting period due to decreased orders and sales revenue from its subsidiary[32]. - Future outlook and strategic initiatives were not detailed in the provided documents, indicating a need for further information on market expansion and new product development[60].