SPM(SH:600459)2015-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2015 was approximately RMB 2.85 billion, a decrease of 4.92% compared to RMB 3.00 billion in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2015 was approximately RMB 39.32 million, down 5.98% from RMB 41.82 million in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 32.83 million, a decrease of 14.85% compared to RMB 38.56 million in the same period last year[21]. - The total profit for the period was CNY 5,223.17 million, down 7.98% from CNY 5,676.34 million year-on-year[24]. - Net profit attributable to the parent company was CNY 3,932.35 million, a decrease of 5.98% from CNY 4,182.35 million in the previous year[24]. - Basic earnings per share for the first half of 2015 were RMB 0.15, down 6.25% from RMB 0.16 in the same period last year[18]. - The weighted average return on net assets was 2.23%, a decrease of 0.22 percentage points compared to 2.45% in the previous year[18]. Cash Flow and Liquidity - The net cash flow from operating activities was negative RMB 331.15 million, compared to negative RMB 71.73 million in the same period last year, representing a decline of 361.69%[21]. - The company's cash and cash equivalents decreased by 62.01% to CNY 171,411,520.83 due to increased capital occupation in production activities[31]. - Cash inflow from financing activities amounted to 514,600,000.00 RMB, with cash outflow totaling 371,365,969.31 RMB, leading to a net cash inflow of 143,234,030.69 RMB[103]. - The company experienced a net decrease in cash and cash equivalents of -279,731,854.57 RMB, compared to -184,146,497.61 RMB in the previous period, highlighting ongoing liquidity challenges[103]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 3.17 billion, an increase of 10.47% from RMB 2.87 billion at the end of the previous year[21]. - The total liabilities reached CNY 1,330,896,520.64, up from CNY 1,044,440,232.90, which is an increase of around 27.5%[89]. - Current liabilities rose to CNY 1,170,902,540.45, compared to CNY 883,844,541.82, reflecting an increase of about 32.5%[89]. - The company's equity attributable to shareholders rose to CNY 1,760,050,985.85 from CNY 1,746,048,235.04, a growth of about 0.8%[90]. Investments and Expenditures - The company reported a significant increase in research and development expenditure, which rose by 3.26% to CNY 51,665,481.47[26]. - The company has incurred a total expenditure of RMB 762.6 million on the gold and silver electrolysis and processing project as of June 30, 2015[54]. - The company has invested RMB 1,789.8 million in the multi-variety, small-batch material R&D capability construction project as of June 30, 2015[54]. - The company established a joint venture with Lanzhou New Link Environmental Technology Co., Ltd., contributing 30 million RMB for a 75% stake in the new company[46]. Market and Business Operations - The company is actively expanding its market presence in the petrochemical, PTA, and automotive catalyst sectors, with a focus on resource recycling and new material manufacturing[27]. - The company has established a comprehensive service capability in the precious metal industry, integrating research, production, and recycling[43]. - The company primarily operates in the precious metals industry, focusing on the research, development, production, and sales of precious metal materials, including information functional materials and environmental materials[119]. - The company’s major business includes the recycling of precious metal materials, production and sales of automotive exhaust purification agents, and precious metal trading[119]. Shareholder and Corporate Governance - The company distributed a cash dividend of RMB 1 per 10 shares to all shareholders based on the total shares of 260,977,742 as of December 31, 2014[55]. - The company plans to distribute at least 10% of its distributable profits in cash annually over the next three years (2015-2017) if conditions permit[66]. - The company has retained Ruihua Certified Public Accountants for financial auditing in 2015, with a fee of RMB 400,000, and for internal control auditing, with a fee of RMB 100,000[68]. - The company revised its shareholder meeting rules to enhance investor protection and improve communication with minority shareholders[71]. Compliance and Internal Control - Internal control measures have been enhanced to ensure compliance and effective management of key processes[73]. - The company has maintained independence in operations, personnel, assets, and finance from its controlling shareholder[70]. - There were no investigations or penalties against the company or its key personnel during the reporting period[69]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the assumption of going concern, in accordance with the accounting standards issued by the Ministry of Finance[120]. - The company’s accounting policies comply with the enterprise accounting standards, reflecting the financial position, operating results, and cash flows accurately[122]. - The company’s accounting year runs from January 1 to December 31, with a normal operating cycle defined as 12 months[123][124]. - The company’s accounting currency is Renminbi[125].