TMSP(SH:600671)2014-09-29 16:00Financial Performance - The company reported a revenue of CNY 85,574,697.28 for the first half of 2014, a decrease of 39.09% compared to CNY 140,504,374.45 in the same period last year[21]. - The net profit attributable to shareholders was a loss of CNY 631,450.02, down 164.80% from a profit of CNY 974,510.07 in the previous year[21]. - The net cash flow from operating activities was negative CNY 2,242,485.38, a decline of 144.53% compared to CNY 5,035,716.75 in the same period last year[21]. - The company's operating revenue decreased by 39.09% to ¥85,574,697.28 compared to ¥140,504,374.45 in the same period last year[30]. - The net profit for the first half of 2014 was a loss of CNY 1,950,971.10, compared to a profit of CNY 635,690.50 in the previous year, indicating a significant decline[80]. - The company reported a total comprehensive loss of CNY 1,950,971.10 for the first half of 2014, compared to a comprehensive income of CNY 635,690.50 in the previous year[80]. Cash Flow - The net cash flow from investing activities decreased significantly by 746.47% to -¥19,560,405.33, compared to ¥3,025,730.01 last year[30]. - The net cash flow from financing activities increased by 898.66% to ¥43,134,249.75 from ¥4,319,192.59 year-on-year[30]. - The total cash flow from operating activities was a net outflow of CNY 2,242,485.38, compared to a net inflow of CNY 5,035,716.75 in the previous year[85]. - Cash inflow from financing activities totaled 141,964,285.19 RMB, compared to 89,742,984.26 RMB in the previous year, marking a 58% increase[89]. - The total cash and cash equivalents at the end of the period reached 41,386,225.64 RMB, up from 2,461,652.55 RMB at the end of the previous period[90]. Assets and Liabilities - The company’s total assets increased by 2.25% to CNY 331,872,134.26 from CNY 324,583,812.61 at the end of the previous year[21]. - Current liabilities totaled CNY 199,580,005.06, showing a marginal increase from CNY 196,808,405.61 at the start of the year[73]. - The company's total liabilities reached CNY 240,149,068.65, up from CNY 226,408,405.61, marking an increase of 6.0%[73]. - The total equity attributable to shareholders was CNY 80,648,628.39, a slight decrease from CNY 81,280,078.41[73]. - The total owner's equity at the end of the current period is CNY 96,308,073.45, up from CNY 72,810,033.24 at the end of the previous year, indicating a growth of about 32.2%[102]. Shareholder Information - Total number of shareholders at the end of the reporting period is 9,123[56]. - The largest shareholder, Tianjin Changhui Investment Management Partnership, holds 8.20% of shares, totaling 9,983,684 shares[56]. - Shenzhen Chenghui Investment Enterprise holds 7.43% of shares, totaling 9,053,600 shares, with 8,820,100 shares pledged[56]. - Hangzhou Modern United Investment holds 7.09% of shares, totaling 8,633,412 shares, with 8,633,412 shares frozen[56]. Inventory and Receivables - The total inventory at the end of the period is 55,296,944.76 CNY, a decrease from 89,833,634.53 CNY at the beginning of the period, reflecting a reduction of 38.5%[195]. - The accounts receivable balance at the end of the period is CNY 56,375,446.75, with a bad debt provision of CNY 5,200,195.90, representing 9.23% of the total accounts receivable[181]. - The company has a significant amount of accounts receivable from Hangzhou Tianmu Health Products Co., Ltd., totaling RMB 33,761,960.17, with a 100% bad debt provision due to low recovery likelihood[179]. Strategic Initiatives - The company plans to focus on marketing efforts to achieve annual sales targets and improve internal management, with management expenses reduced by nearly 20%[28]. - The new factory renovation for Huangshan Tianmu Pharmaceutical Co., Ltd. has been completed, and preparations for GMP certification are underway[29]. - The company intends to acquire 28% equity of Huangshan Tianmu Mint Pharmaceutical Co., Ltd. held by Modern Group International Co., Ltd. to strengthen control over the mint business[29]. - The GMP renovation project for the Super Qing workshop is expected to be completed by September, which will provide new growth points for the company[29]. Accounting Policies and Practices - The financial statements are prepared based on the accrual basis of accounting, in accordance with the relevant accounting standards[112]. - The company applies the balance sheet liability method for income tax accounting, including current and deferred tax expenses[163]. - The company has confirmed that there are no changes in accounting policies or estimates for the reporting period[160]. Investment and Subsidiaries - The company has established a wholly-owned subsidiary, Hangzhou Tianmu Beidou Biopharmaceutical Co., Ltd., with a registered capital of RMB 5 million, focusing on the production and sales of mouse epidermal growth factor[167]. - The company holds a 72% stake in Huangshan Tianmu Mint Pharmaceutical Co., Ltd., which has a registered capital of USD 1.25 million, engaged in the production and sales of raw materials and mint oil[167]. - The company has excluded Hangzhou Tianmu Pharmaceutical Co., Ltd. from the consolidated financial statements starting January 2014, and Shenzhen Jingbo Medical Equipment Co., Ltd. was sold in February 2014, reducing the scope of consolidation[171].