TMSP(SH:600671)2016-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2016 was CNY 51,208,534.48, representing a 17.64% increase compared to CNY 43,531,258.13 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2016 was a loss of CNY 8,252,334.45, compared to a loss of CNY 5,581,115.33 in the same period last year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 11,416,657.41, compared to a loss of CNY 6,219,520.56 in the same period last year[18]. - The total profit amounted to -7.86 million, an increase in loss of 50.65% year-on-year, while net profit reached -8.29 million, reflecting a 34.13% increase in loss compared to the same period last year[24]. - The basic earnings per share for the first half of 2016 was -0.0678 CNY, compared to -0.0458 CNY in the same period last year[18]. - The diluted earnings per share for the first half of 2016 was also -0.0678 CNY, consistent with the basic earnings per share[18]. - The weighted average return on net assets for the first half of 2016 was -15.5508%, compared to -7.3488% in the same period last year[18]. Cash Flow and Investments - The net cash flow from operating activities for the first half of 2016 was a negative CNY 4,278,354.74, compared to a negative CNY 1,856,902.48 in the same period last year[18]. - The net cash flow from investment activities was -¥11,765,898.20, a 190.19% increase in outflow compared to -¥4,054,559.81 last year[37]. - The net cash flow from financing activities increased significantly to ¥21,855,804.13, a 381.93% rise from -¥7,752,166.23 last year, mainly due to increased bank loans[37]. - The cash flow from operating activities for the first half of 2016 was CNY 35,338,358.57, a decrease of 25.1% from CNY 47,120,028.65 in the same period last year[96]. - Cash outflow from investing activities was CNY 11,815,898.20, significantly higher than CNY 4,554,559.81 in the previous period, resulting in a net cash flow from investing activities of CNY -11,765,898.20[97]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 286,233,636.52, an increase of 2.09% from CNY 280,382,217.55 at the end of the previous year[18]. - The net assets attributable to shareholders at the end of the reporting period were CNY 48,940,776.54, a decrease of 14.43% from CNY 57,193,110.99 at the end of the previous year[18]. - Total current assets as of June 30, 2016, amounted to RMB 101,711,580.54, slightly up from RMB 101,291,749.60 at the beginning of the period[81]. - Current liabilities increased to CNY 197,694,673.55 from CNY 183,127,930.65, reflecting a rise of 8.6%[84]. - Total liabilities reached CNY 231,761,953.94, up from CNY 217,625,835.78, indicating a growth of 6.5%[84]. Management and Strategy - The company plans to continue promoting "expanding sales, reducing costs, and seeking innovation" management measures to achieve its annual goal of turning losses into profits[33]. - The company has implemented a flat management structure to improve efficiency and has restructured its management departments[27]. - The company has focused on cost reduction through centralized procurement, resulting in a decrease in procurement prices for most materials[30]. - The company aims to restore production and market supply of its leading product, Pearl Eye Drops, after completing technical upgrades[31]. Shareholder Information - The total number of shareholders at the end of the reporting period was 9,401[71]. - The largest shareholder, Great Wall Film and Television Culture Group Co., Ltd., held 29,866,428 shares, accounting for 24.53% of total shares[73]. - The second-largest shareholder, CCB Fund - CMB Longcheng Hui Li No. 1 Asset Management Plan, held 16,143,825 shares, representing 13.26%[73]. - There were no changes in the total number of shares or capital structure during the reporting period[69]. Compliance and Governance - The company has established a modern corporate governance structure in compliance with relevant laws and regulations[66]. - The company has not reported any changes in accounting policies or estimates during the current period[118]. - The company is committed to maintaining compliance with tax regulations and maximizing available tax incentives[198]. Research and Development - The company invested approximately 20 million in the GMP transformation and certification of its production lines for traditional Chinese medicine extraction and oral solid and liquid preparations[31]. - The company completed the GMP renovation of its production lines, with certification expected by the end of the year[40]. Market and Product Information - Revenue from the East China region increased by 30.96%, driven by strong sales from subsidiaries in Fujian and Shanghai[45]. - The sales of the main product, He Che Da Zao capsules, resumed, contributing to the revenue increase[36]. - The company has a long history and is recognized as the first listed company in Hangzhou and the first traditional Chinese medicine preparation listed in the country[47].