Shede Spirits (SH:600702)2014-08-18 16:00Financial Performance - The company reported a revenue of RMB 731.11 million for the first half of 2014, a decrease of 3.19% compared to RMB 755.22 million in the same period last year[21]. - Net profit attributable to shareholders was RMB 10.47 million, down 62.94% from RMB 28.25 million year-on-year[21]. - The basic earnings per share decreased by 63.01% to RMB 0.031 from RMB 0.084 in the previous year[21]. - The company experienced a significant decline in operating profit, which fell by 70.20% to RMB 15.85 million compared to the previous year[23]. - The net cash flow from operating activities was negative at RMB -90.64 million, a decrease of 216.08% from RMB 78.08 million in the same period last year[21]. - The company achieved operating revenue of CNY 731.15 million in the first half of 2014, completing 43.01% of the annual target of CNY 1.7 billion[28]. - Total operating revenue for the first half of 2014 was CNY 731,114,746.63, a decrease of 3.3% compared to CNY 755,222,634.95 in the same period last year[68]. - Operating profit decreased significantly to CNY 15,847,063.26, down 70.2% from CNY 53,176,399.73 in the previous year[68]. - Net profit for the first half of 2014 was CNY 10,469,500.39, a decline of 63.0% compared to CNY 28,253,162.26 in the same period last year[68]. - The company reported a total comprehensive income of CNY 10,469,500.39, down 63.0% from CNY 28,253,162.26 in the previous year[68]. Assets and Liabilities - The company’s total assets increased by 2.60% to RMB 3.50 billion from RMB 3.41 billion at the end of the previous year[21]. - Total assets increased to CNY 3,496,408,984.06 from CNY 3,407,895,808.43, reflecting a growth of approximately 2.67%[62]. - Current assets rose to CNY 2,346,560,897.81, up from CNY 2,258,493,233.40, indicating an increase of about 3.89%[62]. - Total liabilities increased to CNY 1,247,132,160.59 from CNY 1,169,088,485.35, reflecting a growth of about 6.67%[63]. - Owner's equity rose to CNY 2,249,276,823.47 from CNY 2,238,807,323.08, indicating an increase of approximately 0.17%[64]. - The total liabilities to equity ratio stands at approximately 0.55, indicating a stable leverage position[63]. Investments and Capital Expenditures - Research and development expenses rose by 104.58% to RMB 10.46 million, reflecting increased investment in product development[25]. - The company reported a long-term equity investment balance of CNY 205.06 million, an increase of CNY 10.27 million compared to the beginning of the period[33]. - The company is currently expanding its pharmaceutical company with an investment of CNY 81.60 million, which is 60% complete[37]. - The stainless steel tank expansion project has an investment of CNY 62.70 million, which is 50% complete[37]. - Long-term equity investments grew to CNY 205,059,328.50 from CNY 194,793,289.06, marking an increase of approximately 5.16%[62]. Shareholder Information - The total number of shareholders at the end of the reporting period was 47,327[50]. - The largest shareholder, Sichuan Tuopai Shede Group Co., Ltd., held 29.85% of the shares, totaling 100,695,768 shares[50]. - The second-largest shareholder, Sichuan Shehong Guangsha Real Estate Development Co., Ltd., held 3.49% of the shares, totaling 11,777,751 shares[50]. - The company distributed cash dividends of CNY 0.20 per share, totaling CNY 6.75 million, based on the total shares of 337.3 million[37]. Governance and Compliance - The company has no major litigation or arbitration matters during the reporting period[40]. - The company has no significant contracts or transactions outside of its normal operations during the reporting period[42]. - The company strictly adhered to information disclosure regulations, ensuring timely and accurate reporting[46]. - The board of directors and supervisory board were re-elected during the annual shareholders' meeting held on May 29, 2014[58]. - The company maintained a governance structure that promotes coordination and checks and balances among its governing bodies[45]. - There were no penalties or corrective actions against the company or its executives during the reporting period[44]. Cash Flow and Financing - Cash flow from operating activities showed a net outflow of CNY 90,642,092.83, compared to a net inflow of CNY 78,083,547.74 in the same period last year[72]. - The company raised CNY 516,000,000.00 through borrowings, compared to CNY 250,000,000.00 in the same period last year[72]. - The net cash flow from operating activities was -49,122,090.11 RMB, an improvement from -121,015,695.75 RMB in the previous period[75]. - The net cash flow from financing activities was 36,518,333.31 RMB, a significant recovery from -262,563,403.83 RMB in the previous period[75]. - The cash outflow for financing activities was 208,481,666.69 RMB, reduced from 412,563,403.83 RMB in the previous period[75]. Inventory and Receivables - The total inventory at the end of the period is CNY 2,024,429,704.70, showing a slight decrease from CNY 2,032,049,110.47 at the beginning of the year[185]. - The total accounts receivable at the end of the period amounted to ¥61,057,585.41, with a bad debt provision of ¥4,687,547.94, representing 7.67% of the total[174]. - The company has recognized a total bad debt provision of RMB 13,495,390.17, which represents approximately 19.3% of total accounts receivable[172]. - The company holds bank acceptance bills amounting to RMB 61,851,138.11 at the end of the period, up from RMB 40,837,667.81 at the beginning of the period, reflecting a 51% increase[170]. - The total prepayments at the end of the period were ¥10,220,130.04, with 94.06% of these due within one year[180]. Accounting Policies and Practices - The company’s financial statements are prepared based on the going concern principle and comply with the requirements of enterprise accounting standards[92]. - The company’s accounting period runs from January 1 to December 31 each year[94]. - The company’s accounting records are maintained in Renminbi, and it follows the accrual basis of accounting[96]. - The company recognizes revenue from sales of goods when the significant risks and rewards of ownership have transferred to the buyer, and the costs related to the sale can be reliably measured[138]. - The company assesses impairment indicators for construction projects, including long-term suspension and technological obsolescence, to determine if impairment testing is necessary[128].