SG(SH:600734)2014-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2014 was CNY 10,085,004.28, a decrease of 57.88% compared to CNY 23,943,688.19 in the same period last year[14]. - The net loss attributable to shareholders for the first half of 2014 was CNY -22,920,664.70, which is a 15.94% increase in loss compared to CNY -19,769,260.35 in the previous year[14]. - The basic earnings per share for the first half of 2014 was CNY -0.0652, a decline of 15.94% from CNY -0.0562 in the same period last year[13]. - The net cash flow from operating activities was CNY -103,460,852.71, a significant decrease of 143.79% compared to CNY 236,270,831.05 in the previous year[14]. - Total revenue for the main business was CNY 9,522,202.79, a decrease of 58.44% compared to the previous year[28]. - The net loss for the first half of 2014 was CNY 50,055,181.20, compared to a net loss of CNY 30,199,631.30 in the same period last year, representing a 65.8% increase in losses[81]. - The company reported a total revenue of 417,360.00 in the first half of 2014, showing a growth compared to the previous year[44]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,407,434,284.94, an increase of 17.14% from CNY 1,201,490,974.10 at the end of the previous year[14]. - The company's total liabilities increased to CNY 1,274,965,424.21 from CNY 1,018,966,932.17, reflecting a rise of about 25.1%[75]. - The total equity attributable to shareholders decreased to CNY 133,794,174.57 from CNY 156,714,839.27, indicating a decline of approximately 14.6%[75]. - The total current liabilities decreased to CNY 670,893,964.65 from CNY 781,895,472.61, a decline of approximately 14.2%[75]. - The company’s total liabilities at the end of the reporting period are CNY 379,712,842.94, compared to CNY 414,717,524.64 at the end of the previous year, showing a reduction of approximately 8.43%[99]. Financial Expenses and Cash Flow - The company reported a significant increase in financial expenses, which rose by 214.89% to CNY 33,985,884.44 due to increased financing from financial institutions[15]. - The company's financial expenses increased by 214.89% to approximately 33.99 million RMB due to increased financing from financial institutions[24]. - Cash inflows from operating activities totaled CNY 68,078,540.17, a significant decrease from CNY 354,776,895.61 in the same period last year[86]. - The net cash flow from investing activities was -8,626,563.80 RMB, worsening from -4,891,031.65 RMB year-over-year[87]. - Cash inflows from financing activities amounted to 235,387,000.00 RMB, while cash outflows were 130,325,068.30 RMB, resulting in a net cash flow of 105,061,931.70 RMB[87]. Real Estate Operations - In the first half of 2014, the company's real estate business signed a total area of approximately 11,555 square meters with a contract amount of about 108 million RMB, but did not recognize any sales revenue[18]. - The company expects to sign approximately 85,000 square meters and achieve a contract amount of about 610 million RMB in the second half of 2014, with an expected revenue recognition of about 210 million RMB[25]. - The company plans to start construction on the Tianzhu Yanglin Apartment project in the second half of 2014, with a completion target for the main structure by early 2015[25]. - The company has four ongoing real estate projects, with the Changchun Jiasheng Yuan Mountain Villa project being a key focus, covering a planned construction area of approximately 515,000 square meters[21]. Shareholder and Governance - The company held its seventh board meeting on April 28, 2014, and elected the eighth board of directors during the annual general meeting on May 20, 2014[49]. - The company has established a modern corporate governance structure in compliance with relevant laws and regulations[49]. - The company held 2 shareholder meetings during the reporting period, adhering to legal requirements and ensuring the protection of shareholder rights[52]. - The total number of shareholders at the end of the reporting period is 35,272[58]. - The largest shareholder, Beijing Angzhan Real Estate Co., Ltd., holds 22.22% of shares, totaling 78,122,586 shares, all of which are pledged[58]. Legal and Compliance - The company’s subsidiary, Changchun Rongchuang, is involved in a legal dispute regarding a rental contract, with a potential penalty of CNY 20 million[37]. - The company has continued to engage Lixin Zhonglian Min Du Accounting Firm for financial and internal control audits for the year 2014, with audit fees not exceeding CNY 900,000[48]. - No penalties or administrative sanctions were imposed on the company or its key stakeholders by the China Securities Regulatory Commission during the reporting period[48]. Investments and Subsidiaries - The company has established subsidiaries, including Fujian Shida Information Technology Co., Ltd. with a registered capital of 80 million RMB and a 100% ownership[147]. - The company has a subsidiary, Shanghai Shida Computer Co., Ltd., with a registered capital of 20 million RMB, which is not consolidated in the financial statements[147]. - The company has a controlling subsidiary, Fuzhou All-Win Computer Co., Ltd., with a 70% ownership and a registered capital of 3 million RMB[147]. Inventory and Receivables - The ending inventory balance is 1,065,655,441.75 CNY, with a provision for inventory depreciation of 28,907,575.52 CNY[179]. - The total accounts receivable amounted to CNY 18,990,105.39, with a provision for bad debts of CNY 13,006,633.25, representing 68.5% of the total[161]. - The company reported a significant bad debt provision of CNY 4,737,404.00 for Liuzhou Commercial Bank, accounting for 100% of the receivable due to its long aging[159]. - The total amount of other receivables is 135,453,459.83 CNY, accounting for 72.24% of the total other receivables[171]. Accounting Policies and Practices - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting a true and complete picture of its financial status[103]. - The company recognizes revenue from sales of goods when significant risks and rewards are transferred to the buyer, and the related income and costs can be reliably measured[140]. - The company assesses impairment indicators for construction in progress and transfers completed projects to fixed assets upon reaching the intended usable state[132]. - The company recognizes financial liabilities when it becomes a party to a financial instrument contract, with classification based on fair value or other financial liabilities[116].