SMEG(SH:600689)2018-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 649,726,273.38, representing a 13.55% increase compared to CNY 572,198,274.01 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 1,611,581.11, a significant decrease of 95.33% from CNY 34,534,631.49 in the previous year[18]. - The basic earnings per share decreased to CNY 0.008, down 95.35% from CNY 0.172 in the same period last year[19]. - The weighted average return on net assets dropped to 0.35%, a decrease of 7.36 percentage points from 7.71% in the previous year[19]. - The total assets at the end of the reporting period were CNY 710,560,562.09, down 5.57% from CNY 752,458,122.27 at the end of the previous year[18]. - The net cash flow from operating activities was negative at CNY -38,325,925.27, compared to CNY -26,327,506.60 in the same period last year[18]. - The net profit attributable to shareholders was 161,000 RMB, down from 3,453,000 RMB in the same period last year, with a net profit excluding non-recurring items of -247,000 RMB, improving by 700,000 RMB year-on-year[26]. - The company reported a total profit of 196,000 RMB, a decrease of 4,942,000 RMB year-on-year, mainly due to reduced non-recurring gains from the disposal of non-current assets[26]. Revenue Breakdown - The import and export trade business accounted for approximately 80% of the company's main business revenue, with a revenue of 51,540,000 RMB, growing about 7.74% year-on-year[26][24]. - The security service segment generated a total revenue of 8,368,000 RMB, reflecting a growth of approximately 15.61% compared to the previous year[27]. - The property leasing segment reported revenue of 1,416,000 RMB, an increase of 358,000 RMB year-on-year, primarily due to the inclusion of a new leasing project[27]. Cash Flow and Liquidity - Cash and cash equivalents decreased by 60.78% to 80,532,762.97, primarily due to the purchase of bank wealth management products[34]. - Other current assets increased by 225.72% to 130,853,909.36, also attributed to the purchase of bank wealth management products[34]. - The net cash flow from operating activities was -38,325,925.27 RMB, a decline of 45.57% year-on-year[30]. - The company's cash and cash equivalents at the end of the period stand at CNY 80,334,186.27, down from CNY 204,891,187.56 at the end of the previous period[88]. Assets and Liabilities - Total assets decreased from CNY 752,458,122.27 to CNY 710,560,562.09, a decline of approximately 5.3%[75]. - Current assets decreased from CNY 436,170,450.05 to CNY 397,780,198.03, a reduction of about 8.8%[75]. - Total liabilities decreased from CNY 283,504,353.66 to CNY 240,961,490.86, a decline of approximately 15%[76]. - Current liabilities decreased from CNY 232,622,968.55 to CNY 189,879,129.55, a reduction of about 18.3%[76]. Shareholder Information - The top shareholder, Chongqing Light Textile Holdings (Group) Co., holds 52,158,943 shares, representing 25.95% of the total shares[67]. - BNP Paribas (acting through its Hong Kong branch) holds 5,000,000 shares, accounting for 2.49% of the total shares[67]. - The company has not reported any changes in its total share capital or share structure during the reporting period[64]. - There were no significant changes in the number of shareholders or their holdings during the reporting period[65]. Compliance and Governance - The company appointed Lixin Certified Public Accountants as the auditor for the 2018 annual financial statements, with a one-year term[49]. - There were no significant lawsuits or arbitration matters during the reporting period[50]. - The company and its controlling shareholders did not have any integrity issues during the reporting period[50]. - The company complied with environmental regulations and did not face any penalties during the reporting period[56]. Accounting Policies and Estimates - The financial statements were prepared in accordance with the accounting standards issued by the Ministry of Finance and reflect the company's financial position and operating results accurately[108]. - The company follows specific accounting policies and estimates tailored to its operational characteristics, ensuring compliance with relevant standards[107]. - The company recognizes investment income from interest or dividends during the holding period of financial assets measured at fair value[126]. Investment and Equity - The company holds equity stakes in 9 investee companies, including Shanghai Bohua Gene Chip Technology Co., Ltd. and Guangdong FOTILE Group Co., Ltd.[36]. - The company has not proposed any profit distribution or capital reserve transfer for the half-year period[48]. - The company reported a profit distribution of CNY -3,014,870.15 to the owners, indicating a reduction in profit allocation compared to the previous period[97]. Risks and Challenges - The company faces risks in its main import-export business due to low profit margins and currency exchange rate fluctuations[45]. - The company has not disclosed any plans for new product development or market expansion in this report[5].