EBEM(SH:603002)2014-08-19 16:00Financial Performance - The company achieved a total revenue of RMB 583.36 million in the first half of 2014, a decrease of 1.50% compared to the same period last year[17]. - The net profit attributable to shareholders was RMB 31.74 million, reflecting a slight increase of 1.43% year-on-year[17]. - The basic earnings per share remained stable at RMB 0.08, with no change from the previous year[17]. - The company's operating revenue for the current period is CNY 583,361,110.09, a decrease of 1.50% compared to the same period last year[21]. - The net profit for the first half of 2014 was CNY 31,735,994.06, showing a slight increase from CNY 31,289,221.46 in the previous year, representing a growth of 1.4%[68]. - The total profit for the first half of 2014 was CNY 37,759,577.51, compared to CNY 37,284,241.18 in the previous year, indicating a growth of 1.3%[68]. - The company reported a net profit of CNY 220,059,370.84, compared to CNY 209,123,376.78 in the previous year, marking an increase of 5.4%[58]. - The total comprehensive income for the first half of 2014 was CNY 31,761,057.13, compared to CNY 31,277,913.80 in the previous year, reflecting an increase of 1.5%[68]. Revenue Breakdown - The revenue from flame-retardant and liquid epoxy resins accounted for 59.09% and 23.55% of total revenue, respectively[20]. - The revenue from flame-retardant epoxy resin, the largest contributor, is CNY 343,765,437.13, representing 59.09% of main revenue[23]. - The company successfully shifted focus to mid-to-high-end applications in the liquid epoxy resin segment, which contributed 23.55% to total revenue[24]. - Domestic sales accounted for 81.93% of total revenue, with South China contributing 44.92% and East China 36.55%[27]. Cash Flow and Investments - The net cash flow from operating activities was negative at RMB -54.78 million, compared to RMB -48.52 million in the previous year[17]. - The cash flow from operating activities showed a net outflow of CNY 54,778,155.78, worsening from a net outflow of CNY 48,519,409.44 in the same period last year[71]. - The net cash flow from investment activities increased by 30.94% to CNY 25,239,101.41[21]. - The company reported cash inflow from investment activities of CNY 962,746,861.70, significantly higher than CNY 20,000,000.00 in the previous year[71]. - The cash flow from financing activities resulted in a net inflow of CNY 7,852,746.26, compared to a net outflow of CNY 27,190,091.00 in the same period last year[72]. Assets and Liabilities - The company’s total assets increased by 1.67% to RMB 1.37 billion compared to the end of the previous year[17]. - The company's total assets as of June 30, 2014, were CNY 1,365,876,123.33, up from CNY 1,343,467,635.82 at the beginning of the year[58]. - Current liabilities totaled CNY 461,870,287.33, an increase of 2.5% from CNY 450,408,576.95 at the start of the year[58]. - The total owner's equity at the end of the reporting period was CNY 856,984,431.12, with a capital stock of CNY 400,000,000.00 and a capital reserve of CNY 253,798,653.04[84]. Research and Development - Research and development expenditures were reduced as some new product trials were in the formulation stage, leading to decreased input costs[20]. - The company's R&D expenditure is CNY 9,464,301.38, down 3.17% from the previous year[21]. Shareholder Information - The total number of shareholders at the end of the reporting period is 28,725[48]. - The largest shareholder, EPOXY INVESTMENT HOLDING LTD., holds 52.5% of the shares, totaling 210,000,000 shares[48]. - The company has not experienced any changes in its total number of shares or share capital structure during the reporting period[50]. Corporate Governance - The company has no significant litigation, arbitration, or media disputes during the reporting period[41]. - The company has committed to avoid competition with its controlling shareholder during the lock-up period of 36 months[43]. - The company has appointed Lixin Certified Public Accountants for the 2014 audit services, which has qualifications for securities-related business[43]. Inventory and Receivables - Inventory decreased from 87,357,882.79 RMB to 71,128,397.49 RMB, showing a reduction in stock levels[56]. - Accounts receivable increased to 324,707,379.31 RMB from 313,734,975.35 RMB, indicating a growth in receivables[56]. - The company has no accounts receivable from shareholders holding 5% or more voting rights during the reporting period[182]. Taxation - The company is recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15% for three years[173]. - The corporate income tax rate for the Hong Kong subsidiary is 16.5%, while the Zhuhai subsidiary is subject to a 25% rate[173]. Accounting Policies - The financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[104]. - The company has not made any changes to accounting policies or estimates during the reporting period[171]. - The company recognizes sales revenue when the ownership risks and rewards are transferred to the buyer, and the revenue amount can be reliably measured[161].