德创环保(603177) - 2018 Q2 - 季度财报

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 292.43 million, a decrease of 17.20% compared to CNY 353.17 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 3.54 million, down 130.82% from a profit of CNY 11.48 million in the previous year[18]. - The net cash flow from operating activities was a negative CNY 109.68 million, a decline of 299.89% compared to a negative CNY 27.43 million in the same period last year[18]. - Basic and diluted earnings per share were both CNY -0.02, a decrease of 133.33% from CNY 0.06 in the same period last year[19]. - The weighted average return on net assets was -0.67%, a decrease of 3 percentage points from 2.33% in the previous year[19]. - The decline in net profit was primarily due to a decrease in the scale of new coal-fired power generation units and a shrinking market for traditional coal-fired flue gas treatment and emission reduction[20]. - The company reported a new order value of 603.07 million yuan in the first half of 2018, representing a year-on-year increase of 21.95 million yuan, or 57.25%[47]. - The company anticipates a significant decline in cumulative net profit compared to the same period last year due to a decrease in sales driven by a shrinking market for traditional coal-fired power plant flue gas treatment projects[47]. - The company is facing risks from the low profitability in the thermal power industry, with nearly half of thermal power enterprises experiencing losses due to rising coal prices and increased operational costs[49]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1.20 billion, an increase of 3.65% from CNY 1.16 billion at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 0.66% to CNY 532.43 million from CNY 535.96 million at the end of the previous year[18]. - Total liabilities increased by 7.34% to ¥672,405,216.69 from ¥626,432,740.71 at the end of the previous period[40]. - The company's total assets increased from CNY 1,162,396,067.10 to CNY 1,204,830,571.78, reflecting a growth of about 3.6%[91]. - The company's total liabilities increased, impacting the overall financial leverage and risk profile[106]. Cash Flow - The net cash flow from operating activities was -109,669,082.07 RMB, a significant decline compared to -27,427,830.56 RMB in the previous period, indicating a worsening operational cash flow situation[105]. - Cash and cash equivalents decreased by 28.40% to ¥133,580,094.59 from ¥186,575,776.81 at the end of the previous period[39]. - The company reported a decrease in cash flow from operating activities, impacting liquidity management[89]. - The ending cash and cash equivalents balance decreased to 110,743,304.72 RMB from 145,704,119.96 RMB, highlighting a decline in liquidity[105]. Research and Development - Research and development expenses increased by 20.36% to ¥11,418,285.71 from ¥9,486,516.87 year-on-year[35]. - The company holds 85 authorized patents, including 3 invention patents, and collaborates with prestigious institutions for technological advancements[29]. Market Expansion and Strategy - The company has set up a new branch in Xi'an to enhance market competitiveness in the western region[34]. - Plans are in place to establish subsidiaries or offices in Southeast Asia and Europe and the United States to expand overseas market presence[34]. - The company is conducting market research and project bidding in Southeast Asia and Europe and the US as part of its strategy to expand into overseas markets[50]. - The company plans to expand into non-electric sectors, water treatment, and overseas markets to mitigate the adverse effects of the current downturn in the traditional thermal power flue gas treatment industry[49]. Environmental Compliance - The company did not experience any environmental pollution incidents or disputes, and received no environmental protection administrative penalties[64]. - The actual discharge concentrations of pollutants were within the permitted limits, including COD at 223 mg/l against a limit of 500 mg/l[66]. - The company has established emergency management mechanisms for environmental incidents and conducts regular training and drills[69]. - The company conducted environmental impact assessments for all construction projects and obtained necessary approvals[68]. Shareholder Information - The company had a total of 202,000,000 shares, with 140,250,000 shares subject to lock-up conditions, representing 69.43% of total shares[74]. - The largest shareholder, Shaoxing Deneng Fireproof Materials Co., Ltd., holds 89,650,000 shares, which is 44.38% of total shares and has some shares frozen[81]. - The company has no preferred shareholders with restored voting rights as of the reporting date[79]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements reflect the true financial status and operating results[121]. - The company has confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[122]. - The company’s financial statements are prepared based on the principle of continuous operation, ensuring accurate representation of cash flows and financial position[121]. Risk Management - The company is actively managing risks related to raw material price fluctuations, which are influenced by macro environmental policies and futures markets, potentially impacting production costs[50]. - The company has a significant amount of accounts receivable, which poses a risk of bad debt losses, and is implementing measures to improve collection efficiency[50].