First(SH:603806)2018-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,188,821,506.77, a decrease of 2.97% compared to CNY 2,255,743,860.83 in the same period last year[15]. - Net profit attributable to shareholders was CNY 224,649,631.14, down 10.04% from CNY 249,716,704.27 year-on-year[16]. - The net profit after deducting non-recurring gains and losses was CNY 194,051,021.65, a decline of 14.15% compared to CNY 226,024,887.36 in the previous year[16]. - Basic earnings per share decreased to CNY 0.43, down 10.42% from CNY 0.48 in the same period last year[17]. - The weighted average return on net assets was 4.41%, a decrease of 0.76 percentage points compared to 5.17% in the previous year[17]. - The company reported a decrease in cash and cash equivalents to CNY 279,933,900.30 from CNY 294,433,721.49, a decline of about 4.99%[95]. - The total profit for the first half of 2018 was CNY 263,226,348.61, down 9.35% from CNY 290,475,480.82 year-on-year[99]. - The company reported a net profit distribution of approximately -$241.2 million for the current period, indicating a significant loss compared to the previous period[112]. Cash Flow and Investments - The net cash flow from operating activities increased by CNY 119,999,609.00, primarily due to higher cash receipts from sales and reduced tax payments compared to the previous year[18]. - The company’s cash flow from operating activities was 21.90 million yuan, a significant recovery from a negative cash flow of 98.07 million yuan in the previous year[34]. - Cash inflow from operating activities totaled CNY 2,004,126,393.28, an increase from CNY 1,812,900,693.24 in the previous year[105]. - The total cash and cash equivalents at the end of the period decreased to CNY 138,041,327.14 from CNY 223,590,713.72 at the end of the previous period[107]. - The company reported a decrease in cash and cash equivalents by CNY 166,603,297.44 during the first half of 2018, compared to a decrease of CNY 48,118,573.81 in the same period last year[106]. - The company increased its investment in financial products, impacting net cash flow from investing activities[35]. Assets and Liabilities - Total assets increased by CNY 310,760,300.00, representing a growth of 5.45% from the beginning of the year, mainly due to an increase in inventory and compensation received for the demolition of the West Shu Street factory[18]. - Total assets increased to CNY 6,014,125,216.57, up from CNY 5,703,364,920.90, representing a growth of approximately 5.43%[92]. - Total liabilities increased to CNY 1,001,315,117.44 from CNY 674,524,403.87, showing a growth of around 48.29%[93]. - The company's total liabilities at the end of the current period are approximately $2.88 billion, reflecting a slight increase from the previous year[115]. - The total amount of accounts receivable from the top five debtors is CNY 569,999,577.10, accounting for 44.41% of the total accounts receivable[198]. Sales and Market Performance - The report indicates that the decline in sales scale of photovoltaic films and the average selling price of photovoltaic backplanes contributed to the decrease in gross profit[18]. - The company sold 274 million square meters of photovoltaic encapsulation film, a decrease of 1.02% year-on-year, while sales of backsheet products reached 18.93 million square meters, an increase of 9.88% year-on-year[23]. - The company achieved sales of 12.73 million yuan from new materials, with successful market expansion for photosensitive dry film products and the commencement of mass production for aluminum-plastic composite films[31]. - The company is enhancing its brand competitiveness through a long-term strategy focused on major clients and international markets, which has led to a rapid recovery in product demand[29]. Research and Development - The company’s R&D expenditure was 80.42 million yuan, showing a slight increase of 0.10% compared to the previous year, indicating ongoing investment in technology development[34]. - The company is actively developing new encapsulation materials to meet the upgrading demands of new photovoltaic technologies, further solidifying its leading position in the industry[29]. - The company plans to enhance its technology research and development to introduce new products and improve existing ones to maintain market share[45]. Shareholder and Corporate Governance - The company has held two shareholder meetings during the reporting period, with no resolutions rejected or changed[48]. - The company has committed to not transferring or entrusting the management of its shares for 36 months post-IPO, ensuring stability in shareholding[50]. - The company will implement various measures to strengthen accounts receivable management, including credit policy adjustments and contract management[46]. - The company has established a standardized decision-making process for future share transactions[52]. - The company has committed to not reducing its holdings of the issuer's shares for twelve months from the listing date[52]. Social Responsibility and Community Engagement - The company donated 200,000 RMB to provide warmth and care for elderly individuals over 60 years old during the reporting period[69]. - The company established a long-term poverty alleviation mechanism by building rooftop distributed power generation systems for nursing homes[68]. - The company plans to continue developing photovoltaic poverty alleviation projects and will focus on the needs of disadvantaged workers and groups[72]. Compliance and Regulatory Matters - The company has no major litigation or arbitration matters during the reporting period[62]. - The company has renewed the appointment of Tianjian Accounting Firm as the auditing institution for the 2018 fiscal year[62]. - The company has not disclosed any related party transactions or agreements among the shareholders during the reporting period[83]. - The company has confirmed deferred tax assets based on the likelihood of obtaining sufficient taxable income to offset deductible temporary differences[176].