LECRON(SZ:300343)2014-08-26 16:00Financial Performance - The total operating revenue for the first half of 2014 was CNY 391,386,316.05, representing an increase of 86.43% compared to CNY 209,940,755.26 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 6,444,046.29, a decrease of 68.56% from CNY 20,494,715.53 year-on-year[16]. - Basic earnings per share decreased by 84.27% to CNY 0.0806 from CNY 0.5124 in the same period last year[16]. - The company achieved operating revenue of 391.39 million yuan, representing an increase of 86.43% compared to the same period last year, primarily due to the consolidation of 卓星化工's financials[28]. - The net profit attributable to shareholders was 6.44 million yuan, a decrease of 68.56% year-on-year, mainly due to lower profitability in the solar water heater and building insulation sectors[28]. - The company reported a revenue of ¥130,834,516.03 for the combination polyether segment, which represents a decrease of 7.63% compared to the previous year[35]. - The new water-reducing agent polyether business generated a revenue of ¥203,880,454.44, marking a 100% increase year-over-year[35]. - The overall gross margin for the main business decreased due to the introduction of the lower-margin water-reducing agent polyether, impacting the overall profitability[37]. - The company anticipates a decline of over 30% in cumulative net profit compared to the previous year due to adverse market conditions in the solar water heater and construction industries[73]. Cash Flow and Financial Position - The net cash flow from operating activities was negative CNY 90,870,442.70, a decline of 492.45% compared to CNY 23,154,402.86 in the previous year[16]. - The company's cash flow from operating activities was impacted by a total outflow of 181,787,434.82 CNY, compared to 266,950,697.84 CNY previously, indicating a reduction in operational expenses[145]. - The cash and cash equivalents at the end of the period amount to CNY 62,914,014.45, down from CNY 136,991,665.46 at the end of the previous period[142]. - The company paid 41,255,500.10 CNY in debt repayments, which is significantly higher than the previous period's 4,175,788.12 CNY, indicating increased financial obligations[146]. - The total cash inflow from financing activities was 137,399,247.10 CNY, a substantial increase from 16,947,525.80 CNY in the prior period, reflecting improved financing efforts[146]. - The total amount of raised funds is CNY 250.41 million, with CNY 112.90 million invested during the reporting period[55]. - Cumulative investment of raised funds reached CNY 232.57 million, with no changes in the use of raised funds[55]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 900,747,585.78, an increase of 29.90% from CNY 693,390,019.70 at the end of the previous year[16]. - Current liabilities increased to CNY 306,902,837.79 from CNY 155,395,551.44, marking an increase of about 97.4%[129]. - The total liabilities amounted to CNY 361,167,094.91, compared to CNY 190,832,451.44, indicating an increase of about 89.3%[129]. - The total owner's equity reached CNY 539,580,490.87, up from CNY 502,557,568.26, reflecting an increase of approximately 7.4%[129]. - The company's total equity attributable to shareholders at the end of the period was 502,557,560.00 CNY, reflecting changes in retained earnings and capital contributions[148]. Expenses and Cost Management - The company reported a significant increase in sales expenses, totaling 10.23 million yuan, up 89.54% year-on-year, attributed to the recruitment and training of new sales personnel[31]. - The company’s management expenses rose to 10.13 million yuan, an increase of 79.62% year-on-year, due to the increase in management personnel and the consolidation of 卓星化工's expenses[31]. - The total operating costs for the first half of 2014 amounted to CNY 378,148,802.86, up from CNY 189,174,447.95, indicating an increase of about 99.9%[134]. Investments and Projects - The company has made significant progress in its ongoing projects, with several expected to commence production in the second half of the year[27]. - The company has entered new sectors such as pharmaceutical intermediates and electronic chemicals through investments and capital increases, with projects currently under construction[33]. - The company has initiated the construction of a 10,000-ton special polyether additive project, with a planned total investment of 8,000 million CNY[64]. - The project for 30,000 tons/year of combined polyether and supporting polyether polyol has fully utilized its raised funds[57]. Shareholder and Equity Information - The company distributed a cash dividend of 16.4 million yuan based on a total of 40 million shares, with a payout of 4.1 yuan per share, complying with the requirement of distributing at least 30% of the distributable profit[75]. - The total number of shares increased from 40 million to 80 million after the capital reserve conversion, resulting in a 100% increase in share capital[110]. - Major shareholder Li Hongguo holds 34.39% of the shares, amounting to 27,508,800 shares, with 10,050,000 shares pledged[114]. Risk Management - The company faces management risks due to increased external investments and the expansion of controlled or affiliated enterprises[50]. - There is a risk of declining gross profit margins due to intensified market competition in the energy-saving construction sector[50]. - The company has introduced a robust internal control system to mitigate management risks and enhance operational efficiency[50]. - The company has experienced significant growth in accounts receivable since 2013, leading to a heightened risk of bad debts[52]. Compliance and Governance - The company has not encountered any issues in the disclosure of fundraising usage and has all unutilized funds stored in a third-party regulatory account[61]. - The company has maintained compliance with all regulatory commitments and has not faced any penalties related to employee social insurance or housing fund contributions[102]. - The company has not proposed or implemented any share buyback plans during the reporting period[103]. Research and Development - The company is focusing on expanding its product range and enhancing its core competitiveness through continuous research and development of new products and processes[22]. - The company completed the optimization of its 聚醚 product formula by June, which is expected to enhance profitability in the second half of the year[28]. - The company is committed to continuous R&D of new products and processes to improve product value and quality stability[50].