BLIIC(SZ:300135)2017-08-25 16:00Financial Performance - Total revenue for the first half of 2017 was CNY 659,394,455.66, representing a 26.40% increase compared to CNY 521,667,720.08 in the same period last year[16]. - Net profit attributable to shareholders was CNY 20,558,015.99, a 6.72% increase from CNY 19,263,479.41 year-on-year[16]. - The net profit after deducting non-recurring gains and losses was CNY -19,299,387.96, a significant decrease of 195.70% compared to CNY 20,167,431.92 in the previous year[16]. - The net cash flow from operating activities was CNY -122,637,969.76, down 302.02% from CNY 60,704,651.52 in the same period last year[16]. - Basic earnings per share increased to CNY 0.0220 from CNY 0.0210, reflecting a 4.76% growth[16]. - Total assets at the end of the reporting period were CNY 2,811,228,391.50, a decrease of 3.14% from CNY 2,902,248,444.51 at the end of the previous year[16]. - Net assets attributable to shareholders were CNY 1,181,506,107.45, showing a slight increase of 0.13% from CNY 1,180,021,267.85 at the end of the previous year[16]. - The company reported a total of CNY 39,857,403.95 in non-recurring gains and losses during the reporting period[20]. - The company achieved operating revenue of CNY 659.39 million, a year-on-year increase of 26.40%[33]. - Net profit attributable to shareholders was CNY 20.56 million, up 6.72% year-on-year; however, the net profit after deducting non-recurring gains and losses was CNY -19.30 million[33]. - The company's total assets at the end of the reporting period were CNY 2.81 billion, a decrease of 3.18% year-on-year[33]. - The company reported a total profit of CNY 24,054,377.26, slightly down from CNY 25,696,780.34 in the prior year, indicating a decrease of about 6.4%[116]. - The total comprehensive income for the period was CNY 17,103,733.01, compared to CNY 20,189,730.33 in the same period last year, reflecting a decline of about 15.4%[117]. Business Operations - The company's main business is the production, research and sales of high-grade asphalt materials, with a focus on modified asphalt, which is widely used in highway and railway construction[23]. - The company has seen a 45% increase in construction projects compared to the same period last year, primarily due to office renovations[26]. - The company is expanding into the general aviation sector through the establishment of Baoli Aviation, focusing on the sale and service of Russian helicopters[23]. - The company has signed a strategic cooperation agreement with Jilin City Investment to participate in infrastructure projects using the PPP model, aiming to explore new profit growth points[24]. - The company has developed high-performance road materials suitable for harsh climates, enhancing its market reach from a 300 km to an 800 km service radius[26]. - The company has established production points across various regions in China to meet the demand for modified asphalt products, including locations in Shaanxi, Hunan, and Xinjiang[26]. - The company holds multiple patents for modified asphalt materials, enhancing its competitive edge in technology and innovation[27]. - The company is actively exploring other aviation business areas beyond its current operations, which mainly involve low-margin forestry patrol services[23]. - The company’s asphalt sales are seasonal, with peak sales occurring from May to October due to favorable weather conditions for road construction[23]. - The company is leveraging its rich product chain to provide comprehensive solutions to clients, which is crucial for its future sustainable development[26]. Financial Position - The company reported a cash balance of RMB 488,419,056.62 as of June 30, 2017, down from RMB 609,217,541.67 at the beginning of the period[106]. - Accounts receivable decreased to RMB 404,801,489.39 from RMB 493,369,843.66, indicating a reduction of approximately 18%[106]. - Inventory increased significantly to RMB 373,848,915.01 from RMB 115,958,902.24, reflecting a growth of over 222%[106]. - Short-term borrowings rose to 1,207,189,811, accounting for 42.94% of total assets, an increase of 4.67% from the previous year[42]. - The company invested 152,000,000.00 during the reporting period, marking a 100.00% increase compared to the previous year[43]. - The company plans to use up to 200 million yuan of idle funds to purchase low-risk, highly liquid financial products within one year from the board's approval date[48]. - The company has established a receivables recovery team to mitigate the risk of bad debts, particularly from state-owned highway construction clients[55]. - The company is focusing on expanding its product application in the underdeveloped infrastructure areas of central and western China[56]. - The company has invested in 16 subsidiaries to capture market share in modified asphalt products and has established a subsidiary in Russia[57]. - The company is facing risks related to raw material price fluctuations, which have been significant during the reporting period[58]. - The company is transitioning into the general aviation sector, which presents various risks including industry and management risks[59]. - The company is closely monitoring policy changes related to the PPP model, which is still in its early stages in China[60]. Shareholder Information - The company reported a total share count of 921,600,000, with 100% being unrestricted shares[89]. - The total number of shareholders with more than 5% ownership includes Zhou Dehong at 30.08% and Zhou Xiufeng at 4.73%[92]. - The company did not engage in any major related party transactions during the reporting period[73]. - The company did not experience any changes in shareholding structure during the reporting period[88]. - The controlling shareholders maintained a good integrity status without any significant legal or financial issues[71]. - There were no significant litigation or arbitration matters during the reporting period[70]. - The company has no ongoing or planned stock incentive programs or employee stock ownership plans[72]. Compliance and Governance - The company faced a penalty of 600,000 RMB for information disclosure violations, as determined by the China Securities Regulatory Commission[71]. - The half-year financial report was not audited[67]. - There were no major environmental protection issues reported, and the company is not classified as a key pollutant discharge unit[85]. - The company has not initiated any poverty alleviation programs nor has it planned any for the future[84]. - The company has maintained its accounting policies without any changes during the reporting period[130]. - The company follows the Chinese Accounting Standards and has declared its financial statements to be true and complete[146]. - The company has not reported any significant issues affecting its ability to continue as a going concern for at least the next 12 months[144]. Accounting Policies - The company recognizes revenue from the sale of goods when the significant risks and rewards of ownership have been transferred to the buyer[200]. - Interest income is calculated based on the time and actual interest rate of the use of the company's funds by others[200]. - Revenue from service contracts is recognized using the percentage-of-completion method when the outcome can be reliably estimated[200]. - The company classifies its inventory into raw materials, work in progress, and finished goods[169]. - The inventory valuation method used is the weighted average method[169]. - The company employs a perpetual inventory system for inventory tracking[170]. - Long-term equity investments are accounted for using the cost method for subsidiaries and the equity method for associates and joint ventures[175]. - The company uses the straight-line depreciation method for various asset categories, with a depreciation rate of 4.75% for buildings and railway facilities, and 19.00% for fixed asset renovations and transportation equipment[180]. - The company recognizes internal research and development expenditures as intangible assets during the development phase if certain criteria are met, including technical feasibility and intention to complete the asset[191].