JSSH(SZ:000518)2018-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 180,903,654.71, a decrease of 8.31% compared to CNY 197,309,155.11 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 1,028,739.53, down 94.61% from CNY 19,092,935.66 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 543,126.75, an increase of 110.37% compared to a loss of CNY 5,238,437.45 in the same period last year[18]. - The net cash flow from operating activities was CNY 19,029,873.53, a significant improvement of 106.46% compared to a negative cash flow of CNY 294,637,435.45 in the previous year[18]. - The weighted average return on net assets was 0.16%, down from 3.29% in the previous year, indicating a decline in profitability[18]. - The company reported a net loss of CNY 474,196,966.43, compared to a loss of CNY 475,225,705.96 at the beginning of the period, indicating a slight improvement[95]. - The company reported a total cash outflow from investing activities of 13,037.59 CNY, resulting in a net cash flow from investing activities of -13,037.59 CNY[114]. - The total comprehensive income for the period was CNY 18,161.12 million, down from CNY 80,321.42 million, reflecting a decline of about 77.6%[107]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 924,582,760.89, a decrease of 0.76% from CNY 931,628,406.78 at the end of the previous year[18]. - The total liabilities decreased to CNY 249,390,291.98 from CNY 256,083,448.72, a reduction of approximately 2.9%[94]. - Current assets totaled CNY 761,637,480.06, down from CNY 769,785,095.16 at the beginning of the period, indicating a decrease of approximately 3.5%[93]. - Cash and cash equivalents increased to CNY 47,300,795.13 from CNY 40,728,343.14, reflecting an increase of about 16%[92]. - Total liabilities rose slightly to CNY 131,114,228.20 compared to CNY 129,325,360.05 in the previous period[99]. - The total equity attributable to shareholders was CNY 606,003,232.93, up from CNY 587,842,107.99[99]. Business Strategy and Development - The company plans to transform its business towards the ecological agriculture and forestry industry, having established Jiangsu Chenwei Ecological Park Technology Co., Ltd. in 2015 and acquired Guangxi Intercontinental Forestry Investment Co., Ltd. in 2017[24]. - The company is focusing on optimizing its profitability and enhancing its sustainable development capabilities amid a challenging pharmaceutical industry environment[24]. - The company is actively expanding its ecological landscape projects in Jiangyin and Yunnan, contributing to its growth strategy[32]. - The company has plans for market expansion, focusing on new product development and technological advancements[121]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational capabilities[121]. Research and Development - Research and development expenses increased by 38.46% to CNY 4,876,783.95, reflecting the addition of new R&D projects[34]. - The company aims to enhance its research and development efforts to drive innovation in its product offerings[121]. Shareholder Information - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[6]. - The total number of ordinary shareholders at the end of the reporting period was 71,034[77]. - The largest shareholder, Wang Hongming, holds 14.00% of the shares, totaling 144,138,394 shares[78]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[79]. Risks and Challenges - The company faces risks from government policies on drug pricing and procurement, which may negatively impact performance[45]. - The company has not engaged in any significant asset or equity transactions during the reporting period[42]. Compliance and Accounting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial status accurately[134]. - The company’s accounting period runs from January 1 to December 31 each year[135]. - The company’s business cycle is 12 months[136]. - The reporting currency for the company is Renminbi[137]. Inventory and Asset Management - The company uses a perpetual inventory system for inventory management[167]. - Inventory is valued using the weighted average method upon issuance[165]. - The net realizable value of inventory is determined based on estimated selling prices minus estimated costs and related taxes[166]. Financial Instruments and Investments - Financial instruments include financial assets, financial liabilities, and equity instruments, classified at initial recognition based on their measurement and recognition criteria[151]. - The company recognizes financial assets at fair value, deducting any declared but unpaid cash dividends or interest, with changes in fair value recognized in current profit or loss[153].