LETS(SZ:002398)2017-08-14 16:00Financial Performance - The company's operating revenue for the first half of 2017 was ¥820,841,276.18, representing a 46.38% increase compared to ¥560,747,139.97 in the same period last year[17]. - The net profit attributable to shareholders of the listed company decreased by 9.58% to ¥78,436,699.44 from ¥86,746,068.80 year-on-year[17]. - The net cash flow from operating activities significantly dropped by 81.85% to ¥19,839,978.18, down from ¥109,315,158.97 in the previous year[17]. - Basic earnings per share decreased by 8.00% to ¥0.23 from ¥0.25 in the same period last year[17]. - The weighted average return on net assets declined to 3.62% from 4.26% year-on-year, a decrease of 0.64%[17]. - The company reported a significant increase in operating costs, with costs rising by 78.80% for new materials, primarily due to increased sales volume and raw material prices[45]. - The company reported a net profit of 29,717,537 CNY from its subsidiary Xiamen Engineering Testing Center, contributing significantly to overall profitability[60]. - The company expects net profit attributable to shareholders for the first nine months of 2017 to range from CNY 127.17 million to CNY 165.32 million, representing a growth of 0% to 30% compared to the same period in 2016[63]. Assets and Liabilities - The total assets at the end of the reporting period increased by 5.70% to ¥2,808,470,193.00, compared to ¥2,657,052,452.63 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company rose by 2.07% to ¥2,174,431,781.65 from ¥2,130,268,282.21 at the end of the previous year[17]. - The company's cash and cash equivalents at the end of the reporting period were ¥131,771,781.00, up from ¥100,070,769.05, reflecting a 0.63% increase in total assets[48]. - Accounts receivable increased to ¥962,050,941.20, representing 34.26% of total assets, a slight decrease of 2.67% year-on-year[48]. - The total liabilities increased to CNY 584,013,607.85 from CNY 480,441,526.93, reflecting a growth of approximately 21.5%[142]. - The total current liabilities increased to CNY 555,160,228.73 from CNY 458,196,431.48, reflecting an increase of approximately 21.2%[142]. Investments and Acquisitions - The company's long-term equity investments increased by 67.36% to ¥108,972,592.28 as of June 30, 2017, primarily due to the acquisition of a 20.83% stake in a joint venture[27]. - The company acquired a 20.83% stake in Yunnan Zhaobiao Co., Ltd. for a total investment of 4,141 million CNY[52]. - The company has absorbed investments amounting to ¥32,109,670.08 during the current period, compared to no such inflow in the previous period[158]. Business Segments and Operations - The company operates two main business segments: comprehensive technical services and new materials for additives, with a strong presence across multiple provinces and cities in China[25]. - The construction technology service business generated revenue of 137 million yuan, with the testing business contributing 112 million yuan and a net profit of 29.26 million yuan[37]. - The new materials business achieved revenue of 563 million yuan and a net profit of 33.16 million yuan[38]. - The company has established 15 industrial bases for new materials, making it one of the fastest-growing firms in the concrete additive industry[26]. - The company has established 15 new materials production bases, with products exported to countries including Malaysia, Indonesia, and Russia[38]. Risk Management - The company faces various risks including market conditions, raw material price fluctuations, human resources, and industry competition[5]. - The company faces risks from market conditions, raw material price fluctuations, and increased labor costs, and plans to mitigate these through innovation and management improvements[64][65][66]. Governance and Compliance - The company continues to enhance its internal control systems and governance mechanisms to ensure compliance and efficiency in operations[33]. - The company has committed to avoiding related party transactions and will strictly adhere to relevant avoidance systems if unavoidable[75]. - The company has a commitment to maintain financial security and will not allow any related parties to occupy company funds[76]. - The company has a long-term commitment to avoid competition and related party transactions, ensuring fair and equitable principles[75]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 22,087[123]. - The largest shareholder, Cai Yongtai, holds 17.76% of the shares, amounting to 60,853,12 shares[123]. - The company has maintained a stable shareholder structure with no new strategic investors entering the top ten shareholders[124]. Future Outlook - The company anticipates that domestic infrastructure construction and real estate investment will continue to improve, positively impacting revenue[63]. - The company's performance assessment includes a revenue growth target of no less than 20% for 2017, 44% for 2018, and 72% for 2019 based on 2016 as the benchmark year[78]. - The net profit growth targets are set at no less than 10% for 2017, 20% for 2018, and 30% for 2019, also using 2016 as the baseline year[79].