Financial Performance - The company's revenue decreased by 58.7% from approximately RMB 254.6 million in the first half of 2021 to approximately RMB 105.1 million in the first half of 2022[16]. - The main business revenue fell by 58.8% from approximately RMB 254.2 million in the first half of 2021 to approximately RMB 104.8 million in the first half of 2022, primarily due to financial constraints[16]. - The company's gross profit decreased by 44.2% from approximately RMB 43.6 million in the first half of 2021 to approximately RMB 24.3 million in the first half of 2022[16]. - The net loss for the first half of 2022 was approximately RMB 91.8 million, compared to a net profit of approximately RMB 4.1 million in the first half of 2021[17]. - Total operating revenue for the first half of 2022 was RMB 105,067,299.21, a decrease of 58.8% compared to RMB 254,635,619.10 in the same period last year[77]. - The total profit for the first half of 2022 was a loss of RMB 91,764,250.80, compared to a profit of RMB 5,192,877.14 in the same period last year[77]. - Basic and diluted earnings per share for the first half of 2022 were both RMB -0.38, compared to RMB 0.02 in the same period last year[79]. - The company reported a significant increase in credit impairment losses, amounting to RMB -118,576,465.96, compared to RMB -41,782,614.42 in the previous year[77]. Cash Flow and Liquidity - As of June 30, 2022, the company's cash and cash equivalents decreased to approximately RMB 14.1 million from RMB 33.2 million as of December 31, 2021, primarily due to business contraction and inability to secure external financing[18]. - Cash flow from operating activities generated a net cash inflow of RMB 1,903,312.29, significantly lower than RMB 21,144,949.21 in the same period last year[82]. - Cash flow from investing activities resulted in a net cash outflow of RMB 11,925.00, compared to a net inflow of RMB 3,470,636.85 in the previous year[83]. - Cash flow from financing activities showed a net cash outflow of RMB 8,477,201.71, compared to a net outflow of RMB 102,465,420.80 in the same period last year[83]. - The total current assets decreased from RMB 1,228.99 million at the end of the previous year to RMB 996.17 million as of June 30, 2022, representing a decline of approximately 19%[66]. - The group is in ongoing communication with banks to avoid extreme measures regarding the overdue loans, but expects that the debt default situation may not improve by the end of 2022[64]. Assets and Liabilities - Accounts receivable decreased from approximately RMB 647.0 million as of December 31, 2021, to approximately RMB 495.3 million as of June 30, 2022, due to enhanced collection efforts and increased bad debt provisions[19]. - Total liabilities decreased from RMB 949.75 million to RMB 804.99 million, a decline of approximately 15%[68]. - The company's debt-to-asset ratio increased to 76% from 73% as of December 31, 2021, primarily due to significant credit impairment losses and asset impairments[25]. - The total equity attributable to the parent company decreased from RMB 346,765,842.65 to RMB 257,762,346.16, a decline of approximately 25.6%[75]. - The company reported a significant increase in special reserves from RMB 131,626.07 to RMB 1,723,274.79, an increase of approximately 1205.5%[75]. Corporate Governance and Compliance - The company has maintained good corporate governance practices and processes throughout the six months ending June 30, 2022[55]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the separation of the roles of chairman and CEO[57]. - The company is required to inform the market of all material information for shareholders and investors to evaluate its condition[40]. - The company is under pressure to remedy the issues or face potential delisting after the 18-month suspension period[37]. Strategic Initiatives - The company aims to focus on high-quality development in the industrial, infrastructure, and public building sectors in 2022[11]. - The company plans to optimize project management processes to enhance management quality and efficiency[12]. - The company intends to deepen comprehensive governance and seek strategic investors to address funding challenges[15]. - The company is negotiating with several financial institutions to obtain new financing sources or restructure cash loans[103]. Operational Challenges - The company has faced significant operational challenges, including multiple lawsuits and judicial freezes on some bank accounts, raising doubts about its ability to continue as a going concern[102]. - The company has been involved in significant losses in 2020 and 2021, which have continued into 2022[102]. - The company is actively communicating with banks to extend loan maturities and provide sufficient asset collateral and guarantees from related parties[103]. Employee and Workforce - As of June 30, 2022, the company had 175 employees, down from 214 employees as of December 31, 2021, with employee costs amounting to approximately RMB 8.7 million for the six months ended June 30, 2022[32].
爱得威建设集团(06189) - 2022 - 中期财报