SMAC(SH:600073)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥12,831,530,299.34, a decrease of 1.04% compared to ¥12,966,613,171.93 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥308,509,632.25, down 11.27% from ¥347,688,924.10 in the previous year[22]. - Basic earnings per share for the first half of 2021 were ¥0.329, down 11.32% from ¥0.371 in the same period last year[22]. - The weighted average return on net assets was 7.03%, a decrease of 1.39 percentage points compared to 8.42% in the previous year[22]. - The company achieved a revenue of 12.832 billion CNY in the first half of 2021, a decrease of 1.04% compared to 12.967 billion CNY in the previous year[43]. - The net profit attributable to shareholders was 308.51 million CNY, down 11.27% from 347.69 million CNY in the previous year[43]. - The total profit for the first half of 2021 was CNY 624,973,269.79, down 25.2% from CNY 835,769,888.21 in the same period last year[187]. - The company's basic earnings per share for the first half of 2021 was CNY 0.329, compared to CNY 0.371 in the first half of 2020[187]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at ¥107,792,122.89, a significant decline from ¥1,041,928,389.88 in the same period last year, representing a decrease of 110.35%[22]. - The company's cash and cash equivalents decreased by 15.54% to CNY 3,136,387,767.49, down from CNY 3,713,295,738.29[52]. - The cash flow from operating activities for the first half of 2021 was CNY 12,201,593,522.57, a decrease from CNY 13,525,694,523.15 in the same period of 2020[192]. - The ending balance of cash and cash equivalents was ¥3,119,527,135.17, down from ¥3,408,903,994.71[197]. - The total assets decreased by 0.58% to ¥14,694,775,671.17 from ¥14,780,480,979.55 at the end of the previous year[22]. - The company's cash and cash equivalents decreased to CNY 679,619,049.11 from CNY 1,222,123,574.60, a decline of 44.5%[179]. Market and Industry Insights - The company is a leading player in the pork, beef, and mutton food industry, with significant market share in canned meat products and fresh meat distribution in the Yangtze River Delta region[29]. - The pork price has been declining due to oversupply, with the company expecting stabilization in prices supported by government policies in the second half of 2021[29]. - The meat products market in China shows significant growth potential, with a shift towards higher value-added and competitive products as the industry recovers[30]. - The company is positioned to benefit from the increasing demand for high-protein livestock products as consumer preferences shift towards healthier options[32]. Operational Challenges and Strategies - The company faced challenges in logistics and supply chain due to the global pandemic but managed to maintain operational stability through strategic partnerships[48]. - The company is facing operational risks due to the cyclical nature of pig prices, with measures in place to accelerate sales and improve feed conversion rates to mitigate impacts[73]. - The company continues to prioritize prevention against African swine fever, implementing strict biosecurity measures to ensure safety in pig farming and processing[71]. Investment and Development - Research and development expenses surged by 296.23% to CNY 18,354,690.12, up from CNY 4,632,377.65, indicating increased investment in new product development[51]. - The company has invested overseas to secure quality beef and mutton resources, enhancing its market channels globally[34]. - The company’s new product development included the launch of various new items such as single-serving canned products and gift boxes, which performed well in the market[47]. Environmental Compliance - The company reported no environmental violations in its wastewater and air emissions for the first half of 2021, adhering to the relevant pollution discharge standards[87][90]. - The company has implemented a 24-hour monitoring system for wastewater and air emissions, ensuring compliance with environmental regulations[104]. - The company is committed to green development and has implemented energy-saving and emission-reduction measures, including technical upgrades and management improvements[120]. Shareholder and Corporate Governance - The company did not propose any profit distribution plan or capital reserve transfer to share capital for the reporting period[6]. - The company has not encountered any major litigation or arbitration matters during the reporting period[130]. - The actual controller, shareholders, and related parties have committed to not engage in substantial competition with the company’s business until the change of control occurs, ensuring compliance with commitments[122].