FLDT(SH:600228)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was RMB 216,318,011.34, representing a 2.02% increase compared to RMB 212,031,479.15 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 39.08% to RMB 40,254,617.78 from RMB 66,082,001.21 year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 39,582,082.77, down 36.37% from RMB 62,209,716.82 in the previous year[19]. - Basic earnings per share decreased by 46.67% to CNY 0.0528 compared to the same period last year[20]. - Diluted earnings per share also decreased by 46.67% to CNY 0.0528 compared to the same period last year[20]. - The weighted average return on equity decreased by 1.97 percentage points to 4.81% compared to the same period last year[20]. - The total comprehensive income for the first half of 2021 was -23,903,400.3 RMB, reflecting the overall financial challenges faced by the company[121]. - The net profit for the full year of 2021 was CNY 191.56 million, with an actual profit of CNY 43.32 million for the first half, achieving only 22.61% of the target[87]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at RMB -25,064,859.41, a significant decline from RMB 23,881,717.07 in the same period last year, representing a 204.95% decrease[19]. - Operating cash inflow for the first half of 2021 was 299,389,255.47 RMB, up from 269,608,772.09 RMB in the first half of 2020, representing an increase of approximately 11%[123]. - The cash flow from financing activities showed a net outflow of -39,557.59 RMB in the first half of 2021, compared to a net inflow of 203,599,083.9 RMB in the same period of 2020, highlighting a shift in financing strategy[124]. - Cash and cash equivalents at the end of the first half of 2021 totaled 840,382,230.5 RMB, down from 985,025,728.14 RMB at the end of the first half of 2020, reflecting a decrease of about 15%[124]. Asset and Liability Management - The net assets attributable to shareholders of the listed company decreased by 58.52% to RMB 338,979,420.51 from RMB 817,271,799.50 at the end of the previous year[19]. - Total assets increased by 2.90% to RMB 1,115,003,897.72 compared to RMB 1,083,606,330.96 at the end of the previous year[19]. - The total liabilities as of June 30, 2021, were ¥776,024,477.21, significantly higher than ¥266,334,531.46 reported on December 31, 2020, indicating a substantial increase in liabilities[110]. - The company reported a significant increase in accounts payable, which rose to ¥125,789,829.04 from ¥77,517,694.04, an increase of approximately 62.2%[109]. Business Transition and Strategy - The company completed a major asset restructuring, transitioning its main business from the chemical industry to the third-party online shopping guide industry[5]. - The company launched new services including short video live streaming and local life marketing SaaS during the reporting period[24]. - The company aims to expand its market presence by leveraging short video and live streaming services to attract new customers[27]. - The company has initiated new strategic business lines, although these are still in the early stages and face operational uncertainties[58]. Regulatory and Compliance Issues - The financial report for the first half of 2021 has not been audited, and the board of directors guarantees its accuracy and completeness[6]. - The company is closely monitoring performance commitments related to major asset restructuring, which may lead to compensation obligations if targets are not met[57]. - The company is subject to regulatory changes that could affect its operational strategies and compliance[56]. Shareholder and Equity Structure - The total number of shares increased from 241,320,000 to 823,267,005 after the issuance of 581,947,005 shares for asset acquisition[92]. - Major shareholders include Shanghai Xiangrui, which subscribed for 198,006,528 shares, and Shanghai Huru, which subscribed for 87,271,614 shares, both with a lock-up period of 36 months[93]. - The company has a new controlling shareholder, Shanghai Xiangrui Enterprise Management Consulting, effective March 19, 2021[102]. - The shareholder structure indicates a significant concentration of ownership among a few entities, which may impact governance and decision-making[99]. Research and Development - The company has filed for 22 new software copyrights and 2 new patents related to cloud computing and big data[32]. - Research and development expenses for the first half of 2021 were CNY 25,720,221.77, slightly down from CNY 27,234,882.21 in the previous year[116]. Risk Factors - The company faces risks associated with the transition and the new business model, as detailed in the management discussion and analysis section[5]. - Increased competition in the online shopping sector poses a risk to user retention and revenue generation[56]. - The company faces risks related to macroeconomic fluctuations, which could impact internet service and advertising revenues[55]. Commitments and Guarantees - The company has commitments regarding profit forecasts and compensation for the years 2021 to 2023, ensuring financial stability during this period[73]. - The company has made commitments to maintain its independence and avoid competition with its subsidiaries, with these commitments effective from April 11, 2017, and continuing indefinitely[72].