LMZ(SH:600249)2021-08-25 16:00Financial Performance - The company achieved operating revenue of CNY 367.94 million in the first half of 2021, representing a 25.86% increase compared to the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 10.61 million, compared to a profit of CNY 2.32 million in the same period last year[18]. - The net cash flow from operating activities was a negative CNY 39.03 million, worsening from a negative CNY 16.72 million in the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 0.50% to CNY 2.12 billion compared to the end of the previous year[18]. - Total assets decreased by 1.53% to CNY 2.52 billion compared to the end of the previous year[18]. - The basic earnings per share for the first half of 2021 was -CNY 0.0193, compared to CNY 0.0042 in the same period last year[19]. - The company reported a reduction in losses for the net profit attributable to shareholders after deducting non-recurring gains and losses, improving by CNY 7.63 million compared to the previous year[19]. - Operating revenue increased by 25.86% to RMB 367,938,649.46 compared to RMB 292,330,368.94 in the same period last year[38]. - Operating costs rose by 34.47% to RMB 283,392,979.91 from RMB 210,746,881.25 year-on-year[38]. - The company reported a significant decline in fair value changes, with losses of CNY 38,601,056.58 in the first half of 2021, compared to losses of CNY 10,330,937.50 in the same period last year[99]. - The total profit for the first half of 2021 was a loss of CNY 18,207,828.91, compared to a loss of CNY 264,317.10 in the same period last year[99]. Cost Management - The company continues to implement strict cost control measures to enhance efficiency and quality[19]. - The company reduced sales and management expenses by 32.22% and 12.81% respectively compared to the previous year[32]. - The company's management expenses decreased to CNY 31,650,748.70 in the first half of 2021 from CNY 32,947,227.73 in the previous year[99]. Cash Flow and Liquidity - The cash flow from financing activities improved to RMB 11,339,841.65 from RMB -172,457,458.30 in the previous year[38]. - The company’s cash and cash equivalents at the end of the reporting period were RMB 1,233,739.59, restricted as bank acceptance bill margin[41]. - The ending cash and cash equivalents balance as of June 30, 2021, was CNY 579,916,770.31, compared to CNY 565,709,192.71 at the end of June 2020[105]. - Cash received from sales of goods and services was CNY 370,505,241.77 in the first half of 2021, up from CNY 305,440,355.91 in the same period last year[104]. - Cash paid for goods and services in the first half of 2021 was CNY 294,645,040.43, compared to CNY 201,405,248.48 in the first half of 2020, indicating a significant increase in operational costs[104]. Market and Competition - The company faces intensified market competition in the daily chemical industry, with a stable market size and slow growth, necessitating a focus on R&D and brand positioning[55]. - The overall business environment improved as the domestic economy recovered from the pandemic, positively impacting the company's operations[31]. - The company is adapting to changes in channel structures due to the rise of online sales, aiming to expand into new emerging channels[56]. - The COVID-19 pandemic has created uncertainties affecting operations, particularly impacting the Jiangsu subsidiary due to declines in tourism and hotel industries[57]. Research and Development - The company has a strong R&D advantage, with proprietary technology in traditional Chinese medicine toothpaste and collaborations with several universities[27]. - Research and development expenses grew by 5.69% to RMB 4,592,828.01, up from RMB 4,345,370.12 in the previous year[38]. - The company plans to focus on improving operational efficiency to enhance profitability in the upcoming quarters[116]. Corporate Social Responsibility - The company actively engages in rural revitalization efforts, having successfully helped Pingxiu Village in Rongshui County achieve poverty alleviation status in 2020[67]. - During the reporting period, the company provided assistance to Xindong Village in Sanjiang County, including sending a village secretary to help consolidate poverty alleviation results[67]. - The company organized volunteer teams to visit and support villages, delivering relief supplies and funds to residents[67]. - In July 2021, the company donated over 40,000 boxes of disinfection products and more than 10,000 sets of personal care items valued at approximately 1 million yuan to support flood relief efforts in Henan[67]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 43,903[81]. - There were no changes in the total number of shares or the capital structure during the reporting period[80]. - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of 2021[62]. Financial Position - The total equity attributable to the parent company at the end of the current period is 2,121,252,531.00, compared to 2,127,259,566.60 at the end of the previous period, reflecting a decrease of approximately 0.65%[111]. - The total comprehensive income for the current period is reported as -10,612,850.39, indicating a significant decline compared to the previous period's figures[113]. - The capital reserve stands at 1,184,901,870.00, unchanged from the previous period, indicating stability in this area[112]. - The retained earnings have decreased by 6,007,034.70, resulting in a total of 2,121,252,531.00 for the current period[111]. Accounting Policies - The company follows the accounting policies in accordance with the relevant enterprise accounting standards[130]. - The company applies the accounting treatment for business combinations under common control based on the book value of the acquired assets and liabilities as of the merger date[135]. - The company consolidates all subsidiaries under its control in the consolidated financial statements, reflecting the overall financial position and performance of the group[143].