LMZ(SH:600249)2022-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately RMB 290.68 million, a decrease of 21% compared to RMB 367.94 million in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 29.48 million, compared to a loss of RMB 10.61 million in the same period last year[17]. - The basic earnings per share for the first half of 2022 was a loss of RMB 0.0536, compared to a loss of RMB 0.0193 in the same period last year[18]. - The weighted average return on net assets was -1.39%, compared to -0.50% in the previous year[18]. - The company reported a total comprehensive income for the first half of 2022 was a loss of CNY 29,738,779.18, compared to a loss of CNY 10,127,007.66 in the first half of 2021, indicating a significant decline in overall performance[107]. - The total profit for the first half of 2022 was a loss of CNY 37,629,326.80, compared to a loss of CNY 18,207,828.91 in the same period of 2021, representing an increase in loss of approximately 106.5%[106]. Cash Flow and Investments - The net cash flow from operating activities was a negative RMB 13.68 million, an improvement from a negative RMB 39.03 million in the previous year[17]. - The net cash flow from investment activities showed a significant outflow of 21.04 million yuan, primarily due to participation in CITIC Securities' rights issue[41]. - The company reported a fair value loss of 31.72 million yuan, significantly impacting profits due to fluctuations in the market value of stocks held, particularly in CITIC Securities[42]. - Cash inflow from investment activities increased to 39,015,943.35 RMB, up 27% from 30,671,790.09 RMB in the same period last year[109]. - Cash outflow from investment activities rose to 60,051,235.12 RMB, a significant increase of 68% compared to 35,576,729.24 RMB in the first half of 2021[109]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 2.49 billion, down 1.49% from RMB 2.52 billion at the end of the previous year[18]. - The total liabilities amounted to CNY 386,724,929.47, a slight decrease from CNY 394,485,360.45 at the beginning of the year[96]. - Total current assets as of June 30, 2022, amounted to CNY 1,753,377,468.62, a decrease from CNY 1,782,639,595.43 at the beginning of the period, reflecting a decline of approximately 1.63%[94]. - Accounts receivable rose by 48.49% to 95.39 million yuan, attributed to slower customer payments due to the pandemic[45]. - The total assets decreased to CNY 2,487,202,803.66 from CNY 2,524,702,013.82, reflecting a decline of approximately 1.49%[95]. Market and Industry Impact - The decline in revenue was primarily due to the impact of the pandemic, particularly affecting the subsidiary engaged in hotel supplies, which was significantly impacted by the ongoing downturn in the tourism industry[18]. - The overall daily chemical industry is experiencing growth, with high-end products commanding higher profit margins, despite challenges posed by the pandemic and regulatory changes affecting the hotel supplies segment[30]. - The ongoing COVID-19 pandemic has negatively impacted the subsidiary Jiangsu Industrial Company, particularly in the tourism and hotel sectors[61]. - Rising prices of raw materials have increased procurement costs, adversely affecting the company's gross profit margins[61]. Research and Development - Research and development expenses increased by 28.75% to 5.91 million yuan, reflecting the company's commitment to new product development[41]. - The company maintains a strong research and development capability, holding proprietary technology for traditional Chinese medicine toothpaste and being recognized as a national high-tech enterprise[31]. - The company is actively exploring new sales models and product innovations to optimize its sales team and distributor network, with the subsidiary Fangcao Company reporting a revenue of 8.42 million yuan during the period[38]. Corporate Governance and Shareholder Information - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[66]. - The total number of ordinary shareholders as of the end of the reporting period is 41,006[85]. - The largest shareholder, Guangxi Liuzhou Industrial Investment Development Group Co., Ltd., holds 183,360,652 shares, accounting for 33.34% of the total shares[87]. - The company has undergone changes in its board of directors, with the election of Sun Xuedong and the appointment of Gong Huiquan as president[65]. Environmental and Social Responsibility - The company has established an environmental protection leadership group to minimize the impact of its operations on the environment, aligning with national carbon neutrality policies[70]. - The company actively participates in rural revitalization efforts, providing support to Xindong Village, including sending a village secretary and conducting regular visits and assistance activities[72]. - The company has collaborated with the local ecological environment bureau to enhance monitoring systems for vehicle emissions, contributing to pollution prevention efforts[71].