NANTEX(SH:600250)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 430.40 million, representing a 15.06% increase compared to CNY 374.06 million in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 82.44% to CNY 10.80 million from CNY 61.52 million in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 0.36 million, a significant decline of 99.34% compared to CNY 53.84 million in the same period last year[20]. - The net cash flow from operating activities was CNY 12.74 million, a recovery from a negative cash flow of CNY 42.19 million in the previous year[20]. - Basic earnings per share dropped by 82.60% to CNY 0.0348 from CNY 0.20 in the same period last year[23]. - The weighted average return on net assets decreased by 4.42 percentage points to 1.19% from 5.61% in the previous year[23]. - The company reported a total non-recurring profit and loss of 10,448,725.55, with significant contributions from various non-operating income sources[25]. - The company achieved operating revenue of 430 million yuan, a year-on-year increase of 15.06%, primarily due to a significant rise in tourism business revenue[42]. - The net profit attributable to shareholders was 10.8 million yuan, a year-on-year decrease of 82.44%, mainly due to the decline in performance of joint ventures and investment income[42]. - Trade business revenue was 230 million yuan, a year-on-year decrease of 9.5%, as the recovery fell short of expectations due to various adverse factors[43]. - Retail business sales reached 344 million yuan, with net revenue of 63.19 million yuan, reflecting a year-on-year growth of 47.80%[44]. - The tourism business saw a strong recovery, with revenue of 59.85 million yuan in the first half of 2021, a year-on-year increase of 271.57%[45]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2.37 billion, a slight increase of 0.69% from CNY 2.35 billion at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 6.62% to CNY 877.79 million from CNY 940.01 million at the end of the previous year[20]. - The company's cash and cash equivalents decreased by 17.63% to CNY 496,482,561.01 from CNY 602,756,463.36 at the end of the previous year[55]. - Short-term borrowings decreased by 7.19% to CNY 435,822,417.01 from CNY 469,610,857.41[55]. - The company reported a 51.91% decrease in other payables, down to CNY 82,307,404.16 from CNY 171,139,214.23[55]. - The company's long-term equity investments decreased by 9.03% to CNY 785,768,820.53 from CNY 863,763,363.23[55]. - Total liabilities increased to CNY 1,317,643,384.27 from CNY 1,242,321,455.89, marking an increase of approximately 6.1%[129]. - Current liabilities decreased to CNY 1,023,926,817.64 from CNY 1,163,397,264.50, a reduction of about 12%[129]. - Long-term liabilities rose to CNY 293,716,566.63 from CNY 78,924,191.39, indicating a significant increase[129]. Business Segments - The trade business remains the core of the company's operations, focusing on import and export trade, with major exports including textiles, clothing, and electromechanical products[29]. - The tourism segment, primarily operated by the subsidiary Qinhuai Scenic Area, has seen steady growth, with the introduction of new water tour projects expected to enhance revenue streams[31]. - The company is transitioning its retail operations towards a regional family shopping center model, increasing the scale of dining and experiential offerings[30]. - The subsidiary Qinhuai Scenic Area holds a 20-year exclusive operating right for the scenic waterway, enhancing its competitive position in the local tourism market[31]. Strategic Initiatives - The company is actively pursuing a transformation strategy towards cultural tourism, with new projects like the 360-degree cinema at Hongshan Forest Zoo opening in January 2021[46]. - The company has initiated a joint venture with Xinjiang Yining Cultural Tourism Group to develop a water tourism project on the Ili River, which began operations in July 2021[46]. - The company has established a strong brand presence in the trade sector, with its "LANDSEA" brand recognized as a key international brand in Jiangsu Province[38]. - The company has a stable customer base with over 100,000 active members in its retail operations, ensuring consistent revenue flow[39]. Risks and Challenges - The company has outlined potential risks in the management discussion and analysis section of the report, emphasizing the importance of investor awareness regarding investment risks[7]. - The ongoing COVID-19 pandemic continues to pose risks to business operations, particularly in regions experiencing outbreaks[73]. - The company’s investment in joint ventures remains a significant source of profit, with reliance on their performance posing a risk to overall earnings[76]. - The company is closely monitoring exchange rate fluctuations to mitigate risks associated with foreign currency settlements in its import and export trade[75]. Corporate Governance - The company held its first extraordinary general meeting of shareholders on January 29, 2021, and the resolutions were disclosed on January 30, 2021[78]. - There were changes in the board of directors, with Zheng Liping being elected as a director and Fan Ye resigning[79]. - The company did not propose any profit distribution or capital reserve fund transfer plans for the half-year period, with no dividends or bonus shares issued[79]. - The company has not implemented any employee stock ownership plans or other employee incentive measures during the reporting period[81]. - The company has made commitments regarding the integration of tourism assets, focusing on the water sightseeing business in Nanjing, with plans to inject these assets into the listed company[84]. Financial Commitments - The company committed to ensuring that the net profit for the years 2019, 2021, and 2022 will not be less than CNY 48.70 million, CNY 51.52 million, and CNY 59.22 million respectively[89]. - If the cumulative net profit by the end of the performance commitment period is less than 90% of the promised net profit, the company will compensate based on the difference multiplied by the equity ratio sold[89]. - The company will conduct impairment testing on the assets and provide a report; if the impairment exceeds the compensated amount, further compensation will be required[89]. - The company will ensure that any business opportunities that may compete with Nanjing Textile will be offered to Nanjing Textile first[86]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,788[116]. - The largest shareholder, Nanjing Tourism Group Co., Ltd., held 104,601,069 shares, accounting for 33.68% of the total shares[118]. - The second-largest shareholder, Nanjing Confucius Temple Cultural Tourism Group Co., Ltd., held 37,816,912 shares, representing 12.18% of the total shares[118]. - The company has no changes in share capital structure during the reporting period[115]. Accounting Policies - The company's financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance[164]. - The accounting period for the company runs from January 1 to December 31 each year[165]. - The company includes all subsidiaries in the consolidated financial statements, including controlled entities and structured entities[170]. - The company recognizes the difference between the disposal price and the net asset share of the subsidiary as capital reserve adjustments[172].