WSBE(SH:600421)2020-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 54,083,490.16, a significant increase of 1,264.87% compared to CNY 3,962,549.73 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of CNY 1,855,672.16, an improvement from a loss of CNY 4,085,674.44 in the previous year[19]. - The company's net profit for the first half of 2020 was CNY 1,279,243.70, a significant improvement compared to a net loss of CNY 4,650,203.50 in the same period of 2019[64]. - Operating profit for the first half of 2020 was CNY 2,512,030.56, compared to an operating loss of CNY 4,184,860.60 in the first half of 2019[64]. - Total profit for the first half of 2020 reached CNY 2,656,530.12, while the total loss in the same period of 2019 was CNY 4,531,583.78[64]. Cash Flow - The net cash flow from operating activities was negative at CNY -25,815,845.57, worsening from CNY -5,955,637.71 in the same period last year[19]. - The company reported a significant increase in cash inflow from operating activities, totaling CNY 55,250,446.95 in the first half of 2020, compared to CNY 5,240,177.20 in the first half of 2019[68]. - Cash outflow from operating activities was CNY 81,066,292.52 in the first half of 2020, compared to CNY 11,195,814.91 in the same period of 2019[68]. - The cash and cash equivalents at the end of the period stood at 7,458,340.15 RMB, down from 25,622,075.15 RMB at the beginning of the period[70]. - The net increase in cash and cash equivalents was -18,163,735.00 RMB, compared to -1,583,043.46 RMB in the previous period[70]. Assets and Liabilities - The total assets decreased by 6.72% to CNY 111,549,129.88 from CNY 119,590,562.34 at the end of the previous year[19]. - The total current assets as of June 30, 2020, amounted to ¥68,714,683.62, a decrease from ¥75,240,566.72 as of December 31, 2019, representing a decline of approximately 8.5%[54]. - Total liabilities decreased to ¥52,908,592.50 from ¥62,179,516.50, a reduction of approximately 15%[55]. - The company's total liabilities increased to CNY 29,494,107.65 as of June 30, 2020, compared to CNY 26,703,554.80 at the end of 2019[60]. - The company's equity attributable to shareholders decreased to CNY 26,233,194.91 from CNY 29,965,846.75 at the end of 2019[60]. Inventory and Receivables - Accounts receivable increased to RMB 43.10 million, accounting for 38.64% of total assets, compared to 2.68% in the previous year[31]. - The company's accounts receivable aging report shows a balance of 43,498,196.56 RMB for receivables within one year[175]. - The total inventory at the end of the period is 10,867,980.31 RMB, which is an increase of 29.5% from the beginning balance of 8,391,154.36 RMB[197]. - The ending balance of raw materials is 4,484,712.74 RMB, compared to the beginning balance of 6,011,002.64 RMB, indicating a decrease of approximately 25.5%[197]. - The company's bad debt provision increased from CNY 358,198.25 at the beginning of the period to CNY 445,062.85 at the end, reflecting a change of CNY 86,864.60[178]. Government Support and Subsidies - The company received government subsidies amounting to CNY 391,911.47, which are closely related to its normal business operations[22]. - Government grants are classified as either asset-related or income-related, with specific criteria for recognition and measurement[155]. - Government subsidies related to income are recognized as deferred income and accounted for in the period when the related costs or losses are recognized[157]. Strategic Initiatives and Market Outlook - The company anticipates continued challenges due to market changes and the impact of the COVID-19 pandemic on operations[27]. - The company plans to redeploy its business strategy to explore new markets and expand production scale in the building materials sector[37]. - The company has not reported any major litigation or arbitration matters during the reporting period[38]. - The company did not disclose any new strategic initiatives in the earnings call[82]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the going concern principle, reflecting the company's financial status and operating results accurately[88]. - The company follows the Chinese Accounting Standards, ensuring the financial reports are true and complete[88]. - The company has implemented a new revenue recognition standard starting in 2020, which may impact future financial reporting[168]. - The company applies significant judgments and estimates in accounting policies due to inherent uncertainties in its operations[164]. Equity and Capital Structure - The total equity of the company is not explicitly stated in the provided documents, but the changes in assets and liabilities suggest a potential impact on equity[54][55]. - The total owner's equity at the end of the reporting period was CNY 26,233,194.00, reflecting a decline from the previous year[81]. - The company has a total share capital of 19,560,000 shares, with a registered capital of RMB 19,560,000 as of June 30, 2020[86].