SFH(SH:600615)2021-08-20 16:00Financial Performance - The company reported a revenue of CNY 41,116,664.70 for the first half of 2021, an increase of 82.31% compared to CNY 22,552,783.26 in the same period last year[19]. - The net profit attributable to shareholders was CNY -3,236,264.66, worsening from CNY -1,553,034.83 in the previous year[19]. - The net cash flow from operating activities was CNY -19,140,163.63, compared to CNY -8,546,780.66 in the same period last year[19]. - The company's total assets decreased by 0.49% to CNY 673,355,560.90 from CNY 676,698,305.92 at the end of the previous year[19]. - The company’s weighted average return on net assets was -0.513%, a decrease of 0.267 percentage points compared to -0.246% in the previous year[20]. - The company did not distribute profits or increase capital reserves due to negative net profit and distributable profits[6]. - The company’s net assets attributable to shareholders decreased by 0.51% to CNY 629,582,220.38 from CNY 632,818,485.04 at the end of the previous year[19]. - The company reported a significant increase in inventory, which rose by 58.95% to ¥13,517,588.29 from ¥8,504,363.70, attributed to higher raw material purchases[32]. - The company reported total assets of RMB 13,813.52 million and net assets of RMB 2,577.75 million[38]. - The main operating revenue was RMB 3,542.97 million, with a net profit of RMB 408.25 million, resulting in a profit margin of 18.58%[38]. - The company faced a risk of delisting due to a negative net profit and operating revenue below RMB 100 million in the previous fiscal year[40]. - The company did not propose any profit distribution or capital reserve increase due to a negative net profit of RMB 3,236,264.66 and a total distributable profit of negative RMB 53,484,373.70[45]. - The total comprehensive income for the first half of 2021 was -3,226,973.91 million CNY, compared to -1,639,453.85 million CNY in the previous year[78]. - The company reported a basic and diluted earnings per share of -0.017 CNY for the first half of 2021, compared to -0.008 CNY in the same period of 2020[82]. Cash Flow and Investments - The net cash flow from operating activities was -19,140,163.63 RMB, compared to -8,546,780.66 RMB in the previous period, indicating a decline in operational cash flow[84]. - The company’s cash flow from investment activities improved significantly, reaching ¥10,512,431.34 compared to -¥1,490,333.30 in the previous year, primarily due to the redemption of financial products[28][29]. - Total cash inflow from investment activities reached 515,856,317.33 RMB, significantly higher than 44,755.60 RMB in the same period last year[84]. - Cash outflow for investment activities amounted to 505,343,885.99 RMB, compared to 1,535,088.90 RMB in the previous period, showing a substantial increase in investment spending[85]. - The company reported a net increase in cash and cash equivalents of -8,627,732.29 RMB, compared to -10,037,113.96 RMB in the prior period[85]. - The ending balance of cash and cash equivalents was 7,924,873.44 RMB, down from 9,089,427.97 at the end of the previous period[85]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,747[58]. - The largest shareholder, Longxin Holdings Co., Ltd., held 62,901,231 shares, representing 33.45% of the total shares[60]. - The second-largest shareholder, Xie Xian, increased his holdings by 7,670,700 shares to a total of 8,020,700 shares, accounting for 4.27%[60]. - Chongqing International Trust Co., Ltd. held 6,076,821 shares, representing 3.23% of the total shares[60]. Management and Governance - The company underwent significant management changes, including the resignation of the chairman and several directors in 2021[44]. - The company is under a risk warning for potential delisting if financial metrics do not improve in 2021[40]. - The company has committed to avoiding new competitive businesses that could conflict with its main operations during its period as a listed entity[49]. - The company did not disclose any new product developments or market expansion strategies in the current report[48]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[45]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[108]. - The company adheres to the accounting standards for enterprises, ensuring that the financial statements reflect a true and complete picture of its financial status and operating results[110]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[119]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date for accounting purposes[125]. - Financial assets are classified into three categories based on the business model and cash flow characteristics: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[128]. - The company assesses the degree of risk and rewards retained when transferring financial assets to determine whether to derecognize them[138]. Inventory and Assets - Inventory is classified into raw materials, work-in-progress, and finished goods, with a perpetual inventory system in place[156][159]. - The net realizable value of inventory is determined by comparing its cost with the estimated selling price minus estimated selling expenses and related taxes[158]. - Long-term equity investments are initially recorded at cost, including direct expenses related to the acquisition, and are subsequently measured using the cost method or equity method depending on the level of control[164][166]. - The company assesses joint control and significant influence based on participation in decision-making and representation on the board of directors[172]. Future Outlook - The company plans to focus on enhancing its capital structure and improving profitability in the upcoming periods[90]. - The financial report indicates a need for strategic adjustments to address the decline in retained earnings and minority interests[90]. - The company is exploring new market opportunities and potential mergers to drive growth and enhance shareholder value[90].