SHSTC(SH:600620)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 5,319,818.50, a decrease of 74.68% compared to CNY 21,006,386.87 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of CNY 33,837,552.91, representing a decline of 119.07% from a profit of CNY 177,453,429.95 in the previous year[19]. - The net cash flow from operating activities was a negative CNY 157,278,353.22, compared to a negative CNY 72,762,068.84 in the same period last year[19]. - Basic earnings per share for the first half of 2022 were -CNY 0.05, down 119.08% from CNY 0.26 in the same period last year[20]. - The diluted earnings per share were also -CNY 0.05, reflecting the same percentage decline as basic earnings per share[20]. - The weighted average return on net assets decreased by 8.76 percentage points to -1.48% from 7.28% in the previous year[20]. - The net profit after deducting non-recurring gains and losses was -CNY 21,147,318.29, a decline of 128.43% from CNY 74,379,795.04 in the same period last year[19]. - The company reported a total revenue of RMB 5,319,818.50, a decrease of 74.68% compared to RMB 21,006,386.87 in the same period last year[34]. - The net profit attributable to shareholders was RMB -33,837,600, a decline of 119.07% from RMB 177,453,400 in the previous year[35]. - The total comprehensive income for the first half of 2022 was CNY -90,046,176.30, compared to CNY -9,070,649.62 in the first half of 2021[93]. Revenue Sources - The taxi passenger transport revenue was CNY 2.33 million, a decrease of CNY 4.74 million or 67.02% compared to the same period last year[28]. - The property leasing income was CNY 2.96 million, down CNY 10.86 million or 78.57% year-on-year, primarily due to policy impacts and pandemic-related factors[28]. - Taxi operating revenue was RMB 2,332,300, down 67.02% from RMB 7,072,500 year-on-year, primarily due to reduced travel during the Shanghai lockdown[33]. - Property leasing income decreased to RMB 2,962,000, a drop of 78.57% from RMB 13,820,200, attributed to tenant contract terminations and rent reductions due to the pandemic[33]. Assets and Liabilities - The net assets attributable to shareholders of the listed company decreased by 6.88% to CNY 2,049,158,375.30 from CNY 2,200,598,853.33 at the end of the previous year[19]. - Total assets increased slightly by 0.25% to CNY 2,738,061,274.08 from CNY 2,731,229,896.46 at the end of the previous year[19]. - The total liabilities as of the end of the reporting period were CNY 672,925,880.15, an increase of 2.0% from CNY 653,700,609.37 at the end of the previous period[88]. - The total equity decreased to CNY 2,139,152,747.87 from CNY 2,266,966,165.39, reflecting a decline of 5.6%[88]. - The total liabilities increased to CNY 555,544,992.83 from CNY 396,620,534.12, representing a growth of approximately 39.9%[79]. Investment and Projects - The company is investing CNY 250 million in the renovation of a rehabilitation hospital, which is currently under construction[28]. - The company plans to complete the construction of the Tianchen Life Science City project by the end of 2022, with ongoing planning for other land development[28]. - The Tianchen Life Science City project incurred a net loss of RMB -4,350,700, worsening by 50.57% from RMB -2,889,500 in the previous year, mainly due to increased marketing and management expenses[32]. - The company is accelerating the construction of the Tianchen Life Science City and rehabilitation hospital projects, which were previously halted for nearly three months due to the pandemic[33]. Market Opportunities and Challenges - The rehabilitation industry in China is projected to grow from CNY 70.5 billion in 2019 to CNY 220.7 billion by 2025, indicating a significant market opportunity[25]. - The company is facing challenges in the taxi and property leasing sectors due to increased competition and pandemic impacts, but sees potential in the rehabilitation healthcare market[25]. - The company aims to explore new industries, including renewable energy, to enhance its core competitiveness[29]. Strategic and Operational Risks - The company faces macroeconomic risks, including uncertainties in domestic and international political and economic environments, which could affect market demand and profitability[48]. - The ongoing COVID-19 pandemic poses risks to the company's property leasing and taxi industries, as well as potential delays in project construction[48]. - The company is exposed to policy risks related to national real estate macro-control, which may impact financing and sales of its projects[48]. - The traditional taxi business is facing competition from emerging ride-hailing services, which may affect operational performance and profit margins[48]. - The company is undergoing a strategic transformation, which, while beneficial for future development, carries risks related to talent acquisition and professional capabilities[48]. Financial Position and Cash Flow - The company's cash and cash equivalents decreased by 65.13% to RMB 67,447,607.87 from RMB 193,415,072.33 year-on-year[40]. - Cash flow from operating activities was RMB -157,278,353.22, indicating significant cash outflow during the reporting period[34]. - The company reported a significant increase in tax expenses, with a tax expense of CNY -2,084,167.16 compared to CNY 34,243,288.43 in the previous year[89]. - The company reported a net cash outflow of ¥137,242,360.55 from cash and cash equivalents, compared to a net outflow of ¥103,933,866.02 in the previous year[102]. Accounting and Financial Reporting - The company follows the accounting standards set by the Ministry of Finance, ensuring that the financial statements reflect the true financial condition and operating results[125]. - The financial statements are prepared on a going concern basis, indicating the company's ability to continue its operations in the foreseeable future[123]. - The company has implemented specific accounting policies and estimates based on its operational characteristics, ensuring compliance with enterprise accounting standards[124]. - The company recognizes revenue when the customer obtains control of the goods or services, which is when they can use and derive almost all economic benefits from them[188]. Inventory and Asset Management - Inventory is classified into raw materials, finished goods, work in progress, development costs, and rental development products[155]. - The company uses the FIFO (First-In, First-Out) method for inventory valuation upon issuance[155]. - The company recognizes impairment losses for inventory when the cost exceeds its net realizable value[155]. Employee Benefits and Liabilities - The company recognizes short-term employee benefits as liabilities during the accounting period in which services are provided, including social insurance and housing fund contributions[181]. - The company participates in a defined contribution plan for employee pensions, contributing a certain percentage of total employee wages to the pension plan[182].