AURORA(SH:600666)2019-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2019 was RMB 458.74 million, a decrease of 25.10% compared to RMB 612.43 million in the same period last year [27]. - The net profit attributable to shareholders of the listed company was a loss of RMB 39.68 million, representing a decline of 195.09% from a profit of RMB 41.73 million in the previous year [27]. - The net cash flow from operating activities increased by RMB 51.70 million, compared to a negative cash flow of RMB 78.79 million in the same period last year [27]. - The net assets attributable to shareholders of the listed company decreased by RMB 39.68 million, a reduction of 5.88% from RMB 674.63 million at the end of the previous year [28]. - Total assets decreased by RMB 46.41 million, a decline of 1.07% from RMB 4.35 billion at the end of the previous year [28]. - Basic earnings per share were -0.0323 yuan, a decrease of 207.67% from 0.03 yuan in the same period last year [29]. - The weighted average return on net assets was -6.06%, a decrease of 7.63 percentage points from 1.57% in the previous year [29]. - The company reported a net loss of ¥42,451,430.96 from its subsidiary, indicating challenges in the operational performance of that entity [65]. - The company reported a total revenue from sales of 278,802,045.96 RMB, down from 357,595,272.46 RMB in the first half of 2018, representing a decrease of about 22% [151]. - The total comprehensive income attributable to the parent company was -39,681,487.90 RMB, compared to 41,729,821.81 RMB in the previous year, indicating a substantial decline [145]. Debt and Financial Risks - As of June 30, 2019, the controlling shareholder's non-operating fund occupation balance was 455.86 million yuan, with a total of 484.14 million yuan in unauthorized loans [6]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of securities laws, which may lead to the risk of stock suspension [8]. - The company has been placed under delisting risk warning, and if the audited net profit for 2019 remains negative, the stock may be suspended from trading [11]. - The controlling shareholder's shares are frozen due to debt disputes, posing a risk of change in actual control [13]. - The company has experienced debt defaults, and some subsidiaries' equity has been judicially frozen, indicating potential bankruptcy risks [15]. - The company has overdue loans totaling 240 million RMB from various banks, with ongoing negotiations for loan renewals and settlements [79]. - The company faces bankruptcy liquidation risk due to debt defaults and judicial freezes on subsidiary shares, with ongoing legal proceedings [76]. - The total amount of liabilities related to the court cases and disputes is approximately 640 million RMB, which may lead to forced execution measures if not resolved [107]. Research and Development - The company increased its R&D investment in sapphire crystal growth and processing, leading to a rise in R&D expenses compared to the previous year [30]. - R&D expenses increased due to heightened investment in sapphire crystal growth, processing, and bending machine technologies [40]. - Research and development expenses increased by 132.24% to ¥32,945,125.54, reflecting a significant investment in new technologies and product development [57]. - The company has made significant advancements in R&D, achieving breakthroughs in large-size 3D glass bending equipment and hard and brittle material processing equipment, enhancing production efficiency and product quality [47][48]. Market and Sales Performance - The decline in sales revenue was attributed to a decrease in the selling price of sapphire products and a reduction in the sales volume of hard and brittle material processing equipment [30]. - The company experienced a decline in revenue due to a decrease in sapphire product prices and a drop in sales of hard and brittle material processing equipment [40]. - The sapphire materials market is expected to see new growth points driven by increased demand in consumer electronics and defense industries, supported by favorable policies and market conditions [42]. - The company is focusing on optimizing production processes and enhancing internal controls to improve sales performance [40]. - The company continues to explore various sales models while maintaining a direct sales approach for its products [40]. Internal Controls and Governance - The company has committed to strengthening internal controls and enhancing responsibility management to prevent future fund occupation incidents [70]. - Significant internal control deficiencies were identified, with a negative audit opinion issued, although remediation efforts are ongoing [78]. - The company is actively communicating with relevant parties to resolve legal disputes and mitigate financial risks [12]. - The company is focusing on enhancing its equity structure to support future growth initiatives and market expansion [176]. Shareholder and Capital Management - The company has a cash distribution policy that aims to distribute at least 10% of the annual distributable profits in cash [97]. - The company plans to conduct cash dividends at least once a year, subject to profitability and funding needs [97]. - The company’s board can propose stock dividends or a combination of cash and stock dividends when deemed necessary [97]. - The company has a total of 1,227,326,240 shares outstanding after a stock increase in 2017 [184]. - The company is subject to a lock-up period for certain shareholders, which extends until the completion of share compensation obligations as per the profit forecast compensation agreement [127]. Compliance and Regulatory Issues - The company is under investigation by the China Securities Regulatory Commission for alleged violations of securities laws, which could lead to potential delisting risks [68]. - The company has received a notice from the China Securities Regulatory Commission regarding an investigation for suspected violations of securities laws [106]. - The company has not reported any environmental violations or penalties during the reporting period, adhering to relevant environmental laws [115]. Financial Position and Assets - The company's total assets as of June 30, 2019, amounted to RMB 4,305,677,149.57, a slight decrease from RMB 4,352,091,692.75 at the end of 2018 [134]. - The company's current liabilities totaled RMB 2,845,566,323.11, compared to RMB 2,791,894,602.87 at the end of 2018, indicating an increase in short-term obligations [136]. - The cash and cash equivalents stood at RMB 56,223,556.06, up from RMB 42,852,002.40 at the end of 2018, reflecting improved liquidity [134]. - The total liabilities of the company were RMB 3,059,526,323.11, which is an increase from RMB 3,005,854,602.87 at the end of 2018 [136].