SMEG(SH:600689)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately RMB 377.24 million, representing a 12.06% increase compared to RMB 336.63 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company decreased by 96.15%, amounting to RMB 263,168.50, down from RMB 6.84 million in the previous year[21]. - The basic earnings per share dropped to RMB 0.001, a decline of 96.15% from RMB 0.034 in the same period last year[20]. - The total profit for the first half of 2022 was 520,000 RMB, a decrease of 320,000 RMB compared to the previous year[29]. - The company reported a significant increase in cash inflow from investment activities, totaling 366,275,637.69 RMB, compared to 4,026,568.29 RMB in the previous year[87]. - The comprehensive income for the current period amounts to RMB 2,846,522.46, compared to RMB 12,874,021.11 in the same period last year, indicating a decrease of about 77.92%[98]. Cash Flow and Assets - The net cash flow from operating activities was RMB 37.81 million, a significant improvement from a negative RMB 233,684.14 in the previous year[21]. - Cash and cash equivalents decreased by 53.44% to ¥134,596,252.58, primarily due to investments in financial products[34]. - The company's cash flow from operating activities generated a net amount of 37,806,714.49 RMB, compared to a negative cash flow of -233,684.14 RMB in the first half of 2021[86]. - The total assets increased by 9.76% to RMB 845.32 million, compared to RMB 770.17 million at the end of the previous year[21]. - The total liabilities reached RMB 406,823,399.41, up from RMB 331,933,111.99 at the start of the period[76]. - The total current assets increased to RMB 644,577,924.40 from RMB 565,612,785.14, reflecting a growth of about 13.9%[75]. Business Segments - The import and export trade business generated revenue of 25.9 million RMB, up 14.43% year-on-year, but the total profit was approximately -150,000 RMB, a decrease of about 12%[29]. - The security service segment reported revenue of 107.12 million RMB, a growth of 10.69% compared to the previous year, while total profit decreased by 34.82% to approximately 2.16 million RMB[30]. - The property leasing business generated approximately 11.54 million RMB in revenue, down 19.39% year-on-year, primarily due to rent reductions for eligible tenants in response to the pandemic[26][30]. Risks and Management - The company has outlined risks related to industry and market conditions in the management discussion section of the report[6]. - The company faces macroeconomic risks due to external uncertainties and domestic demand contraction, but maintains a strong economic resilience outlook[41]. - The company is enhancing risk management strategies to address operational risks and currency fluctuation impacts on its import-export business[42]. Corporate Governance - The company held its 2021 annual general meeting on June 29, 2022, where several key reports and proposals were approved, including the 2021 financial settlement report and the profit distribution plan[45]. - The company did not propose any profit distribution or capital reserve transfer for the first half of 2022, with no dividends or stock bonuses planned[46]. - There were changes in the board and supervisory committee members, with new elections held for the 11th board and supervisory committee[45]. Legal and Compliance - The company is currently involved in a significant lawsuit regarding a land lease contract dispute, with a first-instance judgment requiring the company to return approximately 6.076 acres of land and pay compensation of 13.46 million yuan[52]. - The company has not reported any environmental violations or penalties during the reporting period, adhering to various environmental protection laws[49]. - The company has not reported any major litigation or arbitration matters other than the ongoing land lease dispute[53]. Financial Structure - The total equity attributable to shareholders increased marginally to RMB 438,763,668.60 from RMB 438,500,500.10[76]. - The top ten shareholders hold a total of 52.95% of the company's shares, with the largest shareholder owning 25.95%[67]. - The company has not disclosed any significant related party transactions or major contracts during the reporting period[57][59]. Accounting Policies - The financial statements comply with the requirements of the Accounting Standards for Business Enterprises, reflecting the company's financial position as of June 30, 2022, and its operating results for the first half of 2022[106]. - The company uses a 12-month operating cycle for classifying assets and liabilities, which is standard for its operations[108]. - The company recognizes employee retirement benefits based on the same principles as severance benefits, with liabilities recognized when the conditions for recognition are met[188].