SMTC(SH:600822)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately RMB 2.21 billion, a decrease of 32.16% compared to RMB 3.26 billion in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2022 was a loss of approximately RMB 23.30 million, a decline of 169.18% from a profit of RMB 33.68 million in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of approximately RMB 26.59 million, down 190.36% from RMB 29.43 million in the same period last year[16]. - The net cash flow from operating activities for the first half of 2022 was approximately -RMB 175.24 million, compared to -RMB 158.46 million in the previous year[16]. - The total assets at the end of the reporting period were approximately RMB 1.81 billion, a decrease of 9.87% from RMB 2.01 billion at the end of the previous year[16]. - The net assets attributable to shareholders at the end of the reporting period were approximately RMB 903.89 million, a decrease of 2.66% from RMB 928.57 million at the end of the previous year[16]. - The basic earnings per share for the first half of 2022 were -RMB 0.05, a decrease of 169.21% compared to RMB 0.07 in the same period last year[16]. - The diluted earnings per share for the first half of 2022 were also -RMB 0.05, reflecting the same decline as the basic earnings per share[16]. - The weighted average return on net assets for the first half of 2022 was -2.54%, a decrease of 6.73 percentage points from 4.19% in the previous year[16]. - The company achieved a revenue of 2.211 billion yuan in the first half of 2022, with a net profit attributable to shareholders of -0.023 billion yuan[26]. Operational Challenges - Vehicle sales decreased by 15.5% year-on-year, totaling 0.5919 million units, while used car sales reached 0.282 million units[21]. - The automotive industry faced a 3.7% decline in production and a 6.6% decline in sales, with new energy vehicle sales increasing by 120% year-on-year, reaching 0.266 million units[23]. - The company faced significant challenges in April and May due to the pandemic, leading to a near halt in operations during those months[26]. - The company is focusing on new consumption growth and transformation opportunities to drive stable economic development[26]. Pandemic Response - The company provided 12.0156 million yuan in rent reductions to support small and individual businesses during the pandemic[26]. - The company implemented comprehensive pandemic prevention measures and established a leadership group for epidemic control and resumption of work[26]. - The logistics sector showed signs of recovery, with the warehousing index remaining in a prosperous range throughout the first half of 2022[24]. - The company delivered 4,957 retail orders and transported 10,82 boxes of group purchase goods during the pandemic, demonstrating its commitment to social responsibility[32]. Financial Position - Total assets decreased from CNY 2,009,605,370.00 at the beginning of the year to CNY 1,811,163,539.51 by June 30, 2022, representing a decline of approximately 9.8%[82]. - Current assets decreased from CNY 1,246,405,549.18 to CNY 1,099,700,312.26, a reduction of about 11.8%[82]. - Total liabilities decreased from CNY 1,020,361,161.98 to CNY 854,076,042.34, a decline of about 16.3%[83]. - The company's cash and cash equivalents decreased from CNY 739,740,958.75 to CNY 484,487,023.71, a decrease of approximately 34.5%[82]. - The company's total equity decreased from CNY 989,244,208.02 to CNY 957,087,497.17, a decline of approximately 3.3%[83]. Investment and Financing - The company provided a financing limit of up to RMB 1.2 billion through a financial service framework agreement with Bailian Group Financial Co., Ltd., which includes loan and bank acceptance bill services[63]. - The company reported a total of RMB 857.39 million in rental income from related party transactions for office spaces[65]. - The company recorded a loan amount of RMB 120 million with Bailian Group Financial Co., Ltd., with an interest rate range of 4.15%-4.35%[64]. - The company reported a total of RMB 3,370,044.30 in related party transactions, with a net increase of RMB 14,750,841.07 during the period[60]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,948, with 26,959 holding A shares and 12,989 holding B shares[71]. - The largest shareholder, Bailian Group, held 48.10% of the shares, totaling 238,575,962 shares[73]. - The company did not experience any changes in its total share capital or share structure during the reporting period[70]. Risk Management - The company faced significant risks in the automotive sales industry due to chip shortages and rising raw material prices, impacting production and sales[42]. - Financial risks are heightened due to the reliance on funding for bulk commodity trading, necessitating stringent risk control measures[43]. - The company continues to monitor its accounts receivable closely to mitigate potential credit risks in the future[194]. Accounting Policies - The financial statements are prepared based on the continuous operation assumption, adhering to the accounting standards set by the Ministry of Finance[109]. - The company has not reported any changes in accounting policies or significant errors in the previous periods[109]. - The company recognizes identifiable assets, liabilities, and contingent liabilities of subsidiaries or businesses acquired through business combinations based on their fair value at the acquisition date[118]. Revenue Recognition - The company confirms revenue when control of goods or services is transferred to the customer, with specific recognition criteria for different business segments, such as automotive retail and service contracts[166]. - The company applies a systematic approach to recognize revenue based on the progress of fulfilling performance obligations, using either output or input methods[165]. Employee Benefits - The company accounts for employee benefits, including short-term and post-employment benefits, based on local regulations and expected future obligations[159]. - The company participates in government-approved pension plans, contributing a certain percentage of total employee wages to these plans[159].