SCMC(SH:600984)2023-08-30 16:00Financial Performance - The company reported a basic earnings per share of -0.1780 RMB for the first half of 2023, compared to -0.0516 RMB in the same period last year, indicating a decline [25]. - The diluted earnings per share also stood at -0.1780 RMB, reflecting the same negative trend as the basic earnings per share [25]. - The weighted average return on net assets was -3.79% for the first half of 2023, down from -1.07% in the previous year [25]. - The company's operating revenue for the first half of 2023 was RMB 1,570,560,676.92, a decrease of 11.75% compared to the same period last year [27]. - The net profit attributable to shareholders was a loss of RMB 223,746,544.67, compared to a loss of RMB 64,681,160.51 in the previous year [27]. - The net cash flow from operating activities was a loss of RMB 31,452,227.37, compared to a loss of RMB 161,159,323.81 in the previous year [27]. - The company reported a significant increase in non-operating income, which rose by 158.69% to CNY 11,537,051.35 from CNY 4,459,881.91 [48]. - The net profit for the first half of the year is -231,975,716.89 RMB, a decrease from -68,154,953.78 RMB in the same period last year, indicating a decline in profitability [131]. - The EBITDA to total debt ratio is 0.04, down from 0.06, reflecting a decrease in net profit and an increase in interest-bearing liabilities [131]. - The interest coverage ratio is -0.30, a decline of 1.03 from 0.73 in the previous year, indicating reduced profitability [131]. Revenue and Costs - The total operating costs increased to CNY 1,801,041,514.89, up 1.55% from CNY 1,766,295,293.53 year-on-year [144]. - The operating profit for the first half of 2023 was a loss of CNY 270,280,802.06, compared to a loss of CNY 52,959,160.73 in the first half of 2022 [144]. - The company achieved a rental business revenue of RMB 148,988.82 million, down 11.96% year-on-year, with a notable 35.22% increase in road construction rental income [32]. - The company reported a decrease in sales expenses to CNY 7,348,367.95 from CNY 6,582,247.50 year-over-year, indicating improved cost management [148]. - The financial expenses for the first half of 2023 were CNY -1,042,232.01, a decrease from CNY 11,904,283.40 in the same period of 2022, suggesting better financial management [148]. Assets and Liabilities - The company's total assets increased by 1.60% to RMB 18,280,889,035.70 compared to the end of the previous year [27]. - The total liabilities increased to CNY 12,497,162,803.25 from CNY 11,981,550,923.68, marking a growth of around 4.3% [137]. - The company's equity attributable to shareholders decreased to CNY 5,782,509,179.35 from CNY 6,009,390,648.10, a decline of about 3.8% [137]. - The company's long-term borrowings increased to CNY 3,198,909,787.12 from CNY 2,507,107,792.91, representing a rise of about 27.5% [137]. - The total liabilities at the end of the first half of 2023 are CNY 1,031,585,954.50, reflecting a stable financial position [160]. Cash Flow - The cash flow from operating activities showed a net outflow of CNY 31,452,227.37 in the first half of 2023, an improvement from a net outflow of CNY 161,159,323.81 in the same period of 2022 [150]. - The total cash inflow from financing activities was 3,152,529,805.02 RMB, while cash outflow was 2,517,249,067.46 RMB, resulting in a net cash flow of 635,280,737.56 RMB [151]. - The company incurred cash outflows of 591,430,303.83 RMB for the purchase of fixed assets, intangible assets, and other long-term assets, compared to 870,837,895.77 RMB in the previous year, showing a reduction of about 32% [151]. Market and Industry Conditions - The construction machinery industry is facing challenges, with a 24.3% year-on-year decline in new construction area in the real estate sector and a 13.4% decrease in overall tower crane sales [30]. - The company anticipates a recovery in the construction machinery industry due to enhanced macroeconomic policies and the acceleration of infrastructure projects [31]. - Increased competition in the construction machinery industry is expected, with a focus on optimizing product structure and enhancing marketing strategies to adapt to market changes [66]. Corporate Governance and Compliance - The company did not declare any profit distribution or capital reserve transfer to share capital for the reporting period [4]. - There were no instances of non-operational fund occupation by controlling shareholders or related parties [6]. - The company has disclosed potential risks in its management discussion and analysis section, emphasizing the importance of investor awareness [6]. - The company is committed to transparency and has ensured that all board members attended the board meeting to approve the report [7]. - The company has engaged Sigma Accounting Firm for financial and internal control audits for a one-year term starting from May 10, 2023 [89]. Environmental Responsibility - The company has established a complete and stable waste gas pollution prevention and control facility, achieving standard emissions for all pollutants as of the end of the reporting period [78]. - The company generates 80 tons of domestic sewage per day, which is treated by its self-built sewage treatment station with a capacity of 150 tons per day [79]. - The company has implemented an emergency response plan for environmental incidents, which has been filed with the environmental protection bureau [80]. - The company adheres to multiple environmental laws and standards, actively engaging in pollution prevention and control measures [78]. Shareholder Information - The largest shareholder, Shaanxi Coal and Chemical Industry Group, holds 371,842,572 shares, representing 29.58% of the total shares [116]. - Shareholder Chai Zhao Yi reduced his holdings by 13,980,000 shares, accounting for 1.1121% of the total share capital, due to personal financial needs [119]. - The company has a total of 86,090,520 restricted shares that were released during the reporting period [115]. Research and Development - The company is focusing on technological innovation, having developed intelligent control technology for remote and unmanned operation of tower cranes [36]. - Research and development expenses increased to CNY 10,233,549.61 in the first half of 2023, up from CNY 7,094,853.28 in the first half of 2022, reflecting a focus on innovation [148].