New East(SH:603110)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥175.45 million, a decrease of 2.27% compared to ¥179.53 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2022 was approximately ¥9.79 million, representing a significant decline of 80.93% from ¥51.32 million in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥1.49 million, down 88.50% from ¥12.92 million in the same period last year[21]. - Basic earnings per share for the first half of 2022 were ¥0.05, down 80.77% from ¥0.26 in the same period last year[22]. - The weighted average return on net assets was 1.43%, a decrease of 6.42 percentage points from 7.85% in the previous year[22]. - The company reported a 7.3% increase in ink sales year-on-year, with polyurethane ink sales rising by 10% and new product sales for bottle label ink increasing by 63%[37]. - The company expects better performance in the second half of the year due to a recent decline in raw material prices, despite ongoing uncertainties[37]. Cash Flow and Assets - The net cash flow from operating activities increased by 162.40% to approximately ¥15.31 million, compared to ¥5.84 million in the previous year[21]. - The total assets at the end of the reporting period were approximately ¥790.91 million, a decrease of 5.54% from ¥837.27 million at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 3.87% to approximately ¥657.17 million from ¥683.60 million at the end of the previous year[21]. - Cash and cash equivalents were reported at RMB 158,962,750.93, significantly increasing from RMB 219,842,105.11, showing a growth of approximately 72.5%[101]. - The company's total liabilities decreased to RMB 133,744,247.74 from RMB 153,668,371.85, representing a reduction of around 13%[103]. Research and Development - The company is committed to research and development of new eco-friendly materials and technologies to meet evolving customer needs[26]. - Research and development expenses decreased by 23.20% to CNY 6,620,363.79 from CNY 8,620,559.67, attributed to reduced labor and material costs[41]. Market Trends - The domestic ink industry is growing at a rate of over 10% annually, driven by the booming printing and packaging sectors[26]. - The market share of solvent-based inks is gradually decreasing, while the demand for environmentally friendly inks, such as UV and water-based inks, is increasing[26][27]. - The digital printing ink market is still dominated by international brands, with domestic production lagging behind[27]. - The composite polyurethane adhesive market is expanding, with domestic companies narrowing the technology gap with international leaders[28]. - The market for green and environmentally friendly adhesives is expected to grow significantly due to increasing health and safety regulations[28]. - The PCB industry in China is projected to grow faster than the global average, particularly in high-tech products like multilayer boards and HDI boards[29]. Corporate Governance and Compliance - The company has made commitments regarding the independence of its management and operations, ensuring no conflicts of interest with controlling shareholders[70]. - The company guarantees the independence of its financial management, maintaining separate financial accounting departments and decision-making processes[71]. - The company has committed to avoiding any business competition with its controlling shareholders and their affiliates post-transaction[73]. - The company has ensured that all transactions with related parties will be conducted fairly and transparently, adhering to market prices[72]. - The company has pledged to maintain independent operations, including production and sales systems, without reliance on controlling shareholders[72]. Environmental and Social Responsibility - New Oriental Ink Co. has implemented pollution prevention facilities that comply with environmental regulations, with no administrative penalties reported during the reporting period[60]. - The company has established an emergency response plan for environmental incidents to minimize potential damage and ensure public safety[63]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 8,541[90]. - The largest shareholder, Xu Guangbin, held 29.90% of the shares, amounting to 60,166,793 shares, with 25,458,000 shares pledged[92]. - The company did not propose any profit distribution or capital reserve transfer plans for the half-year period[55]. Financial Reporting and Accounting Policies - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[140]. - The company prepares consolidated financial statements based on control, including subsidiaries and structured entities[145]. - Financial assets are classified based on the management's business model and cash flow characteristics, including those measured at amortized cost and fair value[151]. - The company recognizes expected credit loss provisions at each balance sheet date, with changes recorded as impairment losses or gains in the current period[164].