TUNA(SH:603177)2020-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2020 was RMB 171,937,260.18, a decrease of 39.54% compared to RMB 284,404,389.79 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of RMB 33,336,985.99, representing a decline of 123.65% compared to a loss of RMB 14,905,584.94 in the previous year[19]. - The basic and diluted earnings per share were both -0.17 yuan, down 142.86% from -0.07 yuan in the same period last year[19]. - The net cash flow from operating activities was -RMB 84,935,532.52, a decrease of 39.87% compared to -RMB 60,725,465.14 in the previous year[19]. - The company's total assets at the end of the reporting period were RMB 1,356,869,985.23, a slight decrease of 0.49% from RMB 1,363,579,343.72 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company decreased by 6.26% to RMB 500,818,048.44 from RMB 534,254,495.95 at the end of the previous year[19]. - The company reported a revenue of 172 million, a year-on-year decrease of 39.54%[32]. - The net profit attributable to shareholders was -33.34 million, a decline of 123.65% compared to the same period last year[32]. - The company faced a significant decrease in new orders for flue gas treatment projects, with a year-on-year decline of 210.56 million[32]. - The cash received from sales and services decreased by 116.77 million compared to the previous year, due to delays in customer resumption of work caused by the pandemic[32]. Impact of COVID-19 - The decline in revenue was primarily due to the impact of the COVID-19 pandemic on global economic operations, affecting the company's production and operations[20]. - The company faced increased credit impairment losses, contributing to the decline in net profit[20]. - The overseas business segment experienced project execution delays due to the pandemic and international circumstances, impacting overall revenue[20]. - The overall business environment remains challenging due to the COVID-19 pandemic and international trade tensions, impacting project execution and economic benefits[34]. - Cash and cash equivalents decreased by 20.33% year-on-year, primarily due to a decline in cash received from sales and services amid the COVID-19 pandemic and changes in the overseas situation[44]. Business Strategy and Development - The company is in a transformation and upgrading phase, with challenges in the domestic thermal power ultra-low emission market[20]. - The company is focusing on expanding its solid waste and hazardous waste business, which is still in the early stages of development[26]. - The company is actively transitioning to overseas markets, although the execution of projects has been delayed due to the pandemic[31]. - The company is shifting its focus from domestic to international markets for flue gas treatment, anticipating a decrease in domestic business proportion[34]. - The solid waste treatment sector is being actively developed, with plans for increased investment and technology development in hazardous waste management[36]. Research and Development - The company has established a strong technical innovation capability, with 138 authorized patents, including 3 invention patents[28]. - R&D expenses increased by 22.22%, rising from ¥12.22 million to ¥14.93 million, indicating a focus on innovation during the transition period[41]. - Research and development expenses increased to ¥14,933,259.14 in the first half of 2020, up from ¥12,218,364.27 in the same period of 2019, representing a growth of 22.2%[106]. Financial Stability and Liabilities - The company has not proposed any profit distribution or capital reserve increase for the first half of 2020, indicating a focus on financial stability[57]. - Total liabilities increased by 9.17% year-on-year, reaching RMB 854.80 million[44]. - The total assets increased by 4.47% year-on-year, totaling RMB 1,356.87 million[44]. - The company's equity attributable to shareholders decreased to RMB 500,818,048.44 from RMB 534,254,495.95, a decline of about 6.3%[99]. - Short-term borrowings increased by 14.88% year-on-year, as the company secured an additional RMB 40 million in bank loans for operational needs[45]. Shareholder Information - The total share capital of the company is 202,000,000 shares, with 140,250,000 shares (69.43%) held by three major shareholders under lock-up conditions[82]. - The largest shareholder, Shaoxing Deneng Fireproof Materials Co., Ltd., holds 89,650,000 shares, accounting for 44.38% of the total shares[88]. - The second largest shareholder, Hong Kong Rongzhi Group Co., Ltd., holds 41,250,000 shares, which is 20.42% of the total shares[88]. - The lock-up shares held by major shareholders are set to be released on February 7, 2020, allowing for potential market liquidity[82]. Environmental Compliance - The company has established various pollution control measures, including a wastewater treatment system that processes production and domestic wastewater before discharge[70]. - In 2020, the actual emissions of COD and ammonia nitrogen were 61.8 mg/l and 29.6 mg/l, respectively, which were within the permitted discharge limits[68]. - The company has implemented an emergency response plan for environmental incidents, which was filed with the local environmental protection bureau[72]. - The company conducts annual environmental monitoring through a qualified third-party agency, with results meeting national and local standards[73]. Accounting and Financial Reporting - The company adheres to the accounting standards and prepares financial reports based on the principle of going concern, with no significant doubts about its ability to continue operations[136]. - The financial statements are prepared in RMB, and the company follows the fiscal year from January 1 to December 31[138]. - The company recognizes revenue based on the progress of performance obligations, confirming revenue over time if certain criteria are met[198]. - The company assesses expected credit losses based on historical credit loss experience, current conditions, and forecasts of future economic conditions, calculating expected credit losses over the entire duration of financial instruments[156].