SHBM(SH:900939)2022-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 7,645,607.20, a decrease of 17.63% compared to CNY 9,281,630.81 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2022 was CNY 3,300,016.77, down 34.60% from CNY 5,045,740.86 in the previous year[19]. - The net cash flow from operating activities was negative CNY 550,155.46, a decline of 110.48% compared to CNY 5,249,978.38 in the same period last year[19]. - Basic earnings per share for the first half of 2022 were CNY 0.0182, a decrease of 34.53% from CNY 0.0278 in the same period last year[20]. - The weighted average return on net assets was 2.98%, down 2.06 percentage points from 5.04% in the previous year[20]. - The company reported a significant decrease in investment income from joint ventures, with a decline of 77.37 million RMB due to reduced revenue and profitability from the joint venture Hui Li Coatings[30]. - The company reported a net loss of CNY 1,315,739.63 for the first half of 2022, compared to a net loss of CNY 1,096,468.22 in the same period of 2021, indicating an increase in losses of approximately 20%[76]. - The company incurred an investment loss of CNY 2,055,130.47, compared to a loss of CNY 1,079,862.44 in the first half of 2021[72]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 141,611,151.33, an increase of 2.84% from CNY 137,696,288.40 at the end of the previous year[19]. - The total liabilities rose to ¥25,693,229.96 from ¥25,069,556.56, which is an increase of approximately 2.5%[68]. - The company reported a total liability of CNY 37,880,010.57, down from CNY 42,659,805.81 in the previous year[70]. - The company’s total liabilities to equity ratio stands at approximately 0.22, indicating a relatively low leverage position[68]. - The company’s cash and cash equivalents increased by 54.27%, reaching 102,772,885.26 RMB, primarily due to the maturity of structured deposits[32]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 10,613[57]. - The largest shareholder, Shanghai Huili Group Co., Ltd., holds 51,989,300 shares, accounting for 28.64% of the total shares[60]. - The second-largest shareholder, China Overseas Property Group Co., Ltd., holds 9,897,800 shares, representing 5.45% of the total shares[60]. - The company has not disclosed any significant changes in its share capital structure during the reporting period[56]. Operational Challenges - The rental income from the factory in the Kangqiao area was 7.61 million RMB, impacted by delays in renovation due to pandemic restrictions[25]. - The company is currently in the process of negotiating rent reductions with the tenant due to pandemic-related impacts[25]. - The company has no significant progress in capital market reforms or growth in main business revenue during the reporting period[26]. - The company faces risks related to strategic uncertainties and potential delisting due to its small business scale and single business model[41][42]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the going concern principle, with no significant doubts about the company's ability to continue operations in the next 12 months[97]. - The company has implemented the revised Accounting Standards for Leases since January 1, 2021, affecting its financial reporting[96]. - The company's accounting period runs from January 1 to December 31 each year[100]. - The company recognizes fixed assets only if economic benefits are likely to flow and the cost can be reliably measured[177]. Cash Flow and Financing Activities - Operating cash inflows totaled CNY 2,660,999.52, a significant decrease of 72.9% from CNY 9,822,559.68 in the first half of 2021[79]. - The company’s cash flow from financing activities resulted in a net outflow of CNY 40,150.00, with no cash inflows reported during this period[79]. - The company’s cash and cash equivalents at the end of the period stood at CNY 14,492,218.60, down from CNY 15,200,307.99 at the end of the first half of 2021[79]. Investment and Joint Ventures - The company holds 90% equity in Shanghai Zhongyuan Huili Building Materials Co., with total assets of CNY 59.74 million and net assets of CNY 33.34 million as of June 30, 2022[36]. - Shanghai Huili Flooring Co., in which the company holds 100% equity, reported total assets of CNY 21.38 million and a net profit of CNY 5.02 million for the first half of 2022[38]. - Shanghai Huili Paint Co., in which the company holds 37.5% equity, had total assets of CNY 94.66 million but reported a net loss of CNY 5.57 million for the first half of 2022 due to decreased revenue and product profitability[39]. - The company has experienced significant losses in its joint venture, Huili Paint Co., which may impact its overall performance if not recovered in the second half of 2022[43]. Comprehensive Income and Equity Changes - The total comprehensive income for the current period was CNY 3,291,189.53, reflecting a decrease compared to the previous period[84]. - The total equity attributable to the parent company at the end of the current period is CNY 115,917,921.37[86]. - The retained earnings decreased by CNY 142,744,986.58 during the current period[84]. - The company reported a comprehensive income loss of RMB 1,315,739.63 for the current period[89].