HLSY(SZ:000622)2021-08-25 16:00Financial Performance - The company's operating revenue for the reporting period was ¥219,004,526.28, representing a 34.64% increase compared to ¥162,662,745.40 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was -¥4,909,152.95, a decrease of 330.30% from ¥2,131,633.21 in the previous year[22]. - The net cash flow from operating activities was -¥84,522,463.83, which is a 62.23% decline compared to -¥52,101,631.38 in the same period last year[22]. - The total assets at the end of the reporting period were ¥313,936,593.58, down 19.05% from ¥387,837,529.92 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 2.39% to ¥200,871,781.18 from ¥205,780,934.13 at the end of the previous year[22]. - The basic earnings per share were -¥0.0115, a decline of 330.00% from ¥0.0050 in the same period last year[22]. - The company reported a total of ¥42,981.81 in non-recurring gains and losses, primarily from government subsidies and other income[26]. - The weighted average return on net assets was -2.41%, a decrease of 3.46% compared to 1.05% in the previous year[22]. - Revenue for the current period reached ¥219,004,526.28, representing a 34.64% increase compared to ¥162,662,745.40 in the same period last year[38]. - Operating costs increased by 38.55% to ¥208,340,487.12 from ¥150,373,337.24, primarily due to significant growth in trade activities by subsidiaries[38]. - Research and development expenses rose by 52.83% to ¥721,457.24, driven by increased investment from the subsidiary in components[38]. - The company reported a significant increase in credit impairment losses, which rose by 291.44% to -¥5,992,532.74, attributed to the provision for bad debts by the trade subsidiary[39]. - Other income decreased by 95.72% to ¥27,333.00, primarily due to a reduction in government subsidies compared to the previous year[39]. - The automotive parts manufacturing sector's revenue decreased by 11.39% to ¥26,780,017.22, representing 12.23% of total revenue[40]. - The company's automotive air conditioning and parts sales revenue was approximately 26.78 million, a decrease of 11.39% compared to the same period last year, with a gross margin of 19.87%, down from 22.66%[44]. - The bulk trade business generated approximately 169.52 million in revenue, an increase of 36.29% year-over-year, with a gross margin of 2.86%, down from 3.34%[44]. - The commissioned processing business saw a significant revenue increase to approximately 22.41 million, up 226.85% from the previous year[44]. - The company reported a total revenue of 49,143,098.17 CNY with a net profit of 1,509,977.27 CNY for the period[60]. - The company faced a loss of 478,013.30 CNY in its investment management subsidiary, indicating challenges in that segment[60]. - The automotive parts subsidiary reported a significant loss of 4,457,103.93 CNY, reflecting difficulties in the trading business[60]. - The total comprehensive income for the first half of 2021 was a loss of CNY 4,902,968.47, compared to a gain of CNY 1,726,365.51 in the previous year[128]. - The company reported a net loss of CNY 421,910,464.67 as of June 30, 2021, compared to a loss of CNY 417,001,311.72 at the end of 2020[121]. Investment and Expansion - The company is investing approximately 100 million yuan to build a headquarters and production base in the Yiyang Economic Development Zone, aiming to enhance competitiveness and increase order volumes[33]. - The company plans to invest in production projects to enhance capacity and innovate key technologies, aiming to improve profitability[63]. - The company is actively expanding its customer base and product offerings to mitigate risks associated with industry slowdowns and policy changes[62]. - The company continues to explore diversified operations and has made progress in technology development and market expansion[30]. - The company is exploring potential mergers and acquisitions to strengthen its market position and enhance shareholder value[143]. Financial Management and Governance - The company has maintained a stable governance structure with no changes in its board or management during the reporting period[67]. - The company has not engaged in any significant litigation or bankruptcy restructuring during the reporting period[80]. - The half-year financial report has not been audited, indicating a need for further financial scrutiny[79]. - The company has no penalties or rectifications during the reporting period[83]. - There were no significant related party transactions during the reporting period[84]. - The company did not engage in any asset or equity acquisitions or sales during the reporting period[85]. - The company has no non-operating related party debts during the reporting period[87]. - The company has a rental agreement with China Chemical Engineering Fourth Construction Company, with an annual rent and property management fee totaling 565,248 yuan[92]. - The company provided guarantees totaling 2,000,000 yuan to its subsidiaries, with an actual guarantee amount of 899,580 yuan[95]. - The actual guarantee amount represents 4.48% of the company's net assets[95]. - The company received a final court ruling on April 12, 2021, stating it bears no economic compensation responsibility in a contract dispute case[98]. - The company’s financial report for the first half of 2021 was approved by the board on August 24, 2021, reflecting its financial status as of June 30, 2021[164]. - The company’s consolidated financial statements include its wholly-owned subsidiaries and controlling subsidiaries, with no changes in the scope of consolidation for the reporting period[165][166]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial statements accurately reflect its financial condition and operating results[170]. - The company maintains a continuous operating capability for at least 12 months following the reporting period, with no significant issues affecting its ability to continue operations[168]. Assets and Liabilities - The company's total liabilities amounted to CNY 103,565,671.10, with total equity at CNY 221,814,559.91 as of the end of the reporting period[125]. - The total assets of the company were CNY 325,380,231.01 at the end of the reporting period, compared to CNY 328,215,271.81 at the end of the previous period[125]. - The company's current assets decreased to CNY 295,262,836.48 from CNY 369,785,415.70, reflecting a reduction of about 20.1%[119]. - Cash and cash equivalents dropped significantly from CNY 103,468,637.69 to CNY 18,517,368.30, a decrease of approximately 82.1%[118]. - Accounts receivable increased to CNY 113,848,223.96 from CNY 19,558,666.52, marking a substantial rise of about 480.5%[118]. - Total liabilities decreased from CNY 174,384,428.41 to CNY 105,386,460.54, a reduction of approximately 39.6%[120]. - The company's equity attributable to shareholders decreased from CNY 205,780,934.13 to CNY 200,871,781.18, a decline of about 2.0%[121]. - The total current liabilities decreased from CNY 142,544,861.38 to CNY 73,546,893.51, a decline of approximately 48.3%[120]. - The total owner's equity at the end of the reporting period is 224,615.80 million RMB, a decrease of 2,801.29 million RMB compared to the previous period[148]. - The total liabilities at the end of the period were 11,929 million yuan, indicating a need for improved financial management[146]. Risk Management - The company has outlined potential risks and countermeasures in its management discussion section, emphasizing the importance of investor awareness regarding investment risks[6]. - The company assesses expected credit losses based on whether the credit risk of financial assets has significantly increased since initial recognition, using a 12-month expected loss model if risk has not increased significantly[195]. - The company employs a perpetual inventory system for inventory management, ensuring accurate tracking of stock levels[198]. - The company uses a combination of individual and portfolio assessments to evaluate credit risk for receivables, considering historical loss experience and current economic conditions[196]. Research and Development - The automotive air conditioning and parts business is divided into three segments: automotive air conditioning, automotive parts, and entrusted processing battery projects, with a focus on R&D and production of automotive air conditioning systems[31]. - The company emphasizes cost control and efficiency improvement, leading to a decrease in management and sales expenses despite increased operating costs due to the ongoing pandemic[31]. - The company has obtained IATF16949 quality management system certification and passed ISO9001 quality capability audits, enhancing its operational management[36]. - The company has multiple utility model patent certifications and is recognized as a high-tech enterprise, reflecting its strong brand reputation in the automotive air conditioning industry[36].