LAT(SZ:000697)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥468,336,228.44, a decrease of 25.86% compared to ¥631,700,077.91 in the same period last year[19]. - The net profit attributable to shareholders was a loss of ¥124,895,131.50, slightly worsening from a loss of ¥121,652,771.37 in the previous year, representing a decline of 2.67%[19]. - The net cash flow from operating activities was negative at ¥129,770,004.29, a significant decline of 272.24% compared to a positive cash flow of ¥75,340,774.23 in the same period last year[19]. - The basic earnings per share were -¥0.1860, a decrease of 2.71% from -¥0.1811 in the previous year[19]. - The operating cost decreased by 26.43% to ¥417,637,453.91 from ¥567,702,399.28, reflecting the reduced demand in the aviation sector[39]. - The company reported a net loss in retained earnings of CNY -1,819,540,650.60 as of June 30, 2021, compared to CNY -1,694,645,519.10 at the end of 2020[119]. - The net loss for the first half of 2021 was CNY 125.36 million, compared to a net loss of CNY 122.09 million in the first half of 2020, indicating a slight increase in losses[126]. - The total comprehensive income for the first half of 2021 decreased by 25.69% compared to the previous period, amounting to 9,365.62 million yuan[138]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,397,135,880.31, an increase of 0.97% from ¥3,364,659,161.74 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 14.63%, from ¥1,029,035,665.06 to ¥878,441,167.94[19]. - Total liabilities rose to CNY 2,531,714,638.12 from CNY 2,348,183,424.82, indicating an increase of about 7.8%[118]. - Short-term borrowings increased to ¥1,112.13 million, representing 32.74% of total liabilities, up from 26.61%[50]. - The total equity of the company decreased to CNY 2.53 billion in the first half of 2021 from CNY 2.58 billion in the same period of 2020[123]. Operational Challenges - The company faced significant operational challenges, as indicated by the negative cash flow and increased losses compared to the previous year[19]. - The company is expected to continue facing risks and uncertainties in its operational environment, as highlighted in the management discussion section[4]. - The company faces significant risks from the ongoing COVID-19 pandemic, which has severely impacted the aviation passenger industry and its core subsidiary, Gardner, leading to reduced revenues[61]. Business Overview - The company's main business involves the production and sales of precision aerospace components and structural parts, with significant revenue coming from its wholly-owned subsidiary Gardner, which specializes in manufacturing various precision components for aircraft[27]. - Gardner's primary customers include Airbus and other aerospace companies, with the largest revenue share derived from components used in wide-body and narrow-body commercial aircraft[27]. - The aerospace manufacturing industry is positioned as a high-end manufacturing sector, with significant government support and a growing market demand, particularly in general aviation and commercial aircraft sectors[34]. Research and Development - Research and development investment decreased by 27.08% to ¥4,329,738.02, attributed to a relative reduction in project investment compared to the previous year[40]. - The company aims to enhance its research and development efforts to introduce new products in the near future[140]. Financial Management - The company has implemented forward foreign exchange contracts to manage currency risk, as its revenues are denominated in multiple currencies including GBP, USD, and EUR, which exposes it to exchange rate fluctuations[63]. - The company maintains a strict inventory management policy, with regular assessments and provisions for inventory impairment based on specific criteria, ensuring financial accuracy and operational efficiency[31][32]. Shareholder Information - The total number of shares outstanding is 671,616,059, with 14.10% being restricted shares and 85.90% being unrestricted shares[101]. - The largest shareholder, Zhang Zheng, holds 18.81% of the shares, amounting to 126,303,102 shares, with 94,727,326 shares being restricted[103]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[106]. Compliance and Governance - The company continues to prioritize environmental compliance, with its UK subsidiary adhering to local environmental regulations and minimizing pollution risks[73]. - The company has not faced any major legal disputes or regulatory penalties during the reporting period, reflecting a stable operational environment[82]. Future Outlook - Future performance guidance indicates a cautious outlook, with expectations of gradual recovery in the second half of 2021[139]. - The company plans to focus on expanding its market presence and developing new technologies in the upcoming quarters[138].