LAT(SZ:000697)2022-08-26 16:00Financial Performance - The company achieved operating revenue of CNY 598,436,491.90, an increase of 27.78% compared to the same period last year[22]. - The net profit attributable to shareholders was CNY -184,371,146.51, a decrease of 47.62% year-on-year[22]. - The net cash flow from operating activities improved to CNY -15,449,316.38, a significant increase of 88.09% compared to the previous year[22]. - The total assets at the end of the reporting period were CNY 3,221,386,861.84, a decrease of 0.75% from the end of the previous year[22]. - The net assets attributable to shareholders decreased by 49.55% to CNY 216,193,814.81 compared to the end of the previous year[22]. - The company reported a basic earnings per share of CNY -0.2745, down 47.58% from the same period last year[22]. - The company experienced a decrease in operating profit of 65.34% to CNY -18,334.43 million[30]. - The total profit decreased by 48.35% to CNY -18,581.56 million compared to the previous year[30]. - The increase in borrowing interest and foreign exchange losses contributed to the decline in profit[30]. - The gross profit margin for the aviation manufacturing sector decreased to 9.93%, down from 13.57% in the previous year, indicating a decline of 3.64%[47]. Revenue and Costs - Operating costs increased to ¥532,790,103.11, up 27.57% from ¥417,637,453.91, primarily due to increased sales volume and rising raw material and labor costs[43]. - Research and development expenses surged by 145.36% to ¥10,623,537.88, driven by the development of new aircraft models in Chengdu Aerospace[43]. - The total revenue from the aviation manufacturing segment was ¥568,366,965.10, accounting for 94.98% of total revenue, with a year-on-year growth of 28.29%[45]. - Domestic revenue increased significantly by 165.17% to ¥30,144,268.90, while international revenue grew by 24.36% to ¥568,292,223.00[45]. - Financial expenses rose dramatically by 144.37% to ¥115,596,323.72, mainly due to increased borrowing costs and foreign exchange losses[43]. Business Operations - 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 manufactures various aircraft-related precision components[31]. - Gardner's primary customers include major aerospace companies such as Airbus, GKN, and Rolls-Royce, with the largest revenue share derived from components used in wide-body and narrow-body commercial aircraft[35]. - The company has a complete industrial layout from high-temperature alloys to large UAV systems, enhancing its competitive edge in the aerospace manufacturing sector[39]. - Gardner operates factories in the UK, France, Poland, India, and domestically, implementing a "One Gardner" management approach to ensure consistent quality across locations[34]. - The company emphasizes vertical integration in its operations, covering the entire aerospace manufacturing process from alloy smelting to UAV system operation[40]. Cash Flow and Financial Position - The company reported a significant increase in cash flow from operating activities, improving by 88.09% to -¥15,449,316.38, compared to -¥129,770,004.29 in the previous year[43]. - The net cash increase in cash and cash equivalents was -¥9,536,575.31, an improvement of 75.71% compared to -¥39,266,425.39 in the previous year[43]. - The company has a goodwill amount of 2,439,000,000.00, with cumulative impairment provisions of 1,572,000,000.00[67]. - The company’s cash and cash equivalents at the end of the reporting period totaled 1,592,245.41, restricted for land restoration fund[57]. - The total financial assets decreased from 345,116.64 to 308,880.6, reflecting a change of -10.5% due to foreign exchange losses[56]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company is actively negotiating with government authorities regarding the rights and interests following the closure of its mining operations, which were mandated to be completed by June 30, 2023[32]. - The strategic procurement team at Gardner manages supplier selection and performance, ensuring procurement aligns with the company's five-year plan[33]. - The company plans to enhance its market expansion efforts and invest in new product development to drive future growth[143]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[143]. Environmental and Regulatory Compliance - The company has established a wastewater treatment station to ensure that wastewater meets the Class III discharge standards before being released[77]. - The company has implemented effective air pollution control measures, achieving compliance with Class II discharge standards for air pollutants[78]. - There were no significant environmental issues or administrative penalties related to environmental problems during the reporting period[76]. - The company has not disclosed any other environmental information as it is not classified as a key pollutant discharge unit by environmental protection authorities[79]. Shareholder Information - The total number of shares is 671,616,059, with 14.10% (94,727,326 shares) being restricted shares and 85.90% (576,888,733 shares) being unrestricted shares[110]. - The top shareholder, Zhang Zheng, holds 18.81% (126,303,102 shares), with 94,727,326 shares being restricted and 31,575,776 shares being unrestricted[112]. - The second-largest shareholder, Sichuan Development Leading Capital Management Co., Ltd., holds 10.33% (69,368,005 shares) of the total shares[113]. - The total number of common shareholders at the end of the reporting period is 41,816[112]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[115]. Financial Reporting and Accounting Policies - The company’s financial statements reflect a true and complete view of its financial status and operational results[157]. - The company adheres to the accounting policies and estimates as per the Ministry of Finance's standards[156]. - The company’s accounting period runs from January 1 to December 31 each year[157]. - The company confirmed that cash and cash equivalents include cash on hand and deposits that are readily available for payment, while cash equivalents are investments with a maturity of no more than 3 months[166]. - The company uses a three-level hierarchy for fair value measurement, prioritizing observable inputs from active markets[176].