LAT(SZ:000697)2023-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥704.85 million, representing a 17.78% increase compared to ¥598.44 million in the same period last year[22]. - The net profit attributable to shareholders of the listed company was a loss of ¥162.35 million, an improvement of 11.95% from a loss of ¥184.37 million in the previous year[22]. - The company reported a basic and diluted earnings per share of -¥0.2417, an improvement of 11.95% from -¥0.2745 in the previous year[22]. - Operating profit was -170.55 million yuan, a reduction in loss of 6.98% year-on-year[30]. - Total profit amounted to -162.82 million yuan, a reduction in loss of 12.38% compared to the previous year[30]. - The increase in revenue was primarily driven by a rise in sales volume from Gardner, despite rising costs in energy, raw materials, and labor[30]. - Total operating revenue for the first half of 2023 reached ¥704,849,516.04, an increase of 17.7% compared to ¥598,436,491.90 in the same period of 2022[134]. - Total operating costs amounted to ¥874,164,336.83, up from ¥786,852,471.87, reflecting a rise of 11.1% year-over-year[134]. - Net profit for the first half of 2023 was a loss of ¥162,921,514.51, compared to a loss of ¥184,907,324.89 in the same period last year[136]. Cash Flow and Liquidity - The net cash flow from operating activities was a negative ¥184.24 million, a significant decline of 1,092.52% compared to a negative ¥15.45 million in the same period last year[22]. - The net cash flow from financing activities increased by 466.55% to CNY 303,257,451.76, primarily due to a substantial increase in cash received from borrowings[41]. - Cash flow from financing activities generated a net inflow of ¥303.26 million, up from ¥53.53 million in the previous year, indicating improved financing conditions[141]. - The company received cash from borrowings amounting to ¥2.60 billion in the first half of 2023, significantly higher than ¥554.90 million in the same period of 2022[141]. - The company’s cash flow from financing activities included cash payments for debt repayment totaling ¥2.14 billion, compared to ¥365.72 million in the previous year[141]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥3.13 billion, an increase of 12.17% from ¥2.79 billion at the end of the previous year[22]. - The company's total liabilities reached ¥3,694,302,518.50, up from ¥3,206,381,355.02, representing an increase of approximately 15.2%[128]. - The total equity attributable to shareholders decreased to -¥557,495,921.85 from -¥389,461,365.45, reflecting a decline of about 43.3%[128]. - The company's short-term borrowings increased to ¥1,278,302,995.00 from ¥1,198,523,936.18, reflecting a rise of about 6.7%[127]. - The total amount of other comprehensive income was CNY 10,381,494, indicating a significant component of the overall equity[149]. Strategic Initiatives and Future Plans - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[6]. - The company is focused on enhancing its competitive edge through advanced manufacturing technologies and maintaining operational independence across subsidiaries[38]. - The company plans to enhance operational efficiency by reducing costs and expanding revenue through new customer acquisition[64]. - The company is actively pursuing a non-public offering of A-shares to increase net assets and reduce debt scale[81]. - The company aims to optimize its domestic and international business layout to mitigate adverse effects from global economic and political instability[160]. Risks and Challenges - The company is under a delisting risk warning and must ensure that its audited net assets are positive to avoid termination of listing[5]. - The company is facing delisting risk due to negative equity of -391,227,138.80 as of the 2022 audit[62]. - The company is actively negotiating with creditors to extend due debts to avoid liquidity crises[63]. - The company has not disclosed any new product developments or market expansion strategies in the report[29]. Shareholder Information - The company held five temporary shareholder meetings in 2023, with investor participation rates of 30.09%, 28.22%, 28.37%, 28.00%, and 28.32% respectively[67][68][69]. - The company plans to issue A-shares to specific targets as part of its fundraising strategy, with detailed proposals discussed in the shareholder meetings[67]. - The total number of shares after the recent changes is 671,616,059, with 90,164,154 shares subject to restrictions, representing 13.42% of the total[111]. - The largest shareholder, Zhang Zheng, holds 16.44% of the shares, totaling 110,439,466, after a reduction of 9,779,406 shares[113]. Corporate Governance and Compliance - There were significant changes in the board of directors, with multiple new appointments including Mr. Tu Yuan and Mr. Wu Wei as non-independent directors on January 19, 2023[69]. - The company has no current stock incentive plans, employee stock ownership plans, or other employee incentive measures in place[71]. - The company has not engaged in any significant related party transactions during the reporting period[84]. - The company has not experienced any major litigation or arbitration matters during the reporting period[84]. Research and Development - The company's R&D investment decreased by 36.72% to CNY 6,722,544.43, down from CNY 10,623,537.88 in the previous year[41]. - The company is in the process of developing new technologies and products, although specific details were not disclosed in the available reports[67].