LEO(SZ:002131)2019-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 6,978,594,253.90, representing a 6.34% increase compared to CNY 6,562,771,259.94 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 226,286,025.50, an increase of 32.76% from CNY 170,443,181.27 in the previous year[23]. - The net cash flow from operating activities was CNY 466,126,612.40, a significant improvement of 178.95% compared to a negative cash flow of CNY -590,386,414.15 in the same period last year[23]. - The basic earnings per share increased to CNY 0.04, up 33.33% from CNY 0.03 in the previous year[23]. - The total assets at the end of the reporting period were CNY 13,947,859,719.10, a decrease of 1.60% from CNY 14,174,557,849.86 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased to CNY 8,011,422,679.08, reflecting a growth of 16.31% from CNY 6,887,701,118.81 at the end of the previous year[23]. - The weighted average return on net assets rose to 3.04%, an increase of 0.89 percentage points from 2.15% in the previous year[23]. - The company's debt-to-asset ratio decreased from 50.79% at the end of the previous year to 41.87%[62]. - The financial expenses were reduced by 56.42%, from ¥93.37 million in the previous year to ¥40.69 million[62]. - The digital marketing segment's net cash flow from operating activities was ¥134 million, a 121.90% increase from the previous year's -¥612 million[66]. Investments and Projects - The company has reported a total investment of approximately ¥108.72 million during the reporting period, an 18.76% increase compared to the previous year[102]. - The total amount of committed investment projects is RMB 219,754.75 million, with a cumulative investment of RMB 32,750.94 million by the end of the reporting period, achieving an investment progress of 14.9%[111]. - The digital marketing cloud platform construction project has a total committed investment of RMB 94,100 million, with an investment of RMB 962.22 million in the current reporting period, achieving a progress of 1.02%[111]. - The big data processing and application center project has a total committed investment of RMB 35,386 million, with an investment of RMB 402.08 million in the current reporting period, achieving a progress of 3.71%[111]. - The digital advertising trading platform construction project has a total committed investment of RMB 7,494 million, with an investment of RMB 156 million in the current reporting period, achieving a progress of 10.39%[111]. - The smart manufacturing base technology transformation project has a total committed investment of RMB 62,068 million, with an investment of RMB 1,538.13 million in the current reporting period, achieving a progress of 14.49%[111]. Market and Business Development - The company has established a comprehensive marketing network in major global markets, enhancing its international sales capabilities[53]. - The company has expanded its international sales network to over 140 countries and regions, establishing production facilities in Hungary and Indonesia to mitigate trade war impacts[72]. - The company aims to leverage the Belt and Road Initiative to enhance its industrial pump business and increase overseas sales performance[76]. - The company has successfully acquired multiple digital marketing firms, enhancing its service capabilities and client coverage[34]. - The company’s digital marketing business benefits from a rich client resource pool, enabling cross-marketing opportunities[41]. - The company has a strong media resource advantage, partnering with top media platforms like Baidu and Tencent[44]. Risk Management - The company emphasizes the importance of risk management in its operations, as detailed in the report[6]. - The company faced market volatility risks due to reliance on exports, with potential impacts from international trade policies and economic conditions[130]. - Raw material price fluctuations pose a risk, as material costs constitute a significant portion of the company's operating expenses[131]. - Labor shortages have led to rising labor costs, which could restrict the company's ability to expand operations[132]. - Changes in export tax rebate rates could affect product sales margins and overall competitiveness in international markets[133]. - The digital marketing industry is highly competitive, with numerous players vying for market share, which may impact the performance of the newly acquired companies[138]. Shareholder and Dividend Policies - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has committed to a three-year shareholder return plan, ensuring cash dividends are distributed under normal operating conditions, with a minimum of 10% of the annual distributable profit allocated to cash dividends[148]. - The company aims to actively distribute profits in cash, with a commitment to distribute at least 30% of the average annual distributable profit over three consecutive years in cash dividends[151]. - The company plans to repurchase and cancel 3,821,856 shares from shareholders Xu Jialiang and Xu Xiaofeng as part of the performance compensation scheme[156]. Legal and Compliance Issues - The company has filed a lawsuit against Zhang Diyu for the return of 46 million CNY in exclusivity fees, with an annual interest rate of 6% on the amount claimed[166]. - The company has pending litigation for a total of 4,865,037 CNY in a contract dispute with China Power Construction Group Nuclear Engineering Co., Ltd.[167]. - The company has recorded a total of 41,909,852 CNY in bad debt provisions related to a repayment agreement with Hangzhou Yaku Technology Co., Ltd.[169]. - The company has not engaged in any significant related party transactions during the reporting period[175]. - The company has not entered into any major asset or equity acquisitions or sales during the reporting period[176]. Environmental Compliance - The company has established a wastewater treatment facility with a capacity of 160 tons per day, ensuring compliance with discharge standards[198]. - The total emissions of COD were recorded at 1.2 tons, below the approved total of 3.2 tons, with no exceedance of discharge standards[197]. - The company has implemented an online monitoring system for its wastewater treatment facility, ensuring operational compliance[198]. - The company has prepared environmental impact assessment reports for all new investment projects and obtained administrative permits[199].