*ST围海(002586) - 2020 Q2 - 季度财报

Financial Irregularities and Investigations - The company reported a preliminary amount of 5.02 billion RMB suspected to be occupied by controlling shareholders and related parties through intermediaries[9]. - The company is currently undergoing a self-examination process with the assistance of an accounting firm, having issued over 130 confirmation letters and interviewed more than 30 individuals[9]. - The company is facing regulatory scrutiny from the China Securities Regulatory Commission regarding potential financial irregularities[9]. - The company emphasizes the importance of risk awareness among investors due to the ongoing uncertainties and potential impacts on financial performance[8]. - The company has initiated a self-examination process regarding the suspected fund misappropriation, involving over 130 confirmation letters and interviews with more than 30 individuals[108]. - The company has recognized an impairment provision of 700.81 million CNY for goodwill related to the acquisition of a 89.46% stake in Shanghai Qinnian Urban Planning Engineering Design Co., Ltd[124]. - The company has committed to ensuring that its financial management practices comply with regulatory requirements and has taken steps to address any identified issues[124]. - The company has established a self-inspection team to investigate suspected fund occupation issues, with over 130 confirmation letters sent and interviews conducted with more than 30 individuals[127]. - The company has not disclosed the results of the self-inspection in the semi-annual report due to the extensive workload involved in verifying the fund occupation situation[159]. - The company has faced significant risks due to a regulatory investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, initiated on July 12, 2019[105]. Financial Performance - The company's operating revenue for the reporting period was ¥610,984,794.33, a decrease of 58.44% compared to the same period last year[24]. - The net profit attributable to shareholders was a loss of ¥30,643,341.76, representing a decline of 173.59% year-on-year[24]. - The net cash flow from operating activities was a negative ¥165,706,101.62, which is an improvement of 17.20% compared to the previous year[24]. - The total assets at the end of the reporting period were ¥7,908,786,336.03, down 16.20% from the end of the previous year[24]. - The company reported a significant decline in R&D investment, which fell by 69.11% to ¥5.66 million from ¥18.31 million[49]. - The company has reported a total of RMB 268,350.35 million in financial assets, with a cumulative investment income of RMB 93,350.035 million[66]. - The company reported a total of 3,800 million CNY in non-operating fund occupation, which accounts for 0.77% of the latest audited net assets[159]. Business Operations and Projects - The company has maintained a leading position in the niche market of coastal dike construction and has a strong professional capability in water conservancy projects[33]. - The company has actively expanded its business by winning several new project bids, including sewage pipeline upgrades and ecological restoration projects[34]. - The company achieved a project completion rate of 100% and an excellent project rate of over 86%[41]. - The company is actively working to resume construction on the Cixi Reservoir project following a suspension due to environmental compliance requirements[84]. - The company has faced delays in project completion due to COVID-19 and adverse weather conditions, with expected completion dates pushed to 2021[93]. Shareholder and Equity Information - The company has not declared any cash dividends or stock bonuses for the half-year period, indicating a focus on financial stability amid ongoing challenges[113]. - The company plans to acquire 88.22975% equity in Ningbo Free Trade Zone Dongqian Weihai Planning Engineering Design Co., Ltd. through a combination of issuing shares and cash payment[114]. - The company’s total share capital remains at 1,144,223,714 shares, with no change in total share count[188]. - The company has a strategy to manage share pledges and frozen shares among its major shareholders[196]. - The largest shareholder, Zhejiang Weihai Holding Group Co., Ltd., holds 302,100,000 shares of unrestricted ordinary shares[197]. Legal and Compliance Issues - The company is currently involved in litigation that has led to the freezing of accounts, with amounts frozen totaling CNY 3.58 million due to a contract dispute[90]. - The company has ongoing litigation related to a claim amount of ¥30,000,000 against a subsidiary for damages to company interests, which is currently under review by the court[130]. - The company has faced claims totaling 1.95 billion CNY due to overdue bank loans from various financial institutions[138]. - The company has multiple labor disputes with claims ranging from 85,000 CNY to 660,000 CNY from former employees[139]. - The company has been involved in a total of 21 lawsuits related to overdue loans and labor disputes, indicating significant financial and operational challenges[138]. Risk Management and Future Plans - The company plans to enhance risk management by clarifying responsibilities across departments and improving project cost control to mitigate management risks[107]. - The company aims to improve its funding capabilities by exploring new financing models and securing bank credit lines to support operational and project expansion needs[107]. - The company is actively pursuing debt restructuring and asset recovery strategies to mitigate financial risks[171]. - The company has committed to resolving existing fund occupation issues to minimize their impact on operations[159]. - The company is focused on expanding its market presence and exploring new strategies for growth[176].