RECLAIM CONSTRUCTION(SZ:002586)2023-08-21 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥808,009,402.31, a decrease of 22.27% compared to ¥1,039,445,354.11 in the same period last year[22]. - The net loss attributable to shareholders was ¥50,419,060.59, representing a decline of 280.43% from a profit of ¥27,944,129.58 in the previous year[22]. - The net cash flow from operating activities was negative at ¥133,380,373.47, worsening by 269.63% compared to a negative cash flow of ¥36,084,842.17 in the same period last year[22]. - The basic earnings per share were -¥0.0441, a decrease of 280.74% from ¥0.0244 in the same period last year[22]. - The weighted average return on equity was -1.33%, a decline of 2.08% compared to 0.75% in the previous year[22]. - The net profit after deducting non-recurring gains and losses was -¥75,390,393.84, a decrease of 413.60% from ¥24,040,279.78 in the same period last year[22]. - The company's operating costs decreased by 9.32% to ¥811,530,507.29 from ¥894,935,275.14 year-on-year[45]. - Research and development expenses were ¥15,690,367.39, down 38.32% from ¥25,436,858.61 in the previous year[46]. - The company's revenue for the construction segment was approximately ¥738.57 million, a decrease of 20.15% compared to the same period last year, with a gross margin of 5.81%[48]. - The design and technology segment reported revenue of ¥68.94 million, down 39.30% year-over-year, with a significant decline in gross margin to -67.84%[49]. Assets and Liabilities - The total assets at the end of the reporting period were ¥8,004,114,951.98, down 6.33% from ¥8,544,685,003.69 at the end of the previous year[22]. - The company's net assets attributable to shareholders were ¥3,745,004,927.16, a decrease of 1.75% from ¥3,811,740,083.59 at the end of the previous year[22]. - Total accounts receivable amounted to ¥1.95 billion, representing 24.34% of total assets, a decrease of 2.45% from the previous year[53]. - The company's cash and cash equivalents decreased to ¥420.65 million, accounting for 5.26% of total assets, down from 7.96% last year[53]. - The total value of long-term receivables was ¥3.38 billion, accounting for 42.20% of total assets, an increase of 4.01% from the previous year[54]. - The total liabilities decreased to ¥3,712,427,273.09 in the first half of 2023 from ¥3,994,905,810.46 in the same period of 2022, a reduction of 7.1%[167]. Fundraising and Investments - The company raised a total of RMB 2,469,999,995.81 from the non-public offering of 313,850,063 shares at an issue price of RMB 7.87 per share, with a net amount of RMB 2,448,726,145.75 after deducting fees[63]. - The company has used RMB 1,830,466,000 of the raised funds cumulatively, with RMB 145,282,300 received from bank interest and financial product income[64]. - The company temporarily supplemented working capital with RMB 369,999,000 of idle raised funds, which will be returned to the special account by June 19, 2023[71]. - The company has established six special accounts for the management of raised funds, ensuring compliance with regulatory requirements[68]. - The company has not engaged in any securities or derivative investments during the reporting period[59][60]. Legal and Compliance Issues - The company received a notice from the China Securities Regulatory Commission regarding an investigation for suspected violations of information disclosure laws[135]. - The company is involved in multiple ongoing legal disputes, with claims totaling approximately 1,300 million yuan related to sales contracts[114]. - The company faced a lawsuit resulting in the freezing of CNY 77.1401 million in its bank accounts due to a failure to pay the remaining equity transfer payment of CNY 67.9929 million[78]. - The company has pending repayments of 40,030.80 million RMB in misused raised funds[79]. - The company reported a total of 55,030.80 million RMB in misused raised funds, with 15,000.00 million RMB returned using its own funds as of the report date[79]. Management and Governance - The company held its first extraordinary general meeting of 2023 on July 19, electing a new board of directors and supervisory board for a term of three years[134]. - The company plans to adjust its business strategies in response to economic trends and policy changes to ensure stable development[86]. - The company will enhance communication with the accounting firm to assess the impact of reconciliation results on goodwill impairment and other non-current asset impairment[110]. - The company plans to enhance risk management by clarifying responsibilities across departments and improving project cost control to reduce management risks[87]. - The company aims to optimize business and management processes, enhance internal controls, and strengthen risk assessment systems to mitigate uncertainties[108]. Operational Highlights - The company operates in various sectors including ecological environmental sea dike projects, river management, reservoir engineering, urban flood control, and municipal road and bridge engineering, maintaining a leading position in the niche market of sea dike construction[30]. - The company has implemented a comprehensive quality management system since 1999, enhancing construction quality and operational effectiveness significantly over the years[32]. - The company has received numerous national and provincial quality engineering awards, including the "National Quality Engineering Gold Award" and the "Luban Award," with no major quality disputes reported during the reporting period[35]. - The company has established a safety management system with over 50 safety management regulations and operational procedures, ensuring compliance with national safety laws and regulations[36]. - The company has upgraded its quality management system to include a unified quality, environment, and occupational health safety management framework, effective from December 1, 2020[32]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 12,356[145]. - The largest shareholder, Hangzhou Guangyao, holds 14.85% of shares, totaling 169,902,912 shares[145]. - The shareholding of Ningbo Zhidaer You Management Consulting Limited is 3.61%, totaling 41,296,060 shares, with shares under pledge or freeze[145]. - The total number of shares before the recent changes was 1,144,223,714, with a decrease of 2,967,443 shares in restricted shares, resulting in a new total of 1,141,256,271 shares[142]. - The company’s unrestricted shares increased from 893,990,856 to 896,958,299, representing an increase of 2,967,443 shares[141]. Future Outlook - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[183]. - The company aims to achieve a revenue growth target of 10% for the next fiscal year, driven by market expansion strategies[183]. - The company has initiated a new risk management strategy to mitigate potential market fluctuations and enhance operational efficiency[183].