SSI(SZ:002742)2019-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2018 was ¥1,256,865,546.17, representing a 58.90% increase compared to ¥790,962,265.43 in the same period last year[17]. - Net profit attributable to shareholders was ¥68,133,342.30, a decrease of 46.44% from ¥127,220,257.14 in the previous year[17]. - The net cash flow from operating activities was ¥19,422,114.78, down 90.74% from ¥209,765,974.90 in the same period last year[17]. - Basic earnings per share decreased by 44.83% to ¥0.16 from ¥0.29 in the previous year[17]. - The company's revenue and net profit excluding non-recurring gains and losses continued to grow, driven by the dual business model of "building materials and chemicals + pharmaceutical manufacturing" and an increase in the revenue share of the pharmaceutical sector[27]. - The company achieved a revenue of ¥1,256,865,546.17 in the first half of 2018, representing a year-on-year growth of 58.90%[40]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was ¥64,021,591.31, with a year-on-year increase of 6.12%[40]. - The pharmaceutical segment's revenue increased significantly due to the short consolidation period of the acquired company, Chunrui Pharmaceutical, although the overall gross margin decreased year-on-year[40]. - The company reported a significant increase in sales from the Chongqing region, accounting for 83.81% of total revenue, with a year-on-year growth of 65.02%[47]. - The gross profit margin for the pharmaceutical segment decreased by 16.61% to 22.02%, despite the substantial revenue growth, indicating rising costs or pricing pressures[48]. Assets and Liabilities - Total assets at the end of the reporting period were ¥4,427,167,957.68, an increase of 4.48% from ¥4,237,184,337.14 at the end of the previous year[17]. - Net assets attributable to shareholders increased by 3.39% to ¥1,464,192,334.51 from ¥1,416,141,007.37 at the end of the previous year[17]. - The company's total liabilities amounted to CNY 2,727.85 million, up from CNY 2,602.91 million at the end of the previous year[163]. - The company's total assets reached CNY 4,427.17 million, an increase from CNY 4,237.18 million at the end of the previous year[162]. - The company's total liabilities were CNY 2,414,079,650.47, an increase from CNY 2,234,568,887.71, reflecting a growth of approximately 8%[168]. Investment and Capital Expenditure - The company has invested ¥66,822,412.42 in significant non-equity projects during the reporting period, with a cumulative investment of ¥309,076,565.90[58]. - The company has invested 4,006.63 million yuan in the construction of a production line and office building for the Ethiopian project, with a total planned investment of 20,000 million yuan[70]. - The company has completed the construction of the Ethiopian pharmaceutical project, which is now in trial production, laying the groundwork for future production and product registration[40]. - The company has established a diversified and international development strategy, completing the layout of the pharmaceutical manufacturing sector through mergers and acquisitions[31]. Operational Risks and Challenges - The company faces various operational risks, which are detailed in the report, and emphasizes the importance of investor awareness regarding these risks[4]. - The company faces risks from macroeconomic fluctuations, with a significant reliance on the construction materials sector, which is sensitive to national investment policies and economic conditions[76]. - The company is facing risks related to the renewal of its gypsum mining rights, which could affect production costs and operational efficiency if not resolved[78]. - The company has faced challenges in achieving expected returns due to market demand decline and environmental policy impacts on certain projects[65]. Corporate Governance and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The annual shareholders' meeting had an investor participation rate of 64.01%[82]. - The company has committed to not reducing its shareholdings in the first twelve months after the initial public offering[87]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[131]. - The total number of common stock shareholders at the end of the reporting period is 33,614[129]. Environmental Compliance - The company has maintained compliance with pollution discharge standards, with no exceedances reported[114]. - The company has established an environmental monitoring system that collects data every hour and is connected to local environmental protection agencies[117]. - The company has committed to environmental protection by regularly maintaining pollution control facilities and conducting emergency drills for environmental incidents[116]. Financial Management and Debt - The company's financial expenses increased significantly due to rising financing costs and interest expenses, impacting overall profitability[40]. - The company has a debt repayment plan where interest is paid annually, with the next payment due on November 3, 2018[146]. - The company has implemented measures to ensure the timely payment of bond principal and interest, including the establishment of a dedicated repayment task force[147]. - The company reported a loan repayment rate of 100% during the reporting period, with no instances of extension or reduction[153]. Research and Development - The company has established a comprehensive drug research and development system, focusing on antibiotics and other therapeutic areas[36]. - The company holds 42 patents and numerous core technologies, providing strong technical support for its production and operations[32]. Future Outlook - The company plans to enhance manufacturing capabilities through ongoing technological improvements and process optimizations[41]. - The company aims to enhance its pharmaceutical sector and expedite international projects to ensure steady revenue and profit growth[79].