SSI(SZ:002742)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,220,255,739.91, representing a 7.96% increase compared to CNY 1,130,293,196.84 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 16,006,931.98, a decrease of 135.05% from a profit of CNY 45,671,832.08 in the previous year[21]. - The basic earnings per share were CNY -0.0371, a decline of 135.10% compared to CNY 0.1057 in the same period last year[21]. - The net cash flow from operating activities was CNY 62,508,850.13, a significant improvement of 290.48% compared to a negative cash flow of CNY 32,815,770.63 in the same period last year[21]. - The total operating revenue for the first half of 2021 was CNY 1,220,255,739.91, an increase of 8.0% compared to CNY 1,130,293,196.84 in the same period of 2020[155]. - The net profit for the first half of 2021 was CNY 2,352,505.50, a significant decrease from CNY 57,265,640.15 in the first half of 2020[156]. - Comprehensive income totalled CNY -37,454,033.29, contrasting with CNY 35,289,131.21 in the first half of 2020[156]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 4,596,000,529.31, down 5.77% from CNY 4,877,608,615.06 at the end of the previous year[21]. - The total liabilities at the end of the reporting period were reported at 478,794,000 CNY, which is a decrease of 44,089,000 CNY compared to the previous period[171]. - The total equity decreased from CNY 1,756,147,686.45 to CNY 1,718,902,494.02, a decline of about 2.1%[149]. - The company's total assets at the end of the current period amounted to CNY 9,435.20 million[182]. Business Segments - The company operates in two main business segments: construction materials and pharmaceuticals, with construction materials including ready-mixed concrete, water-reducing agents, and expansion agents[29]. - The pharmaceutical segment includes intermediates, raw materials, and formulation products, with key products like paracetamol and levofloxacin, contributing to a strong market position[30]. - The construction materials segment faced significant challenges, resulting in a decline in performance due to insufficient construction activity and rising raw material costs, leading to a notable decrease in profit margins[34]. - The pharmaceutical segment achieved profitability through diversified business models and effective management, benefiting from a comprehensive industry layout[35]. Cash Flow and Investments - The net cash flow from investing activities also saw a positive shift, increasing by 120.47% to CNY 84,927,085.72, attributed to the disposal of land and repayments from related parties[42]. - The total investment amount for the reporting period was CNY 3,084,280.93, a significant decrease of 95.62% compared to CNY 70,425,131.06 in the same period last year[52]. - The company made a major equity investment of CNY 80,000,000, acquiring an 80% stake in a project focused on resource recycling in the construction materials industry[52]. Environmental Performance - The company reported a total nitrogen discharge of 752.9 tons, with ammonia nitrogen levels at 60.23 tons, exceeding the standard limits[79]. - The chemical oxygen demand (COD) was recorded at 3.28 tons per annum, indicating compliance with wastewater discharge standards[80]. - The company achieved a reduction in nitrogen oxides emissions to 0.494 tons, aligning with environmental regulations[79]. - The company has implemented new wastewater treatment technologies, resulting in a significant decrease in overall pollutant emissions[80]. Shareholder Information - As of June 30, 2021, the largest shareholder, Mr. Pan Xianwen, holds 169,865,543 shares, representing 39.32% of the total shares, with 97.69% of his shares pledged[125]. - The second largest shareholder, Ms. Zhou Ting'e, holds 31,223,816 shares (7.23% of total shares), with 83.97% of her shares pledged[125]. - The company has pledged 100% of its 72% stake in Chongqing Chunrui Pharmaceutical Chemical Co., Ltd. for a loan of CNY 409 million, due by May 20, 2023[126]. Risk Management - The company faces risks from macroeconomic fluctuations, particularly in the construction and real estate sectors, which could adversely affect cash flow and operations[64]. - Raw material costs account for over 60% of total costs, and price volatility could significantly impact profitability if not managed effectively[65]. - The company plans to diversify and internationalize its operations to mitigate risks associated with regional market concentration[65]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[171]. - The management expressed optimism about future growth despite current challenges in the market[171]. - The company is considering potential mergers and acquisitions to strengthen its market position[171].