SSI(SZ:002742)2023-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥1,065,233,909.26, representing a 10.64% increase compared to ¥962,826,665.42 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was -¥97,520,406.58, a decrease of 139.38% from -¥40,738,537.48 in the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥103,173,602.91, reflecting a 188.60% decline from -¥35,750,132.27 year-on-year[23]. - The basic earnings per share were -¥0.2257, down 139.34% from -¥0.0943 in the same period last year[23]. - The diluted earnings per share were also -¥0.2257, reflecting a 139.34% decrease compared to -¥0.0943 in the previous year[23]. - The weighted average return on net assets was -12.90%, a decline of 9.20% from -3.70% in the previous year[23]. - The company's revenue for the reporting period reached ¥1,065,233,909.26, representing a year-on-year increase of 10.64% compared to ¥962,826,665.42 in the same period last year[41]. - The cost of sales increased by 12.79% to ¥887,260,896.95 from ¥786,621,331.96, resulting in a slight decrease in gross margin[41]. - Research and development expenses decreased by 10.44% to ¥7,767,959.85 from ¥8,673,305.69, indicating a potential shift in focus or efficiency improvements[41]. - The pharmaceutical segment generated ¥474,577,423.77 in revenue, accounting for 44.55% of total revenue, with an 8.67% increase year-on-year[43]. - The construction materials and chemicals segment reported revenue of ¥566,176,572.25, which is 53.15% of total revenue, reflecting a 12.40% increase compared to the previous year[43]. Cash Flow and Assets - The net cash flow from operating activities was ¥61,216,586.23, slightly up by 0.42% from ¥60,959,395.02 in the previous year[23]. - The company's cash and cash equivalents increased by ¥22,964,348.99, although this represents a 19.44% decrease from the previous year[41]. - The company's total assets included ¥1,111,903,779.68 in accounts receivable, which accounted for 27.58% of total assets, up from 26.37% the previous year[47]. - The company's fixed assets decreased to ¥923,952,072.37, representing 22.92% of total assets, down from 24.15%[47]. - The total assets at the end of the reporting period were ¥4,031,342,944.20, a decrease of 0.23% from ¥4,040,800,589.29 at the end of the previous year[23]. - The owner's equity decreased to CNY 912,046,384.51 from CNY 991,652,696.44, representing a decline of 8.0%[139]. Business Segments - The company operates in two main business segments: building materials and pharmaceuticals, with significant products including concrete, water-reducing agents, and pharmaceutical intermediates[31]. - The building materials segment has seen a decline in supply chain performance due to rapidly shrinking market demand, despite strong positioning in Ethiopia under the "Belt and Road" initiative[31]. - The pharmaceutical segment includes over 20 types of raw materials and more than 80 formulations, with key products like paracetamol and chlorpheniramine being essential for clinical use[32]. - The company has established a strong market position in the pharmaceutical intermediates sector, with leading products such as chloramphenicol intermediates and procaine hydrochloride intermediates[37]. Risk Management and Strategy - The company faces risks from macroeconomic fluctuations, particularly in the construction materials sector, which is heavily influenced by national fixed asset investment and real estate investment[59]. - The company plans to mitigate risks by diversifying its business and expanding into international markets, particularly in Africa[60]. - Raw material costs account for over 70% of the total costs, making the company vulnerable to price fluctuations in raw materials[60]. - The company aims to enhance its cost advantages through technological innovation and refined management practices[60]. - The company is currently facing significant liquidity pressure, with tight working capital management being a priority[61]. - Strategies to alleviate financial pressure include improving accounts receivable turnover and optimizing inventory management[61]. Environmental Compliance - The company complies with various environmental protection laws and regulations, ensuring adherence to industry standards[69]. - The company has valid pollution discharge permits for its facilities, with specific expiration dates[70]. - The total discharge of chemical oxygen demand (COD) was maintained below the standard of 500 mg/L, with a reported level of 40 mg/L[72]. - The ammonia nitrogen discharge was recorded at 15 mg/L, which is below the national standard of 1 mg/L[72]. - The company has implemented new wastewater treatment technologies, resulting in a reduction of total phosphorus discharge to 4 mg/L, significantly below the standard[72]. - The company emphasizes environmental protection, conducting weekly inspections and maintenance of pollution control facilities to ensure normal operation and compliance[74]. Corporate Governance - The company has a well-established management team with decades of industry experience, enabling effective response to market dynamics and operational challenges[36]. - The company has undergone significant changes in its board of directors and management team in 2023[65]. - The company has held two shareholder meetings with participation rates of 29.67% and 33.95% respectively[64]. - The company is actively seeking strategic investors to support operational and strategic planning[61]. Future Outlook - The future outlook remains positive, with projected revenue growth of 15% for the next fiscal year based on current market trends[72]. - The company plans to expand its market presence by increasing production capacity in response to growing demand[72]. - The company has set a performance guidance for the next half of the year, aiming for a revenue growth of approximately 10%[163]. - The company plans to enhance its market expansion strategies, focusing on new product development and technological innovation in the upcoming quarters[163].