AIM(SZ:300446)2020-08-25 16:00Revenue and Profitability - The company's operating revenue for the reporting period was ¥55,872,420.45, a decrease of 54.94% compared to ¥123,998,737.43 in the same period last year[34]. - The net profit attributable to shareholders was -¥21,690,981.16, representing a decline of 145.03% from ¥48,170,658.60 in the previous year[34]. - The net profit after deducting non-recurring gains and losses was -¥26,446,226.23, down 158.29% from ¥45,370,533.64 year-on-year[34]. - The company's net profit for the reporting period was -¥21,690,981.16, a decrease of 145.03% compared to the same period last year, largely due to the decline in sales revenue from anti-counterfeiting materials[61]. - Total operating revenue for the first half of 2020 was ¥55,872,420.45, a decrease of 55.1% compared to ¥123,998,737.43 in the first half of 2019[199]. - Net profit for the first half of 2020 was a loss of ¥21,690,981.16, compared to a profit of ¥48,170,658.60 in the same period of 2019, indicating a significant decline[197]. Sales and Market Trends - The company's thermal magnetic ticket sales accounted for 70.59% of total revenue in 2019, indicating a heavy reliance on this product[8]. - Due to the promotion of electronic tickets, the demand for thermal magnetic tickets is expected to decline significantly, impacting future orders from China National Railway Group[7]. - The company has halted production of its thermal magnetic ticket production line due to sufficient inventory and halted customer demand, leading to potential ongoing losses[8]. - The ongoing COVID-19 pandemic has further exacerbated risks related to reduced travel and changes in travel behavior, impacting overall business performance[7]. - Sales revenue from anti-counterfeiting materials was ¥45,627,500, a decrease of 60.54% year-on-year[54]. - The sales revenue of thermal magnetic tickets decreased by 64.29% year-on-year, amounting to 55.025 million CNY, primarily due to the impact of the COVID-19 pandemic and the promotion of electronic tickets[63]. Product Development and R&D - The company is actively developing electronic functional materials, including electromagnetic wave protection films and pressure testing films, although these products are still in the trial production phase[46]. - New product sales, such as electromagnetic wave protection films, have not yet significantly impacted the company's financial performance, posing risks to future sales expectations[11]. - Research and development investment increased by 37.55% year-on-year to ¥16,704,795.56, reflecting the company's commitment to enhancing its R&D capabilities[59]. - The company aims to enhance its competitive edge by adjusting its product structure and focusing on two major business segments: information anti-counterfeiting materials and electronic functional materials[95]. - The company plans to increase R&D investment to optimize new product processes and improve product quality while controlling costs[100]. Financial Position and Assets - The company's total assets at the end of the reporting period were ¥712,529,544.91, a decrease of 3.73% from ¥740,101,479.50 at the end of the previous year[34]. - The company's net assets attributable to shareholders decreased by 3.80%, from ¥691,585,092.94 to ¥665,289,111.78[34]. - The company's fixed assets increased by 14.42% compared to the end of the previous year, primarily due to construction projects being transferred to fixed assets[47]. - Accounts receivable decreased by 60.81% compared to the end of the previous year, attributed to a reduction in sales revenue[47]. - The total amount of raised funds is RMB 11,153.01 million, with RMB 510.01 million invested during the reporting period and a cumulative investment of RMB 3,774.21 million[73]. Risks and Uncertainties - The company faces major uncertainties regarding its ability to continue as a going concern due to potential ongoing losses and adverse market conditions[8]. - The stock price may experience significant volatility due to changes in the market for thermal magnetic tickets and new electronic functional materials[12]. - The company is facing risks due to the concentration of the thermal magnetic ticket market and the promotion of electronic tickets, which may lead to a significant decline in demand for thermal magnetic tickets[94]. - The implementation of EMV migration policies is expected to decrease the demand for magnetic stripe cards, which may adversely affect future revenue[9]. Environmental and Social Responsibility - The company reported a wastewater COD concentration of 22 mg/L, well below the standard limit of 50 mg/L[127]. - The total nitrogen concentration in wastewater was 14.27 mg/L, adhering to the standard limit of 15 mg/L[129]. - The company has established a wastewater treatment plant that has been operational since January 2015[130]. - The company has a zero incident record for exceeding environmental discharge standards during the reporting period[134]. - The company has not engaged in any poverty alleviation work in the first half of 2020 and has no plans for future initiatives[135].