AIM(SZ:300446)2022-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥76,622,029.15, a decrease of 9.80% compared to ¥84,950,367.78 in the same period last year [40]. - The net profit attributable to shareholders was ¥1,727,831.51, down 65.20% from ¥4,965,302.85 year-on-year [40]. - The net profit after deducting non-recurring gains and losses was -¥2,850,896.58, a decline of 182.43% compared to ¥3,458,698.21 in the previous year [40]. - Basic earnings per share decreased by 65.31% to ¥0.0085 from ¥0.0245 year-on-year [40]. - The net profit for the reporting period was ¥1,306,398.81, down 80.96% from ¥6,861,118.40 in the previous year, primarily due to decreased revenue and increased operating costs [56]. - The company experienced a significant decline in profitability, with a weighted average return on net assets of only 0.27% compared to 0.77% in the previous year [40]. - The company reported a significant increase in other income, which rose by 445.72% to ¥1,736,209.10 due to increased government subsidies [59]. Cash Flow and Assets - The net cash flow from operating activities increased by 22.25% to ¥20,682,426.69 from ¥16,917,792.98 in the same period last year [40]. - Total assets at the end of the reporting period were ¥818,781,919.39, a decrease of 1.00% from ¥827,025,298.08 at the end of the previous year [40]. - The net assets attributable to shareholders increased slightly by 0.27% to ¥649,721,585.96 from ¥647,993,754.45 at the end of the previous year [40]. - Cash and cash equivalents decreased by CNY 11,980,573.22, from CNY 40,105,502.96 to CNY 28,124,929.74, a drop of 1.42% [63]. - Accounts receivable increased by CNY 20,438,250.89, from CNY 24,906,972.04 to CNY 45,345,223.13, an increase of 2.53% [63]. - Inventory increased by CNY 3,851,324.10, from CNY 50,217,909.20 to CNY 54,069,233.30, an increase of 0.53% [63]. Investment and R&D - Research and development investment decreased by 24.69% to ¥11,970,454.87 from ¥15,895,819.54 in the previous year [56]. - The company is focused on strengthening its R&D capabilities and increasing investment in new product development to improve sustainable competitiveness [93]. - The company has obtained a total of 37 invention patents and 15 utility model patents, with 20 related to new products [52]. - The company invested CNY 265,934,078.49 during the reporting period, a 9.67% increase compared to the previous year [68]. Market Position and Products - The company maintained a market share of over 50% in the domestic magnetic stripe market and is one of the four major global manufacturers in this field [50]. - New products such as pressure testing films and electromagnetic wave shielding films have been launched, with ongoing development of automotive interior films and other materials, but there are risks of lower-than-expected sales and profit margins [11]. - The company is actively developing new products, including INS automotive interior film and photosensitive dry film, with initial customer validation achieved [93]. Risks and Uncertainties - The company reported a potential risk of continuous losses due to uncertainties in future revenue and profit realization, particularly influenced by the decline in demand for magnetic stripe cards [8]. - The company anticipates potential risks related to continuous losses and uncertain future revenue from its thermal magnetic ticket production line [91]. - The company is planning to issue shares to acquire 100% of two companies, with the transaction's asset audit and evaluation still pending, leading to uncertainties in the final transaction scheme [17][18]. Environmental and Safety Compliance - The company has established wastewater treatment stations that have been operational since January 2015 and November 2021, respectively, with normal operations reported [118]. - The company has no reported cases of exceeding environmental discharge standards during the reporting period [123]. - The company has implemented a comprehensive safety production system and conducted dual certification for ISO 9001 and ISO 14001 [129]. - During the reporting period, the company invested a total of 326,000 yuan in safety production expenses, achieving "zero accidents and zero injuries" [129]. Shareholder and Regulatory Commitments - The company will accept supervision from regulatory bodies and compensate investors for losses incurred due to unfulfilled commitments [159]. - The company has committed to ensuring that the contents of the prospectus are truthful and accurate, bearing legal responsibility for any misrepresentation [152]. - The company plans to distribute at least 20% of its distributable profits as cash dividends annually, with a goal to increase cash dividend levels in the first two accounting years following the IPO [157].