SCAM(SZ:300554)2019-08-26 16:00Financial Performance - Total revenue for the reporting period was ¥108,118,209.60, a decrease of 50.50% compared to ¥218,430,743.44 in the same period last year [25]. - Net profit attributable to shareholders was ¥6,318,599.04, down 90.36% from ¥65,570,059.52 year-on-year [25]. - Net profit after deducting non-recurring gains and losses was ¥5,434,855.32, a decline of 91.57% compared to ¥64,470,013.45 in the previous year [25]. - Basic and diluted earnings per share were both ¥0.0675, down 90.36% from ¥0.7005 year-on-year [25]. - The weighted average return on equity was 1.26%, down 11.48% from 12.74% in the previous year [25]. - The company reported a total profit of CNY 6.49 million for the first half of 2019, down 91.6% from CNY 77.38 million in the previous year [146]. - The company incurred a credit impairment loss of CNY 1.60 million in the first half of 2019, with no such loss reported in the previous year [146]. - The company’s total comprehensive income for the first half of 2019 was CNY 6.26 million, down 90.4% from CNY 65.51 million in the same period of 2018 [147]. Cash Flow - The net cash flow from operating activities was ¥5,789,472.68, representing a decrease of 50.75% from ¥11,756,243.05 in the same period last year [25]. - Cash flow from operating activities decreased by 50.75% to RMB 5.79 million, primarily due to reduced cash receipts from sales [47]. - The net cash flow from investment activities was ¥9,467,379.78, a significant improvement from a negative cash flow of -¥33,163,018.99 in the same period last year [155]. - The net cash flow from financing activities was -¥24,622,135.84, compared to a positive cash flow of ¥8,484,483.34 in the first half of 2018 [156]. - The total cash and cash equivalents at the end of the period was ¥32,333,696.31, down from ¥60,034,483.06 at the end of the first half of 2018 [156]. Assets and Liabilities - Total assets at the end of the reporting period were ¥705,950,619.05, a decrease of 1.57% from ¥717,236,133.70 at the end of the previous year [25]. - Net assets attributable to shareholders were ¥496,997,644.72, down 0.62% from ¥500,102,637.23 at the end of the previous year [25]. - Total liabilities decreased from CNY 217,133,496.47 to CNY 208,952,974.33, a decrease of about 3.4% [138]. - Owner's equity decreased from CNY 500,102,637.23 to CNY 496,997,644.72, a decline of approximately 0.4% [138]. - The company reported a cash balance of approximately ¥51.75 million as of June 30, 2019, an increase from ¥47.95 million at the end of 2018 [135]. Operational Challenges - The company faced significant operational pressure in the diamond wire business due to market demand and pricing pressures [34]. - The gross margin of the diamond wheel business decreased significantly due to rising costs and declining demand and prices [34]. - The company achieved a revenue of RMB 108.12 million in the first half of 2019, a decrease of 50.50% year-on-year due to reduced sales volume and price declines of diamond wire and diamond wheels [43]. - The company has reduced operating costs by 23.86% to RMB 81.26 million, attributed to decreased sales of main products [47]. Strategic Initiatives - The company plans to acquire technology and assets from Nakamura Superhard to strengthen its diamond wire business, anticipating substantial competitive advantages if the deal is successful [43]. - New product development for diamond wheels has accelerated, with several key products already achieving sales, including back-grinding wheels and resin soft blades [44]. - The company plans to focus on new product development and market expansion strategies in the upcoming quarters [165]. - The company is focusing on internal talent development and external recruitment to strengthen its team, which is crucial for sustainable growth [45]. Shareholder and Equity Management - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves [13]. - The company has committed to repurchase all new shares if the prospectus contains false statements or omissions, with the repurchase price based on the higher of the IPO price or the average stock price over the 20 trading days prior to the confirmation of violations [80]. - The company will compensate investors for losses caused by misleading statements in the prospectus, with a focus on protecting the interests of small and medium investors [80]. - The company has not made any significant equity investments during the reporting period [58]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities [106]. - The company has established a comprehensive wastewater treatment system and a nickel-containing wastewater treatment system, ensuring compliance with the "Electroplating Pollutant Discharge Standards" (GB21900-2008) for major pollutants [107]. - The company’s pollution control indicators meet environmental protection requirements, with major pollutants such as acid mist and wastewater being effectively managed [107]. Corporate Governance - The company has not undergone any bankruptcy reorganization during the reporting period [87]. - No major litigation or arbitration matters were reported during the reporting period [88]. - The company has no media-related controversies during the reporting period [89]. - There were no penalties or rectifications during the reporting period [90].