Financial Performance - The company's operating revenue for the first half of 2022 was ¥8,403,087,881, a decrease of 16.29% compared to ¥10,038,450,037 in the same period last year[14]. - The net profit attributable to shareholders of the listed company was ¥110,731,122, down 85.69% from ¥773,925,929 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,915,924, a decline of 98.40% compared to ¥680,998,879 in the same period last year[14]. - Basic earnings per share for the first half of 2022 were ¥0.08, down 85.96% from ¥0.57 in the same period last year[14]. - The company's total profit for the first half of 2022 was CNY 19,460,646, a significant decline from CNY 797,114,625 in the same period of 2021[132]. - The company reported a net profit of CNY 1,681,182,533, down from CNY 2,102,112,643, indicating a decline of 20%[129]. - The company reported a comprehensive income total of CNY 206,454,018, compared to CNY 667,668,194 in the previous year[132]. Cash Flow and Financial Position - The net cash flow from operating activities was ¥381,217,429, a significant improvement from a negative cash flow of ¥75,583,872 in the previous year, representing a 604.36% increase[14]. - The company's cash and cash equivalents increased to CNY 2,591,875,420 from CNY 2,317,339,039, representing a growth of approximately 11.8%[124]. - The net cash flow from financing activities increased by 137.23% to 1,997,757,944 RMB, primarily due to the arrival of funds from a non-public offering[54]. - Cash inflow from financing activities increased to ¥7,856,904,727, up from ¥3,832,466,574 in the previous year, indicating strong financing support[136]. - The total liabilities decreased to CNY 10,953,079,954 from CNY 12,078,944,826, a reduction of 9.3%[129]. - The total owner's equity at the end of June 2022 was 18,791,046,420 RMB, with minority interests amounting to 5,627,526 RMB[140]. Market Position and Strategy - The company achieved a production volume of passenger and light truck radial tires ranking first among Chinese tire manufacturers in the first half of 2022[21]. - The company has a market share of nearly 20% in the new energy vehicle tire supply sector, maintaining its position as the number one tire supplier in China[21]. - The company is implementing a "7+5" strategic layout, with 7 factories in China and 5 overseas, enhancing service radius and delivery efficiency across major regions[28]. - The company aims to become the "first brand for new energy supporting products" by increasing R&D efforts in green products to meet market demands[24]. - The company is actively expanding its overseas market presence as part of its "7+5" strategy, which includes setting up foreign factories for R&D, manufacturing, and sales[68]. Research and Development - The company’s R&D investment is the highest among publicly listed tire companies in China, leading in R&D investment ratio compared to world-class brands[21]. - The company has established a global R&D system with over 2,000 engineering technicians, focusing on high-performance tire products and innovative technologies[30]. - The company launched the world's first automated production line for self-repairing tires and introduced the first integrated self-repairing sound-absorbing tire in June 2022[31]. - Research and development expenses for the first half of 2022 were CNY 415,302,873, a decrease from CNY 458,014,402 in the previous year[130]. Environmental and Social Responsibility - The company has installed pollution control facilities, including bag dust collectors and VOCs treatment equipment, to comply with environmental standards[81]. - The company’s wastewater treatment facilities have been reported to effectively reduce chemical oxygen demand to levels between 6 and 18 mg/L, below the standard of 100 mg/L[81]. - The company established a low-carbon management team and set dual carbon goals, integrating green and low-carbon concepts throughout the product lifecycle[93]. - The company is actively expanding its "Five New" sectors to support the national "dual carbon" strategy, focusing on sustainable development and waste tire recycling[47]. - The company’s air pollution control facilities are fully operational, ensuring compliance with environmental regulations[84]. Shareholder and Corporate Governance - The company announced the election of new board members, including five non-independent directors and three independent directors, effective from the shareholders' meeting on July 6, 2022[74]. - The company has appointed new senior management, including a new president and several vice presidents, effective from the first meeting of the fifth board[74]. - The company has committed to measures to mitigate the dilution of immediate returns from public offerings[101]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[102]. Risks and Challenges - The company has identified various macroeconomic and market risks that may impact its performance, as detailed in the management discussion and analysis section[5]. - Major raw materials, including natural rubber and synthetic rubber, account for a substantial 20% of the company's product costs, making them vulnerable to price volatility[66]. - The ongoing COVID-19 pandemic poses risks to production lines and supply chains, potentially affecting operational efficiency[69]. - The company faces significant risks from macroeconomic fluctuations, which could impact product demand and overall performance[64]. Capital Structure and Share Issuance - The company successfully completed a private placement of 112 million A-shares, raising a net amount of 2.385 billion yuan, significantly exceeding market averages[49]. - The total number of shares increased by 112,121,212, from 1,372,125,701 to 1,484,246,913 shares[111]. - The company issued 112,121,212 shares at a price of CNY 21.45 per share in a private placement approved on March 2, 2022[151]. - The company plans to repurchase and cancel a total of 7,515,400 restricted stocks due to unmet performance conditions from previous incentive plans[77]. Compliance and Regulatory Matters - The company has implemented a comprehensive compliance system to ensure regulatory adherence and enhance operational integrity[50]. - The company has not received any penalties or corrective actions related to violations of laws or regulations during the reporting period[104]. - The financial statements are prepared based on the accounting standards issued by the Ministry of Finance and comply with the relevant disclosure regulations[153].