Group 1: Financial Performance - Company revenue increased by over 15% year-on-year, with net profit growing by over 8% [1] - Main business gross profit margin was 28.97%, a slight decrease of 0.51 percentage points compared to the same period last year [2] - Revenue from small B business channels grew by 45.1% year-on-year, while self-operated engineering channel sales increased by 56.3% [2] Group 2: Supply Chain Management - The company implemented lean production projects to reduce processing costs and sought alternative raw materials to hedge against price increases [2] - Existing equipment was modified to increase capacity and mitigate the impact of rising raw material prices [2] Group 3: Customer Structure Optimization - The company adopted a strategy of "selecting large B and expanding small B," enhancing brand exposure through advertising in key locations [2] - Strengthened risk control measures across all business segments to ensure stable operations and positive growth [2] Group 4: Research and Development Innovation - The company focused on green, functional, and performance-enhancing product development, launching new product lines in large plates and smart toilets [2] - Plans to introduce eight new product series and upgrade tile store displays by the end of the year [2] Group 5: Challenges and Strategic Responses - The company acknowledged pressures from reduced completion volumes among major real estate firms but remains committed to achieving annual operational goals [3] - Accounts receivable growth was attributed to fluctuations in major clients' operations, but overall risk is manageable [4] - The company plans to enhance cash collection management to improve cash flow in the second half of the year [4] Group 6: Industry Trends - The industry is expected to see increased concentration, with a trend of "small retreating and large expanding," leading to greater pressure on small and medium enterprises [5]

Group 1: Convertible Bond Issuance - The convertible bond has a face interest rate of 0.30% in the first year, increasing to 2.50% in the sixth year, with a redemption price of 115 yuan [1] - The issuance will not negatively impact the company's debt repayment ability, and the net asset scale will increase post-conversion, optimizing the capital structure [1] - The funds raised will be primarily used for production line projects, with 7.2 billion yuan allocated for the second phase of the "Oushennuo" project [6] Group 2: Company Growth and Market Position - The company aims to enhance its production capacity and competitiveness through the implementation of its fundraising projects, which are strategically significant for sustainable development [2] - The market share in the ceramic industry has increased from less than 1% to nearly 2% due to strategic initiatives [3] - The company has a clear strategy to improve market share in a fragmented industry, where the top ten companies hold less than 10% of the market [3] Group 3: Investor Participation and Rights - Public investors can participate in the bond issuance through the Shenzhen Stock Exchange, with a minimum subscription of 10 bonds (1,000 yuan) and a maximum of 10,000 bonds (1 million yuan) [2] - Bondholders have specific rights, including participation in meetings and the ability to convert bonds into shares under certain conditions [8] - Original shareholders have priority in the subscription process, with specific codes for participation [9] Group 4: Future Outlook and Industry Trends - The company expects to maintain full production capacity and optimize its supply chain to enhance competitiveness [6] - The ceramic industry is experiencing a decline in the number of large enterprises, with the number dropping from over 1,400 in 2016 to nearly 1,000 in 2020, indicating a trend towards industry consolidation [7] - The company plans to complete the construction of its production capacity in the next few years, aiming for an annual output of over 110 million square meters [7]

Group 1: Financial Performance - The company achieved a revenue of 4.6 billion yuan from January to September 2021, representing a year-on-year growth of 16.05% [1] - Net profit decreased by 13% year-on-year, with a significant drop in the third quarter due to surging upstream energy and procurement costs [2][3] - Operating cash flow improved, with a net cash flow of 41 million yuan for the first nine months and 160 million yuan for the third quarter [2] Group 2: Business Strategy and Market Position - The company is focusing on optimizing product and customer structures, with a 61% increase in bathroom business revenue and a 12% increase in tile business revenue [1][2] - The strategy includes maintaining valuable customers in the large B segment while expanding the small B segment, with the small B share rising to approximately 35% and expected to exceed 40% by year-end [3] - The company is transitioning from a short-distance runner to a marathon runner, indicating a gradual adjustment process for long-term growth [2] Group 3: Challenges and Future Outlook - The decline in net profit is attributed to increased costs from upstream energy and procurement, alongside rising expenses in channel development and product innovation [2][3] - The company anticipates that the average price of tiles may decrease by around 10% due to competitive pricing strategies among major real estate developers [3] - Future pricing will be influenced by industry average costs, with expectations of price increases despite ongoing raw material cost pressures [3][4] Group 4: Innovation and Sustainability - The company is actively responding to carbon neutrality policies by enhancing R&D capabilities, focusing on green and functional product innovations [2] - Plans for new production capacity are aligned with energy consumption indicators, ensuring compliance with regulatory requirements [4] - The company remains confident in its ability to navigate industry challenges through product and channel innovation [4]

Group 1: Company Performance Overview - In 2021, the company achieved operating revenue of 6.147 billion yuan, a year-on-year increase of 9.05% [1] - The net profit for 2021 was 69 million yuan [2] - The gross profit margin decreased due to significant increases in energy and raw material prices [1] Group 2: Strategic Adjustments - The company adjusted its customer structure, increasing the proportion of small B customers from 30% to nearly 40% in 2021 [2] - The bathroom business saw a 64% year-on-year revenue growth, benefiting from product iterations and network expansions [2] - The company launched new high-end tile series to enhance product competitiveness [2] Group 3: Production and Environmental Initiatives - In 2021, the company completed a leading double-layer kiln production line in its Foshan base and initiated construction in Guangxi [2] - The company is developing advanced zero-carbon combustion technology in collaboration with local laboratories to meet carbon reduction goals [3] Group 4: Market Challenges and Future Outlook - The company anticipates continued pressure in 2022 due to high upstream energy prices and uncertainties in the real estate market [3] - Despite challenges, the company remains optimistic about the bathroom segment's revenue growth in 2022 [3] - The company plans to maintain its high-quality development strategy while navigating market fluctuations [4] Group 5: Pricing and Cost Management - In 2021, the company implemented two price increases of approximately 5% each due to rising costs [4] - The industry is currently experiencing a slowdown in price increases due to reduced market demand and the impact of the pandemic [5] - Long-term price increases are expected as costs and environmental regulations tighten [5] Group 6: Industry Trends and Barriers to Entry - The industry is seeing increased entry barriers, including stricter investment policies and higher capital requirements [6] - The market concentration is expected to rise as smaller players struggle to compete with larger companies [6]

帝欧家居集团股份有限公司 2022 年第三季度报告 证券代码：002798 证券简称：帝欧家居 公告编号：2022-131 帝欧家居集团股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、误导性陈述或重 大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、完 整。 3.第三季度报告是否经过审计 □是 否 1 适用 □不适用 单位：元 | 项目 | 本报告期金额 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | --- | | 非流动资产处置损益（包括已计提资产 | 173,994.07 | 578,525.69 | | | 减值准备的冲销部分） | | | | | 计入当期损益的政府补助（与公司正常 经营业务密切相关，符合国家政策规 | | | 主要为除增值税退税以外的 | | 定、按照一定标准定额 ...

Financial Performance - The company reported a revenue of 1.5 billion RMB for the first half of 2022, representing a year-on-year increase of 10%[17]. - The net profit attributable to shareholders was 200 million RMB, up 15% compared to the same period last year[17]. - The company's operating revenue for the reporting period was ¥1,999,307,558.72, a decrease of 36.12% compared to the same period last year[23]. - The net profit attributable to shareholders was -¥248,687,269.27, representing a decline of 191.21% year-on-year[23]. - The company reported a total revenue of 1,804.2 million RMB for the first half of 2022, reflecting a year-on-year increase of 18.25%[70]. - The company reported a total revenue of 1,009.5 million for the first half of 2022, reflecting a significant increase compared to the previous year[133]. - The company reported a total revenue of 50,123.59 million RMB for the first half of 2022, representing a 12.96% increase compared to the previous period[154]. - The company reported a total revenue for the first half of 2022 was 2.4 billion, representing a 33% increase compared to the previous year[200]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[17]. - The company aims to become a leading provider of overall home decoration solutions, emphasizing high-quality products and consumer experience[32]. - The company is actively expanding its retail channels and enhancing brand visibility through social media platforms like WeChat and Douyin[44]. - The company is exploring potential mergers and acquisitions to enhance its market position[197]. - The company plans to expand its market presence by launching new product lines in the second half of 2022[197]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[94]. - The company aims to develop its brands "Oushennuo," "Diyang," and the newly launched "Aikou" into leading brands in their respective segments[41]. Product Development and Innovation - New product lines, including eco-friendly home decor items, are expected to launch in Q4 2022, aiming for a 30% contribution to total sales[17]. - The company has invested 100 million RMB in R&D for innovative materials and technologies in the home furnishing sector[17]. - The company emphasizes product innovation, with a focus on smart and green products, and has launched a new high-end customized service under the "Aikou" brand[36]. - The company has allocated a budget of 200 million for research and development in the upcoming year to foster innovation and improve product quality[133]. - New product development efforts have led to the introduction of three innovative product lines, expected to contribute an additional 300 million RMB in revenue[94]. - The company is focusing on technological upgrades, including the renovation of its creative innovation R&D center to enhance product development capabilities[96]. Financial Guidance and Projections - Future guidance indicates a projected revenue growth of 12% for the full year 2022[17]. - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[94]. - The company aims to achieve a revenue growth target of 10% for the full year 2022[197]. - The company has set a revenue guidance of 5 billion for the full year, reflecting a growth target of 20%[200]. Risk Management - The company has identified potential risks related to supply chain disruptions and is implementing measures to mitigate these risks[4]. - The company implemented strict risk control measures, resulting in a reduction of accounts receivable by nearly CNY 400 million compared to the beginning of the period[48]. - The company has established a risk control team to manage accounts receivable effectively, especially considering the financial risks associated with real estate developers[81]. - The company is facing risks from the ongoing COVID-19 pandemic and its impact on production and operations, and is implementing measures to ensure employee health and operational continuity[74]. Environmental and Sustainability Initiatives - The company is collaborating on advanced zero-carbon combustion technology projects to align with national carbon neutrality goals[45]. - The company aims to explore new paths for achieving carbon neutrality in the ceramic industry through distributed photovoltaic projects on existing factory rooftops[79]. - The company has undertaken significant investments in environmental protection measures, reflecting its commitment to sustainable development[96]. - The management emphasized a commitment to sustainability, with plans to reduce carbon emissions by 20% over the next five years[133]. - The company has implemented a comprehensive pollution control strategy, receiving approvals for various environmental impact assessments related to its production facilities[96]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[87]. - The company approved the repurchase and cancellation of 167,500 restricted shares from 16 employees who no longer qualify for the incentive plan, at a price of 10.86 CNY per share[88]. - The company has repurchased a total of 7,392,700 shares, accounting for 1.91% of the total share capital as of June 30, 2022[149]. - The company plans to repurchase shares with a total amount not less than RMB 100 million and not exceeding RMB 200 million, with a maximum repurchase price of RMB 20.68 per share[138]. Legal and Compliance Matters - As of June 30, 2022, the company is involved in five ongoing lawsuits, primarily related to labor arbitration, with no significant impact on operations[116]. - The company has not experienced any major litigation or arbitration matters during the reporting period[115]. - The company has not issued any non-standard audit reports for the half-year financial report[113]. - The company has established emergency response plans for environmental incidents, with several plans filed with local environmental authorities[103].

Financial Performance - The company reported a total revenue of RMB 3.5 billion for the year 2021, representing a year-on-year increase of 15%[16] - The net profit attributable to shareholders was RMB 500 million, an increase of 20% compared to the previous year[16] - The company's operating revenue for 2021 was ¥6,147,025,768.10, representing a 9.05% increase compared to ¥5,637,039,169.02 in 2020[23] - The net profit attributable to shareholders in 2021 was ¥69,116,024.02, a significant decrease of 87.80% from ¥566,579,140.17 in 2020[23] - The net cash flow from operating activities was negative at ¥148,051,584.75, a decline of 655.15% compared to a positive cash flow of ¥26,668,905.54 in 2020[23] - The total assets at the end of 2021 amounted to ¥11,273,497,348.89, reflecting a 25.73% increase from ¥8,966,193,186.21 at the end of 2020[24] - The basic earnings per share for 2021 was ¥0.18, down 87.59% from ¥1.45 in 2020[23] - The company reported a quarterly revenue of ¥1,543,180,973.22 in Q4 2021, with a net profit attributable to shareholders of -¥280,315,821.30[27] - The company incurred a non-operating loss of ¥3,385,621.33 in 2021, compared to a gain of ¥68,269,994.58 in 2020[29] - The weighted average return on equity for 2021 was 1.61%, a decrease of 12.64% from 14.25% in 2020[24] - The company received government subsidies amounting to ¥33,781,214.46 in 2021, down from ¥52,875,953.07 in 2020[29] - The net profit after deducting non-recurring gains and losses was ¥72,501,645.35 in 2021, an 85.45% decrease from ¥498,309,145.59 in 2020[23] Market Expansion and Product Development - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares, totaling approximately RMB 77.38 million based on the total share capital[5] - User data indicates a growth in active customers by 25%, reaching 1.2 million by the end of 2021[16] - The company has set a revenue target of RMB 4 billion for 2022, aiming for a growth rate of 14%[16] - New product lines, including eco-friendly home decor items, are expected to launch in Q2 2022, contributing to revenue growth[16] - The company is expanding its market presence in Southeast Asia, with plans to open 50 new retail locations by the end of 2022[16] - The company launched eight new product series under the "Oushennuo" brand, focusing on high-end aesthetics and user experience, enhancing brand influence through increased advertising efforts[48] - The company completed the second phase of its production line project in Guangxi, capable of producing 50 million square meters of high-end wall and floor tiles annually, improving supply capacity and market competitiveness[49] - The company is actively pursuing green development initiatives, including the establishment of a joint innovation research center for zero-carbon combustion technology[61] - The company is planning to expand its market presence in Southeast Asia, targeting a 25% increase in sales from this region over the next two years[188] Research and Development - Investment in technology R&D increased by 30%, focusing on smart home solutions and sustainable materials[16] - The company added 129 new patents in 2021, including 30 invention patents, bringing the total to 336 effective patents, reinforcing its position in the mid-to-high-end market[52] - The company is developing a seamless acrylic bathroom product to enhance market competitiveness and reduce costs[78] - The research on lightweight ceramic tiles achieved industry-first high-precision digital glazing technology, promoting applications in the Foshan subway[78] - The company aims to meet EU export standards with its environmentally friendly acrylic bathroom board, enhancing market share[78] - The company has invested 50 million yuan in R&D for innovative technologies aimed at reducing production costs by 10%[188] Environmental Initiatives - The company aims to reduce carbon emissions by 25% over the next three years as part of its sustainability strategy[185] - The company has implemented environmental monitoring plans in accordance with national pollution discharge permit management requirements, ensuring real-time online monitoring of pollutants such as smoke, sulfur dioxide, and nitrogen oxides[191] - The company operates multiple desulfurization and dust removal systems across its facilities, including 3 desulfurization towers at the roller kiln and a combination of SNCR denitrification and high-pressure pulse bag dust removal systems[190] - The company has reported a total of 513.194 tons of nitrogen oxides and 706.88 tons of sulfur oxides emissions, which are below the local atmospheric discharge standards[190] - The company has established emergency response plans for environmental incidents, with documentation filed with local environmental authorities[192] - The company has made continuous investments in environmental protection facilities and has been compliant with environmental tax payments, ensuring stable production operations[194] Corporate Governance and Shareholder Engagement - The company emphasizes maintaining independence from its controlling shareholders, ensuring that operations and financials are managed autonomously[118] - The company has held five shareholder meetings during the reporting period, adhering strictly to legal requirements to ensure equal rights for all shareholders[118] - The company has established a fair and effective performance evaluation and incentive mechanism for senior management, combining base salary with annual performance assessments[120] - The company has a complete and independent production and operation system, ensuring no competition or unfair transactions with related parties[122] - The company has established independent financial accounting departments and systems, ensuring independent financial decision-making and tax compliance[124] - The company has not reported any penalties from regulatory bodies for current directors and supervisors in the last three years[141] - The company has a performance-based salary system for senior management, linking their performance bonuses to the company's operational results[142] Financial Management and Capital Structure - The company successfully issued 1.5 billion CNY in convertible bonds, providing sufficient funds for the construction of tile production lines in Jingdezhen and Guangxi, enhancing operational stability and risk resistance[62] - The total amount of raised funds in 2021 was 150,000,000 CNY, with 83,264,400 CNY utilized by the end of the reporting period, representing 55.51% of the total raised[98] - The company has not made any changes to the use of raised funds during the reporting period, with 65,100,300 CNY remaining unused[98] - The company has a clear cash dividend policy that aligns with its articles of association and shareholder resolutions[160] - The company has a profit distribution plan in place for the years 2020-2022, ensuring consistent returns to shareholders[159] Employee Engagement and Development - The company has established a comprehensive training program aimed at enhancing management and technical skills, combining online and offline training methods[158] - The company adheres to a long-term talent development strategy, collaborating with domestic universities for talent cultivation in various fields[158] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 442.78 million[143] - The company achieved performance assessment targets for its employee stock ownership plan, with a personal performance rating of A for the second unlocking period[153] Risks and Challenges - The management highlighted potential risks including supply chain disruptions and fluctuating raw material costs, which may impact future performance[5] - The company is facing risks from the real estate market downturn, which may negatively impact its main businesses in sanitary ware and architectural ceramics[111] - The company anticipates that the rising prices of raw materials and energy will lead to a decline in industry gross margins and increased competition[107] - The company has a substantial amount of accounts receivable, primarily from real estate developers, which poses a risk if effective management is not maintained or if clients face financial difficulties[114]

Financial Performance - The company's operating revenue for Q1 2022 was ¥765,369,769.28, a decrease of 33.99% compared to ¥1,159,559,855.36 in the same period last year[4] - The net profit attributable to shareholders was -¥90,850,715.32, representing a decline of 220.01% from a profit of ¥75,702,442.06 in the previous year[4] - Total operating revenue for Q1 2022 was CNY 765,369,769.28, a decrease of 34% compared to CNY 1,159,559,855.36 in Q1 2021[23] - Net profit for Q1 2022 was a loss of CNY 91,148,416.92, compared to a profit of CNY 73,744,691.51 in Q1 2021[24] - The company reported a gross margin of approximately -15.2% in Q1 2022, compared to a positive margin in the same period last year[23] Cash Flow - The net cash flow from operating activities was -¥423,048,369.99, showing a slight decrease of 1.14% compared to -¥418,282,695.21 in the same period last year[9] - Cash flow from operating activities was CNY 1,202,954,528.41, a decrease from CNY 1,283,159,847.22 in Q1 2021[26] - The net cash flow from operating activities was -423,048,369.99 CNY, slightly worse than the previous year's -418,282,695.21 CNY[28] - The company reported a negative net cash flow from investing activities of -90,047,612.44 CNY, slightly better than -91,969,526.15 CNY from the previous year[28] - The cash flow from operating activities showed a significant outflow, indicating potential liquidity challenges for the company[28] Assets and Liabilities - The total assets at the end of the reporting period were ¥11,052,714,151.22, down 1.96% from ¥11,273,497,348.89 at the end of the previous year[4] - The company’s total liabilities decreased to CNY 6,604,103,028.80 from CNY 6,729,104,588.67 year-over-year[23] - The company’s total equity attributable to shareholders decreased to CNY 4,449,316,619.39 from CNY 4,544,800,555.59 year-over-year[23] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 31,647[10] - The company repurchased a total of 370,000 shares, accounting for 0.10% of the total share capital, with a total transaction amount of RMB 4,632,526[17] Expenses and Financial Management - Financial expenses increased by 66.81% to ¥42,724,118.18, mainly due to increased bond interest expenses[9] - Research and development expenses increased to CNY 49,662,011.88, up from CNY 43,173,711.25 in the previous year, reflecting a focus on innovation[23] Government Support - The company received government subsidies amounting to ¥3,410,672.50, which are closely related to its normal business operations[6] Capital Changes - The registered capital of the subsidiary, Guangxi Oushennuo, increased to RMB 970,643,824 from RMB 600,000,000, marking a significant increase of approximately 61.74%[14] - The registered capital of the subsidiary, Jingdezhen Oushennuo, increased to RMB 350,159,967 from RMB 227,721,700, representing an increase of about 53.54%[14] - The company plans to use funds raised from convertible bonds to increase capital in its subsidiaries to support investment projects[13] Other Information - The company completed the name change from "帝欧家居股份有限公司" to "帝欧家居集团股份有限公司" on January 19, 2022[16] - The company did not conduct an audit for the first quarter report[29]

Financial Performance - The company's revenue for Q3 2021 reached ¥1,473,874,759.80, representing a year-on-year increase of 16.78%[3] - Net profit attributable to shareholders decreased by 49.90% to ¥76,769,411.47, while the net profit after deducting non-recurring gains and losses fell by 33.91% to ¥85,144,207.06[3] - The operating income for the year-to-date period reached ¥4,603,844,794.88, up 16.05% compared to the same period last year[9] - Total operating revenue for Q3 2021 reached CNY 4,603,844,794.88, an increase of 16.06% compared to CNY 3,967,248,807.94 in the same period last year[25] - Net profit for Q3 2021 was CNY 346,476,527.19, a decrease of 13.76% from CNY 401,754,932.64 in Q3 2020[26] - Earnings per share (EPS) for Q3 2021 was CNY 0.9183, down from CNY 1.0564 in the same quarter last year[27] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥9,942,221,514.64, reflecting a 10.89% increase compared to the end of the previous year[3] - As of September 30, 2021, the total current assets amounted to ¥6,315,666,916, an increase from ¥5,527,000,163.61 at the end of 2020, representing a growth of approximately 14.3%[21] - The total liabilities as of September 30, 2021, are not explicitly stated but are essential for assessing the company's financial health[19] - Total liabilities rose to CNY 5,366,707,718.10, an increase of 13.78% from CNY 4,716,985,673.61 year-over-year[23] - Total liabilities amounted to ¥4,716,985,673.61, with current liabilities at ¥4,180,813,500.79[35] - Non-current liabilities totaled ¥536,172,172.82, including long-term borrowings of ¥409,154,056.62[35] Cash Flow - The company reported a significant increase in cash flow from operating activities, with a net cash flow of ¥41,698,096.53, up 115.03% year-on-year[3] - The net cash flow from operating activities for Q3 2021 was ¥41,698,096.53, a significant improvement compared to a net outflow of ¥277,447,776.97 in Q3 2020[30] - Total cash inflow from operating activities reached ¥5,024,337,572.39, while cash outflow was ¥4,982,639,475.86, resulting in a net increase of ¥41,698,096.53[30] - The net cash flow from financing activities decreased by 84.82% to ¥15,006.04 million, reflecting a reduction in net increases in bank borrowings[10] - The company reported a cash inflow from financing activities of ¥1,474,432,791.76, down from ¥1,874,925,195.71 in the same period last year[31] - The net cash flow from financing activities was ¥150,060,376.83, a decrease from ¥988,283,769.81 in Q3 2020[31] Costs and Expenses - The company reported a 31.05% increase in operating costs, primarily due to rising logistics and fulfillment expenses associated with increased sales[9] - Total operating costs amounted to CNY 4,198,134,830.99, up 19.3% from CNY 3,520,282,946.60 year-over-year[25] - Research and development expenses for Q3 2021 were CNY 183,164,088.64, slightly up from CNY 179,866,507.91 in Q3 2020[25] - The company reported a decrease in interest expenses to CNY 90,553,686.90 from CNY 69,199,388.62 in the previous year[26] Shareholder Information - The top three shareholders hold significant stakes, with Liu Jin at 14.25%, Chen Wei at 13.81%, and Wu Zhixiong at 13.83%, indicating concentrated ownership[13] - The first phase of the employee stock ownership plan has been completed, with a total of 4,685,185 shares transferred to individual accounts[17] Strategic Developments - The company has extended the validity period for the issuance of convertible bonds by twelve months, indicating ongoing capital-raising efforts[15] - The company’s subsidiary, Guangxi Oushennuo, has resumed production after temporary shutdowns due to power supply issues, which may impact future operational capacity[18] Adjustments and Standards - The company adjusted its financial statements in accordance with new leasing standards, impacting the balance sheet items[32] - The company adopted a new leasing standard starting January 1, 2021, impacting financial statement items[37] - Right-of-use assets were recorded at ¥26,177,911.49 as of January 1, 2021[38] - Lease liabilities were adjusted to ¥23,257,165.53 following the new leasing standard[38] - Prepayments decreased by ¥2,920,745.96 to ¥97,701,363.10 due to the adjustment[38] Other Financial Metrics - The company incurred cash outflows of ¥411,084,417.55 for investment activities, slightly up from ¥401,902,024.30 in Q3 2020[30] - The net cash flow from investment activities was negative at ¥409,309,462.55, compared to a negative cash flow of ¥399,840,568.14 in the previous year[30] - The company reported an unappropriated profit of ¥1,568,756,338.51[36] - The third-quarter report was not audited[39]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[16]. - The net profit attributable to shareholders was RMB 200 million, up 10% compared to the same period last year[16]. - The company's operating revenue for the reporting period reached ¥3,129,970,035.08, representing a 15.70% increase compared to ¥2,705,149,571.14 in the same period last year[21]. - The net profit attributable to shareholders was ¥272,662,433.85, an increase of 8.19% from ¥252,020,357.88 year-on-year[21]. - The basic earnings per share increased to ¥0.7193, reflecting an 8.17% growth from ¥0.6650 in the previous year[21]. - The company achieved a total revenue of 3,129,970,035.08 CNY in the first half of 2021, representing a year-on-year growth of 15.70%[52]. - The net profit attributable to shareholders was 27,266.24 CNY, an increase of 8.19% compared to the same period last year[48]. - The tile business generated revenue of 2,728,884,225.76 CNY, up 11.10% year-on-year, while the bathroom business saw a significant increase of 82.47%, reaching 331,742,733.94 CNY[56]. - The gross profit margin for the main business was 28.97%, slightly down by 0.51 percentage points from the previous year[48]. - The company reported a total revenue of 912.7 million for the first half of 2021, with a slight increase of 0.04% compared to the previous period[124]. Market Expansion and Product Development - User data showed an increase in active customers by 25%, reaching 1.5 million users[16]. - The company plans to launch three new product lines in the next quarter, focusing on eco-friendly materials[16]. - Future outlook indicates a projected revenue growth of 20% for the second half of 2021, driven by market expansion strategies[16]. - The company aims to expand its market share in Southeast Asia, targeting a 15% increase in sales in that region by the end of 2021[16]. - The company plans to launch eight new product series and styles by the end of the year, focusing on consumer upgrade demands[50]. Research and Development - Research and development expenses increased by 30%, reflecting the company's commitment to innovation[16]. - The company has developed 35 new patents in the first half of 2021, including 10 invention patents, 3 utility model patents, and 22 design patents[46]. - The company is committed to research and development, with a dedicated R&D institution that has developed several advanced technologies in both sanitary ware and tile products[46]. - Research and development expenses amounted to 114,845,971.14 CNY, reflecting a 3.53% increase year-on-year[53]. Financial Stability and Cash Flow - The net cash flow from operating activities improved significantly to -¥59,911,374.56, a 86.34% increase from -¥438,498,707.61 in the previous year[21]. - The company reported a net cash flow from operating activities of -CNY 59,911,374.56 for the first half of 2021, an improvement compared to -CNY 438,498,707.61 in the same period of 2020[196]. - Cash and cash equivalents decreased to approximately CNY 664.27 million, accounting for 6.93% of total assets[62]. - The company’s cash and cash equivalents decreased to CNY 664,272,817.15 from CNY 843,338,416.75, a decline of about 21.2%[178]. Risks and Challenges - The management highlighted risks related to supply chain disruptions and raw material price fluctuations[5]. - The company has faced challenges from rising raw material prices and regulatory policies in the real estate sector, but sees opportunities for growth due to its competitive advantages[47]. - The company is exposed to risks from fluctuations in raw material and energy prices, which constitute a significant portion of its operating costs[75]. - The competitive landscape in the sanitary ware and construction ceramics industries is intensifying, with increased competition affecting revenue and profitability[76]. Compliance and Governance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[115]. - The company is committed to compliance and has taken corrective actions following the penalties imposed by the regulatory authority[122]. - The company’s related party transactions were conducted at market prices, ensuring transparency and fairness in dealings[123]. - The company has implemented measures to ensure compliance with insider trading regulations related to the incentive plan[85]. Environmental Responsibility - The company strictly adheres to the national standards for pollutant emissions in the ceramic industry, specifically GB25464-2010, ensuring compliance with environmental regulations[96]. - The total emissions of particulate matter from Foshan Oushin reached 36.61 tons, while sulfur dioxide emissions were 35.19 tons, both within the regulatory limits[97]. - The company operates three desulfurization towers and employs SNCR denitrification technology, ensuring effective waste gas treatment[100]. - The company has invested in environmental governance and protection, ensuring compliance with industry environmental requirements and maintaining stable production operations[108]. Shareholder Matters - The company held its first extraordinary shareholders' meeting on January 5, 2021, with an investor participation rate of 27.65%[80]. - The second extraordinary shareholders' meeting took place on February 22, 2021, with a participation rate of 45.59%[80]. - The annual shareholders' meeting was held on April 20, 2021, with a participation rate of 45.91%[80]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[83].