证券代码： 立中集团 证券简称：300428 立中四通轻合金集团股份有限公司 投资者关系活动记录表 编号：2022-005 | --- | --- | --- | |-----------------------------|------------------------------------------------|--------------------------------------------------------| | | | | | | □ 特定对象调研 | □ 分析师会议 | | 投资者关系活动 | □ 媒体采访 | □ 业绩说明会 | | 类别 | □ 新闻发布会 | □ 路演活动 | | | □ 现场参观 | | | | ■ 其他（ 以通讯方式接待了机构调研 | ） | | 参与单位名称及 人员姓名 | 信达证券等 16 | 家机构，具体详见附件。 | | 时间 | 2022 年 5 月 11 日 | | | 地点 | 立中大厦九楼会议室 | | | 上市公司接待人 | 副总裁兼董事会秘书 李志国 | | | 员姓名 | | | | | 1 、请介绍一下 2021 以及疫情对公司的 ...

证券代码： 立中集团 证券简称：300428 立中四通轻合金集团股份有限公司 投资者关系活动记录表 编号：2022-011 | --- | --- | --- | --- | |-------------------------|------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------| | | | | | | | □ 特定对象调研 | □ 分析师会议 | | | 投资者关系活动 | □ 媒体采访 | □ 业绩说明会 | | | 类别 | □ 新闻发布会 | □ 路演活动 | | | | □ 现场参观 | | | | | ■ 其他 （ | 以通讯方式接待了机构调研 ） | | | 参与单位名称及 人员姓名 | 华泰证券等 11 | 家机构，具体详见附件 | | | | | | | | 时间 | 2022 年 5 月 31 日 ...

Group 1: Strategic Cooperation - The company signed a strategic cooperation framework agreement with Wencan Group focusing on heat-free treatment alloys for large integrated automotive components and battery boxes [2] - The collaboration aims to leverage both parties' resources to develop suitable materials for large integrated aluminum castings, with the company responsible for material formulation and Wencan for application process development [2][3] Group 2: Technical Advantages - The company's heat-free treatment alloy exhibits superior mechanical properties, with an elongation rate improved by over 500% compared to traditional die-casting materials, making it suitable for high-strength, high-toughness, and oversized components [3] - The alloy's unique low Mo modification technology reduces Mo content to 1/5-1/7 of international standards, addressing issues of low fluidity and high scrap rates in integrated casting processes [3] - The cost of the company's heat-free treatment alloy is 15%-20% lower than similar foreign products, enhancing its competitiveness in the international market [3] Group 3: Market Position and Performance - The company has established a solid market foundation in the new energy vehicle sector, supplying aluminum alloy wheels to several major manufacturers, including NIO, Li Auto, and Xpeng [4] - In 2021, the company achieved a net profit of 450 million yuan, a year-on-year increase of 4.04%, with the functional intermediate alloy segment seeing a 62.02% profit growth [4][5] - The company faced a net profit decline of 49.87% in 2022 due to external factors but showed signs of recovery in Q4 2021, with a 26% increase in Q1 2022 net profit [5]

Financial Performance - The company's operating revenue for Q3 2022 reached ¥5,928,394,642.16, representing a 33.57% increase year-over-year[7] - Net profit attributable to shareholders for Q3 2022 was ¥122,358,437.73, a significant increase of 99.52% compared to the same period last year[7] - The net profit excluding equity incentive expenses attributable to shareholders was ¥160,752,622.61, reflecting a 162.13% increase year-over-year[7] - The total operating revenue for the current period was ¥15,980,134,439.22, up from ¥13,103,608,686.11 in the previous period[46] - The net profit attributable to the parent company increased to ¥3,323,722,855.50 from ¥2,970,663,296.81 in the previous period[43] - Net profit for the period reached 399,911,407.45, an increase from 359,924,819.48 in the previous period, representing a growth of approximately 11.5%[47] - The company reported a total comprehensive income of 423,649,041.89, compared to 285,956,613.01 in the previous period, showing a significant increase of around 48.3%[50] - Basic earnings per share improved to 0.65 from 0.57, reflecting an increase of approximately 14%[50] Assets and Liabilities - The total assets at the end of Q3 2022 amounted to ¥17,109,765,444.48, which is an 18.94% increase from the end of the previous year[7] - The total liabilities as of September 30, 2022, were ¥11,371,137,778.49, compared to ¥9,101,160,300.87 at the beginning of the year[43] - The company's equity attributable to shareholders reached ¥5,535,618,915.21, an increase from ¥5,067,632,998.85 in the previous period[43] - As of September 30, 2022, total current assets amounted to ¥12,371,959,903.30, an increase from ¥10,435,206,949.79 at the beginning of the year[38] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥144,692,514.44, reflecting a 121.50% increase compared to the same period last year[7] - Cash flow from operating activities amounted to 16,223,303,534.17, compared to 13,526,709,266.67 in the previous period, representing a growth of about 19.9%[51] - Net cash flow from operating activities was $144.69 million, a significant improvement from a net outflow of $673.12 million in the previous period, indicating a turnaround in operational performance[53] - Cash inflow from financing activities rose to $7.93 billion, up from $5.44 billion, driven by increased borrowings[53] - Net cash flow from financing activities was $1.93 billion, compared to $1.08 billion in the previous year, indicating stronger financing capabilities[53] Research and Development - Research and development expenses increased by 32.14% to approximately ¥463.67 million, reflecting higher revenue and investment in R&D[25] - Research and development expenses increased to 463,668,703.07, up from 350,880,317.27, reflecting a rise of about 32.1%[47] Shareholder Information - The total number of common shareholders at the end of the reporting period is 26,067[28] - Tianjin Dong'an Brothers Co., Ltd. holds 36.95% of shares, totaling 227,971,910 shares[28] - The top five individual shareholders, including Zang Na and Zang Ya Kun, hold between 5.00% to 5.19% of shares each[28] - The company has a family shareholder structure, with several shareholders being members of the Zang family acting in concert[30] - The controlling shareholder and actual controller hold a total of 434,409,110 shares, which is 70.41% of the total shares, with 5,485,900 shares pledged, representing 1.26% of their holdings and 0.89% of the total share capital[37] Strategic Developments - The company has established strategic cooperation with Wencan Group for the development of materials for new energy vehicles, enhancing its market presence[18] - The company plans to enhance the comprehensive performance indicators of its non-heat-treated alloy materials based on market demands for integrated die-casting of super-large castings[19] - The company is focusing on the development of new energy vehicle wheels and lightweight chassis components, leveraging its advantages in recycled aluminum technology[20] - The lithium-sodium battery new materials project is expected to commence production around March 2023, supporting the stable supply of key raw materials for the company[21] Market Performance - The sales volume of high-end grain refining agents reached 9,618 tons in the first nine months of 2022, a year-over-year increase of 127.59%[14] - Revenue from aerospace-grade special intermediate alloy sales was ¥68,624,500, showing a 52.70% increase year-over-year with a sales volume of 277 tons[14] - The aluminum alloy wheel segment saw a significant increase in revenue due to both volume and price adjustments, with a focus on expanding production capacity in Thailand and Mexico[20] Other Financial Metrics - Cash and cash equivalents increased by 30.57% to approximately ¥2.68 billion, attributed to the expansion of production and corresponding increases in inventory and receivables[22] - The company's short-term borrowings rose by 30.74% to approximately ¥6.15 billion, driven by increased working capital needs due to expanded operations[25] - The company's deferred tax assets increased by 45.13% to approximately ¥118.94 million, mainly due to the rise in deductible temporary differences[25] - The company achieved a 168.00% increase in trading financial assets, totaling approximately ¥543.81 million, due to higher investments in financial products[22]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2022, representing a year-on-year increase of 15%[20]. - The company's operating revenue for the current period is ¥10,051,739,797.06, representing a 16.00% increase compared to ¥8,665,285,406.98 in the same period last year[28]. - In the first half of 2022, the company achieved a total revenue of 10.052 billion yuan, representing a year-on-year growth of 16.00%[74]. - The net profit attributable to shareholders for the same period was 277 million yuan, an increase of 0.54% compared to the previous year[74]. - The net profit, excluding stock incentive amortization, was 323 million yuan, reflecting a growth of 17.13% year-on-year[74]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, is ¥211,507,475.59, a decrease of 6.98% from ¥227,367,887.69 in the previous year[28]. - The company reported a total of ¥65,465,417.25 in non-recurring gains, primarily from government subsidies and financial investment returns[32]. - The weighted average return on equity decreased to 5.31% from 6.39% in the previous year, indicating a decline in profitability[28]. Market Expansion and Product Development - The company plans to launch two new product lines in Q4 2022, targeting the automotive and aerospace sectors, which are expected to contribute an additional 200 million RMB in revenue[20]. - Future outlook includes a projected revenue growth of 20% for the full year 2022, driven by market expansion and new product introductions[20]. - The company is actively expanding into the lithium and sodium battery new materials sector, enhancing its industry chain capabilities[39]. - The company is focusing on lightweight aluminum alloy components for passenger cars and new energy vehicles, aligning with market demands for low-carbon and green solutions[52]. - The company plans to continuously develop products related to the new energy industry chain, focusing on lithium and sodium battery materials[71]. Research and Development - Research and development expenses increased by 10% to 100 million RMB, focusing on advanced alloy technologies and sustainable materials[20]. - The company has established 8 major R&D platforms, including national and provincial technology innovation centers, enhancing its research capabilities[67]. - The company holds 24 invention patents and 63 utility model patents in the field of functional intermediate alloy new materials[67]. - In the casting aluminum alloy materials sector, the company has accumulated 283 patents, including 53 invention patents and 227 utility model patents[68]. Strategic Acquisitions and Investments - The company is exploring strategic acquisitions to enhance its market position, with a budget of 300 million RMB allocated for potential targets in the lightweight materials sector[20]. - The company has made a long-term equity investment of ¥10,606,951.60 in Hebei Guangsu Laser Technology Co., Ltd., reflecting strategic growth initiatives[94]. - The investment amount for the reporting period is CNY 2.14 billion, representing a 33.04% increase compared to the same period last year[103]. Environmental Compliance and Sustainability - The company is classified as a key pollutant discharge unit by environmental protection authorities, with emissions including particulate matter, sulfur dioxide, and nitrogen oxides[155]. - The company aims to maintain emissions below the regulatory limits of 30 mg/m³ for particulate matter and nitrogen oxides[164]. - The company is focused on improving its environmental performance by monitoring and reducing emissions across its operations[164]. - The company is committed to adhering to environmental regulations and improving sustainability practices[164]. - The company has implemented selective catalytic reduction (SCR) technology for nitrogen oxide reduction, achieving a 90% efficiency rate since 2019[185]. Risk Management - The company has identified key risks including raw material price volatility and supply chain disruptions, with mitigation strategies in place[20]. - The company is enhancing its product pricing mechanism to mitigate risks associated with fluctuations in raw material prices, particularly electrolytic aluminum and recycled aluminum[135]. - The company faces foreign exchange risk due to significant fluctuations in the RMB to USD exchange rate, which may impact the consolidated profit levels[136]. Operational Efficiency - The company's production model is based on customer orders, allowing for flexible production planning and rapid response to production issues[58]. - The company has established a stable raw material supply chain and long-term partnerships with key suppliers, implementing a standardized procurement model to mitigate price volatility risks[57]. - The company has successfully developed and commercialized heat-free aluminum alloys, breaking foreign monopolies and achieving mass production, with applications in high-end electric vehicle battery packs and structural components[79]. Shareholder Relations - No cash dividends will be distributed for the current fiscal year, as the company aims to reinvest profits into growth initiatives[20]. - The stock incentive plan involves granting a total of up to 28.55 million shares, accounting for approximately 4.63% of the company's total share capital[78]. - The company did not distribute cash dividends or bonus shares for the first half of 2022[147].

Group 1: Company Performance Overview - In 2021, the company achieved a revenue of CNY 18.634 billion, a 39.14% increase year-on-year [2] - The net profit attributable to shareholders was CNY 450 million, up 4.04% from the previous year [2] - The functional intermediate alloy segment saw a net profit of CNY 108 million, a 62.02% increase [2] - The recycled aluminum alloy segment's net profit reached CNY 220 million, growing by 79.71% [2] - The aluminum wheel segment's net profit decreased by 49.87% to CNY 122 million due to various market pressures [2] Group 2: Sales and Revenue Data - Total sales volume for 2021 was 8.668 million tons, a 17.12% increase [3] - Recycled aluminum material procurement reached 549,100 tons, a 28.42% increase [3] - The alloy segment's revenue was CNY 1.178 billion, a 44.60% increase [3] - The functional intermediate alloy segment's revenue was CNY 161 million, a 56.06% increase [3] - The aluminum wheel segment's revenue was CNY 524 million, a 24.46% increase [3] Group 3: Market Impact and Future Outlook - The pandemic affected sales of casting alloys and aluminum wheels in Q2, but various factors helped mitigate the impact [4] - The company is focusing on the development of heat-treated aluminum alloys, driven by the automotive industry's shift towards lightweight materials [5] - The company has established partnerships with several new energy vehicle manufacturers, enhancing its market position [6] - The recycled aluminum market is expected to grow due to national policies promoting resource utilization, with a target of 1.2 million tons of recycled aluminum usage [7] - The company is investing in lithium battery materials, including LiPF6 and LiFSI, to address supply shortages and expand its market presence [9]

Financial Performance - The company's operating revenue for Q1 2022 was ¥5,537,676,751.54, representing a 29.12% increase compared to ¥4,288,642,879.91 in the same period last year[4] - The net profit attributable to shareholders for Q1 2022 was ¥134,255,376.67, a slight increase of 0.77% from ¥133,223,595.13 in the previous year[4] - The total operating revenue for the current period reached ¥5,537,676,751.54, an increase from ¥4,288,642,879.91 in the previous period, representing a growth of approximately 29.1%[41] - The total operating profit was 154,956,497.04, down from 181,732,146.35 in the previous period[44] - The total comprehensive income amounted to 137,649,777.04, up from 126,823,018.98 in the previous period[47] - The basic and diluted earnings per share were both 0.22, slightly down from 0.23 in the previous period[47] Cash Flow and Liquidity - The net cash flow from operating activities was -¥951,100,594.04, a decrease of 179.95% compared to -¥339,740,901.51 in the same period last year[4] - The operating cash flow net amount was -951,100,594.04, worsening from -339,740,901.51 in the previous period[51] - Net cash flow from financing activities was $1.03 billion, compared to $319.07 million, reflecting a significant increase of approximately 222.5%[54] - Cash and cash equivalents at the end of the period totaled $1.70 billion, compared to $1.43 billion, marking an increase of about 18.8%[54] - The company reported a net decrease in cash and cash equivalents of -$172.01 million, slightly worse than the -$159.66 million in the previous period[54] - Cash outflow from investing activities totaled $842.86 million, compared to $565.11 million, indicating an increase of approximately 48.9%[54] Assets and Liabilities - Total assets at the end of Q1 2022 were ¥15,155,198,093.89, up 5.35% from ¥14,385,616,003.18 at the end of the previous year[7] - The total liabilities rose to ¥9,727,086,076.22, compared to ¥9,101,160,300.87 at the beginning of the year, which is an increase of approximately 6.9%[40] - The company reported a significant increase in financial liabilities, with current liabilities due within one year rising by 44.04% to ¥1,066,145,723.73[9] - The total current assets amounted to ¥11,084,527,652.51, up from ¥10,435,206,949.79 at the beginning of the year, reflecting a growth of approximately 6.2%[36] - The total non-current assets increased to ¥4,070,670,441.38 from ¥3,950,409,053.39, marking a rise of about 3.0%[36] Shareholder Information - Total number of common shareholders at the end of the reporting period is 18,529, with Tianjin Dong'an Brothers Co., Ltd. holding 36.95% of shares[13] - The top five individual shareholders, including Wei Yongxing and Wei Yana, each hold 5.25% of shares, with significant portions pledged[13] - The company has a significant concentration of ownership, with the top 10 shareholders holding a substantial percentage of total shares[19] - The company is subject to high levels of share pledges among its major shareholders, indicating potential liquidity risks[20] - The controlling shareholder and actual controller held 443,971,910 shares, representing 71.96% of the total shares, with 61,445,900 shares pledged[31] Research and Development - The company's R&D expenses increased by 33.69% to ¥120,619,599.75, compared to ¥90,220,020.58 in the same period last year, indicating a focus on new product development[12] - Research and development expenses increased to 120,619,599.75 from 90,220,020.58, reflecting a focus on innovation[44] Operational Challenges - The gross profit margin decreased due to a 30.67% increase in operating costs, which reached ¥5,085,717,403.34, primarily due to rising aluminum prices[12] - The total operating costs for the current period were ¥5,420,275,365.29, compared to ¥4,169,497,941.69 in the previous period, indicating an increase of about 29.9%[41] - The company experienced a decrease in investment income from joint ventures, reporting -798,516.66 compared to -793,403.64 in the previous period[44] Strategic Initiatives - The company plans to enhance its aluminum alloy wheel production capacity through the investment in the Daye Automotive Wheel Production Base project, which has been registered and licensed[28] - The company has initiated a restricted stock incentive plan, granting 22,227,700 shares at a price of 11.09 yuan per share[31] - The company’s investment in the Daye project is expected to lower overall operating costs through local government support[28] Miscellaneous - The first quarter report was not audited, which may affect the reliability of the financial data presented[55] - The company has not disclosed any new product developments or market expansion strategies in the current report[18] - There are no new mergers or acquisitions reported in the latest financial disclosures[18]

Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the last fiscal year[22]. - The company's operating revenue for 2021 was ¥18,633,677,143.07, representing a 39.14% increase compared to the previous year[28]. - The net profit attributable to shareholders for 2021 was ¥450,040,854.05, which is a 4.04% increase from the previous year[28]. - The total assets at the end of 2021 amounted to ¥14,385,616,003.18, reflecting a 27.28% increase from the end of 2020[32]. - The net assets attributable to shareholders increased by 21.21% to ¥5,067,632,998.85 at the end of 2021[32]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥921,588,292.72 in 2021, a decrease of 354.63% compared to the previous year[32]. - The basic earnings per share for 2021 remained at ¥0.75, unchanged from the previous year[32]. - The company reported a total of ¥96,235,708.67 in non-recurring gains and losses for 2021, down from ¥121,443,142.60 in 2020[38]. - The weighted average return on equity for 2021 was 9.72%, a decrease of 1.12% from the previous year[32]. - The company achieved a revenue of 18.634 billion yuan, a year-on-year increase of 39.14%[71]. - The net profit attributable to shareholders was 450 million yuan, up 4.04% year-on-year[71]. Market Expansion and Strategy - The company is focusing on expanding its market presence, particularly in the lightweight alloy sector, aiming for a 20% increase in market share over the next two years[22]. - The company is exploring potential mergers and acquisitions to enhance its competitive edge in the industry[22]. - The company has established strategic cooperation agreements with downstream die-casting and vehicle manufacturers to meet the rapid development needs of the passenger car industry for integrated die-casting components[50]. - The company is actively collaborating with several new energy vehicle manufacturers, including NIO and Xpeng, to provide aluminum alloy wheel products, establishing a solid market foundation[48]. - The company is positioned as one of the largest recycled aluminum casting alloy producers in China, aligning with national carbon peak and carbon neutrality goals[46]. - The company plans to expand its recycling and production capacity for recycled aluminum in Thailand and Mexico, aiming for dual circulation development domestically and internationally[193]. - The aluminum alloy wheel segment will enhance its domestic production strategy and accelerate overseas capacity construction in Thailand and Mexico to maximize scale efficiency[195]. Research and Development - The company is investing in technology upgrades, with a budget of 50 million yuan allocated for R&D in the upcoming year[22]. - The company has established a strong R&D team of over 50 members, leading to 23 invention patents and 60 utility model patents in the functional intermediate alloy new materials field[67]. - R&D investment reached ¥551,648,474.10 in 2021, representing 2.96% of operating revenue, up from 2.54% in 2020[135]. - The number of R&D personnel increased to 1,673 in 2021, a growth of 14.43% compared to 1,462 in 2020[131]. - The company has developed a unique low-Mo modification technology, reducing Mo content to 1/5-1/7 of international counterparts, enhancing competitiveness while lowering costs by 15%-20%[48]. - The company is developing a new aluminum alloy with a thermal conductivity of 195-201 W/m.K, aiming to reach 210 W/m.K in the future[103]. - The project for high-strength, heat-free aluminum alloy has achieved patent certification, breaking foreign monopolies in this field[103]. - The company has developed lightweight aluminum materials with tensile strength of 445 MPa, yield strength of 315 MPa, and elongation of 14.0%[109]. Production and Capacity - The company has a total production capacity of 1.3 million tons across various production bases, enhancing its market competitiveness and reducing operational risks[66]. - The aluminum alloy wheel production capacity stands at 20 million units, with a sales volume of 6.585 million units, contributing to significant revenue[64]. - The company’s aluminum alloy wheel production reached 15.5 million units, a 12.87% increase from 13.73 million units in the previous year[62]. - The sales volume of aluminum alloy wheels was 14.69 million units, up 9.55% from 13.41 million units year-on-year[62]. - The company has completed the construction of a demonstration plant for aluminum ash resource utilization, with a capacity of 100,000 tons, enhancing resource utilization efficiency[80]. - The company has established a stable raw material supply chain and long-term partnerships with key suppliers to mitigate price volatility risks[57]. Sustainability and Environmental Commitment - The company is committed to sustainability, with plans to increase the use of recycled aluminum by 25% in its production processes[22]. - The company has achieved a recycled aluminum resource procurement volume of 549,100 tons in 2021, an increase of 28.42% year-on-year, maintaining its leading position in the industry[46]. - The development of a water-based coating process for aluminum alloy wheels has achieved 100% compliance with national standards, reducing VOC emissions[112]. - The VOC zero-emission technology has lowered emissions and improved market competitiveness by reducing waste treatment costs[125]. - The company plans to replace part or all of the electrolytic aluminum with 100% recycled aluminum in the production of A356 alloy castings, meeting low-carbon manufacturing requirements[103]. Financial Management and Risks - The company is facing risks from fluctuations in raw material prices, particularly electrolytic aluminum and recycled aluminum, which are closely linked to market prices[197]. - The company is exposed to foreign exchange risks due to significant operations in multiple countries, and it plans to use forward foreign exchange contracts to mitigate these risks[198]. - The company is monitoring international trade environment changes that could impact its export business, particularly in light of uncertainties in US-China trade relations[199]. - The net cash flow from operating activities was -921,588,292.72 CNY, significantly lower than the net profit of 474,359,750.01 CNY, mainly due to a sharp rise in raw material prices and increases in accounts receivable and inventory[139]. - The total cash inflow from financing activities increased by 53.72% to ¥7,860,312,080.20 in 2021[136]. Investment and Acquisitions - The company completed an acquisition of Baoding Longda Aluminum Industry Co., with an investment amount of CNY 310.50 million, holding a 39.79% stake[152]. - The company has invested CNY 123.57 million in a lightweight aluminum alloy wheel project, with a cumulative actual investment of CNY 231.89 million as of the report date[153]. - The company reported a total of CNY 641.21 million in investments across various projects, with a cumulative actual investment of CNY 1,275.01 million[156]. - The project for producing 400 million lightweight aluminum alloy wheels and 100 million sets of high-strength aluminum suspension parts has been transferred to the subsidiary New Thai Wheel Manufacturing Co., Ltd.[181]. - The company has committed a total investment of CNY 40,000 million for the project of producing 1.4 million lightweight aluminum alloy wheels and 1 million sets of high-strength aluminum suspension parts, with an adjusted investment amount of CNY 22,335.49 million[164].

Financial Performance - The company's revenue for Q3 2021 reached ¥4,438,323,279.13, representing a 20.10% increase year-over-year, while year-to-date revenue was ¥13,103,608,686.11, up 44.77% compared to the same period last year[4]. - Net profit attributable to shareholders for Q3 2021 was ¥61,326,587.76, a decrease of 48.82% year-over-year, with year-to-date net profit at ¥336,803,269.49, an increase of 15.90%[4]. - The total operating revenue for the third quarter of 2021 reached CNY 13,103,608,686.11, a significant increase from CNY 9,051,179,361.05 in the same period last year, representing a growth of approximately 45.1%[49]. - The net profit attributable to the parent company for the third quarter of 2021 was CNY 1,249,181,000, reflecting a year-on-year increase of approximately 50%[49]. - The total comprehensive income attributable to the parent company was CNY 263,084,605.26, compared to CNY 244,310,485.75 in the previous period, reflecting an increase of about 7.6%[55]. Cash Flow and Assets - The company's cash flow from operating activities showed a net outflow of ¥673,122,328.89, reflecting a significant decline of 642.74% year-over-year[4]. - Cash flow from operating activities showed a net outflow of CNY 673,122,328.89, a significant decrease compared to a net inflow of CNY 124,022,225.63 in the previous period[58]. - The company's total assets as of September 30, 2021, amounted to CNY 13,327,026,267.51, up from CNY 11,302,174,952.91 at the end of 2020, marking an increase of about 17.9%[48]. - The total current assets increased to CNY 9,573,746,377.24 from CNY 8,003,920,532.41, representing a growth of approximately 19.6%[42]. - The cash and cash equivalents at the end of the period were CNY 1,508,325,804.27, down from CNY 1,758,234,905.50 in the previous period, indicating a decrease of approximately 14.2%[59]. Segment Performance - The recycled aluminum alloy segment achieved revenue of ¥826,350.46 million, a 51.56% increase year-over-year, with net profit of ¥15,865.68 million, up 89.96%[8]. - The functional intermediate alloy segment reported revenue of ¥116,103.32 million, a 72.15% increase year-over-year, with net profit of ¥8,365.66 million, up 70.79%[9]. - The aluminum alloy wheel segment generated total revenue of ¥367,907.08 million, a 25.81% increase year-over-year, but net profit decreased by 40.29%[13]. Costs and Expenses - Operating costs rose by 47.21% to CNY 11,878,095,945.97, driven by increased sales volume and rising raw material prices[19]. - Research and development expenses increased by 42.72% to CNY 350,880,317.27, reflecting higher investment in R&D[19]. - The company plans to improve cost efficiency and respond to market changes by optimizing product structure and adjusting pricing models in light of rising raw material costs[15]. Shareholder Information - Shareholders' equity attributable to the parent company was ¥4,962,843,444.00, reflecting an 18.71% increase from the end of the previous year[4]. - The company reported a total of 21,600,000 shares held by Zang Yonghe, representing 3.50% of the total shares[23]. - The largest foreign shareholder is Japan Metal Co., Ltd., holding 13,435,917 shares, accounting for 2.18%[23]. - The top 20 shareholders include several family members of the Zang family, indicating a strong family influence in the company's ownership structure[26]. Future Plans and Investments - The company is accelerating the construction of a new energy lithium battery materials project, which has received strong government support and is expected to enhance profitability upon completion[14]. - The company plans to invest RMB 1.2 billion in a new energy lithium battery material project, with the first phase scheduled from November 2021 to March 2023 and the second phase from April 2023 to August 2024[37]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[49]. Other Information - The report highlights that the company has not identified any new strategies or significant market expansions during this quarter[28]. - There are no new product developments or technological advancements reported in this quarter[28]. - The company has not provided any specific future guidance or performance outlook in the current report[28]. - The company has not audited its third-quarter report for 2021[70].

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2021, representing a year-on-year increase of 15%[22]. - The net profit attributable to shareholders reached 150 million RMB, up 20% compared to the same period last year[22]. - The company's operating revenue for the reporting period was ¥8,665,285,406.98, representing a 61.80% increase compared to the previous year's adjusted revenue of ¥5,355,545,470.77[32]. - The net profit attributable to shareholders was ¥275,476,681.73, a 61.32% increase from the previous year's adjusted net profit of ¥170,763,974.79[32]. - The net profit after deducting non-recurring gains and losses was ¥227,367,887.69, showing a significant increase of 116.38% compared to the previous year's adjusted figure of ¥105,079,245.42[32]. - Future guidance estimates a revenue growth of 12% for the second half of 2021, driven by increased demand in the automotive sector[22]. - The company reported a net cash flow from operating activities of -¥218,484,938.48, indicating a significant decrease of 139.62% compared to the previous year's cash flow of ¥551,473,369.60[32]. - The company reported a 20.15% increase in revenue from international markets, reaching ¥1,734,490,781.02, highlighting its global expansion efforts[85]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[22]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[22]. - The company is actively pursuing overseas acquisitions and independent research and development to enhance its product technology and market share[51]. - The company is actively expanding its recycled aluminum production capacity and market layout, with new production bases being established in Jiangsu and Hubei provinces[71]. - The company is investing in a new energy lithium battery material project, producing lithium hexafluorophosphate and lithium bis(fluorosulfonyl)imide to alleviate supply shortages for electric vehicle customers[57]. Research and Development - Research and development expenses increased by 25% to 100 million RMB, focusing on new alloy materials and recycling technologies[22]. - The company has achieved a technological breakthrough in high-end aluminum grain refiners, reducing the addition rate by 70% compared to standard products, enhancing product quality and reducing production costs[44]. - The company has developed new aluminum alloy materials, including LDHM-02, which reduces production costs and enhances vehicle safety and performance[75]. - Research and development expenses rose to ¥219,531,820.22, marking a 47.36% increase compared to the previous year, indicating a commitment to innovation[82]. Environmental Management - The company reported total emissions of 0.5425 tons/year for particulate matter and 3.648 tons/year for sulfur dioxide[153]. - The company has 18 organized discharge outlets for pollutants[153]. - The company plans to implement stricter emission standards starting February 1, 2021, in accordance with GB31574-2015[156]. - The company achieved a total annual emission of 0.67 tons for sulfur dioxide, 7.19 tons for nitrogen oxides, and 3 tons for particulate matter[156]. - The company has implemented a selective catalytic reduction (SCR) system for nitrogen oxides reduction, operational since 2019 with a 90% efficiency[175]. - The company operates a dust removal system with a 99% efficiency, established in 2015[178]. - The company has obtained national pollutant discharge permits for all major projects, ensuring that emissions meet regulatory requirements[182]. Production and Capacity - The company is positioned as a global supplier of lightweight alloy new materials and automotive lightweight components, with a complete industrial chain from R&D to manufacturing[44]. - The company has a production capacity of 70,000 tons in the functional intermediate alloy new materials sector, with an additional 25,000 tons of high-end grain refining agent production line completed and a 50,000 tons aluminum-based rare earth intermediate alloy project under construction[59]. - The company’s aluminum alloy wheel production capacity is 18 million units, with a mold capacity of 1,200 sets and assembly capacity of 300,000 sets, showcasing significant scale advantages[59]. - The company has achieved a year-on-year increase of 26.7% and 31.3% in production and sales compared to the same period in 2019, with a significant growth in new energy vehicles[55]. Risk Management - The company faces risks related to raw material price fluctuations and has implemented measures to mitigate these risks[6]. - The company is exposed to foreign exchange risks due to fluctuations in the RMB/USD exchange rate, which may affect its consolidated profit levels[136]. - The company is actively monitoring international trade environment changes that could impact its export business, particularly in the context of US-China trade relations[137]. - The company is expanding its business scope, which necessitates adjustments in management practices to mitigate risks associated with scale expansion[138]. Corporate Governance - The company has no plans to distribute cash dividends or issue bonus shares for the current fiscal year[7]. - The first extraordinary general meeting of 2021 had an investor participation rate of 79.71%[144]. - The annual general meeting for 2020 had an investor participation rate of 74.11%[144]. - The company changed its name from "SITONG New Materials" to "LIZHONG Group" to reflect its expanded business scope and strengthen brand image[70].