KEHUA HENGSHENG(SZ:002335)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥2,220,184,071.63, representing a 30.72% increase compared to ¥1,698,368,811.31 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was ¥185,618,063.92, up 71.79% from ¥108,049,076.18 in the previous year[27]. - The net profit after deducting non-recurring gains and losses was ¥174,723,700.75, an increase of 84.81% compared to ¥94,543,350.66 in the same period last year[27]. - The basic earnings per share increased to ¥0.40, a rise of 73.91% from ¥0.23 in the previous year[27]. - The total assets at the end of the reporting period were ¥9,186,592,212.44, reflecting a 10.29% increase from ¥8,329,230,104.73 at the end of the previous year[27]. - The net assets attributable to shareholders of the listed company were ¥3,287,225,109.68, which is a 1.63% increase from ¥3,234,604,059.99 at the end of the previous year[27]. - The net cash flow from operating activities was -¥173,307,804.94, a significant decline of 334.65% compared to -¥39,873,013.72 in the same period last year[27]. - The weighted average return on equity was 5.62%, an increase of 2.20% from 3.42% in the previous year[27]. Business Development - The data center business maintained stable growth, with the company holding a leading market share in China's micro-module data center sector from 2020 to 2021[38]. - The company launched the world's first 125KW UPS power module, enhancing its data center product technology[38]. - The company signed an agreement with Tencent for the construction of a data center, with a total expected amount of approximately CNY 270 million[38]. - In the renewable energy sector, the company introduced the world's largest string inverter with a capacity of 350kW, marking a significant technological advancement[41]. - The company provided a 1500V outdoor centralized inverter solution for a 260MW photovoltaic project in Zhangbei County, contributing to low-carbon energy for the 2022 Beijing Winter Olympics[42]. - The company is expanding its overseas market presence, with products successfully applied in countries such as India, Ukraine, and Brazil[42]. - The company aims to leverage its expertise in energy storage to support the dual carbon goals in China, focusing on innovative applications in renewable energy[42]. - The smart power business achieved steady growth across various sectors including finance, communication, public services, rail transit, industry, and nuclear power during the reporting period[43]. Research and Development - The company increased its R&D investment, focusing on customer needs and cutting-edge technologies, maintaining a leading position in data centers, smart energy, and new energy sectors[44]. - The company completed 118 patent applications and 83 patent grants in the first half of 2021, with a total of 1,165 valid intellectual property rights by the end of June 2021[44]. - Research and development investment rose by 6.21% to ¥121,343,483.02 from ¥114,251,630.20, indicating a continued focus on innovation[55]. - The company has partnered with leading universities and research institutions to enhance its innovation capabilities and improve the commercialization efficiency of its research outcomes[44]. Market and Competition - The company plans to continue expanding its market presence in the renewable energy and IDC sectors, despite facing increased competition and regulatory challenges in major cities[74]. - The company has strengthened its accounts receivable management to reduce the risk of delayed payments, as the rapid expansion of its business has led to a significant increase in accounts receivable[74]. - The company is committed to increasing R&D investment to drive innovation, which may lead to higher operational costs and potential market competitiveness risks[75]. Corporate Governance and Social Responsibility - The company maintains transparent communication with investors, ensuring equal access to information and protecting minority shareholders' rights[90]. - The company actively participates in social responsibility initiatives, including community development and educational support, integrating profit pursuit with social responsibility[91]. - The company donated 1 million RMB to support flood relief efforts in Henan through the Xiamen Red Cross Society in 2021[91]. - The "Kehua, Chen Jianping Old District Talent Scholarship" awarded scholarships to 145 outstanding students in Zhangzhou Revolutionary Old District, contributing to over 5,000 students since its inception[91]. - The company emphasizes employee training and health, organizing regular health check-ups and various recreational activities to enhance employee engagement[90]. - The company has established a competitive talent mechanism to attract and retain employees, focusing on integrity, innovation, and continuous improvement[90]. Financial Management - The company did not distribute cash dividends or issue new shares during the reporting period[81]. - The company has committed to a shareholder return plan for 2021-2023, prioritizing cash dividends, with a minimum cash distribution of 10% of the distributable profits for the year[101]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[112]. - There are no instances of illegal external guarantees reported during the reporting period[113]. - The company reported no penalties or rectifications during the reporting period[120]. - The company did not engage in any asset or equity acquisitions or sales during the reporting period[122]. Legal Matters - The company is involved in a lawsuit regarding equity transfer disputes with a claimed amount of CNY 38.04 million, which is still under trial and has not been adjudicated[116]. - Another lawsuit related to equity transfer disputes has a claimed amount of CNY 51.37 million, also pending trial and not yet adjudicated[116]. - The company filed a lawsuit on April 28, 2021, regarding equity transfer disputes with a claimed amount of CNY 283.99 million, which is still under trial and has not been adjudicated[119]. Assets and Liabilities - The company's cash and cash equivalents as of June 30, 2021, were approximately ¥356.53 million, a decrease from ¥772.33 million at the end of 2020[186]. - Accounts receivable increased to approximately ¥2.13 billion from ¥1.70 billion year-over-year, reflecting a growth of about 25.4%[186]. - The company’s total assets included cash and cash equivalents of ¥356,532,164.73, which accounted for 3.88% of total assets, down from 9.27% the previous year[62]. - Long-term borrowings increased to ¥2,230,334,989.98, representing 24.28% of total liabilities, up from 21.61% the previous year[62]. - Total liabilities reached CNY 5,707,652,895.25, compared to CNY 4,838,419,395.11, marking an increase of about 17.9%[192].