Financial Performance - In the first half of 2021, the company achieved significant growth in operating performance, driven by technological innovation and market recovery, with a notable increase in sales of fluorosilicone materials[7]. - The company recorded revenue of approximately RMB 6,470,878,000 for the six months ended June 30, 2021, representing a 39.57% increase from RMB 4,636,363,000 in the same period last year[20]. - The company’s net profit for the period was approximately RMB 794,790,000, up from RMB 446,747,000 in the same period of 2020[20]. - The company’s operating profit margin was 16.13%, an increase from 12.17% in the previous year[20]. - The company reported a total profit before tax of RMB 997,895 for the six months ended June 30, 2021, reflecting strong operational performance[96]. - The company reported a total comprehensive income of RMB 705,868 thousand for the period, significantly higher than RMB 248,184 thousand in the same period last year, representing an increase of approximately 184.5%[77]. Revenue Growth by Segment - The fluoropolymer materials division reported external sales of RMB 1,942,387,000, an increase of 28.92% compared to RMB 1,506,705,000 in the same period last year, accounting for 30.02% of total external sales[25]. - The refrigerants division's external sales reached RMB 1,223,303,000, a growth of 17.70% from RMB 1,039,330,000 last year, representing 18.90% of total external sales[27]. - The organic silicon division's external sales increased by 41.97% to RMB 1,610,491,000 from RMB 1,134,350,000 last year, accounting for 24.89% of total external sales[29]. - The division for dichloromethane, PVC, and caustic soda reported external sales of RMB 749,218,000, a 23.98% increase from RMB 604,323,000 last year, but profits decreased by 65.01% to RMB 9,332,000[30]. Research and Development - Research and development expenditure reached RMB 303 million, a year-on-year increase of 51.08%, accounting for 4.68% of total revenue, with 24 new product development projects completed[11]. - A total of 40 patents were granted to the company during the review period, reflecting its commitment to innovation in the fluorosilicone materials sector[11]. - The company has established six laboratories in major cities and countries, enhancing its ability to attract high-end talent and collaborate with academic institutions[11]. Production Capacity and Expansion Plans - The company plans to accelerate the construction of key product projects, including a 20,000-ton PTFE project and a 30,000-ton organic silicon monomer project, aiming for production by the end of the year[9]. - The company aims to double its organic silicon production capacity by the end of the year through ongoing project advancements[9]. - The company plans to expand PVDF production capacity to 55,000 tons and R142b production capacity to 100,000 tons by 2025, focusing on the unique advantages of the R152a-R142b-VDF-PVDF supply chain[14]. Environmental and Safety Initiatives - The company is also focusing on environmental safety projects, including acid recovery and wastewater recycling initiatives[9]. - The company’s safety reserve, required by regulations, amounted to RMB 4,823,000, reflecting compliance with safety regulations in China[84]. Shareholder and Governance Matters - The board did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[44]. - The company has established a Corporate Governance Committee effective from March 21, 2013, to oversee corporate governance matters[52]. - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which are held by the same individual[58]. Financial Position and Liabilities - As of June 30, 2021, total equity reached RMB 10,886,581,000, a 3.38% increase from December 31, 2020, with cash and bank balances totaling RMB 4,310,707,000[39]. - The group’s total borrowings amounted to RMB 1,999,954,000 as of June 30, 2021, compared to RMB 1,904,550,000 on December 31, 2020, with a negative debt ratio of -26.94%[40]. - The company’s total liabilities as of June 30, 2021, were RMB 2,099,723,000, reflecting a manageable debt level in relation to its equity[82]. Employee and Management Information - The group employed 5,956 staff as of June 30, 2021, an increase from 5,576 employees on December 31, 2020[43]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2021, was RMB 17,006,000, a decrease of 6.9% from RMB 18,274,000 in the same period of 2020[136]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 1,209,438, an increase of 16.8% compared to RMB 1,035,431 for the same period in 2020[87]. - The net cash used in investing activities was RMB (1,128,644), slightly higher than RMB (1,056,216) for the same period in 2020[87]. - The company’s cash and cash equivalents at the end of the period were RMB 4,310,707, down from RMB 4,746,135 at the end of the same period in 2020[87].
东岳集团(00189) - 2021 - 中期财报