Financial Performance - The total turnover for the six months ended June 30, 2021, was RMB 200,135,505.89, representing a decrease of approximately 4.47% compared to the same period last year[9]. - Total operating revenue for the first half of 2021 was RMB 200,135,505.89, a decrease of 4.9% compared to RMB 209,496,937.20 in the same period last year[199]. - The company reported a net financial expense of RMB -3,811,679.29 for the first half of 2021, compared to RMB -2,039,632.64 in the same period last year[199]. - Operating profit for the current period was reported at -$17,800,621.38, compared to -$25,433,022.14 in the same period last year, indicating a reduction in losses[200]. - Profit before tax for the current period was -$17,762,187.01, an improvement from -$20,635,207.87 in the preceding period[200]. - The overall financial performance indicates a trend towards reduced losses in several key areas compared to the previous year[200]. Sales and Revenue - Total sales of copper cables, optical cables, optical fibers, and related products amounted to RMB 193,245,631.41, a decrease of approximately 7.47% year-on-year[10]. - Sales of optical fibers by Chengdu SEI amounted to RMB 70,957,250.73, reflecting a decrease of 0.37% compared to the previous year[10]. - Sales from Chengdu Zhongling increased by 69.62% to RMB 20,188,649.28 compared to the same period last year[10]. - The decline in revenue was primarily due to a downturn in the optical fiber market, with decreased sales volume and unit price, as well as a decline in revenue from ZTE cables[11]. Assets and Liabilities - As of June 30, 2021, the Group's total assets amounted to RMB1,061,673,852.20, an increase of 0.16% from RMB1,059,989,968.23 at the end of the previous year[57]. - The total current assets were approximately RMB749,176,848.03, accounting for 70.57% of total assets, representing a 2.42% increase from RMB731,485,904.53 at the end of last year[58]. - The Group's total liabilities amounted to RMB176,498,363.65, with a liability-to-total-asset ratio of 16.62%, up 1.85% from 14.77% at the end of the previous year[60]. - Total liabilities increased to RMB 176,498,363.65, up from RMB 156,580,028.65, reflecting a growth of approximately 12% year-over-year[190]. - Total equity attributable to the parent company decreased to RMB 800,757,686.05 from RMB 814,125,905.01, a decline of about 1.5%[190]. Production and Operations - The Group's output for the first half of the year doubled compared to the same period last year, with reduced production consumption[26]. - The Group focused on price negotiations with major raw material suppliers to reduce procurement costs and increased efforts in selling higher gross profit optical fibers[17]. - The development of bundled cables and fire-resistant cables has been successful, with the latter winning a bid for projects at Zhuzhou Electric Locomotive Works[38]. - The Group is preparing for trial production of silicone rubber cables that meet EN50382 standards and has identified suitable materials for thin-walled cables meeting EN50306 standards[38]. Research and Development - The Company will enhance research and development investments, focusing on high-value products such as high-frequency coaxial cables and special cables, transitioning from mid-low-end to high-end products[106]. - The Company aims to establish a testing center for cables in Chengdu to support product development[106]. - The Company will increase investment in research and development to establish a market-oriented innovation system, focusing on the locomotive cable market and developing high-value-added products[107]. - The Company aims to promote the industrialization of bundled cables and develop silicone rubber cables, along with high-end coaxial cables and special components[107]. Risk Management - The Group faces market risks due to declining demand for its products influenced by advancements in communication technology and competition from substitute products[134]. - Supply chain risks are present due to potential fluctuations in key raw material prices caused by international conditions and the COVID-19 pandemic, which may impact production and sales[141][144]. - The Company will strengthen risk management by integrating it into daily operations and minimizing the impact of risks on performance[128]. - The Company is monitoring foreign exchange rate risks, particularly the USD, to manage import costs and potential foreign exchange losses[135]. Employee and Shareholder Information - The Group's employee count decreased from 625 as of December 31, 2020, to 592 as of June 30, 2021[143]. - Employee remuneration for the six months ended June 30, 2021, was RMB23,350,874.49, an increase from RMB19,649,583.44 in the same period of 2020, representing a growth of approximately 18.3%[143][146]. - The total issued share capital of the Company remained at RMB400,000,000, divided into 400,000,000 shares, with 240,000,000 domestic state-owned shares and 160,000,000 H Shares, representing 60% and 40% of the issued share capital, respectively[149][153]. - The largest shareholder, China Potevio Company Limited, held 240,000,000 shares, accounting for 60% of the issued share capital as of June 30, 2021[150][154]. Governance and Compliance - The Audit Committee reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2021, confirming compliance with applicable accounting standards and laws[178]. - The Company maintained a sufficient public float during the reporting period and as of the report date[173]. - The Company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[176].
四威科技(01202) - 2021 - 中期财报