NAR(SZ:002825)2018-08-06 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 373,570,448.76, representing a 27.77% increase compared to CNY 292,379,604.12 in the same period last year[17]. - The net profit attributable to shareholders was CNY 28,559,313.70, up 48.58% from CNY 19,221,971.97 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 24,695,535.89, reflecting a 33.97% increase compared to CNY 18,433,422.20 in the previous year[17]. - The basic earnings per share increased to CNY 0.28, a rise of 47.37% from CNY 0.19 in the same period last year[17]. - The total assets at the end of the reporting period were CNY 800,242,060.39, which is a 6.58% increase from CNY 750,828,281.84 at the end of the previous year[17]. - The net assets attributable to shareholders increased by 3.26% to CNY 587,501,025.63 from CNY 568,961,667.79 at the end of the previous year[17]. - The company reported a significant decrease in net cash flow from operating activities, which was CNY 16,984,157.70, down 61.32% from CNY 43,912,750.18 in the same period last year[17]. Business Operations - The main business involves the R&D, production, and sales of digital printing materials, with products widely used in outdoor advertising and decorative applications[25]. - The company operates under a "sales-driven production" model, maintaining appropriate inventory levels[25]. - The company achieved a revenue of CNY 373.57 million in the first half of 2018, representing a year-on-year increase of 27.77%[39]. - The company added 7 new patents during the reporting period, including 1 invention patent, enhancing its R&D capabilities[39]. - The company has established a stable management team and implemented a second phase of the equity incentive plan, involving 117 management and key employees[39]. - The company has improved its marketing service system and expanded its market share through regionalization strategies[39]. - The company has a strong focus on continuous R&D, with significant investments in its technology R&D center to boost core competitiveness[39]. - The company has developed a comprehensive quality management system certified by ISO9001:2015, ensuring product quality and operational efficiency[33]. - The company has established stable partnerships with leading enterprises in the industry, enhancing its brand influence and market position[32]. - The company offers a diverse range of digital printing materials, catering to specific customer needs and providing a "one-stop" service[31]. - The "NAR" brand has gained recognition as a famous trademark in Shanghai and has received multiple awards for quality, enhancing its market reputation[36]. Market and Sales - Sales of single-layer membranes surged by 68.39% to ¥69,097,029.56, attributed to enhanced marketing network and increased market share[46]. - The sales in the Americas and Australia region grew by 97.14% to ¥105,511,500.58, driven by significant demand shifts due to political activities in South America[46]. - The company reported a significant increase in sales from the Central and Southern China regions, with growth rates of 70.41% and 175.90%, respectively, due to enhanced domestic marketing efforts[46]. Investments and Funding - The total amount of raised funds is RMB 19,325 million, with RMB 2,803.64 million invested during the reporting period[57]. - Cumulative investment of raised funds reached RMB 8,334.30 million as of June 30, 2018[60]. - The balance of raised funds as of June 30, 2018, is RMB 11,721.20 million, including RMB 621.20 million in special accounts and RMB 11,100.00 million in bank financial products[60]. - The high-performance digital printing material production project (Phase III) has a total investment of RMB 15,134.41 million, with 42.36% of the investment completed by November 30, 2018[61]. - The digital printing material engineering technology research center project has a total investment of RMB 2,636.73 million, with 61.51% of the investment completed by November 30, 2018[61]. - The domestic marketing network construction project has a total investment of RMB 1,563.91 million, with 19.58% of the investment completed by November 30, 2018[61]. - The company received RMB 287.06 million from financial product returns during the reporting period[60]. Shareholder and Equity Information - The company has approved a second stock option incentive plan, granting a total of 951,500 stock options, which represents 0.95% of the company's total share capital[86]. - The company completed the second phase of the stock option incentive plan, granting a total of 1,276,100 shares, which accounts for 0.91% of the total shares at the time of the plan signing[88]. - Of the granted stock options, 1,024,100 shares were allocated, representing 80.25% of the total granted rights[88]. - The company repurchased and canceled 108,050 restricted shares due to employees leaving and not meeting incentive conditions, reducing the total share capital from 100,310,000 to 100,201,950 shares[106]. - Following the 2017 annual equity distribution, the total share capital increased to 140,282,730 shares, with a distribution of 1.00 yuan per 10 shares and a capital reserve conversion of 4 shares for every 10 shares[106]. - The total number of ordinary shareholders at the end of the reporting period was 13,903[112]. - Major shareholder You Aiguo holds 33.33% of the shares, while Wang Shuming holds 17.49%[113]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[115]. Risk Factors - The company is facing risks related to market competition, particularly from international firms with advanced technology and market share[71]. - The company recognizes the cyclical nature of market demand for digital printing materials, influenced by macroeconomic conditions and political activities[72]. - The main raw materials, including PVC film and resin, account for approximately 70% of production costs, with potential risks of price increases in the second half of the year[71]. Compliance and Governance - The financial report for the first half of 2018 was not audited[126]. - The company has not engaged in any significant non-equity investments during the reporting period[54]. - The company has not engaged in any securities or derivative investments during the reporting period[55]. - The company has disclosed that there are no violations in the management and use of fundraising funds[62]. - The company has not experienced any major litigation or arbitration matters during the reporting period[83]. - The company has not undergone any bankruptcy restructuring during the reporting period[82]. - The company has not engaged in any significant related party transactions during the reporting period[89][90][91][92][93]. - There were no major contracts or guarantees during the reporting period[94][97][98]. - The company has no significant environmental protection issues and is not listed as a key pollutant unit by environmental authorities[99]. - The company has not reported any significant social responsibility initiatives related to poverty alleviation during the reporting period[101][102]. - There were no major matters requiring explanation during the reporting period[102]. Accounting Policies - The financial statements have been approved by the board on August 3, 2018, for external reporting[164]. - The accounting policies comply with the requirements of enterprise accounting standards, ensuring a true and complete reflection of the company's financial status[167]. - The accounting treatment for business combinations under common control measures the acquired assets and liabilities at the book value in the consolidated financial statements of the final controlling party[170]. - For business combinations not under common control, goodwill is recognized when the purchase cost exceeds the fair value of identifiable net assets acquired[170]. - The consolidated financial statements include all subsidiaries controlled by the parent company, prepared according to relevant accounting standards[171]. - Cash and cash equivalents are defined as cash on hand and deposits that are readily available for payment[172]. - Foreign currency transactions are converted to RMB using the spot exchange rate on the transaction date, with exchange differences recognized in the current profit or loss[173]. - Financial assets are classified into four categories at initial recognition, including those measured at fair value with changes recognized in profit or loss[174]. - The company measures financial assets at fair value, with certain exceptions for held-to-maturity investments and loans[175]. - Gains or losses from changes in the fair value of financial assets are recognized in profit or loss, except for those related to hedging[176]. - The fair value of financial assets and liabilities is determined using valuation techniques based on observable and unobservable inputs[178]. - Impairment testing for financial assets is conducted at the balance sheet date, and impairment provisions are recognized if objective evidence of impairment exists[178]. - The company conducts impairment testing for significant financial assets individually, while minor assets can be tested individually or grouped by similar credit risk characteristics[179]. - The aging analysis method is used for provisioning bad debts, with rates of 5% for receivables within 1 year, 10% for 1-2 years, 40% for 2-3 years, and 100% for over 3 years[182].