XINGYE TECH.(SZ:002674)2018-06-01 16:00Financial Performance - The company's operating revenue for the first half of 2017 was ¥913,826,873.22, a decrease of 10.98% compared to ¥1,026,509,401.12 in the same period last year[15]. - Net profit attributable to shareholders increased by 151.61% to ¥24,169,143.57 from ¥9,605,890.56 year-on-year[15]. - The net profit after deducting non-recurring gains and losses rose by 162.51% to ¥19,635,173.87 compared to ¥7,479,742.54 in the previous year[15]. - The basic earnings per share increased by 101.51% to ¥0.0800 from ¥0.0397 in the same period last year[15]. - The company's operating revenue for the current period is ¥913,826,873.22, a decrease of 10.98% compared to ¥1,026,509,401.12 in the same period last year, primarily due to a reduction in sales volume[38]. - The operating cost decreased by 12.52% to ¥822,752,291.33 from ¥940,550,912.88, also attributed to the decline in sales volume[38]. - The gross profit margin for the leather industry was 10.09%, reflecting a decrease of 1.80 percentage points compared to the previous year[43]. - The company reported a net increase in cash and cash equivalents of -¥217,053,701.76, a decrease of 207.35% from -¥70,621,807.98 in the same period last year, primarily due to increased payments for raw materials[38]. - The company reported a total of 138,300 million CNY in committed investment projects[57]. - The company reported a total comprehensive income for the first half of 2017 of CNY 24,149,373.59, compared to CNY 9,623,238.11 in the same period last year, an increase of 151.00%[178]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥298,189,990.49, a decline of 330.14% compared to ¥129,566,828.61 in the same period last year[15]. - Cash flow from operating activities was negative CNY 298,189,990.49, a decline of 330.14% year-on-year, mainly due to increased payments for raw material procurement[31]. - The company reported a total cash inflow from financing activities of 146,086,685.32 CNY, down from 391,573,232.12 CNY in the previous period[186]. - The net cash flow from investing activities was -14,808,193.12 CNY, an improvement from -30,457,602.14 CNY in the previous period[185]. - The company received 150,560,920.32 CNY in borrowings during the financing activities, a decrease from 347,688,675.92 CNY in the previous period[185]. - The company has invested CNY 719.69 million in the high-end leather finishing technology project, achieving 99.44% of the expected investment progress[55]. - The company plans to invest 13,487.43 million CNY in the annual processing expansion project for 150,000 pieces of wet blue cowhide, which accounts for 20.06% of the net raised funds[57]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,812,141,543.45, reflecting a growth of 4.69% from ¥2,686,161,891.25 at the end of the previous year[15]. - The total liabilities increased to CNY 482,061,085.32 from CNY 334,904,044.91, reflecting a growth of approximately 43.93%[170]. - The total equity attributable to shareholders decreased to CNY 2,330,080,458.13 from CNY 2,351,257,846.34, a decline of about 0.90%[171]. - The company's cash and cash equivalents decreased to CNY 740,832,553.87 from CNY 954,080,724.26, a decline of about 22.36%[168]. - The total amount of raised funds is CNY 138,236.48 million, with CNY 1,611.14 million invested during the reporting period[52]. Market Position and Strategy - The company maintains the largest market share in the domestic cowhide upper leather sector, producing over 120 million square feet annually[22]. - The company has established long-term partnerships with well-known domestic brands, including Disanna and Belle, focusing on high-end market segments[23]. - The company is actively expanding its customer base while deepening cooperation with existing clients in key regions such as Wenzhou and Guangzhou[32]. - The company is focusing on expanding its market presence and enhancing product development strategies[192]. - The company has a leading advantage in technology innovation and product development, as well as scale production and cost advantages to meet high-end customer demands[76]. Environmental Responsibility - The company emphasizes the importance of environmental protection and has increased investment in environmental management and supervision systems to comply with stricter regulations[72]. - The company has implemented a comprehensive wastewater treatment system, focusing on the separation and targeted treatment of five types of wastewater, including chromium and sulfur wastewater[115]. - The company has a robust air pollution control system, including desulfurization and dust removal facilities for boiler emissions, ensuring compliance with environmental standards[127]. - The company maintained compliance with all national pollution discharge standards, with no instances of exceeding limits reported during the reporting period[139]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 10,897[150]. - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 28.04% of shares, totaling 84,744,000 shares[151]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[84]. - The company has committed to a cash dividend policy where the minimum proportion of cash dividends should reach 80% during profit distribution in the mature development stage without significant capital expenditure[87].