QSY Tech(SZ:300437)2025-02-28 10:14Financial Performance - The company's operating revenue for the current period is ¥564,806,474.01, representing a 0.85% increase compared to ¥560,055,919.70 in the same period last year[23]. - The net profit attributable to shareholders is -¥44,213,184.27, a significant decline of 398.96% from -¥8,861,085.09 in the previous year[23]. - The net cash flow from operating activities has improved to ¥50,201,909.74, a remarkable increase of 2,818.05% compared to -¥1,846,980.02 in the same period last year[23]. - The total assets at the end of the reporting period are ¥2,653,508,126.62, down 3.78% from ¥2,757,868,330.39 at the end of the previous year[23]. - The company has a weighted average return on equity of -2.99%, which is a decrease of 2.43% compared to -0.56% in the previous year[23]. - The operating cost increased by 3.45% to ¥511,050,772.33 compared to the previous year[48]. - The company's financial expenses rose by 56.15% to ¥3,515,738.95, mainly due to a decrease in interest income compared to the previous period[48]. - The company reported a significant increase in financial expenses, which rose to ¥3,515,738.95 from ¥2,251,451.29, marking an increase of approximately 56.2%[191]. - The company reported a total profit for the first half of 2024 was a loss of CNY 39,976,031.45, compared to a profit of CNY 72,615,298.77 in the first half of 2023[195]. Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management[4]. - The company has established a comprehensive corporate governance structure to protect shareholder rights, ensuring compliance with legal regulations and providing effective channels for minority shareholders[110]. - The company emphasizes employee rights protection by adhering to labor laws and providing a safe working environment, along with various training programs to enhance employee skills[111]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[107]. - The company has recorded a credit rating of integrity in the environmental protection work plan for 2024, as per the provincial environmental credit information management system[108]. Risk Management - The company emphasizes the importance of risk management and has detailed potential risks and countermeasures in the report[4]. - The company faces risks from raw material price fluctuations, which have impacted profit margins, and plans to strengthen long-term partnerships with quality clients and adjust procurement strategies accordingly[73]. - The company is also addressing risks related to new project construction delays due to regulatory approvals and potential technical challenges, which could affect future performance[74]. - Environmental regulations may increase operational costs, impacting profitability; the company is enhancing safety measures and monitoring compliance closely[76]. - The company is exposed to international trade risks, including potential tariffs and trade barriers, which could hinder export operations and market expansion[77]. - Currency fluctuations, particularly in USD exchange rates, pose a risk to export profitability, prompting the company to adjust pricing strategies and utilize financial instruments[78]. - Management risks are increasing with company growth; the company is focusing on improving internal controls and resource integration to mitigate these challenges[79]. Subsidiaries and Market Position - The company has a total of 10 subsidiaries, including Henan Tongsheng Environmental Engineering Co., Ltd. and Shaanxi Ande Technology Industrial Co., Ltd.[11]. - The company operates in the water treatment agent industry, which is experiencing a weak recovery in downstream demand from sectors such as chemicals, steel, and textiles[31]. - The company has a significant market position, being one of the leading manufacturers of water treatment agents in China, with a production capacity of over 10,000 tons[32]. - The company’s subsidiaries are involved in various aspects of water treatment, including production, municipal services, and environmental engineering[34]. - The subsidiary Henan Tongsheng Environment Engineering Co., Ltd. reported total assets of ¥834,695,800 and a net profit of ¥5,596,325 for the reporting period[70]. - The subsidiary Shaanxi Ande Technology Co., Ltd. had total assets of ¥176,341,300 and a net profit of ¥3,860,203[71]. Environmental Compliance - The company strictly adheres to various environmental protection laws and regulations during its operations[93]. - The company completed the environmental protection acceptance procedures for its annual production capacity expansion project of 180,000 tons of water treatment agents[94]. - The company holds a valid pollution discharge permit for its operations, effective from March 23, 2022, to March 22, 2027[94]. - The company has established comprehensive waste treatment facilities to minimize negative environmental impacts during production[93]. - The company reported a total emission of 2.46 mg/Nm3 for hydrogen and 4.12 mg/Nm3 for formaldehyde, adhering to the GB16297 standard[98]. - The total emission for volatile organic compounds was recorded at 10.5 mg/Nm3, with specific emissions of 4.76 mg/Nm3 for volatile organic compounds and 4.02 mg/Nm3 for formaldehyde[99]. - The company has not detected emissions of heavy metals such as lead and cadmium, indicating compliance with environmental standards[99]. - The company is focused on reducing emissions of hazardous air pollutants, with a specific target for hydrogen chloride emissions at 2.25 mg/Nm3[99]. - The company is actively monitoring and managing its emissions to ensure they remain below regulatory thresholds, with no exceedances reported[98]. - The company is committed to ongoing improvements in emission control technologies to enhance environmental performance[99]. Research and Development - Research and development investment increased by 1.25% to ¥5,986,559.94, reflecting the company's commitment to innovation[48]. - The company has formed strategic partnerships with renowned institutions for research and development, enhancing its technological capabilities[45]. - The company is investing in research and development for new technologies aimed at improving emission reduction capabilities[99]. - The company has increased its investment in research and development to enhance product quality through industry-academia collaboration[114]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves[5]. - The company held its first extraordinary shareholders' meeting on February 26, 2024, with an investor participation rate of 39.66%[84]. - The annual shareholders' meeting for 2023 took place on May 20, 2024, with a participation rate of 37.87%[84]. - The employee stock ownership plan includes 251 employees holding a total of 2,501,053 shares, representing 0.97% of the company's total equity[89]. - The employee stock ownership plan's first lock-up period expired on November 23, 2022, allowing for the sale of 2,501,033 shares, which is 0.9729% of the total equity[89]. - The major shareholder, Wang Zhiqing, holds 37.06% of the shares, totaling 95,270,000 shares[168]. - The second-largest shareholder, Song Yingbiao, holds 2.72% of the shares, totaling 7,000,000 shares, which are currently frozen[168]. - The company has a total of 10 major shareholders, with the top 10 holding significant stakes in the company[169]. Future Outlook - The company has outlined a future outlook with a projected revenue growth of 15% for the next fiscal year[141]. - New product development includes the launch of a water treatment technology expected to enhance operational efficiency by 20%[142]. - The company is planning market expansion into Southeast Asia, targeting a market share increase of 10% by 2025[141]. - A strategic acquisition is in progress, aimed at enhancing the company's technological capabilities in environmental solutions[142]. - The company has set a performance guidance of 3,000 million for the next quarter, indicating a strong growth trajectory[141].