KINGFA(SH:600143)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 19.29 billion, an increase of 13.92% compared to CNY 16.93 billion in the same period last year[20]. - The net profit attributable to shareholders decreased by 34.44% to CNY 1.58 billion from CNY 2.41 billion year-on-year[20]. - The net cash flow from operating activities dropped significantly by 95.03% to CNY 292.50 million, down from CNY 5.89 billion in the previous year[20]. - The total assets increased by 12.01% to CNY 36.35 billion compared to CNY 32.45 billion at the end of the previous year[20]. - The weighted average return on equity decreased by 9.96 percentage points to 10.29% from 20.25% in the same period last year[21]. - The basic earnings per share fell by 34.44% to CNY 0.6144 from CNY 0.9371 year-on-year[21]. - The company reported a total of CNY 119.08 million in non-recurring gains and losses for the period[22]. - The company’s operating revenue for the reporting period was CNY 19,287,520,870.54, representing a 13.92% increase compared to CNY 16,930,072,692.15 in the same period last year[58]. - Operating costs increased by 29.65% to CNY 15,456,094,964.16 from CNY 11,921,342,670.23[58]. - Research and development expenses rose by 9.97% to CNY 732,270,624.46, up from CNY 665,896,041.12[58]. - The company reported a net profit of ¥253,603,213.21 from Zhuhai Wantong Chemical Co., Ltd., contributing significantly to overall profitability[72]. Market and Business Operations - The main business of the company includes the research, production, and sales of six categories of chemical new materials, such as modified plastics and biodegradable plastics, widely applied in various industries including automotive and healthcare[25]. - The company is one of the largest modified plastic producers in the Asia-Pacific region, with its product technology and quality in biodegradable plastics and carbon fiber reaching international advanced levels[25]. - The modified plastics segment achieved a sales volume of 845,300 tons, a year-on-year increase of 25.20%, and revenue of 12.028 billion yuan, up 23.85%[42]. - Sales of automotive materials reached 286,000 tons, growing by 57.14% year-on-year, driven by increased demand in the domestic passenger car market, which saw a 28.90% increase[42]. - The household appliance materials segment recorded sales of 151,000 tons, a year-on-year increase of 17.00%, with the overall household appliance industry retail sales reaching 356.5 billion yuan, up 12%[43]. - The sales volume of environmentally friendly high-performance recycled plastics was 80,800 tons, a year-on-year increase of 44.30%[44]. - The company aims to expand its market presence by leveraging its advanced polymer materials and focusing on high-value-added products[32]. - The company is positioned to benefit from the growing demand for green and low-carbon materials as part of China's strategic goals for carbon neutrality[32]. Research and Development - The company has established a "13551" R&D system, which includes 1 central research institute and 3 international R&D centers, enhancing its innovation capabilities[35]. - As of the report period, the company has applied for a total of 3,918 patents, including 2,819 invention patents, demonstrating its commitment to intellectual property management[36]. - The company is focusing on R&D investments in new technologies, particularly in high-performance, environmentally friendly materials, to meet the growing market demand[44]. Environmental Compliance - The company has been proactive in environmental management, ensuring that emissions of key pollutants such as chemical oxygen demand and total phosphorus are within regulatory limits[87]. - The company has not reported any instances of exceeding pollution discharge standards during the reporting period[87]. - The company has established 10 sets of waste gas treatment facilities and one wastewater treatment facility with a capacity of 1,500 tons/day, all operating effectively and meeting discharge standards[91]. - The company has received environmental impact assessment approvals for new projects, ensuring compliance with environmental regulations[93]. - The company has implemented a comprehensive pollution prevention strategy, including the construction of various pollution control facilities[91]. Financial Stability and Risks - The company faces macroeconomic risks due to fluctuations in demand and prices for chemical new materials, which could impact operational performance[75]. - Rising raw material prices and supply risks are a concern, with global commodity prices increasing, affecting production costs[75]. - The company has a significant exposure to exchange rate risks, which may affect import and export operations[76]. - The total amount of guarantees provided by the company, including those to subsidiaries, is 3,121,654,450.35 RMB, which accounts for 21.01% of the company's net assets[121]. - The company provided guarantees totaling 3,259,719,950.31 RMB to subsidiaries during the reporting period[121]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 255,039[126]. - The top shareholder, Yuan Zhimin, holds 510,380,393 shares, representing 19.83% of the total shares[127]. - The second largest shareholder, Xiong Haitao, holds 216,241,359 shares, accounting for 8.40%[127]. - The company did not distribute any dividends or bonus shares for the half-year period, with a proposed profit distribution plan indicating no allocation[83]. Management and Governance - The company completed the election of the board of directors and supervisory board, with several new appointments including Wu Di and Chen Pingxu as executive directors[82]. - The company has made strategic changes in its management team, with several independent directors and supervisors stepping down and new ones being elected[81]. - The employee stock ownership plan saw a reduction of 50,314,114 shares during the reporting period, leaving 20,452,322 shares held, which represents 0.79% of the total share capital[84]. Subsidiary Performance - The Indian subsidiary achieved a production volume of 33,400 tons in modified plastics, marking a year-on-year increase of 66.85%[55]. - The American subsidiary reported a production volume of 6,977.34 tons in modified plastics, reflecting a year-on-year growth of 195.37%[56]. - The European subsidiary's modified plastics business achieved a production volume of 7,559.77 tons, with a year-on-year increase of 310.64%[56]. - The Malaysian subsidiary's modified plastics business recorded a production volume of 7,422.76 tons, representing a year-on-year growth of 117.30%[57].