LK(SH:600388)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥4,875,588,568.62, representing a 35.39% increase compared to ¥3,601,194,988.60 in the same period last year[22]. - Net profit attributable to shareholders for the first half of 2021 was ¥404,003,806.25, a significant increase of 99.22% from ¥202,789,984.52 in the previous year[22]. - The net cash flow from operating activities was ¥140,983,476.41, showing a remarkable increase of 465.67% compared to ¥24,923,392.40 in the same period last year[22]. - The basic earnings per share for the first half of 2021 was ¥0.38, doubling from ¥0.19 in the same period last year, indicating a 100% increase[23]. - The diluted earnings per share increased by 78.95% to ¥0.34 from ¥0.19 in the previous year[23]. - The company's total assets as of the end of the reporting period were ¥25,753,114,860.09, a 2.48% increase from ¥25,130,454,747.55 at the end of the previous year[22]. - The net assets attributable to shareholders at the end of the reporting period were ¥6,410,366,411.81, reflecting a 3.44% increase from ¥6,196,900,542.16 at the end of the previous year[22]. - The weighted average return on equity for the first half of 2021 was 6.34%, an increase of 2.82 percentage points from 3.52% in the same period last year[23]. Research and Development - The company is recognized as a national innovative enterprise and a national technology innovation demonstration enterprise, reflecting its strong R&D capabilities[28]. - The company has received 4 national science and technology progress awards and holds 1,373 patents, including 263 invention patents, showcasing its strong innovation capabilities[47]. - The company completed four technology development projects, including vacuum heat pipe low-temperature economizer technology and AI-based smart high-pressure control systems[80]. - As of June, the company held 1,373 authorized patents, including 263 invention patents, with 145 new patents granted in the first half of the year[80]. - The company has established a technical research center to enhance detection of arsenic and nickel in materials[145]. Environmental Initiatives - The company has established an independent energy subsidiary for waste incineration power generation, contributing stable operating profits[34]. - The company is actively responding to national carbon neutrality strategies with seven major pollution reduction and carbon reduction initiatives[34]. - Longjing Environmental announced seven major actions to support China's carbon peak and carbon neutrality goals, focusing on carbon capture and utilization (CCUS) technologies[60]. - The company aims to achieve a carbon capture efficiency of less than 1 kg/t CO2 and a comprehensive cost of less than 200/t CO2 through its CCUS demonstration project[60]. - Longjing's initiatives in the steel industry are expected to reduce carbon emissions by approximately 68,000 tons per sintering machine annually, contributing to a total reduction of 2 million tons of CO2 nationwide[60]. - The company is focusing on the resource utilization of organic waste, providing solutions that can reduce carbon emissions by approximately 22,300 tons annually[63]. - Longjing is establishing a carbon reduction research center to enhance its capabilities in air pollutant and greenhouse gas reduction[63]. - The company is actively promoting green and environmentally friendly production practices to minimize environmental impact[148]. Market Position and Strategy - The company holds a market share of approximately 30% in the environmental control equipment sector, with over 100 authorized patents[38]. - The company is actively expanding its market share in the solid waste and water service sectors, leveraging acquisitions and order acquisitions to enhance its competitive position[59]. - The new solid waste law implemented on September 1, 2020, is expected to benefit the entire solid waste industry chain, providing growth opportunities for the company[59]. - The company has built 11 large R&D and manufacturing bases across China, covering an area of over 1 million square meters, to support its production capabilities[47]. - The company aims to complete the digital management system transformation by 2022, enhancing operational efficiency through the ERP project[54]. - The company has a strong talent pool, including 18 international industry experts and 20 senior engineers, to drive its technological advancements[51]. Compliance and Governance - The company has not disclosed any plans for profit distribution or capital reserve transfer during this reporting period[6]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[7]. - The company has not faced severe penalties that would harm investor rights or public interests[147]. - Longjing Environmental has committed to maintaining transparency and compliance in related party transactions, ensuring no harm to the interests of the company and its shareholders[156]. - The company has not engaged in any non-operating fund occupation by major shareholders or related parties during the reporting period[159]. Financial Management - The company has engaged in a financing lease transaction with a total amount of RMB 270.33 million (27,033.01 ten thousand) over a period of 3 years[163]. - The company has provided a guarantee of RMB 11 million (1,100.00 ten thousand) for Kavantah (Shijiazhuang) New Energy Technology Co., Ltd., with a guarantee period from December 4, 2020, to January 23, 2037[169]. - The company plans to raise up to RMB 2.8 billion (280,000.00 ten thousand) through a private placement, with specific projects allocated as follows: RMB 610 million (61,000.00 ten thousand) for the Chen Zhuang Industrial Park solid waste disposal center project[174]. - The total investment for the Shandong Zhongbin Environmental Protection solid waste comprehensive disposal center project is RMB 977.43 million (97,743.09 ten thousand), with RMB 700 million (70,000.00 ten thousand) planned to be funded through the private placement[174]. - The company has a total guarantee amount of RMB 1.287 billion (128,793.24 ten thousand), which accounts for 20.78% of the company's net assets[171]. Legal and Regulatory Matters - There were no significant lawsuits or arbitration matters reported during the reporting period, indicating a stable legal standing[162]. - The company has not faced any violations or penalties related to its operations or those of its major shareholders during the reporting period[162]. - The company has obtained environmental impact assessment approval for multiple phases of its incineration projects, with the latest approval for phase four issued in 2019[104]. - The company is classified as a key pollutant discharge unit, with a focus on managing major pollutants[107]. - The company has implemented corrective measures including timely payment of fines and investigation into high levels of arsenic and nickel in materials[145].