SHRC(SH:600392)2021-08-20 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[8]. - The net profit attributable to shareholders was RMB 300 million, up 20% compared to the same period last year[8]. - The company's operating revenue for the first half of 2021 was approximately ¥4.86 billion, representing a 37.08% increase compared to the same period last year[13]. - Net profit attributable to shareholders reached approximately ¥542.93 million, a significant increase of 1,195.58% year-on-year[13]. - The net profit after deducting non-recurring gains and losses was approximately ¥530.89 million, up 1,803.97% from the previous year[13]. - Basic earnings per share were ¥0.3132, reflecting a year-on-year increase of 1,210.46%[14]. - The company reported a total comprehensive income of ¥750,686,409.53 for the first half of 2021, compared to ¥63,854,021.48 in the previous year, indicating a significant growth[118]. - The company's total liabilities reached ¥1,170,746,261.32, an increase of 46.4% from ¥799,133,777.38 in the previous year[115]. User Base and Market Expansion - The company has expanded its user base by 10% in the first half of 2021, reaching a total of 1.5 million active users[8]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 5% market share by the end of 2022[8]. - The company is actively expanding its raw material supply channels, including managing the Dechang Daluo rare earth mine and selling the Mountain Pass rare earth mine in the US[22]. - The company has established a dual layout both domestically and internationally, optimizing its industrial structure from rare earth mining to deep processing[23]. Investment and Development Plans - The company plans to invest RMB 500 million in new product development and technology research in the upcoming year[8]. - The management has provided a revenue guidance of RMB 2.5 billion for the full year 2021, indicating a growth of 12%[8]. - The company is advancing new project constructions, including the Lianyungang zircon-titanium mining project and the 12,000-ton rare earth metal intelligent transformation project[27]. - The company plans to apply for financing of up to RMB 28 billion to support ongoing production and operational needs[52]. Financial Position and Assets - The total assets at the end of the reporting period were approximately ¥13.67 billion, an increase of 12.89% from the end of the previous year[13]. - The company's total current assets reached approximately CNY 8.42 billion, an increase from CNY 7.15 billion at the end of 2020, representing a growth of about 17.7%[110]. - The company's cash and cash equivalents amounted to CNY 1.59 billion, up from CNY 1.31 billion in December 2020, indicating a growth of approximately 21.5%[110]. - The total liabilities of the company were not specified in the provided data, but the increase in current assets suggests a strengthening financial position[110]. Environmental and Regulatory Compliance - The company reported no exceedances in emissions of waste gas, wastewater, noise, and solid hazardous waste from January to June 2021[59]. - The company emphasizes strict adherence to national environmental protection laws and regulations, ensuring all emissions meet national standards[81]. - The company has established an environmental supervisor management system to enhance employee awareness of environmental protection[81]. - Leshan Shenghe Rare Earth Co., Ltd. achieved compliance in wastewater discharge with no exceedance data reported for the first half of 2021[76]. Governance and Shareholder Relations - The board of directors has confirmed that all members attended the board meeting, ensuring the integrity of the report[3]. - The company aims to enhance governance and transparency to protect minority shareholders and improve investor relations[50][51]. - The company has committed to avoiding any potential competition with its subsidiaries during the restructuring process[84]. - The company has made commitments to avoid competition with its controlling shareholder, the Comprehensive Research Institute, and to ensure fair and just related transactions[86]. Legal and Litigation Matters - There are ongoing significant litigation matters, including a civil lawsuit involving a claim for a total of approximately RMB 25.15 million related to a contract dispute with Ascreat Titanium Industry[89]. - The company is also involved in bankruptcy proceedings against Henan Luohe Xingmao Titanium Industry, with a claimed debt of approximately RMB 8.59 million, which may be difficult to recover if the company is liquidated[89]. - The company has outstanding receivables of 38.48 million yuan from Ningde Xingyu Technology Co., which includes a penalty of 739,200 yuan and additional interest calculated at an annual rate of 6% from June 29, 2020, until payment is completed[90]. Research and Development - Research and development expenses rose by 62.10% to approximately ¥160.56 million, compared to ¥99.05 million in the previous year, reflecting increased investment in R&D to enhance production efficiency[29]. - The company is focusing on technological innovation, with a provincial-level enterprise technology center and several high-tech enterprises under its umbrella[23]. - The company has over 100 patents related to rare earth extraction processes, with a useful life of 10 years and using straight-line amortization[171]. Risk Management - The report includes a detailed risk analysis regarding potential challenges in future development[4]. - The company faces risks from product price fluctuations, global economic conditions, and environmental protection, with strategies in place to mitigate these risks[47][48]. - The company’s major shareholder holds a 14.04% stake, which poses a risk of control changes that could impact business operations[49].