Keda Group(SH:600499)2021-08-13 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥455,793.13 million, an increase of 47.72% compared to ¥308,546.04 million in the same period last year[15]. - Net profit attributable to shareholders of the listed company was ¥40,943.26 million, a significant increase of 406.40% from ¥8,085.12 million in the previous year[15]. - The net profit after deducting non-recurring gains and losses was ¥36,057.13 million, up 692.82% from ¥4,547.95 million year-on-year[15]. - The net cash flow from operating activities was ¥43,809.24 million, representing a 252.44% increase compared to ¥12,430.41 million in the same period last year[15]. - Basic earnings per share for the reporting period (January to June) increased to 0.218 CNY, a 327.45% increase compared to the same period last year[16]. - Diluted earnings per share for the reporting period also reached 0.218 CNY, reflecting the same 327.45% growth year-over-year[16]. - The weighted average return on equity rose to 6.73%, an increase of 5.07 percentage points from the previous year[16]. - The company reported a total profit of ¥620,523,127.85, compared to ¥183,007,077.23 in the first half of 2020, marking a 239.5% increase[114]. - The company’s total comprehensive income for the first half of 2021 was ¥561,460,013.00, compared to ¥165,502,427.56 in the same period last year[115]. Assets and Liabilities - As of the end of the reporting period, the net assets attributable to shareholders of the listed company were ¥619,746.43 million, an increase of 4.39% from ¥593,703.71 million at the end of the previous year[15]. - Total assets amounted to ¥1,481,382.11 million, reflecting a growth of 10.68% compared to ¥1,338,411.44 million at the end of the previous year[15]. - Total liabilities increased to CNY 7,734,705,687.54, up from CNY 6,617,089,538.91, representing a growth of approximately 16.87% year-over-year[107]. - Non-current liabilities rose to CNY 1,558,465,861.05, compared to CNY 1,012,835,074.16, marking a significant increase of about 54.00%[107]. - Current liabilities totaled CNY 6,176,239,826.49, an increase from CNY 5,604,254,464.75, reflecting a growth of approximately 10.19%[107]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 4,529.54 million RMB, which accounts for 22.17% of the company's net assets[93]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Foshan Kejin for ¥37,500.00 million in June 2021[50]. - The strategic investment in lithium battery materials through Blue Lithium Industry resulted in a significant increase in net profit, with investment income growing by 4171.61% year-on-year[35]. - The company has provided a guarantee of up to RMB 485.8 million (approximately USD 74.5 million) for its affiliate, Blue Lithium Industry, to secure a loan from a bank[85]. - The company has invested RMB 10.5 million (approximately USD 1.6 million) in the establishment of the Guangzhou Jinda Yingfei Venture Capital Fund, with an additional RMB 5.5 million (approximately USD 0.85 million) to be contributed[90]. Operational Highlights - The company has established a strong presence in over 60 countries and regions globally, particularly in the high-end building materials machinery sector[21]. - The company is the only domestic enterprise capable of providing complete production lines for building ceramic machinery, holding the second-largest global market position[22]. - The company has expanded its wall material machinery business, achieving an annual production capacity of 70 complete sets of autoclaved aerated concrete production lines[24]. - The company is focusing on international market expansion, leveraging local operations and acquisitions to enhance its presence in developed markets[24]. - The overseas ceramic machinery business saw an overall order volume increase of over 100%, with specific regions like India and Southeast Asia achieving over 200% growth in order volume[37]. Research and Development - Research and development expenses rose by 64.12% to ¥12,371.32 million, indicating an increased focus on innovation and product development[42]. - The company has initiated an information technology upgrade project, with the SAP S/4 HANA system expected to go live on October 1, aiming for integrated and real-time operational processes[31]. Environmental and Social Responsibility - The company has established a hazardous waste incineration facility with a capacity of 5000 tons per year, set to be operational within the year, to manage hazardous waste effectively[74]. - The company promotes a green office environment by utilizing solar power at its facilities and implementing a paperless office system[75]. - The company has actively contributed to poverty alleviation and rural revitalization, donating a total of 3.8 million RMB to educational projects and scholarships in 2021[77]. - The company has been promoting low-carbon work and lifestyle since 2020, including providing green travel services through its subsidiary's electric vehicle leasing business[76]. Risks and Challenges - The company faces risks from overseas operations and exchange rate fluctuations, which could impact project progress and investment willingness[54]. - Raw material price volatility poses a risk, as rising costs could negatively affect product gross margins; the company plans to adjust product structure and pricing to mitigate this[56]. - The company is currently involved in significant litigation, with potential claims totaling RMB 295 million, which could impact financial stability[57]. Corporate Governance - The report is unaudited, and the board of directors has ensured the accuracy and completeness of the financial report[2]. - The company has implemented a long-term incentive mechanism, including an employee stock ownership plan, to align the interests of shareholders, the company, and employees[32]. - The actual controller of the company, Liang Tongcan, has committed to increasing his shareholding by no less than 10 million shares and no more than 50 million shares within 12 months[79].