FARATRONIC(SH:600563)2021-08-20 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥1,282,751,343.30, representing a year-on-year increase of 53.34%[10] - The net profit attributable to shareholders of the listed company was ¥363,602,193.36, up 57.87% compared to the same period last year[10] - The net cash flow from operating activities was ¥383,025,848.33, showing a significant increase of 103.46% year-on-year[10] - Basic earnings per share for the first half of 2021 were ¥1.62, representing an increase of 58.82% from ¥1.02 in the same period last year[10] - The diluted earnings per share also stood at ¥1.62, marking a 58.82% increase year-on-year[10] - The total comprehensive income for the first half of 2021 was ¥368,006,298.73, compared to ¥236,246,717.97 in the previous year, showing a growth of 55.7%[47] - The company reported a net profit for the first half of 2021 of ¥368,394,026.31, representing a growth of 56.4% from ¥235,463,143.53 in the first half of 2020[46] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥3,847,136,734.33, reflecting a growth of 5.40% from the previous year[10] - Total liabilities amounted to ¥830,487,215.92, up from ¥708,963,464.07, which is an increase of approximately 17.1%[42] - Shareholders' equity reached ¥3,016,649,518.41, compared to ¥2,941,143,219.68, showing an increase of around 2.6%[42] - Current assets totaled ¥2,846,265,974.18, slightly up from ¥2,833,248,348.10, indicating a marginal increase of about 0.5%[40] - Total liabilities to equity ratio increased, indicating a higher leverage position compared to the previous period[42] Research and Development - The company invested approximately 4% of its revenue annually in independent and original development, enhancing its technological capabilities[15] - The company’s research and development expenses rose by 39.78% to RMB 50.6 million, reflecting its commitment to innovation[16] - Research and development expenses rose to ¥50,602,216.91, an increase of 39.9% compared to ¥36,201,013.62 in the previous year[46] Shareholder Information - Total number of ordinary shareholders at the end of the reporting period was 11,535[33] - The largest shareholder, Xiamen Farah Development Co., Ltd., held 84,000,000 shares, representing 37.33% of total shares[34] - The company reported no changes in total share capital or share structure during the reporting period[32] Inventory and Production - The company’s inventory increased by 15.13% to RMB 418 million, indicating a proactive approach to meet market demand[17] - The company’s fixed assets grew by 8.57% to RMB 664 million, supporting its production capabilities[17] - The total inventory balance rose from RMB 370,721,059.62 at the beginning of the period to RMB 425,692,922.49 at the end, indicating an increase of about 14.8%[138] Investments - The company has invested a total of RMB 80 million in the Shanghai Junlian Shenghao Venture Capital Partnership, with contributions made in 2019, 2020, and 2021[19] - In June 2021, the company invested RMB 15 million to acquire a 2% equity stake in Suzhou Xidian Electromechanical Co., Ltd.[20] Risks and Challenges - The company faces risks related to raw material price fluctuations, export operations, and exchange rate changes, which could impact its operating performance[23] Environmental Initiatives - The company has installed a solar photovoltaic power station with a capacity of 2.4 MW, generating approximately 3.6 million kWh annually, contributing to carbon emission reduction efforts[28] Financial Management - The company did not distribute profits or increase capital from reserves during this reporting period[4] - There were no non-operating fund occupations by controlling shareholders or related parties reported[4] - The company maintained a consistent dividend distribution of ¥292,500,000.00, unchanged from the previous year[53] Accounting Policies - The company’s financial statements are prepared based on the going concern assumption, following the relevant accounting standards[63] - The company applies the accounting treatment for business combinations under common control and non-common control[67] - The company recognizes expected liabilities when there is a present obligation that is likely to result in an outflow of economic benefits[96]