HIGHLY(SH:600619)2021-08-30 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%[22]. - The net profit attributable to shareholders reached RMB 150 million, up 20% compared to the same period last year[22]. - The company’s gross margin improved to 30%, an increase of 5 percentage points year-on-year[22]. - The company's operating revenue for the first half of the year reached ¥8,241,371,999.52, a 64.09% increase compared to ¥5,022,433,174.21 in the same period last year[23]. - Net profit attributable to shareholders was ¥104,420,550.24, reflecting a 94.27% increase from ¥53,750,552.92 year-over-year[23]. - The net profit after deducting non-recurring gains and losses surged by 307.31% to ¥83,952,617.87 from ¥20,611,364.12 in the previous year[23]. - The company reported a basic earnings per share of ¥0.12, doubling from ¥0.06 in the same period last year, indicating a 100% increase[23]. - The company reported a significant increase in sales of compressors and motors due to the continuous recovery of the domestic economy, resulting in a substantial year-on-year growth[2]. - The company achieved operating revenue of 8.241 billion yuan, a year-on-year increase of 64.1%, with main business revenue accounting for 92.8%[37]. - The company reported a net profit attributable to shareholders of 1.04 billion yuan, a year-on-year increase of 94.3%[37]. - The company’s basic earnings per share reached 0.12 yuan, reflecting a year-on-year growth of 100%[37]. - The company’s weighted average return on equity was 2.29%, an increase of 1.09 percentage points year-on-year[37]. - The company reported a total profit for the period of ¥162,545,899.20, up from ¥79,760,233.41, reflecting a growth of approximately 104%[181]. - The company reported a comprehensive income total of ¥86,432,744.26, compared to ¥46,028,775.65 in the prior year, marking an increase of around 88%[183]. Market Expansion and Product Development - User data indicated a growth in active users by 25%, reaching a total of 2 million active users[22]. - The company plans to launch two new product lines in Q3 2021, aiming to capture a larger market share in the cooling technology sector[22]. - Investment in R&D increased by 30% year-on-year, focusing on innovative cooling solutions and energy-efficient technologies[22]. - The company has expanded its market presence in Southeast Asia, with a 15% increase in sales in that region[22]. - The company has established a strong presence in the compressor and automotive parts sectors, following the acquisition of a 60% stake in Haili Marelli, enhancing its product offerings in automotive air conditioning systems[30]. - The company operates with a "research + production + sales" model, focusing on high-quality products to meet customer needs and drive value[31]. - The company has a diversified product range, including traditional automotive air conditioning compressors and new energy vehicle electric scroll compressors, with a global manufacturing and R&D footprint[30]. - The company aims to become a leading supplier of automotive thermal management systems globally, leveraging its international manufacturing bases[30]. - The company plans to establish a new company in Mianyang with an initial total investment of RMB 80 million, holding 71% equity, to engage in the casting and machining of automotive parts[63]. - The company has established a wholly-owned subsidiary for the construction of a global core factory for heat exchangers with a total investment of RMB 197.6 million[63]. Financial Position and Investments - Total assets increased by 27.50% to ¥19,059,233,984.00 from ¥14,947,903,638.64 at the end of the previous year[23]. - The company’s long-term borrowings increased by 339.88% to approximately ¥1.19 billion, indicating a significant rise in debt financing[50]. - The company’s total investment in equity holdings increased by 17.66% from the previous year, reaching approximately ¥3.62 billion[60]. - The company’s total assets for Haier Electric are approximately RMB 1,042.5 million, with net assets of RMB 291.5 million and operating income of RMB 484 million[70]. - The company completed a private placement of 201,772,151 shares at a price of CNY 7.90 per share, raising approximately CNY 1.59 billion[139]. - The total amount of guarantees provided to subsidiaries during the reporting period was approximately CNY 1.87 billion[135]. - The total balance of guarantees to subsidiaries at the end of the reporting period was approximately CNY 1.86 billion, accounting for 31.13% of the company's net assets[135]. Environmental Compliance and Sustainability - The company has been identified as a key pollutant discharge unit in multiple regions, including Shanghai and Jiangxi, for the year 2021[84]. - The actual discharge concentration of COD Cr from Haier Electric was 71 mg/L, significantly below the allowed limit of 500 mg/L, with a total discharge of 16.3 tons[84]. - The actual discharge concentration of BOD 5 was 24.9 mg/L, well under the permitted level of 300 mg/L, with a total discharge of 5.73 tons[84]. - The company reported a total of 274.92 tons of hazardous waste, all managed in compliance with relevant regulations[86]. - The actual discharge concentration of VOCs was 2.0 mg/m³, below the allowed limit of 70 mg/m³, with a total discharge of 0.35 tons[86]. - The company maintained noise levels at 56.3 dB during the day and 46.0 dB at night, both within regulatory limits[86]. - The company has implemented regular monitoring of pollutants as per environmental self-monitoring plans[84]. - The company has received pollution discharge permits from local environmental authorities, indicating compliance with simplified management requirements[87]. - The company has established a hazardous waste storage facility in accordance with pollution control standards[86]. - The company has invested in pollution control facilities to ensure compliance with environmental standards, with effective operation reported during the reporting period[96]. Challenges and Risks - The company faces industry risks from climate change and supply-demand fluctuations, with long-term growth potential in the air conditioning and compressor market despite current uncertainties due to COVID-19 and trade issues[73]. - The company is closely monitoring foreign exchange fluctuations and may use forward foreign exchange contracts to mitigate currency risk[73]. - The company is increasing R&D investment and expanding its research team to enhance competitiveness and adapt to rapid technological advancements in the steam compression refrigeration sector[73]. - The company has established a cost-reduction team to address rising raw material costs, which have significantly increased since the second half of 2020, impacting profit margins[73]. - The company operates 28 factories and 5 R&D centers across 9 countries, facing integration risks post-acquisition of Marelli, particularly in personnel and operations[73]. - The company acknowledges the long-term positive trend in the new energy vehicle industry, despite current developmental challenges and policy-related demand fluctuations[73]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 42,214[145]. - The largest shareholder, Shanghai Electric Group, held 23.97% of the shares, totaling 211,700,534 shares[146]. - The second-largest shareholder, Zhuhai Gree Electric Appliances, held 10.21% of the shares, totaling 90,223,164 shares[146]. - The company has a total of 16,989,600 restricted shares under the 2019 incentive plan, which are subject to lock-up conditions[148].