SD(SH:600626)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥5,478,064,993.60, representing a 12.65% increase compared to ¥4,862,843,787.48 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥223,513,655.41, a significant recovery from a loss of ¥111,903,451.27 in the previous year[21]. - The net cash flow from operating activities was -¥30,789,077.60, an improvement from -¥234,177,259.24 in the same period last year[21]. - The total assets at the end of the reporting period were ¥10,211,601,410.23, an increase of 8.54% from ¥9,408,268,266.69 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company increased by 7.99% to ¥2,618,466,163.87 from ¥2,424,731,259.18 at the end of the previous year[21]. - Basic earnings per share for the reporting period reached CNY 0.2623, compared to a loss of CNY -0.1313 in the same period last year[22]. - Weighted average return on equity increased by 12.28 percentage points to 8.87% from -3.41% year-on-year[22]. - The total profit for the company was 312 million RMB, compared to a loss of 156 million RMB in the same period last year[46]. - The automotive interior business generated revenue of 3.646 billion RMB, a year-on-year increase of 25.26%, with a total loss of 106 million RMB, reduced by 245 million RMB from the previous year[46]. - The textile new materials business reported revenue of 74.05 million RMB, a decrease of 1.1% year-on-year, with a loss of 757,712 RMB[48]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period reached ¥1,780,131,989.50, accounting for 17.43% of total assets, an increase of 25.14% compared to the previous year[57]. - The net cash flow from operating activities improved significantly, with a net outflow of 30.79 million RMB compared to a net outflow of 234.18 million RMB in the same period last year[53]. - The company achieved an investment income of 426 million RMB during the reporting period, including 404 million RMB from the sale of the dyeing factory[55]. - The total cash and cash equivalents at the end of the period reached ¥585,082,497.70, up from ¥299,518,086.67 at the end of the previous year, reflecting a net increase of ¥414,896,457.44[189]. - The cash received from investment income was ¥21,698,080.08, compared to ¥17,246,595.32 in the same period last year, indicating a growth in investment returns[189]. Business Segments and Operations - The automotive interior and acoustic components business is the core segment, serving major clients like General Motors, Ford, and BMW[29]. - The textile new materials segment emphasizes the development of flexible composite materials and geosynthetics, targeting various industries including construction and aerospace[34]. - The company employs a "make-to-order" production model to align with customer demand and reduce costs[30]. - The company has established long-term stable relationships with major suppliers, focusing on procurement based on actual production needs, which helps in managing raw material costs influenced by international oil prices[35]. - The company has set up production bases in Southeast Asia to enhance production supply capabilities while optimizing procurement channels to control costs amid rising expenses[39]. Research and Development - The company has multiple R&D centers in China, the US, and Germany, focusing on customer-driven product development[31]. - The company has established a research and development center for automotive textiles, focusing on sustainable development and innovative supply chain integration[44]. - The company is investing in R&D and technology innovation, with plans to establish three major regional technology centers in North America, Europe, and China to support global project development[44]. Environmental and Social Responsibility - The company has made recent upgrades to its pollution control facilities, including VOCs emission reduction and wastewater recycling improvements, which are currently operating normally[91]. - The company has been classified as a key pollutant discharge unit, with specific environmental monitoring and compliance measures in place[90]. - The company is committed to supporting poverty alleviation and rural revitalization efforts in line with government initiatives[112]. Legal and Compliance Issues - The company is involved in significant litigation matters, including a civil lawsuit against Zhuoyou Company for a total claim of RMB 30,472,953.01[130]. - The company has filed for a re-examination of a case with the Shanghai High Court, which is currently awaiting further hearings[134]. - The company has faced challenges in executing court orders due to the lack of assets available for enforcement from the defendants[132]. Corporate Governance and Independence - The company guarantees that its senior management will not hold positions in other controlled entities, ensuring personnel independence[118]. - The company will maintain independent asset management, ensuring no funds or assets are occupied by other controlled entities[118]. - The company commits to minimizing related party transactions with Shenda Co. and ensuring fair operations based on market principles and fair prices[120]. Future Outlook and Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[176]. - The company is exploring the possibility of listing its textile group or core business within five years, with plans to integrate and clarify its business segments if not implemented[122].