HLC(SH:600731)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 1.11 billion, representing an increase of 8.30% compared to the same period last year[22]. - The net profit attributable to shareholders of the listed company was approximately RMB 135.21 million, a decrease of 4.11% year-on-year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 131.47 million, down 6.40% from the previous year[22]. - The net cash flow from operating activities was approximately RMB 18.30 million, a significant decrease of 92.45% compared to the same period last year[22]. - Basic earnings per share for the first half of 2021 were RMB 0.2928, down from RMB 0.30535 in the same period last year[22]. - Diluted earnings per share decreased to 0.29280 yuan, down 4.11% compared to the previous period[23]. - Basic earnings per share after deducting non-recurring gains and losses fell to 0.28470 yuan, a decrease of 6.40%[23]. - Weighted average return on equity decreased by 2.43 percentage points to 8.77%[23]. - The company reported a total of 1,955,229.45 RMB in actual expenses for related transactions in the first half of 2021, compared to an estimated 1,420 million RMB[116]. - The company reported a comprehensive income total of CNY 141,005,603.20 for the current period, indicating strong performance[174]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 3.30 billion, an increase of 9.84% compared to the end of the previous year[22]. - The total assets as of June 30, 2021, were ¥2,259,284,331.50, compared to ¥2,013,130,141.88 at the end of 2020, representing a growth of 12.2%[153]. - Total liabilities reached ¥1,040,727,788.94, up from ¥796,132,054.14, reflecting a year-on-year increase of 30.7%[152]. - The company's equity attributable to shareholders rose to CNY 1,587,547,047.34, up from CNY 1,475,678,087.04, reflecting an increase of about 7.6%[149]. - The total amount of accounts receivable rose to CNY 294,277,536.53 from CNY 151,793,537.59, reflecting an increase of about 94.0%[147]. - Long-term borrowings increased significantly to CNY 471,400,000.00 from CNY 323,600,000.00, representing a growth of about 46.0%[149]. Research and Development - The company’s core competitive advantage lies in its technological expertise, supported by over 60 years of research and development in the chemical industry[33]. - Research and development expenses increased by 6.25% to 33.48 million RMB, indicating a continued focus on new product and technology development[45]. - The company is actively developing new pesticide varieties with lower toxicity and residue, such as Sulfoxaflor and Methyl Pyrimidinyl Phosphate, to maintain its competitive edge[60]. - The company holds a total of 268 valid patents, including 202 invention patents, showcasing its commitment to innovation and technology development[34]. Environmental Responsibility - The company is committed to environmental responsibility as a key pollutant discharge unit, actively monitoring and reporting emissions[86]. - The company has established an ISO 14001 environmental management system and has purchased environmental pollution liability insurance for 2021[101]. - The company has implemented a wastewater online monitoring system, operational since 2021, to monitor COD, ammonia nitrogen, pH, total nitrogen, and total phosphorus[90]. - The company processed 2,737.26 tons of hazardous pesticide waste through its self-built incineration facility[88]. - The company has completed environmental impact assessments for all construction projects, receiving approvals from relevant government departments[91]. Market Position and Strategy - The company aims to enhance its market position through strategic innovations and mergers in response to increasing industry competition and environmental regulations[32]. - The agricultural pesticide industry is experiencing consolidation, with a focus on creating large enterprises that meet environmental standards and possess innovative capabilities[31]. - The company is actively pursuing international market expansion and has initiated various product registration efforts for both domestic and international markets[42]. Shareholder Information - The total number of shares increased to 461,789,508 after the distribution of cash dividends of RMB 0.04 per share and the issuance of 71,044,540 bonus shares[130]. - The largest shareholder, Hunan Haili High-tech Industry Group Co., Ltd., holds 108,522,916 shares, representing 23.50% of total shares[136]. - The company has a diverse shareholder base, including both state-owned and private entities, which may enhance its market stability[136]. Risk Management - The company has established a risk management framework to address credit, liquidity, and market risks associated with its financial instruments[66]. - The company faces risks from environmental policy changes that could increase operational costs and regulatory compliance[55]. - The company faces significant risks from international market dependence, with a large portion of sales coming from exports, which may be impacted by increasing tariffs and non-trade barriers from the US and EU[59]. Corporate Governance - The company appointed a new board secretary, Liu Hongbo, following the resignation of Liu Zhi[79]. - The company has maintained a commitment to transparency and integrity, with no significant debts overdue or unfulfilled court judgments[115]. - The company has not received any penalties or corrective actions related to legal violations during the reporting period[114].