SINOJIT Technology(SH:601218)2021-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥798 million, a decrease of 5.09% compared to ¥841 million in the same period last year[16]. - Net profit attributable to shareholders for the first half of 2021 was approximately ¥82.48 million, down 20.99% from ¥104.39 million in the same period last year[16]. - Basic earnings per share decreased by 20.93% to ¥0.0846 from ¥0.1070 in the same period last year[16]. - The weighted average return on net assets decreased by 0.89 percentage points to 3.21% from 4.10% in the same period last year[16]. - The net cash flow from operating activities was negative at approximately -¥10.43 million, a significant decline from ¥168.23 million in the same period last year, representing a decrease of 106.20%[16]. - Total assets at the end of the reporting period were approximately ¥3.93 billion, down 7.39% from ¥4.24 billion at the end of the previous year[16]. - Net assets attributable to shareholders decreased by 4.13% to approximately ¥2.61 billion from ¥2.72 billion at the end of the previous year[16]. - The company reported a basic earnings per share after deducting non-recurring gains and losses of ¥0.0711, a decrease of 31.30% from ¥0.1035 in the same period last year[16]. - The diluted earnings per share decreased by 19.85% to ¥0.0844 from ¥0.1053 in the same period last year[16]. - The company reported a net profit from the power generation project of approximately 59.35 million RMB, with a year-on-year growth of 30.59% due to the increase in project scale[27]. - The company reported a total profit for the first half of 2021 of ¥80,732,634.21, a decrease of 35.88% from ¥125,902,362.96 in the first half of 2020[86]. Research and Development - Research and development expenses increased by 52.88% to approximately 35.25 million RMB, reflecting the company's commitment to innovation[32]. - Research and development expenses increased to ¥35,251,344.46, up 53.06% from ¥23,058,121.90 in the first half of 2020[86]. - The company applied for and accepted 13 patents in the first half of 2021, including 4 invention patents and 9 utility model patents, with a total of 59 authorized patents by the end of the reporting period[26]. - The company holds 59 authorized patents, including 19 invention patents and 1 US invention patent, highlighting its commitment to intellectual property development[21]. Operational Efficiency - The company operates under a "make-to-order" production model, allowing for customized production based on client specifications, which helps manage inventory effectively[22]. - The company has implemented a comprehensive quality management system, achieving certifications such as ISO9001:2008 and ISO14001:2004[20]. - The company achieved a net cash flow from operating activities of -10.43 million RMB, a significant decrease compared to 168.23 million RMB in the previous year[32]. - The company implemented cost reduction measures, resulting in a 9% decrease in casting operating costs to approximately 560 million RMB[27]. - The company sold 58,400 tons of wind power castings in the first half of 2021, a decrease of 6% compared to the same period last year, with casting business revenue of 670 million RMB, down 11% year-on-year[27]. Market Position and Strategy - The company has established long-term strategic partnerships with major wind turbine manufacturers, including GE and CRRC Zhuzhou, through direct sales agreements[23]. - The company has established a production capacity of 150MW from two wind power projects, with the first phase (100MW) and the second phase (50MW) both receiving renewable energy subsidies[20][21]. - The wind power industry is projected to see a compound annual growth rate (CAGR) of 1.9% for new wind installation capacity in China from 2018 to 2027, with an expected annual average of 23GW[24]. - The company is focused on enhancing its governance model to be more standardized, open, and diversified, preparing for broader market opportunities[30]. Financial Position - Cash and cash equivalents decreased by 26.31% to 510.91 million, accounting for 13.01% of total assets[34]. - Accounts receivable increased by 2.45% to 744.82 million, representing 18.97% of total assets[34]. - Inventory rose by 40.04% to 473.81 million, making up 12.07% of total assets due to decreased shipment volume[34]. - Short-term borrowings increased by 52.87% to 321.41 million, accounting for 8.19% of total assets[34]. - The total amount of guarantees provided by the company, excluding those for subsidiaries, was RMB 454,388,116.40, which accounts for 17.39% of the company's net assets[66]. - The company reported a total of CNY 732,432,663.72 in undistributed profits as of June 2021, down from CNY 899,179,152.54 in December 2020, a decrease of about 18.6%[84]. Environmental Compliance - The company is listed as a key pollutant discharge unit, with a simplified management category for its pollution discharge permit, primarily discharging waste gas and wastewater[47]. - The company has established pollution prevention facilities in accordance with environmental protection requirements and operates them effectively[48]. - The company has complied with environmental impact assessment procedures for construction projects and adheres to the "three simultaneous" system for environmental protection[49]. - The company conducts annual environmental monitoring through a third-party agency and has installed VOCs online monitoring equipment[51]. - The company is actively engaged in clean production audits to enhance resource utilization efficiency and reduce pollution[53]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 55,570[70]. - The largest shareholder, Bao Shijin, held 27.95% of the shares, with a total of 273,199,388 shares, and had 93,177,778 shares pledged[71]. - Zhang Jinyu, the second-largest shareholder, held 7.00% of the shares, totaling 68,415,200 shares, with 54,000,000 shares pledged[71]. - The company did not report any major related party transactions during the reporting period[62]. Accounting Policies - The company's financial statements are prepared based on the assumption of going concern, indicating confidence in its operational sustainability for at least the next 12 months[112]. - The company’s accounting policies comply with the relevant enterprise accounting standards, ensuring accurate reflection of its financial status[114]. - The company recognizes revenue when control of goods is transferred to the customer, which includes conditions such as contract approval and payment obligations[187]. - The company measures lease liabilities based on the present value of lease payments not yet paid at the lease commencement date[182].