SINOMACH-HE(SH:601399)2021-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 4,529,916,879.35, representing a 23.32% increase compared to CNY 3,673,400,031.20 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was CNY 124,495,012.73, up 35.65% from CNY 91,776,603.91 in the previous year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 30,966,703.05, which is a 64.83% increase from CNY 18,787,170.59 in the same period last year[15]. - The basic earnings per share for the first half of 2021 was CNY 0.0171, reflecting a 35.71% increase from CNY 0.0126 in the previous year[16]. - The diluted earnings per share also stood at CNY 0.0171, marking a 35.71% increase compared to the same period last year[16]. - The weighted average return on net assets increased to 0.98%, up by 0.24 percentage points from 0.74% in the previous year[16]. - The total operating revenue for the first half of 2021 was CNY 4,529,916,879.35, an increase from CNY 3,673,400,031.20 in the same period of 2020, representing a growth of approximately 23.3%[109]. - The total operating costs for the first half of 2021 amounted to CNY 4,373,573,775.10, compared to CNY 3,584,439,673.58 in the first half of 2020, indicating an increase of about 22.0%[109]. - The net profit for the first half of 2021 was CNY 130,627,116.35, compared to CNY 91,119,981.96 in the first half of 2020, indicating an increase of approximately 43.3%[112]. - The total profit for the first half of 2021 was CNY 159,385,570.53, an increase from CNY 135,243,765.82 in the first half of 2020, representing a growth of approximately 17.9%[111]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -15,169,108.89, compared to CNY -713,069,929.07 in the same period last year, indicating an improvement[15]. - The company's cash and cash equivalents decreased by 11.81% to 6.78 billion yuan, while accounts receivable increased by 6.15% to 6.81 billion yuan[34]. - The cash flow from operating activities for the first half of 2021 was CNY 3,654,154,732.45, compared to CNY 2,969,999,600.70 in the first half of 2020, showing an increase of approximately 23.1%[116]. - The ending balance of cash and cash equivalents was CNY 6,613,466,758.14, down from CNY 7,499,645,615.47 in the previous half-year[118]. - The company reported a net decrease in cash and cash equivalents of CNY 873,186,913.85, compared to a decrease of CNY 1,076,075,507.90 in the same period last year[118]. - The total assets of the company at the end of the reporting period were CNY 26,837,513,862.36, a decrease of 2.33% from CNY 27,477,973,307.98 at the end of the previous year[15]. - Total current assets as of June 30, 2021, amounted to ¥18,727,740,402.39, a decrease from ¥19,300,722,467.45 at the end of 2020, representing a decline of approximately 2.96%[103]. - The company's total equity as of June 30, 2021, was ¥13,307,864,524.25, down from ¥13,199,457,272.23, indicating a slight decrease of approximately 0.82%[104]. Research and Development - Research and development expenses surged by 80.93% to 51.11 million yuan, driven by accelerated R&D efforts in the machinery manufacturing sector[32]. - The company completed the first batch of nine research projects and established a scientific research institute to enhance collaboration with academic and research institutions[29]. - The company is focusing on technological innovation and product structure adjustment, with progress in R&D projects such as intelligent forging presses and waste treatment equipment[19]. - The company is actively pursuing market expansion in emerging fields, including energy storage and waste treatment equipment, with new products accelerating R&D and industrialization[29]. - The company plans to continue focusing on technological innovation and improving core competencies to enhance service capabilities and quality[30]. Market Expansion and Contracts - The company has signed multiple contracts for high-end castings and metallurgical equipment, actively expanding its market share in the domestic and "Belt and Road" regions[18]. - The company achieved a contract turnover of 5.95 billion yuan, representing a year-on-year increase of 38%[29]. - The company signed significant contracts, including a record high single manufacturing contract for a 2250mm hot-rolled production line, marking a milestone in fully autonomous design[29]. - The company has established a strong overseas market expansion capability, leveraging its project management experience and customer relationships[27]. - The company is currently executing significant sales contracts exceeding CNY 500 million, including a contract worth USD 185.78 million for the Cambodia National Grid project[92]. Environmental Compliance - The company achieved compliance with national discharge standards for wastewater, waste gas, and noise, with 100% of solid waste disposed of according to regulations in the first half of 2021[50]. - Wastewater treatment facilities installed in the workshop ensured that COD and ammonia nitrogen levels met the Class III discharge standards, with real-time monitoring systems in place[51]. - Emissions of CO2, SO2, and NOX from production processes were below the required standards, with significant investments in dust removal systems totaling 80 tons and 60 tons for electric furnaces[53]. - The company implemented online monitoring for wastewater and waste gas, ensuring accurate and timely data transmission to the provincial ecological environment department[59]. - The company has initiated projects to improve energy efficiency and reduce carbon emissions, including the retrofitting of heat treatment furnaces[64]. Legal Matters - The company reported a litigation amount of 123.268 million RMB related to a lawsuit filed in January 2019, with additional claims for interest and legal fees totaling approximately 2.383 million RMB and 1.3 million RMB respectively[74]. - The first-instance judgment in May 2020 ordered the defendants to jointly repay the plaintiff 123.268 million RMB and interest, along with litigation costs of approximately 0.903 million RMB[74]. - The company has initiated enforcement actions due to non-compliance with the judgment, including freezing bank accounts and seizing properties valued at approximately 12.3268 million RMB[74]. - A separate lawsuit against Jiangsu Asia-Pacific Aviation Technology Co., Ltd. involved claims for equipment modification costs totaling 18.7818 million RMB, with a court ruling for the defendant to pay 9.5718 million RMB[75]. - The company is currently awaiting a second-instance judgment regarding the appeal filed by both parties in the Jiangsu Asia-Pacific case, which has not yet been resolved[75]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period is 53,009[95]. - The largest shareholder, China Machinery Industry Group Co., Ltd., holds 3,400,968,500 shares, representing 46.79% of the total[96]. - China Second Heavy Machinery Group Co., Ltd. holds 663,809,495 shares, accounting for 9.13% of the total[96]. - The total number of restricted shares at the beginning of the period was 1,883,834,569, with no new restricted shares added during the reporting period[95]. - All restricted shares were released on June 8, 2021, with no remaining restricted shares at the end of the reporting period[95]. Financial Liabilities and Related Party Transactions - Short-term borrowings decreased by 100% compared to the beginning of the year, primarily due to the repayment of loans during the reporting period[35]. - Long-term borrowings decreased by 41.28% compared to the beginning of the year, mainly due to loan repayments during the reporting period[35]. - The company reported a total of 3,377.82 million for purchasing goods and services from a related party, accounting for 0.85% of similar transactions[83]. - The company engaged in transactions with a related party for 2,382.12 million, representing 0.60% of similar transactions[83]. - The company has a total of five major ongoing contracts with the Cambodia National Power Company, with a combined value of approximately USD 66.56 million[92].