SGEG(SH:601616)2021-08-16 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥473,166,690.12, a decrease of 17.34% compared to ¥572,458,007.53 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was ¥36,543,609.73, down 8.40% from ¥39,893,376.67 in the previous year[18]. - The net cash flow from operating activities increased by 11.71% to ¥50,020,239.81, compared to ¥44,776,632.96 in the same period last year[18]. - The total assets at the end of the reporting period were ¥2,996,356,737.53, a decrease of 8.72% from ¥3,282,715,090.03 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 8.75% to ¥2,403,515,822.60 from ¥2,633,938,407.40 at the end of the previous year[18]. - Basic earnings per share for the first half of 2021 were ¥0.0408, a decrease of 4.23% from ¥0.0426 in the same period last year[18]. - The weighted average return on net assets was 1.45%, down from 1.52% in the previous year[18]. - The company achieved a net profit of 36.54 million yuan and total operating revenue of 473.17 million yuan for the first half of 2021, reflecting a year-on-year revenue decrease of 17.34%[34]. - The company's operating costs decreased by 16.73% to 325.29 million yuan, attributed to the deferral of revenue recognition due to customer-related delays[39]. Research and Development - Research and development expenses increased by 12.72% to 18.76 million yuan, driven by higher labor and material costs[39]. - The company added 18 new authorized patents in the first half of 2021, maintaining a strong momentum in research and innovation[30]. - The company reported a research and development expense of CNY 18,762,307.40 for the first half of 2021, compared to CNY 16,645,700.61 in the same period of 2020, indicating a 12.7% increase[85]. - Research and development expenses increased to CNY 3,445,852.44 in the first half of 2021, compared to CNY 1,882,723.74 in the first half of 2020, reflecting a growth of 83.06%[88]. Market and Business Strategy - The company operates a production model combining make-to-order (MTO) and make-to-stock (MTS) strategies to enhance efficiency and meet market demands[27]. - The company aims to align with national carbon peak and carbon neutrality goals, emphasizing energy conservation and low-carbon development in the power industry[28]. - The company is actively pursuing new business opportunities in high-end industrial manufacturing, renewable energy, and electronic communications, achieving significant breakthroughs in these sectors[35]. - The company has established a comprehensive supplier evaluation system, ensuring stable raw material supply channels and deep strategic partnerships with core suppliers[26]. - The company’s core business focuses on providing comprehensive power distribution solutions, with products including medium and low voltage switchgear and power electronic devices[25]. - The company’s marketing network covers major cities in China, with a focus on key regions such as the Yangtze River Delta and the Pearl River Delta[27]. Financial Position and Assets - Cash and cash equivalents at the end of the period amounted to ¥765,567,526.02, representing 25.55% of total assets, a decrease of 15.94% compared to the previous year[41]. - Trading financial assets decreased by 40.97% to ¥170,000,000.00, accounting for 5.67% of total assets[41]. - Accounts receivable financing dropped by 47.57% to ¥8,144,076.58, representing 0.27% of total assets[41]. - Construction in progress increased significantly by 208.91% to ¥20,299,575.32, now 0.68% of total assets, due to the renovation and upgrade of the broadcasting center and product exhibition hall[41]. - Prepayments rose by 211.49% to ¥25,643,623.59, making up 0.86% of total assets, attributed to increased procurement prepayments[41]. - The total liabilities as of June 30, 2021, were ¥471,984,530.42, compared to ¥532,409,786.65 at the end of 2020, showing a decrease of about 11.3%[78]. - The company's inventory stood at ¥172,931,250.67, slightly down from ¥173,845,340.53 at the end of 2020, indicating a marginal decrease of approximately 0.5%[77]. - The accounts receivable amounted to ¥426,973,384.99, a slight decrease from ¥448,626,827.86 at the end of 2020, representing a decline of about 4.8%[77]. Shareholder and Governance - The company has maintained a cash dividend payout of 170 million yuan over the past three years, demonstrating a commitment to returning value to shareholders[37]. - The company has repurchased shares totaling 271 million yuan, acquiring approximately 8.19 million shares to enhance investor confidence[37]. - The company has a total of 50,649 ordinary shareholders as of the end of the reporting period[67]. - The largest shareholder, Xinyu Minjie Investment Management Co., Ltd., holds 22.82% of the shares, totaling 213,474,250 shares[69]. - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[56]. - The company has committed to not engaging in any competitive activities that may harm its interests, ensuring compliance with relevant laws and regulations[55]. Compliance and Risk Management - The company has outlined various risk factors in the management discussion and analysis section of the report[6]. - There are no significant changes reported in the company's risk exposure or governance structure during the reporting period[45]. - The company has not faced any penalties or corrective actions related to legal violations during the reporting period, showcasing a strong compliance record[56]. - The company has committed to avoiding unnecessary related party transactions, ensuring the protection of minority shareholders' interests[55]. Financial Reporting and Accounting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status[109]. - The company’s financial statements were approved by the board of directors on August 13, 2021, ensuring compliance with regulatory requirements[104]. - The company has confirmed its ability to continue as a going concern for the next 12 months, with no significant doubts identified[108]. - The company recognizes the fair value of equity investments held prior to acquiring control over subsidiaries, impacting current investment income[121]. - The company applies the effective interest method for calculating the amortized cost of financial assets and liabilities, considering all contractual terms[126]. Investment and Capital Management - The company recognizes investment income based on its share of the investee's net profit and other comprehensive income, adjusting the carrying amount of long-term equity investments accordingly[165]. - The company capitalizes necessary expenditures incurred during the construction of fixed assets until they reach the intended usable state[178]. - The company assesses long-term assets for impairment at the balance sheet date, estimating recoverable amounts based on fair value less costs to sell or present value of future cash flows[191]. - The company recognizes the difference between the book value and the actual proceeds from the disposal of long-term equity investments as current profit and loss[170].