EBEM(SH:603002)2023-08-21 16:00Financial Performance - Basic earnings per share for the first half of 2023 decreased to 0.04 RMB, down 92.73% from 0.55 RMB in the same period last year[19]. - Diluted earnings per share for the first half of 2023 also decreased to 0.04 RMB, reflecting a 92.73% decline compared to the previous year[19]. - The weighted average return on net assets dropped to 1.57%, a decrease of 19.81 percentage points from 21.38% in the same period last year[19]. - The return on net assets after deducting non-recurring gains and losses fell to 1.45%, down 2.05 percentage points from 3.50% in the previous year[19]. - The basic earnings per share after deducting non-recurring gains and losses decreased to 0.04 RMB, a decline of 55.56% from 0.09 RMB in the same period last year[19]. - The company's operating revenue for the first half of the year was ¥1,101,246,777.26, a decrease of 36.74% compared to the same period last year[20]. - Net profit attributable to shareholders was ¥38,777,147.12, down 92.22% year-on-year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥35,958,298.48, a decline of 55.90% compared to the previous year[20]. - The net cash flow from operating activities was ¥127,611,010.81, representing a decrease of 56.75% from the same period last year[20]. - The total comprehensive income for the first half of 2023 was ¥38,930,620.84, a decrease of 92.2% from ¥497,224,493.16 in the first half of 2022[159]. - The company's total profit for the first half of 2023 was ¥45,307,979.74, a decrease of 92.3% from ¥586,032,928.84 in the previous year[158]. Operational Highlights - The company focuses on producing electronic-grade epoxy resin and copper-clad laminates, which are essential materials in the electronics industry[23]. - The demand for epoxy resin has been affected by international conditions and macroeconomic factors, leading to a decline in product prices[24]. - The company aims to develop high-end, environmentally friendly products and provide customized solutions to enhance product competitiveness[24]. - The high-end copper-clad laminate market is growing rapidly, driven by advancements in 5G, new energy vehicles, and artificial intelligence[25]. - The company has established a stable market cooperation relationship with several large PCB customers, including listed companies such as HanYu, Jinxing Group, and JianDing Technology[41]. - The company has accumulated nearly 3,000 customers in the epoxy resin business, allowing it to respond quickly to market demands and technological advancements[34]. - The company has 41 authorized invention patents and 85 non-patented technologies in use, showcasing its strong R&D capabilities[35]. - The company employs a fully automated DCS control system in its production, enhancing efficiency and product quality[36]. - The company has positioned itself as a high-end supplier, reducing reliance on imported products and establishing a strong brand value in both domestic and international markets[38]. - The company’s products are widely used in various sectors, including consumer electronics, automotive electronics, and industrial control, reflecting its diverse application range[42]. Research and Development - The company has implemented a refined management approach to ensure product quality and cost control, contributing to its competitive advantage[42]. - The company’s procurement strategy combines long-term contracts and monthly purchases to optimize raw material sourcing for its epoxy resin and copper-clad laminate businesses[31]. - The company’s sales pricing mechanism is flexible, allowing for quick adjustments based on raw material costs and market conditions[33]. - The company has received recognition from international clients, including major manufacturers in the shipbuilding and coating industries, for its epoxy resin products[39]. - The company holds 68 patents in the copper-clad laminate business, including 11 invention patents, showcasing its strong technical capabilities[43]. - The acquisition of Wuxi Hongren has enhanced R&D collaboration, accelerating product development and improving core competitiveness[43]. - The company has developed a new generation of polyether resin for high-temperature and high-humidity applications, currently in the evaluation phase with end customers[64]. - The company has obtained domestic patent authorization for special resin types in 2022 and is in the downstream evaluation phase[63]. - The company’s new halogen-free phosphorus-containing polyether resin has received domestic patent authorization in both 2022 and 2023[64]. - The company’s super 5G resin has completed product optimization and application evaluation, with customer certification expected in 2023[64]. Environmental and Safety Compliance - The company has implemented significant asset restructuring, expanding its main business to include both epoxy resin and copper-clad laminates[47]. - The company has established a comprehensive environmental management system, including regular monitoring by third-party qualified testing companies[104]. - The company has invested in pollution control facilities and adheres to national environmental laws and regulations[104]. - The company has established an emergency response plan for environmental incidents, which has been filed with local environmental authorities[118]. - The company regularly monitors emissions and wastewater discharge to ensure compliance with environmental regulations[106][107]. - The company has a solid waste management system in place, with hazardous waste reported and disposed of by qualified environmental handling units[106]. - The company has developed a comprehensive noise reduction strategy, utilizing low-noise equipment and soundproofing measures[109]. - The company has a dedicated wastewater treatment facility for office and domestic wastewater, ensuring treated water meets discharge standards[106]. - The company has made significant investments in environmental protection facilities as part of its project approvals, demonstrating commitment to sustainability[110]. - The company has received environmental impact assessment approvals for multiple projects, including a 155,000-ton epoxy resin project and a 140,000-ton liquid epoxy resin project[111][113]. Financial Position and Capital Structure - As of June 30, 2023, the total assets of the company amounted to RMB 3,493,387,185.97, a decrease from RMB 3,598,223,554.05 at the end of 2022, reflecting a decline of approximately 2.9%[149]. - The company's current assets totaled RMB 2,458,174,674.20, down from RMB 2,502,975,438.82 at the end of 2022, indicating a decrease of about 1.8%[149]. - The company's short-term borrowings rose significantly to RMB 202,353,607.49 from RMB 120,220,980.75, marking an increase of about 68.4%[150]. - The total liabilities as of June 30, 2023, amounted to CNY 1,176,071,579.50, an increase of 2.5% from CNY 1,142,737,759.02 at the end of 2022[151]. - The total equity attributable to shareholders decreased to CNY 2,317,315,606.47 from CNY 2,455,485,795.03, a decline of 5.6%[151]. - The company has not experienced any changes in its share capital structure during the reporting period[135]. - The total number of ordinary shareholders as of the end of the reporting period was 29,725[138]. - The largest shareholder, Epoxy Base Investment Holding Ltd., holds 253,702,000 shares, representing 28.07% of the total shares[141]. - The second-largest shareholder, Guangzhou Hongren Electronic Industry Co., Ltd., holds 238,230,953 shares, accounting for 26.36%[141]. - The company has not reported any changes in its controlling shareholder or actual controller during the reporting period[136]. Risks and Challenges - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, particularly for epoxy resin and copper-clad laminates[85]. - The company has identified safety and environmental risks due to increased regulatory pressures and the hazardous nature of epoxy resin[86]. - Market competition is intensifying, posing risks of profit margin decline and performance downturn due to potential price reductions[87]. - The company's copper-clad laminate business has a high customer concentration, which could adversely affect performance if major clients face operational difficulties[88]. - The company is exposed to risks from changes in the domestic and international economic environment, including potential trade barriers affecting exports[89]. Corporate Governance - The company completed the election of its sixth board of directors and supervisory board during the reporting period[93]. - The company has not reported any major litigation or arbitration matters during the reporting period[129]. - There are no significant non-operating fund occupations by controlling shareholders or related parties during the reporting period[129]. - The total guarantee amount (including guarantees to subsidiaries) is CNY 1,240,000,000, accounting for 53.51% of the company's net assets[132]. - The company has not reported any changes in accounting policies or prior period error corrections during the current reporting period[184]. - The company has a diverse shareholder structure, with significant stakes held by various investment entities, ensuring a broad base of support for its operations[189]. - The company is controlled by Mr. Wang Wenyang and his daughter Grace Tsu Han Wong[196]. - The consolidated financial statements include the company and all its subsidiaries, ensuring comprehensive financial reporting[197]. - The company has the ability to continue as a going concern for the next 12 months without significant doubts[200].