SAFETY(SH:603028)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 433,543,440.04, representing a 44.53% increase compared to CNY 299,967,753.20 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2021 was CNY 22,580,187.64, a 79.87% increase from CNY 12,553,374.66 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 20,375,947.49, which is a 111.29% increase compared to CNY 9,643,663.39 in the same period last year[19]. - The basic earnings per share for the first half of 2021 was CNY 0.08, up 33.33% from CNY 0.06 in the same period last year[21]. - The weighted average return on net assets increased to 3.02% from 1.76%, an increase of 1.26 percentage points[21]. - The company achieved total revenue of 433.54 million yuan in the first half of 2021, an increase of 44.53% compared to the same period last year[44]. - The net profit attributable to shareholders of the parent company reached 22.58 million yuan, representing a year-on-year increase of 79.87%[44]. - The total profit for the first half of 2021 was CNY 28,548,284.28, compared to CNY 15,136,384.02 in the previous year, marking an increase of 89%[116]. - The total comprehensive income for the first half of 2021 was CNY 22,463,928.85, compared to CNY 13,438,795.99 in the same period of 2020[116]. Cash Flow and Financial Position - The net cash flow from operating activities decreased by 39.75%, amounting to CNY -33,521,884.61 compared to CNY -23,986,352.97 in the previous year[22]. - Cash and cash equivalents decreased to CNY 41,157,864.75 from CNY 48,935,965.97 at the end of 2020, a decline of approximately 15.7%[111]. - The company reported a net cash flow from operating activities of -21,231,666.71 RMB for the first half of 2021, an improvement from -44,616,882.51 RMB in the same period of 2020[123]. - The company experienced a net cash outflow from investment activities of -7,637,670.69 RMB, worsening from -2,767,857.25 RMB year-over-year[124]. - Total current assets as of June 30, 2021, amount to 546,622,234.95 RMB, an increase from 516,976,868.24 RMB at the end of 2020[108]. - Total liabilities increased to CNY 444,012,727.61 as of June 30, 2021, from CNY 412,452,016.08 at the end of 2020, representing a growth of approximately 7.6%[110]. Research and Development - Research and development expenses increased by 61.09% to 16.46 million yuan, reflecting the company's commitment to innovation[44]. - The company holds 96 patents, including 31 invention patents and 65 utility model patents, indicating strong R&D capabilities[38]. - The company has a national postdoctoral research station and several provincial innovation platforms, showcasing its commitment to technological advancement[39]. - Research and development expenses rose to CNY 16,463,149.80 in the first half of 2021, up from CNY 10,219,848.45 in the same period of 2020, reflecting a growth of approximately 61%[115]. Market and Business Expansion - The company expanded its business scope by adding construction design services, contributing to higher profitability[22]. - The company has established a subsidiary in Hong Kong to expand its market presence and handle some overseas sales functions[29]. - The company aims to develop high-performance steel wire ropes for marine applications, driven by the "Made in China 2025" initiative[31]. - The company is expanding its maintenance market, capitalizing on the growing demand driven by the increasing number of elevators in China, which reached 7.745 million units by the end of 2020[47]. Environmental and Social Responsibility - The company has implemented measures to reduce carbon emissions, including the establishment of a small photovoltaic power station in 2018, which contributes to energy savings and emission reductions[79]. - The company encourages low-carbon commuting for employees by providing multiple bus routes and conducting low-carbon training to enhance energy-saving awareness[79]. - The company strictly adheres to the Environmental Protection Law of the People's Republic of China and local environmental regulations, ensuring compliance with national and local environmental protection standards[76]. Corporate Governance and Compliance - The company has committed to not engaging in activities that harm the interests of the listed company and its minority shareholders[82]. - The company has established a commitment to avoid and minimize related party transactions with its controlling shareholders[82]. - The company guarantees that its assets are fully controlled and owned independently, preventing any illegal occupation of funds or assets by related parties[84]. - The company has established a clear commitment to independent business operations, ensuring it has the necessary resources and capabilities[84]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,617[97]. - The company distributed a total cash dividend of CNY 16.56 million (before tax) during the reporting period[96]. - The top shareholder, Suzhou Wuzhong Rongtai Holdings Co., Ltd., holds 82,980,738 shares, representing 28.91% of the total shares[99]. - The company reported a profit distribution of -16,560,000.00 to shareholders during the current period[129]. Risks and Challenges - The company faces industry competition risks in the metal products sector, particularly in the elevator and lifting wire rope markets, where it has strong competitive advantages[66]. - The company is exposed to raw material price fluctuation risks, which could impact its performance if prices do not align with product pricing[67]. - The company has a goodwill impairment risk associated with the acquisition of Tongren Design, which will be tested annually for impairment[70]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, indicating the company has the ability to continue operations for at least 12 months from the reporting date[139]. - The company adheres to the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[141]. - The company recognizes foreign exchange differences arising from currency fluctuations as "foreign currency translation differences" in other comprehensive income when consolidating financial statements involving overseas operations[158].