SAFETY(SH:603028)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥376,406,781.09, a decrease of 13.18% compared to ¥433,543,440.04 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥13,795,623.97, down 38.90% from ¥22,580,187.64 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥9,305,690.45, a decrease of 54.33% compared to ¥20,375,947.49 in the same period last year[20]. - The total operating revenue for the first half of 2022 was CNY 376,406,781.09, a decrease of 13.2% compared to CNY 433,543,440.04 in the first half of 2021[113]. - Net profit for the first half of 2022 was CNY 14,082,835.24, down 38.5% from CNY 22,906,549.82 in the same period last year[114]. - The company reported a total comprehensive income of CNY 15,240,802.94, down from CNY 22,463,928.85 in the first half of 2021[114]. - The company’s total comprehensive income for the first half of 2022 was RMB 13,352,364.13, reflecting operational performance[135]. Cash Flow and Financial Position - The net cash flow from operating activities was -¥8,277,672.99, an improvement from -¥33,521,884.61 in the previous year[20]. - The company's cash and cash equivalents decreased to CNY 91,295,043.36 from CNY 115,691,863.39, a decline of about 21%[105]. - The cash paid for dividends and interest was CNY 4,769,318.76, down from CNY 19,887,930.36 in the previous period[122]. - The cash inflow from financing activities totaled CNY 161,129,910.10, while cash outflow was CNY 171,478,058.05, resulting in a net cash outflow of CNY 10,348,147.95[122]. - The total assets at the end of the reporting period were ¥1,329,487,257.02, an increase of 1.51% from ¥1,309,758,709.16 at the end of the previous year[22]. - Total liabilities increased to CNY 552,994,647.82 from CNY 499,014,252.70, marking an increase of approximately 10.8%[107]. - The company's equity attributable to shareholders decreased to CNY 775,579,186.05 from CNY 810,118,244.58, a decline of about 4.3%[107]. Market Environment and Business Operations - The company faced a decrease in sales orders due to the overall poor market environment impacted by the COVID-19 pandemic[24]. - The company operates in the special steel wire rope and rigging sector, with products widely used in elevators, engineering machinery, ports, coal mines, and marine engineering[28]. - The elevator wire rope market in China has shown steady growth, with a production increase of 20.5% year-on-year in 2021, reaching 1.545 million units[31]. - The company is positioned to benefit from the government's infrastructure investment plans, which include 102 major projects aimed at boosting economic stability[32]. - The issuance of special bonds for infrastructure projects is expected to enhance the construction industry's performance in the second half of 2022[33]. Research and Development - The company has a robust research and development team, continuously investing in technology upgrades and innovation to meet customer needs and industry standards[41]. - The company holds 170 patents, including 100 patents for its own, with 33 invention patents and 67 utility model patents, indicating strong innovation capabilities[41]. - Research and development expenses were reduced by 24.81% to CNY 12,377.99 million, reflecting adjustments based on market conditions[52]. Corporate Governance and Compliance - The company did not have any profit distribution plan or capital reserve transfer to share capital plan during the reporting period[5]. - The company has not disclosed any new employee incentive plans or stock ownership plans[75]. - The company guarantees the independence of its financial department and accounting system, ensuring no shared bank accounts with controlled entities[84]. - The company has committed to maintaining independent operations, including assets, personnel, qualifications, and capabilities, to ensure sustainable market operations[84]. - The company has not engaged in any significant litigation or arbitration matters during the reporting period[86]. Environmental Responsibility - The company has implemented measures to reduce carbon emissions, including the installation of solar panels to produce clean electricity[79]. - The company adheres to environmental protection laws and has taken steps to manage hazardous waste in compliance with regulations[77]. - The company continues to promote energy efficiency and the use of clean energy in its operations[78]. Shareholder Information - The company reported a total of 15,592 common shareholders as of the end of the reporting period[97]. - The largest shareholder, Suzhou Wuzhong Rongtai Holdings Co., Ltd., holds 28.91% of the shares, totaling 82,980,738 shares[99]. - The second-largest shareholder, Jiechang Co., Ltd., reduced its holdings by 7,183,800 shares, now holding 12.30% of the shares[99]. Risks and Challenges - The company faces risks from market competition, raw material price fluctuations, and potential goodwill impairment due to acquisitions[62][63][67]. - Accounts receivable and contract assets increased compared to the end of the previous year, primarily due to extended payment terms from some customers affected by the COVID-19 pandemic[54]. Strategic Initiatives - The company is focusing on developing high-tech wire ropes and rigging products for marine engineering, aligning with the "Made in China 2025" initiative[34]. - The company has established long-term strategic partnerships with numerous well-known clients, enhancing its market position through accumulated trust in quality[43].