FUDA ALLOY(SH:603045)2020-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥811,127,203.71, representing a 20.45% increase compared to ¥673,396,793.47 in the same period last year[19]. - The net profit attributable to shareholders decreased by 87.52% to ¥4,268,292.29 from ¥34,201,325.50 in the previous year, primarily due to increased asset impairment losses and a reduction in government subsidies[21]. - The basic earnings per share dropped by 87.40% to ¥0.0313 from ¥0.2485 year-on-year[20]. - The company reported a net cash flow from operating activities of -¥155,280,960.90, slightly worse than -¥155,017,571.76 in the previous year[19]. - The company achieved a main business revenue of 760.16 million yuan, a year-on-year increase of 15.94%[44]. - The company reported a total comprehensive income of CNY 4,422,186.68 for the first half of 2020, compared to CNY 34,201,325.50 in the previous year[112]. - The company reported a significant increase in financial expenses, totaling ¥15,001,370.10, compared to ¥12,982,333.78 in the previous year, marking a 15.6% rise[108]. Assets and Liabilities - The total assets increased by 5.22% to ¥1,548,704,710.69 compared to ¥1,471,864,274.93 at the end of the previous year[21]. - The total liabilities increased to CNY 765,100,922.29 from CNY 647,403,428.93, reflecting a rise of about 18.2%[101]. - The total equity attributable to shareholders decreased to CNY 783,603,788.40 from CNY 824,460,846.00, a decline of approximately 4.9%[101]. - Cash and cash equivalents decreased to CNY 118,880,921.65 from CNY 183,872,900.14, a decline of about 35.4%[103]. - Accounts receivable increased to CNY 369,608,504.50 from CNY 273,984,712.27, showing a growth of approximately 35%[104]. - Inventory rose to CNY 501,007,391.24, up from CNY 402,432,877.44, indicating an increase of around 24.5%[104]. Operational Insights - The main business of the company is the research, production, and sales of electrical contact materials, which are widely used in relays, circuit breakers, and sensors[27]. - The procurement model is based on "production-based ordering," ensuring stable supply and timely response to customer needs[30]. - The production model follows "sales-based production," allowing the company to adapt quickly to market demands[31]. - The company maintains a direct sales model, with a marketing center responsible for customer development and sales maintenance across various regions[32]. - The company has established a strong customer base, including domestic clients like Chint Electric and international clients such as Schneider and Siemens[28]. Research and Development - R&D expenses increased by 30.49% to ¥27,323,954.39 from ¥20,940,108.05 year-on-year[53]. - The company is focusing on R&D for high-end automotive relay silver-tin oxide materials and high-voltage direct current contact materials for electric vehicles[46]. - The company obtained 5 patent authorizations during the reporting period, including 3 invention patents and 2 utility model patents, bringing the total to 57 invention patents[46]. Market and Risk Factors - The company faced significant risks related to market volatility and potential asset impairment, as detailed in the report[7]. - The company is at risk of significant profit decline if silver prices experience sustained or sharp declines due to the lag in risk transmission mechanisms[62]. - The company has a high dependency on silver as a primary raw material, which is subject to volatility influenced by international political and economic conditions[62]. Corporate Governance and Compliance - The company appointed Zhongtian Yun Accounting Firm as the auditor for the 2020 fiscal year, approved at the 2019 annual shareholders' meeting[74]. - There were no significant lawsuits or arbitration matters during the reporting period[74]. - The company has not disclosed any major related party transactions during the reporting period[75]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[74]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 15,104[90]. - The largest shareholder, Wang Dawu, held 36,248,706 shares, representing 26.34% of the total shares[91]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its IPO[70]. Environmental and Social Responsibility - The company donated 100,000 yuan to poverty alleviation efforts and 200,000 yuan for pandemic relief during the reporting period[78]. - The company has achieved compliance with pollution discharge standards for various pollutants, including cadmium (0.004 mg/l), copper (0.046 mg/l), and chemical oxygen demand (113 mg/l)[79]. - The company’s pollution control facilities are designed and constructed simultaneously with the main project, ensuring operational alignment with production scale[81].