FUDA ALLOY(SH:603045)2021-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,459,208,439.56, representing a 79.90% increase compared to ¥811,127,203.71 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was ¥35,511,068.33, a significant increase of 731.97% from ¥4,268,292.29 in the previous year[18]. - The net profit after deducting non-recurring gains and losses reached ¥33,641,261.72, up 3,689.79% from ¥887,681.64 in the same period last year[18]. - The basic earnings per share for the first half of 2021 was ¥0.2622, a 737.70% increase from ¥0.0313 in the previous year[19]. - The total assets of the company at the end of the reporting period were ¥2,136,777,986.84, reflecting an 11.77% increase from ¥1,911,833,833.36 at the end of the previous year[19]. - The weighted average return on net assets increased to 4.22%, up 3.70 percentage points from 0.52% in the same period last year[19]. - The company achieved operating revenue of 1.459 billion yuan, a year-on-year increase of 79.9%[40]. - The net profit attributable to shareholders reached 35.51 million yuan, up 731.97% compared to the same period last year[40]. - The company completed 55% of its annual sales target in the first half of the year, with a main business income growth of 87%[40]. - The overseas business saw a remarkable growth, with export business increasing by 59% year-on-year[40]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at -¥393,508,384.68, worsening from -¥155,280,960.90 in the previous year, indicating increased cash outflow[18]. - Cash flow from operating activities showed a net outflow of ¥393,508,384.68, a significant increase in outflow compared to ¥155,280,960.90 from the previous year[46]. - The company's total assets include ¥764,934,411.70 in inventory, which increased by 50.83% from ¥507,141,787.05, driven by order growth and rising raw material prices[48]. - The company reported a significant increase in long-term borrowings, which rose by 112.89% to ¥246,493,423.46, compared to ¥115,786,617.86, indicating a restructuring of its financing[48]. - The company's fixed assets totaled approximately CNY 312.33 million, while intangible assets amounted to CNY 54.48 million, leading to a total asset value of CNY 366.81 million as of June 30, 2021[52]. - The company reported a significant decrease in financial assets measured at fair value, with a total change of CNY -89.15 million, resulting in a final balance of CNY 22.47 million[54]. - The company reported a decrease in cash and cash equivalents to RMB 161,070,780.81 from RMB 285,932,965.29, a decline of about 43.6%[95]. Research and Development - R&D expenses rose by 67.27% to ¥45,705,525.08, compared to ¥27,323,954.39, reflecting the company's commitment to enhancing its research capabilities[46]. - The company is actively developing six major R&D projects, including the Flexible Feeder 3.0 and Servo Press Series, alongside ten high-tech projects such as MES development and visual intelligent algorithm development[42]. - The company obtained 13 new patent authorizations and filed 6 new patent applications during the reporting period, totaling 106 valid patents[41]. Business Strategy and Operations - The company attributed the revenue growth to increased sales volume and rising product prices[20]. - The reduction in losses due to fluctuations in silver prices contributed to the significant increase in net profit[20]. - The main business focuses on the manufacturing of electrical contact materials, which are essential for relays, circuit breakers, and sensors, positioning the company as a leading provider in the industry[25]. - The company has transitioned from a silver contact supplier to a comprehensive solution provider for electrical contact systems, emphasizing innovation and technology advancement[26]. - The procurement model is based on "production-driven purchasing," ensuring stable supply of raw materials like silver and copper, with a focus on maintaining reasonable inventory levels[26]. - The production model follows "sales-driven production," allowing the company to respond quickly to customer demands while maintaining safety stock[27]. - The company is expanding its business into precious metal recycling and smart manufacturing, aiming to enhance resource efficiency and reduce production costs[28]. - The company has developed various automation products through its subsidiary, aiming to improve production efficiency and support digital transformation[29]. - The company is focused on building a first-class automated factory, enhancing its overall competitiveness in the market[29]. Environmental and Compliance - The company has implemented pollution control facilities that are designed, constructed, and operated simultaneously with the main project, ensuring compliance with environmental standards[67]. - The company has a monthly monitoring plan for wastewater and semi-annual monitoring for air emissions and noise, conducted by qualified testing agencies[70]. - The company has established emergency response plans for environmental risks and has filed them with local environmental authorities[69]. - The company has achieved compliance with wastewater discharge standards, with specific pollutants such as cadmium and copper meeting the first-level standards[65][66]. - The company is committed to creating a resource recycling system for silver-containing waste materials, promoting environmental sustainability[28]. - The company is committed to adhering to environmental regulations and has received approvals for its environmental impact assessments for construction projects[68]. Governance and Shareholder Matters - The company did not distribute any dividends or bonus shares for the half-year period, with a proposed distribution of 0 shares and 0 yuan per 10 shares[63]. - The company is currently in the process of selecting new candidates for the board of directors and management, as the current term ended on February 1, 2021[62]. - The company has committed to not transferring more than 25% of its shares during the tenure of key personnel, ensuring stability in shareholding[74]. - The company will automatically extend the lock-up period for shares if the stock price falls below the issue price for a continuous period of 20 trading days post-IPO[74]. - The company has appointed Zhongtianyun Accounting Firm as its auditor for the 2021 fiscal year, continuing from the previous year[79]. - There are no significant lawsuits or arbitration matters reported during the reporting period, indicating a stable legal standing[79]. - The company has ensured compliance with information disclosure obligations, maintaining transparency with investors[76]. - The total number of ordinary shareholders at the end of the reporting period was 12,086[86]. - The largest shareholder, Wang Dawu, held 36,248,706 shares, representing 26.34% of the total shares[88]. Risks and Challenges - The company faces risks related to significant fluctuations in raw material prices, particularly silver, which could impact profitability if prices drop sharply[56]. - The company has a customer concentration risk, with the top five customers accounting for 42.07% of total revenue, including a major client, Chint Electric, representing 20.73%[58]. - The company is at risk of delayed technological updates, which could affect its competitive position in the technology-intensive electrical contact materials industry[58]. - The company has invested in new product and technology development to meet increasing market demands, but faces risks if it cannot keep pace with technological advancements[58]. - The company has a high reliance on tax incentives as a high-tech enterprise, which, if not renewed, could lead to a higher corporate tax rate of 25%[57]. Accounting and Financial Reporting - The company adheres to the Chinese Accounting Standards and has confirmed its ability to continue as a going concern for at least 12 months from the reporting date[129][131]. - The company’s financial reports are designed to provide a true and complete reflection of its financial status, operating results, and cash flows[131]. - The company recognizes revenue when it fulfills performance obligations, specifically when customers gain control of related goods or services[199]. - Revenue is measured based on the transaction price allocated to each performance obligation, which is determined by the standalone selling prices of the promised goods or services[199]. - The company uses expected credit loss models for impairment of financial assets, ensuring a robust approach to risk management[151]. - The company recognizes expected liabilities when there is a present obligation that is likely to result in an outflow of economic benefits[195].