LEHUI International(SH:603076)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥501,314,286.03, representing a 16.15% increase compared to ¥431,597,349.51 in the same period last year[19]. - The net profit attributable to shareholders was ¥56,066,130.05, a slight increase of 0.58% from ¥55,741,713.26 year-on-year[19]. - The net cash flow from operating activities was -¥306,847,225.38, a significant decline of 643.23% compared to ¥56,485,328.60 in the previous year[19]. - The total assets at the end of the reporting period reached ¥2,596,360,318.34, up 42.99% from ¥1,815,703,121.35 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 52.23% to ¥1,304,181,132.06 from ¥856,734,656.19 at the end of the previous year[20]. - The basic earnings per share decreased by 17.33% to ¥0.62 from ¥0.75 in the same period last year[21]. - The weighted average return on net assets decreased by 1.93 percentage points to 5.19% compared to 7.12% in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥46,329,426.44, down 11.33% from ¥52,249,569.26 year-on-year[19]. - The company achieved operating revenue of 501.31 million yuan, an increase of 16.15% year-on-year, with overseas revenue accounting for 60.17% of total revenue[32]. - The net profit attributable to shareholders was 56.07 million yuan, while the net profit excluding non-recurring gains and losses was 46.33 million yuan[32]. Business Operations - The company experienced a significant increase in procurement expenses due to early material orders to reduce costs and ensure project execution[22]. - The equipment business revenue grew by 15.41% year-on-year, with a net profit of 55.56 million yuan, reflecting a growth of 6.34% compared to the previous year[32]. - The company signed new orders worth 807 million yuan in the equipment business, representing a year-on-year increase of 75.82%[33]. - The company’s gross margin decreased by 0.79 percentage points due to rising costs of raw materials, particularly stainless steel, which increased operating costs by 17.46% to 354.48 million yuan[32]. - The second main business, craft brewing, incurred a loss of 9.24 million yuan as it is still in the early investment phase[32]. - The company has established a national distributed supply chain platform for craft beer, leveraging 30 years of industry experience[28]. - The company is expanding into new fields such as white liquor and renewable energy equipment, successfully capturing domestic market share[30]. - The company’s international sales and service network covers emerging markets in Africa, Latin America, and Asia, enhancing its competitiveness[29]. - The company’s total orders on hand reached 1.793 billion yuan, an increase of 25.56% year-on-year, indicating strong future growth potential[33]. Financial Position - The company’s cash and cash equivalents increased by 169.81% to RMB 561.25 million from RMB 208.02 million year-on-year, primarily due to funds raised from a private placement[40]. - The company’s inventory rose by 29.80% to RMB 971.75 million from RMB 748.67 million, attributed to preparations for large domestic and international projects[40]. - The company made a total external equity investment of RMB 1.58 million during the reporting period, including investments in two new companies[43]. - The company’s short-term borrowings increased by 148.65% to RMB 508.78 million from RMB 204.62 million, reflecting the need for funding for large projects[40]. - The company reported a net profit of -594.18 million CNY for Nanjing Lehuifenna, indicating a loss in the beverage packaging equipment sector[47]. - Nanjing Baolilong achieved a net profit of 1,045.65 million CNY, reflecting a strong performance in high-end beverage packaging equipment[47]. - The company faced a net loss of 494.88 million CNY from Ningbo Craft Valley Technology, highlighting challenges in the brewing technology services sector[47]. - The company's accounts receivable amounted to 186.01 million CNY, representing 8.55% of current assets, indicating potential liquidity risks[50]. - Inventory value stood at 971.75 million CNY, accounting for 44.67% of current assets, which may pose risks related to inventory management[50]. - The company experienced a net foreign exchange loss of 584.9 thousand CNY during the reporting period, indicating exposure to currency fluctuations[51]. Environmental and Social Responsibility - The company is not classified as a key pollutant discharge unit but adheres to environmental protection throughout its operations[59]. - The company has established two wastewater treatment plants and multiple pollution control facilities, all operating normally[60]. - The company conducts regular environmental monitoring, with all results meeting compliance standards[61]. - There were no environmental violations or illegal activities reported during the reporting period[61]. - The company has completed emergency response plan registration for environmental incidents[60]. - The company has obtained all necessary environmental permits related to its construction projects[60]. - The company has implemented measures to manage industrial waste, including recycling and proper disposal[60]. Shareholder and Capital Management - The company has committed to a cash dividend policy, distributing no less than 30% of the cumulative distributable profits over three years if there are no major investment plans or cash expenditures[65]. - The company has made a commitment to not conduct any share buybacks or sales for 12 months following the disclosure of the simplified equity change report[64]. - The company is involved in a significant arbitration case, claiming €9.5 million plus interest from the original shareholders of Finnah, while facing a counterclaim of €4.62375 million plus interest[68]. - The company plans to maintain a profit distribution not exceeding the cumulative distributable profits, ensuring shareholder interests are prioritized[65]. - The company has established a commitment to ensure that any dilution of immediate returns will be addressed through specific measures, including not transferring benefits unfairly to other entities[66]. - The company has reported no significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[69]. - The company has outlined its strategy for daily related party transactions, which was approved in the board meetings and is expected to continue without significant changes[70]. - The company has a lock-up period for shareholders, allowing a maximum of 25% of shares to be sold after the lock-up period ends[64]. - The company has committed to transparency in its financial practices, ensuring that any failure to meet commitments will be publicly explained and apologized for[66]. - The company has reported no non-operational fund occupation by major shareholders during the reporting period, indicating sound financial management[67]. Future Outlook and Strategy - The company plans to expand its production capacity with the Ningbo Damu Bay factory expected to commence operations by the end of September 2021[34]. - The company plans to accelerate investments in the craft brewing business following the launch of the Shanghai She Mountain factory, leveraging its expertise in brewing equipment manufacturing[49]. - The company’s future outlook includes plans for market expansion and potential mergers and acquisitions[82]. - The company is focused on developing new products and technologies to enhance its market position[82]. - The company aims to improve shareholder value through strategic financial maneuvers and capital management[82]. - The company is focused on strategic initiatives to improve operational efficiency and drive growth in the upcoming quarters[144]. Accounting and Financial Reporting - The company's financial statements are prepared on a going concern basis, indicating ongoing operational viability[157]. - The financial statements prepared by the company comply with the requirements of the enterprise accounting standards, accurately reflecting its financial position, operating results, changes in shareholders' equity, and cash flows[160]. - The company's accounting period runs from January 1 to June 30 each year, with a business cycle defined as 12 months[161][162]. - The company's accounting currency is Renminbi (RMB)[163]. - The company has established specific accounting policies and estimates tailored to its operational characteristics, including provisions for bad debts and inventory measurement[159].