TC(SH:603085)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥825,802,770.11, representing a 27.25% increase compared to ¥648,936,048.68 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 was ¥41,189,539.90, up 26.55% from ¥32,547,174.66 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was ¥38,373,682.16, which is a significant increase of 71.27% compared to ¥22,405,037.18 in the same period last year[17]. - The net cash flow from operating activities was ¥17,722,795.74, a recovery from a negative cash flow of -¥77,305,220.43 in the previous year[17]. - The total assets at the end of the reporting period were ¥2,572,667,808.08, reflecting a 7.04% increase from ¥2,403,471,575.16 at the end of the previous year[17]. - The net assets attributable to shareholders increased by 4.10% to ¥1,052,091,488.80 from ¥1,010,638,317.77 at the end of the previous year[17]. - Basic earnings per share for the first half of 2021 were ¥0.14, a 27.27% increase from ¥0.11 in the same period last year[18]. - The diluted earnings per share also stood at ¥0.14, marking a 27.27% increase compared to the previous year[18]. - The weighted average return on equity decreased to 3.95%, down by 2.67 percentage points from 6.62% in the previous year[18]. Business Operations - The company's main business includes the research, design, production, and sales of engineering machinery seats, commercial vehicle seats, passenger car seats, aircraft seats, and child safety seats, with a revenue contribution of 97.71% from main business operations[22]. - The company has established an annual procurement contract with suppliers, managing raw material and component procurement to ensure timely production[23]. - The production model is order-based, with production plans developed according to sales department orders, ensuring efficient manufacturing processes[24]. - The company has a production capacity of 300,000 sets of passenger car seats annually, with significant supply to major clients like SAIC Motor[27]. - The aviation seat business has seen a decline in demand due to the pandemic, but sales and order volumes have started to recover since Q4 2020[28]. - The company has successfully entered the global procurement system of Caterpillar, enhancing its international competitiveness[26]. - The child safety seat segment is a new venture aimed at leveraging the company's experience in passenger car seats to provide high-quality products[28]. - The company’s engineering machinery and commercial vehicle seats are significantly influenced by the production and sales conditions of downstream mainframes[26]. - The company has received airworthiness certification from EASA and FAA for its aircraft seats, indicating compliance with international safety standards[28]. - The company utilizes a direct sales model for the mainframe supporting market, establishing cooperative relationships with clients through competitive bidding and direct partnerships[24]. Revenue Growth - The company's main business revenue increased from 640 million RMB to 807 million RMB, a growth of 25.99%[36]. - Revenue from engineering machinery and commercial vehicle seats grew from 398 million RMB to 528 million RMB, an increase of 32.49%[36]. - Passenger vehicle seat revenue rose by 21.87%, from 133 million RMB to 163 million RMB[36]. - Aircraft seat business revenue increased from 100 million RMB to 112 million RMB, a growth of 11.14%[36]. - The company has established stable partnerships with major clients, including Airbus and Boeing in the aircraft seat sector[31]. - The company has developed a carbon fiber composite aircraft seat, enhancing its competitive advantage in lightweight and comfort[30]. Financial Strategy - The company plans to raise up to 2 billion RMB through a private placement of shares at a price of 5.57 RMB per share[38]. - The company has multiple R&D centers in Shanghai, Zhejiang, and London, focusing on advanced seat technologies[30]. - The company has a total of 16 subsidiaries in China and 3 in the UK, facilitating global resource integration[32]. - The new Child Protection Law, effective June 1, 2021, is expected to positively impact the growth of the children's safety seat business[35]. - Operating costs increased by 31.96% to ¥655,859,636.40 from ¥497,019,640.77 year-on-year[42]. - Research and development expenses rose by 37.05% to ¥27,377,710.74, up from ¥19,976,693.91 in the previous period[42]. Market Challenges - The company reported a significant decline in China's automotive production and sales in June 2021, with production and sales down 16.5% and 12.4% year-on-year, respectively[59]. - The company plans to strengthen cooperation with vehicle manufacturers to address the challenges posed by the increasing competition in the automotive industry[59]. - The company aims to balance the development of domestic and international markets to mitigate the impact of cyclical fluctuations in the engineering machinery and commercial vehicle sectors[59]. - Raw material price fluctuations, particularly in steel and TDI chemical materials, have significantly increased production costs, prompting the company to implement cost-reduction measures[60]. Corporate Governance - The company has committed to a two-year lock-up period for shares after the expiration of the initial lock-up period, ensuring no impact on control and compliance with public commitments[75]. - The company has established long-term commitments to resolve industry competition issues, ensuring no direct or indirect competition with its controlled entities[76]. - The company has committed to avoid engaging in related party transactions with its controlled entities, ensuring fair market conditions and compliance with legal regulations[78]. - The company has outlined a plan for share reduction post-lock-up, limiting the amount to 10% in the first year and 20% in the second year after the lock-up period[75]. - The company has confirmed that it will not engage in similar business activities as its controlled entities to prevent competition[76]. - The company has committed to timely disclosure of any related party transactions and to ensure they are conducted under normal commercial terms[78]. - The company has stated that it will compensate for any losses incurred by its controlled entities due to violations of these commitments[79]. - The company has emphasized the importance of respecting the independent legal status of its controlled entities and ensuring their autonomous decision-making[80]. - The company has committed to notifying its controlled entities of any business opportunities that may lead to competition, allowing them the first right of refusal[76]. - The company has established a framework for governance to ensure compliance with commitments and to avoid conflicts of interest[78]. Legal and Compliance - The company is involved in significant litigation, including claims against Zhejiang Zhongtai Automobile Manufacturing Co., Ltd. for unpaid debts totaling RMB 3,693,200[85]. - The company reported no non-operating fund occupation by controlling shareholders during the reporting period[82]. - The company has not faced any major lawsuits or arbitration matters during the reporting period[83]. - The company has not received any non-standard audit opinions for the previous annual report[83]. - The company has committed to fair trading practices in its transactions with related parties[81]. - The company has not reported any violations or penalties against its directors, supervisors, or senior management during the reporting period[86]. Shareholder Information - The total number of shares outstanding is 370,225,434, with 290,986,132 shares being unrestricted[93]. - Major shareholders include China International Financial Co., Ltd. and Taizhou Jin Kong Asset Management Co., Ltd., each holding 15,847,860 and 7,923,930 shares respectively, all of which are from the private placement[96]. - The release of limited sale shares occurred on February 18, 2021, following the statutory holiday[94]. - The company has not reported any significant changes in shareholding structure or other major events during the reporting period[95]. - The total number of ordinary shareholders reached 20,549 by the end of the reporting period[99]. - Zhejiang Tiancheng Investment Co., Ltd. holds 136,738,500 shares, accounting for 36.93% of total shares[101]. - Chen Bangrui owns 16,958,613 shares, representing 4.58% of total shares[101]. - The top ten shareholders collectively hold significant stakes, with the largest shareholder having a 36.93% ownership[101]. Financial Reporting and Standards - The company operates in the specialized equipment manufacturing industry, focusing on the research, production, and sales of vehicle and aircraft seats[147]. - The financial statements include 16 subsidiaries, indicating a broad operational scope and market presence[148]. - The company adheres to the enterprise accounting standards, ensuring the financial statements accurately reflect its financial position and performance[152]. - The accounting period for the company runs from January 1 to December 31 each year, aligning with standard fiscal practices[153]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months[150]. - The company utilizes the RMB as its functional currency for accounting purposes[155]. - The financial reports are prepared based on the continuous operation assumption, indicating stability in operations[149].