新亚强(603155) - 2021 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators Company Information and Basic Overview Xinyaqiang Silicon Chemical Co., Ltd. (Xinyaqiang) is a Shanghai-listed company (603155) with its legal and operational base in Suqian, Jiangsu | Item | Information | | :--- | :--- | | Company Chinese Name | 新亚强硅化学股份有限公司 | | Stock Abbreviation | 新亚强 | | Stock Code | 603155 | | Listing Exchange | 上海证券交易所 | | Legal Representative | 初亚军 | Key Accounting Data and Financial Indicators In H1 2021, the company saw over 71% growth in revenue and net profit due to strong demand, despite a 41.23% decrease in operating cash flow | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 414.39 Million Yuan | 241.81 Million Yuan | 71.37% | | Net Profit Attributable to Shareholders of Listed Company | 146.76 Million Yuan | 85.38 Million Yuan | 71.88% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 132.61 Million Yuan | 85.41 Million Yuan | 55.26% | | Net Cash Flow from Operating Activities | 59.68 Million Yuan | 101.55 Million Yuan | -41.23% | | Asset Status | End of Current Period | End of Prior Year | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 2,028.26 Million Yuan | 1,966.55 Million Yuan | 3.14% | | Total Assets | 2,157.17 Million Yuan | 2,104.59 Million Yuan | 2.50% | | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.94 | 0.73 | 28.77% | | Diluted Earnings Per Share (Yuan/Share) | 0.94 | 0.73 | 28.77% | | Weighted Average Return on Net Assets (%) | 7.19% | 12.39% | Decreased by 5.20 percentage points | - The company stated that the significant growth in operating revenue and net profit in the first half of 2021 was primarily due to strong market demand for main products and a substantial increase in product sales compared to the same period last year[20] Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 14.15 Million Yuan, mainly from fair value changes in financial assets and entrusted investments | Non-recurring Gain/Loss Item | Amount (Million Yuan) | | :--- | :--- | | Fair Value Changes from Financial Assets Held for Trading, Derivative Financial Assets, etc. | 10.29 | | Gains/Losses from Entrusted Investments or Asset Management | 4.61 | | Government Grants Recognized in Current Profit/Loss | 1.46 | | Income Tax Impact | -2.50 | | Total | 14.15 | Management Discussion and Analysis Industry and Main Business Overview The company operates in chemical manufacturing, specializing in organosilicon fine chemicals like functional additives and phenylchlorosilanes for new materials, pharma, and electronics - According to the CSRC industry classification, the company belongs to 'C26 Chemical Raw Materials and Chemical Products Manufacturing'[24] - The company's main products include two major categories: - Organosilicon functional additives: such as hexamethyldisilazane and siloxanes from the methyl series; vinyl double-ended silanes and vinylsilazanes from the vinyl series - Phenylchlorosilanes: such as phenyltrichlorosilane and diphenyldichlorosilane[24][25] Core Competencies Analysis Core competencies include leading technology, comprehensive client solutions, strong R&D, integrated supply chain, circular economy, and established global brand recognition - The company possesses independently developed hexamethyldisilazane solvent-free patented technology and the only direct method production line for phenylchlorosilane in China, ensuring industry-leading product quality[26] - The company provides diversified product portfolio solutions to meet the customized needs of global large-scale organosilicon enterprises through its customer service team, fostering long-term stable client relationships[26] - The company has established multiple provincial research centers and collaborates with universities like Wuhan University on industry-academia-research projects, accumulating 45 patents[27] - The company continuously strengthens the comprehensive utilization of by-products, develops green processes and clean production for a circular economy, enhancing resource utilization efficiency and profitability[27] Discussion and Analysis of Operations H1 2021 saw substantial revenue and net profit growth (both over 71%) driven by strong downstream demand, with key projects like vinyl double-ended silane completed and others underway | Indicator | H1 2021 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 414.39 Million Yuan | 71.37% | | Net Profit Attributable to Shareholders | 146.76 Million Yuan | 71.88% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 132.61 Million Yuan | 55.26% | | Earnings Per Share | 0.94 Yuan | 28.77% | | Account | Change (%) | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 71.37% | Increased downstream market demand and significant growth in product sales | | Operating Cost | 90.28% | Increased sales volume and rising raw material prices led to higher costs | | Selling Expenses | -74.82% | Freight and other costs reclassified to operating costs under new revenue recognition standards | | R&D Expenses | 85.63% | Increased investment in R&D projects | | Financial Expenses | -102.73% | Exchange losses due to fluctuations in RMB and USD exchange rates | | Net Cash Flow from Operating Activities | -41.23% | Increased cash payments for goods purchased | - The company successfully completed the construction of production facilities for products such as vinyl double-ended silane and hexamethyldisiloxane, while projects like phenyl silicone resin, phenyl intermediates, and phenylchlorosilane Phase II are progressing as planned[28] Analysis of Assets and Liabilities Total assets grew 2.50% to 2.16 Billion Yuan, with monetary funds decreasing due to investments, while accounts receivable, construction in progress, and prepaid equipment significantly increased | Asset/Liability Item | Period-end Balance (Million Yuan) | Change from Prior Year-end (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Monetary Funds | 232.45 | -41.15% | Increased funds used for wealth management product purchases | | Accounts Receivable | 105.63 | 53.76% | Increased revenue led to a corresponding increase in accounts receivable | | Construction in Progress | 149.81 | 32.88% | Increased investment in ongoing projects | | Other Non-current Assets | 14.90 | 112.14% | Increased prepaid equipment payments | | Taxes Payable | 15.04 | 290.27% | Increased corporate income tax payable | - As of the end of the reporting period, the company's total restricted assets amounted to 65.45 Million Yuan, including monetary funds for bank acceptance bill deposits and notes receivable pledged for bill issuance[35] Potential Risks Key risks include intensified market competition, macroeconomic volatility, hazardous chemical safety, stricter environmental regulations, and new product R&D failure - The company faces intensified market competition risk from dominant industry players entering its main product segments, potentially leading to capacity expansion and price declines[38] - Operations involve various hazardous chemicals, posing a risk of safety production accidents due to improper handling or equipment malfunction[39] - With tightening environmental regulations, stricter future environmental standards may increase the company's environmental investments and operating costs[40] - New product R&D has long cycles and high costs; failure to develop or adapt to market demand would adversely impact operations[41] Corporate Governance Shareholders' Meeting and Profit Distribution The 2020 Annual Shareholders' Meeting approved the annual report and profit distribution, with no interim profit distribution or capital reserve capitalization planned - The company convened its 2020 Annual Shareholders' Meeting on May 18, 2021, approving seven proposals including the '2020 Annual Report and its Summary' and the '2020 Profit Distribution Plan'[43] - The company's proposed interim profit distribution plan is no distribution and no capitalization from capital reserves[45] Environmental and Social Responsibility Environmental Information As a key polluter, the company strictly complies with environmental regulations, with all emissions meeting standards and no penalties incurred, operating effective treatment systems and emergency plans | Pollutant | Discharge Method | Total Discharge (Tons) | Approved Discharge (Tons) | Exceedance | | :--- | :--- | :--- | :--- | :--- | | Wastewater | | | | | | COD | Intermittent Discharge | 3.02 | 12.87 | No | | NH3-N | Intermittent Discharge | 0.19 | 0.59 | No | | Exhaust Gas | | | | | | VOC | Continuous Discharge | 3.96 | 14.94 | No | | Hydrogen Chloride | Continuous Discharge | 2.85 | 6.96 | No | - The company has established a wastewater treatment system (MVR evaporation desalination and biochemical treatment) and incineration facilities for waste gas, liquid, and residue, ensuring compliance with discharge standards[49] - The company has prepared and filed its 'Emergency Response Plan for Environmental Incidents' and formulated a self-monitoring plan for environmental compliance, strictly conducting monitoring as required[51][52] - During the reporting period, the company received no administrative penalties for environmental issues[53] Significant Matters Fulfillment of Commitments Actual controllers, shareholders, and management strictly fulfilled all IPO commitments, including share lock-up and price stabilization measures, with timely and rigorous execution - Controlling shareholders, actual controllers, and other major shareholders committed not to transfer their pre-IPO shares for 36 months from the company's listing date (September 1, 2020)[55][57][60][61] - The company formulated a stock price stabilization plan for three years post-listing: if the company's stock closing price falls below the latest net asset per share for 20 consecutive trading days, measures such as company buybacks, actual controller share increase, and director/supervisor/senior management share increase will be initiated[65][66][68][69] Integrity Status and Significant Transactions The company and its controlling shareholders maintained good integrity, with no dishonesty, major lawsuits, or significant related-party/asset transactions - During the reporting period, the company, its controlling shareholders, and actual controllers had no instances of dishonesty, unfulfilled court judgments, or significant overdue debts[75] - During the reporting period, the company had no significant litigation or arbitration matters[75] - The company did not engage in significant related-party transactions, major contracts, trusteeships, contracting, leasing, or significant asset and equity sales[76][78][37] Share Changes and Shareholder Information Share Capital Changes and Shareholder Information As of June 30, 2021, share capital was unchanged with 9,850 shareholders; Chu Lin is the largest at 45.99%, and key shareholders are parties acting in concert - During the reporting period, the company's total share capital and equity structure remained unchanged[80] - As of the end of the reporting period, the company had 9,850 common shareholders[81] | Shareholder Name | Shares Held at Period-end (Shares) | Proportion (%) | | :--- | :--- | :--- | | Chu Lin | 71,534,613 | 45.99 | | Hongta Innovation (Kunshan) Venture Capital Co., Ltd. | 19,643,310 | 12.63 | | Hongta Innovation Investment Co., Ltd. | 11,294,790 | 7.26 | | Chu Yaxian | 9,821,657 | 6.31 | | BOCOM Schroders Advanced Manufacturing Mixed Fund | 3,062,039 | 1.97 | - Explanation of shareholder relationships: Chu Yajun, Chu Lin, and Chu Yaxian are parties acting in concert; Hongta Innovation (Kunshan) Venture Capital Co., Ltd. is a wholly-owned subsidiary of Hongta Innovation Investment Co., Ltd.[85] Preferred Shares Information Preferred Shares Status During the current reporting period, the company had no preferred shares - During the reporting period, the company had no preferred shares[89] Bonds Information Bonds Status During the current reporting period, the company had no corporate bonds, company bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - During the reporting period, the company had no corporate bonds, company bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds[90] Financial Report Financial Statements As of June 30, 2021, total assets were 2.16 Billion Yuan with a 5.98% asset-liability ratio, while H1 revenue reached 414.39 Million Yuan and net profit 146.76 Million Yuan, with significant cash outflows from investing and financing activities Key Balance Sheet Items (June 30, 2021) | Item | Amount (Million Yuan) | | :--- | :--- | | Assets | | | Monetary Funds | 232.45 | | Financial Assets Held for Trading | 1,287.43 | | Accounts Receivable | 105.63 | | Inventories | 103.47 | | Construction in Progress | 149.81 | | Total Assets | 2,157.17 | | Liabilities and Owners' Equity | | | Notes Payable | 66.40 | | Total Liabilities | 128.91 | | Total Owners' Equity | 2,028.26 | Key Income Statement Items (Jan-Jun 2021) | Item | Amount (Million Yuan) | | :--- | :--- | | I. Operating Revenue | 414.39 | | Less: Operating Cost | 239.79 | | R&D Expenses | 12.61 | | Investment Income | 9.57 | | Fair Value Change Gains | 10.29 | | II. Operating Profit | 168.24 | | III. Total Profit | 169.12 | | IV. Net Profit | 146.76 | Key Cash Flow Statement Items (Jan-Jun 2021) | Item | Amount (Million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 59.68 | | Net Cash Flow from Investing Activities | -144.95 | | Net Cash Flow from Financing Activities | -80.95 | | Net Increase in Cash and Cash Equivalents | -168.84 | Notes to Financial Statements Financial notes detail 1.29 Billion Yuan in trading financial assets (structured deposits), accounts receivable provisions, 145.00 Million Yuan in construction in progress for key projects, and significant related-party transactions for materials and sales - The period-end balance of financial assets held for trading was 1.29 Billion Yuan, with structured deposits accounting for 1.29 Billion Yuan[183] - The period-end balance of accounts receivable was 112.00 Million Yuan, with a bad debt provision of 6.05 Million Yuan calculated by aging portfolio, where the provision rate for accounts receivable within one year is 5%[194][195] - The period-end balance of construction in progress was 150.00 Million Yuan, primarily including vinyl projects (92.97 Million Yuan) and phenyl silicone resin projects (52.43 Million Yuan)[231] Key Related-Party Transactions (Current Period) | Related Party | Related Transaction Content | Amount (Million Yuan) | | :--- | :--- | :--- | | Hubei Xingrui Silicon Material Co., Ltd. | Material Purchase | 34.84 | | Shandong Dongyue Organosilicon Material Co., Ltd. | Material Purchase | 2.68 | | Shandong Dongyue Organosilicon Material Co., Ltd. | Product Sales | 6.34 | | Zhejiang Runhe Organosilicon New Material Co., Ltd. | Product Sales | 6.18 | | Hubei Xingrui Silicon Material Co., Ltd. | Product Sales | 3.97 |