NBOND(603238)2022-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥718.70 million, a decrease of 10.23% compared to ¥800.57 million in the same period last year[14]. - The net profit attributable to shareholders for the first half of 2022 was ¥21.50 million, down 71.02% from ¥74.17 million year-on-year[14]. - The net profit after deducting non-recurring gains and losses was ¥10.07 million, a decline of 85.39% compared to ¥68.92 million in the previous year[14]. - The net cash flow from operating activities was ¥90.88 million, which is 18.31% lower than ¥111.24 million in the same period last year[14]. - Basic earnings per share for the first half of 2022 were ¥0.12, a decrease of 71.43% from ¥0.42 in the same period last year[15]. - The weighted average return on net assets was 1.71%, down 4.57 percentage points from 6.28% in the previous year[15]. - The company achieved operating revenue of CNY 718.7 million, a decrease of 10.23% compared to the same period last year[28]. - The net profit attributable to the parent company was CNY 21.5 million, down 71.02% year-on-year[28]. - The company reported a total of 1,626,900 restricted shares held by core staff, with 813,450 shares becoming tradable on September 23, 2022[90]. - The company reported a profit distribution of -70,275,000.00 CNY to shareholders during the period[120]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2.28 billion, an increase of 3.37% from ¥2.20 billion at the end of the previous year[14]. - The total assets of Hangzhou Guoguang amounted to RMB 541.70 million, with a net profit of RMB 3.03 million for the current period[39]. - Naki Co. reported total assets of RMB 800.20 million and a net profit of RMB 21.96 million for the current period[39]. - Bangyi Technology's total assets were RMB 50.97 million, generating a net profit of RMB 3.51 million[39]. - Kanna Medical had total assets of RMB 110.13 million, but reported a net loss of RMB 5.14 million for the current period[39]. - The company's total assets increased to CNY 1,241,421,988.43 from CNY 1,222,054,099.46, marking a growth of 1.6%[102]. - The company's total assets at the end of the reporting period were 1,488,562,433.83 CNY[122]. - The total liabilities increased to ¥786,700,278.83 from ¥733,667,966.22, which is an increase of about 7.2%[98]. - Total liabilities decreased slightly to CNY 153,809,455.93 from CNY 156,300,486.21, a decline of 1.0%[102]. Cash Flow - The company's cash and cash equivalents increased to ¥240,437,197.57 from ¥225,922,174.81, representing a growth of approximately 5.5%[96]. - Cash flow from operating activities generated a net amount of CNY 90.88 million, a decrease of 18.3% from CNY 111.24 million in the first half of 2021[111]. - Cash flow from investing activities resulted in a net outflow of CNY 56.82 million, compared to a net outflow of CNY 62.40 million in the same period of 2021[112]. - Cash flow from financing activities generated a net inflow of CNY 1.78 million, contrasting with a net outflow of CNY 49.85 million in the first half of 2021[112]. - The total cash inflow from operating activities reached CNY 412,786,866.63, compared to CNY 351,291,615.77 in the previous year, marking an increase of 17.5%[115]. - The company reported a total cash outflow from financing activities of CNY 1,151,010.00, a decrease from CNY 20,952,015.00 in the same period last year, indicating a reduction of 94.5%[116]. Market and Industry Trends - The industrial added value of the textile industry showed a recovery in Q1 2022, but the overall economic and production recovery remained slow, with a sector index of 46.9 indicating contraction[20]. - The production of non-woven fabric enterprises decreased by 1.9% year-on-year in the first half of 2022, with exports of roll materials dropping by 15.3% to $2.03 billion[20]. - The disposable hygiene products export increased by 16.5% to $1.37 billion, while exports of masks and protective clothing saw declines of 68.2% and 60.2% respectively[20]. - The women's hygiene products market in China grew from 56.3 billion to 61.78 billion yuan from 2018 to 2021, with a compound annual growth rate of 3.1%[22]. - The market for dry wipes has seen significant growth, driven by consumer demand for convenience and effectiveness in cleaning applications[22]. - The company anticipates a recovery in industry production and revenue growth due to supportive government policies and improved market conditions[21]. - The export market for traditional products is expected to maintain a positive trend as external demand continues to recover[21]. Research and Development - The company has a production capacity of nearly 80,000 tons per year, leading in the domestic water-jet non-woven materials industry[26]. - The company’s R&D expenses were CNY 29.3 million, a slight decrease of 3.94% from the previous year[32]. - The company is committed to continuous innovation in technology and product development, aiming to expand into high-value new product areas[26]. - The company has established a new strategy focusing on health care and green products, targeting the daily care consumer sector[28]. Environmental Compliance - The company has received various environmental certifications, including ISO 9001 and ISO 14001, and is recognized as a key wastewater monitoring enterprise in Zhejiang Province[49]. - The company reported a total wastewater discharge of 83,508 tons against a permitted limit of 413,200 tons, indicating compliance with environmental standards[51]. - The company’s COD discharge concentration was 40.64 mg/L, well below the standard limit of 500 mg/L, with a total discharge of 3.53 tons, remaining within the permissible range[51]. - The company has established a water reuse treatment system that processes wastewater to meet municipal discharge standards, ensuring compliance with environmental regulations[52]. - The company has committed to various environmental protection measures, including the development of new technologies and production lines aimed at reducing emissions and enhancing sustainability[54]. Shareholder and Governance - The company commits to avoiding competition with its subsidiaries and protecting the rights of minority shareholders[61]. - The company will take effective measures to prevent any business competition with its subsidiaries, ensuring compliance with relevant laws and regulations[62]. - The actual controller of the company, Mr. Ren Jianhua, has pledged not to transfer or manage shares held prior to the issuance for 36 months post-listing[66]. - The controlling shareholder, Hangzhou Boss Industrial Group Co., Ltd., commits not to transfer or manage its shares for 36 months post-listing, with an automatic extension of the lock-up period by six months if the stock price falls below the issue price for 20 consecutive trading days within the first six months[67]. - Directors and senior management, including Zhang Jie and Ren Fujia, commit to not transfer their shares for 36 months post-listing, with a maximum of 25% of their holdings allowed for transfer annually during their tenure[68]. - The company will ensure that any income gained from violations of the lock-up commitments will be returned to the issuer within five days[68]. Accounting Policies - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[131]. - The accounting period for the company runs from January 1 to December 31 each year[132]. - The company applies specific accounting policies for financial instruments, including impairment, depreciation, and revenue recognition[136]. - Financial assets are classified into three categories upon initial recognition: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[141]. - The company recognizes revenue based on the progress of performance obligations, confirming income at the point when control of goods or services is transferred to the customer[186].