SGC(SH:603269)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 422,576,023.51, representing an increase of 83.38% compared to CNY 230,441,609.54 in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached CNY 20,109,141.82, a significant increase of 1,594.41% from CNY 1,186,793.90 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,714,291.25, compared to a loss of CNY 1,218,580.57 in the same period last year, marking a growth of 1,635.75%[18]. - Basic earnings per share increased to CNY 0.18, up 1,700% from CNY 0.01 in the same period last year[19]. - Diluted earnings per share also rose to CNY 0.18, reflecting a 1,700% increase compared to CNY 0.01 year-over-year[19]. - The total orders on hand as of June 30, 2021, amounted to 2.055 billion RMB, reflecting a growth of 21.75% from the end of 2020[39]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in Q2 2021, representing a 25% year-over-year growth[85]. - The company reported a revenue of approximately 51.22 million CNY and a net profit attributable to shareholders of about 2.36 million CNY for the first half of 2021[56]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -34,115,284.66, a decrease of 266.73% compared to CNY 20,461,024.19 in the previous year[18]. - Cash flow from operating activities decreased year-over-year due to increased project payments[19]. - The total assets of the company at the end of the reporting period were CNY 2,263,470,635.51, reflecting a growth of 7.08% from CNY 2,113,748,196.61 at the end of the previous year[18]. - The company's total assets reached approximately 2.97 billion CNY, with a net asset attributable to shareholders of about 1.72 billion CNY as of the end of the reporting period[56]. - Total current assets increased to ¥1,756,823,552.16 as of June 30, 2021, up from ¥1,623,473,878.10 on December 31, 2020, representing a growth of approximately 8.1%[116]. - Cash and cash equivalents decreased to ¥180,775,886.23 from ¥287,332,447.50, a decline of approximately 37.1%[116]. - The company reported a decrease in cash flow from investment activities, with cash inflow of only CNY 59,045.69 compared to CNY 11,151,000.00 in the previous year[136]. Research and Development - Research and development expenses increased by 75.28% to 9.35 million RMB, indicating a strong commitment to innovation[44]. - The company has developed advanced technologies in water-saving, fog reduction, noise reduction, and energy efficiency for cooling towers[36]. - The company holds a total of 188 patents, with multiple products recognized as high-tech products in various fields including energy saving and water conservation technologies[37]. - Research and development expenses increased to RMB 8,912,949.47, up 66.4% from RMB 5,367,160.41 in the first half of 2020[129]. Market and Industry Trends - The cooling tower market is characterized by a large number of small-scale enterprises, with fewer than 10 companies achieving annual sales exceeding CNY 100 million[30]. - The industry faces challenges in technology capabilities and R&D investment, with many companies lacking sufficient resources for innovation[32]. - Future trends in cooling towers include optimizing noise, energy consumption, and evaporation loss while enhancing aesthetics and material quality[33]. - The company is focusing on expanding its market presence and exploring new cooperation models to enhance business opportunities[41]. Environmental Responsibility - The company has implemented various pollution prevention measures for air, water, noise, and solid waste during production processes[70][71][72][73]. - The company utilizes advanced environmental protection equipment to ensure emissions meet standards, including a 15-meter high exhaust stack for air pollutants[70][71]. - Wastewater generated from production is treated and recycled, with no discharge into municipal sewage systems[72]. - The company has committed to maintaining its environmental responsibilities and has not disclosed any other environmental information during the reporting period[76]. Shareholder and Governance - The company reported no profit distribution or capital reserve transfer plans for the first half of 2021[67]. - There were no changes in the company's board, supervisors, or senior management during the reporting period[66]. - The total number of ordinary shareholders at the end of the reporting period was 7,544[104]. - The largest shareholder, Jin Ao Da, reduced their holdings by 3,375,477 shares, holding a total of 18,530,773 shares, representing 16.47% of the company[106]. Financial Reporting and Compliance - The company follows the accounting standards set by the Ministry of Finance, ensuring compliance and accurate financial reporting[156]. - The company's financial statements reflect its financial position, operating results, changes in equity, and cash flows accurately[156]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with monetary items translated at the exchange rate on the balance sheet date[169]. - The company applies the acquisition method for business combinations, measuring the acquired assets and liabilities at their fair value on the acquisition date[160].