TC(SH:603421)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥716,207,036.17, representing a 12.79% increase compared to ¥634,990,031.94 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥53,591,455.72, a decrease of 222.13% from ¥43,879,395.25 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥66,122,944.27, a decline of 259.70% compared to ¥41,403,434.28 in the same period last year[21]. - The cash flow from operating activities was -¥59,263,832.37, an improvement of 62.12% from -¥156,453,868.11 in the previous year[21]. - The total assets at the end of the reporting period were ¥4,283,228,041.90, a decrease of 2.11% from ¥4,375,743,850.76 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company at the end of the reporting period were ¥3,104,256,088.99, a decrease of 1.67% from ¥3,156,828,745.12 at the end of the previous year[21]. - Basic earnings per share for the reporting period (1-6 months) decreased to -0.08 CNY per share, a decline of 188.89% compared to the same period last year[22]. - Diluted earnings per share for the reporting period also decreased to -0.08 CNY per share, reflecting a 188.89% decline year-over-year[22]. - The weighted average return on equity dropped to -1.72%, a decrease of 3.17 percentage points from the previous year[22]. - The company reported an operating profit loss of ¥69,669,318.14 for the first half of 2021, compared to an operating profit of ¥8,675,803.85 in the first half of 2020[162]. - The total comprehensive loss for the first half of 2021 was ¥53,591,455.72, compared to a comprehensive income of ¥43,879,395.25 in the first half of 2020[163]. Research and Development - R&D expenses increased by 59.55 million yuan, a growth of 66.96%, with personnel costs rising by 41.89 million yuan, a 55.65% increase[66]. - The company has a strong focus on R&D, with a dedicated team for basic theoretical research in metering and related technologies[57]. - The company has obtained 578 invention patents and 161 utility model patents as of June 2021, reflecting its commitment to innovation and technology development[54]. - The company is focusing on the development of new generation smart collection terminals and smart electric meters, with a significant market potential for replacing old standard electric meters in the coming years[44]. - The company has developed a series of proprietary chips and technologies, achieving a 100% recognition accuracy rate in microcurrent technology applications[57]. - The company has developed a series of domestic power line carrier communication chips, including TCC081F and TCS081F, which are aligned with the next-generation dual-mode communication standards of the State Grid[55]. Market and Sales Strategy - The company has established a sales service system tailored to domestic markets, with regional sales service organizations set up in every province[29]. - The company is actively exploring international market development through pilot projects in select regions[29]. - The company has established a comprehensive sales service network with 34 provincial service institutions and over 290 municipal and county offices across the country, ensuring timely customer service with a response time of 4 hours and solution submission within 12 hours[35]. - The company has formed strategic partnerships with leading real estate clients, continuously increasing its market share in the industry[65]. - The fire safety product line has expanded to include 43 series and over 1000 products, with significant growth in sales and market share during the first half of 2021[29]. - The company is expanding its direct sales network at the city level, aiming to enhance localized technical services for engineering projects[65]. Investment and Financial Management - The company plans to invest 130 billion RMB in 2021 to advance the development of digital infrastructure for the power grid, aiming to enhance the equalization of urban and rural electricity services[41]. - The company reported a net cash outflow from financing activities of RMB 44,558,033.86, a significant increase compared to RMB 2,715,366.80 in the previous year, primarily due to the repurchase of employee restricted stock[80]. - The company’s investment activities generated a net cash outflow of RMB 45,010,654.55, a decrease of 10.44% from RMB 50,256,960.45 in the previous year[79]. - The company has implemented a dual profit center model in its marketing and product lines, ensuring alignment of goals and benefits with customer needs[60]. Environmental and Social Responsibility - The company strictly adhered to environmental laws and regulations during the reporting period, with no incidents of environmental violations or pollution accidents[109]. - The company has adopted advanced clean process technologies, saving 480,000 kWh of electricity annually and reducing carbon emissions by approximately 380 tons[110]. - The company reduced electricity consumption by approximately 230,000 kWh annually by implementing a new air circulation system, leading to a decrease of about 180 tons of CO2 emissions[110]. - The company achieved a total energy cost of 3.31 million yuan for the last heating season, which is one-third of the cost of using municipal heating, resulting in a reduction of over 7,000 tons of carbon emissions[110]. Corporate Governance and Compliance - The company has made a long-term commitment to resolve related party transactions and competition issues, ensuring compliance with regulatory standards[118][119]. - The company’s governance structure includes strict adherence to legal responsibilities regarding the accuracy of financial disclosures, reinforcing investor confidence[119][122]. - The company has committed to avoiding any competitive business activities with its controlling shareholders and related enterprises[123]. - The company has established a plan for share repurchase within 20 trading days if any misrepresentation in the prospectus is confirmed, ensuring investor protection[121]. - The company has committed to transparency, including a promise to notify the market of any share transfer intentions in advance, maintaining shareholder trust[114][115]. Operational Efficiency - The company’s manufacturing operations have achieved advanced levels in automation and information technology, optimizing resource allocation and improving delivery capabilities[38]. - The company has implemented a three-tiered customer relationship management approach, focusing on creating value for customers and enhancing profitability[35]. - The company aims to achieve a precision manufacturing capability with a response time of 3 days for mold design and 2 weeks for machining, achieving a precision of 1μm[88]. - The company has implemented management reform and optimized 13 key processes to support performance growth[67]. Assets and Liabilities - The total assets of the subsidiary Qingdao Dingxin Fire Safety Co., Ltd. amounted to approximately RMB 451,759,000, with a net asset value of about RMB 84,523,200 as of June 30, 2021[86]. - The company’s total liabilities decreased by 78.57% for employee compensation payable, amounting to RMB 35,574,480.57 compared to RMB 166,002,431.25 in the previous year[82]. - The total amount of guarantees, including those to subsidiaries, was ¥413 million, which represents 13.30% of the company's net assets[132]. - The total current assets decreased from ¥2,788,848,012.82 at the end of 2020 to ¥2,746,239,618.99 as of June 30, 2021[152]. Human Resources - The company has a talent pool of 15 PhDs, 456 master's degree holders, and 1,479 bachelor's degree holders, emphasizing professional development and leadership training[64]. - The company is committed to maintaining a leading position in technology innovation and addressing talent shortages through a structured human resources system[94].