Hexing(SH:603556)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,092,884,818.45, a decrease of 14.34% compared to ¥1,275,767,438.94 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was ¥154,805,324.43, down 35.40% from ¥239,643,124.26 in the previous year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥69,694,248.73, a decline of 62.88% compared to ¥187,775,178.23 in the same period last year[15]. - The net cash flow from operating activities was -¥187,028,753.02, a significant decrease of 226.27% from ¥148,119,449.66 in the previous year[15]. - Basic earnings per share decreased by 34.69% to CNY 0.32 compared to the same period last year[16]. - The weighted average return on equity decreased by 1.95 percentage points to 2.83%[16]. - The company reported a significant decrease in cash flow from operating activities, with a net cash outflow of CNY 187,028,753.02, a decline of 226.27% year-on-year[25]. - The company achieved operating revenue of CNY 1,092,884,818.45, a year-on-year decrease of 14.34%[25]. - The net profit attributable to the parent company was CNY 15,480,530.00, down 35.40% year-on-year, primarily due to the impact of RMB appreciation, project delays caused by the pandemic, and supply chain constraints[23]. Assets and Liabilities - The net assets attributable to shareholders at the end of the reporting period were ¥5,305,424,099.77, a decrease of 1.48% from ¥5,385,146,907.59 at the end of the previous year[15]. - Total assets at the end of the reporting period were ¥7,011,357,611.93, down 0.81% from ¥7,068,558,101.34 at the end of the previous year[15]. - Total current assets as of June 30, 2021, amounted to RMB 5,875,718,947.43, a decrease from RMB 6,051,790,307.08 as of December 31, 2020[53]. - The total liabilities as of June 30, 2021, were not specified but are critical for assessing the company's financial health[53]. - Total liabilities reached CNY 1,698,536,738.98, compared to CNY 1,675,142,468.34 previously[55]. - The total owner's equity at the end of the period was 5,156,922,335.47 CNY, reflecting a decrease from the previous period[86]. Research and Development - The company increased R&D expenses to CNY 118,203,882.07, a rise of 5.26% compared to the previous year, focusing on IoT technology and new energy products[25]. - Research and development expenses for the first half of 2021 were CNY 118,203,882.07, an increase from CNY 112,299,663.03 in the same period of 2020[60]. - The company is expanding its R&D team in new technology areas by hiring industry experts and collaborating with top global consulting firms and research institutions[33]. Market and Business Strategy - The company’s main business includes smart electricity, smart distribution, and renewable energy, with key products such as smart energy meters and energy storage solutions[19]. - The global smart meter market is projected to grow to USD 24 billion by 2029, with an annual growth rate of over 6%[21]. - The domestic market is expected to see significant growth in smart energy meters and distribution networks driven by national carbon neutrality goals[21]. - The company is focusing on digital manufacturing systems to enhance production efficiency across its global manufacturing bases[20]. - The company has adopted a localization strategy to mitigate overseas market risks, employing local staff and integrating into local cultures[30]. Corporate Governance and Compliance - The board of directors and management confirmed the accuracy and completeness of the financial report[2]. - The report has not been audited[3]. - The company has not been subject to any administrative penalties due to environmental issues during the reporting period[39]. - The company actively participates in poverty alleviation initiatives, donating 30,000 yuan to charitable activities during the reporting period[39]. - The company has implemented ISO 14001 environmental management system certification and conducts regular environmental monitoring, meeting national and local standards[38]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 23,498[50]. - The largest shareholder, Zhejiang Haixing Holding Group Co., Ltd., holds 49.05% of the shares, totaling 239,713,292 shares[50]. - The second largest shareholder, Ningbo Haiju Investment Co., Ltd., holds 13.30% of the shares, totaling 64,973,636 shares[50]. - The controlling shareholder has committed to not reducing their shareholdings directly or indirectly for two years after the lock-up period expires[43]. - The company has established a commitment that any share reduction by major shareholders will not exceed 10% of the total shares each year[43]. Financial Reporting and Accounting Policies - The company's financial statements are prepared based on the going concern principle, ensuring ongoing operational viability[92]. - The company adheres to the enterprise accounting standards, reflecting a true and complete financial status as of June 30, 2021[95]. - The accounting period follows the calendar year, from January 1 to December 31[96]. - The company's functional currency is Renminbi, and all financial statements are presented in Renminbi[98]. - The company applies specific accounting policies for accounts receivable, inventory valuation, fixed asset depreciation, and income recognition[94]. Cash Flow and Investment Activities - The company reported a total of RMB 1,528,507,600.53 in trading financial assets, an increase from RMB 983,582,222.20[53]. - The total cash inflow from investment activities was 1,938,785,953.05 RMB, down from 3,486,453,464.60 RMB year-over-year[69]. - The net cash flow from investment activities was -420,244,116.80 RMB, contrasting with a positive 992,421,725.93 RMB in the previous year[69]. - Cash flow from financing activities resulted in a net outflow of -221,181,923.54 RMB, compared to -200,555,843.68 RMB in the same period last year[69]. Taxation and Regulatory Environment - The company is subject to various tax rates, including a 25% corporate income tax for several subsidiaries[187]. - The company has a tax rate of 35% for its operations in Bangladesh, 37.5% in Kenya, and 25% in Nepal[188]. - The company is expected to continue benefiting from a 15% corporate income tax rate as it is undergoing a high-tech enterprise qualification review[189].