Jasan Group(SH:603558)2021-08-12 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 910,895,086.70, representing a 25.10% increase compared to CNY 728,125,227.84 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 108,181,780.47, a significant increase of 96.40% from CNY 55,082,042.54 year-on-year[20]. - The net profit after deducting non-recurring gains and losses reached CNY 99,968,037.52, up 155.76% from CNY 39,086,461.01 in the previous year[20]. - The basic earnings per share increased to CNY 0.28, doubling from CNY 0.14 in the same period last year, while diluted earnings per share rose to CNY 0.27, a 92.86% increase[22]. - The weighted average return on net assets improved to 4.62%, an increase of 2.83 percentage points compared to 1.79% in the previous year[22]. - The company achieved a sales revenue of 910 million yuan, an increase of 25.1% compared to the same period in 2020, and a net profit of 108 million yuan, up 96.4% year-on-year[34]. Cash Flow and Assets - The net cash flow from operating activities decreased significantly by 94.15% to CNY 8,176,207.48, compared to CNY 139,858,571.28 in the same period last year, primarily due to increased raw material inventory and shipping delays[20]. - The total assets of the company at the end of the reporting period were CNY 3,665,855,149.95, reflecting a 9.98% increase from CNY 3,333,216,417.58 at the end of the previous year[21]. - The company's net assets attributable to shareholders decreased by 4.97% to CNY 2,266,659,105.04 from CNY 2,385,142,728.26 at the end of the previous year[21]. - The company's inventory increased by 32.69% year-on-year, reaching approximately ¥571.12 million, influenced by rising raw material prices and shipping delays[45]. - The total current assets as of June 30, 2021, amounted to ¥1,599,023,841.03, an increase from ¥1,344,135,524.15 on December 31, 2020, representing a growth of approximately 18.9%[149]. Operational Developments - The sock business generated approximately 674 million yuan in sales revenue, a year-on-year growth of 27.6%, with a net profit of about 97.5 million yuan, reflecting a 114% increase[35]. - The seamless business reported sales revenue of approximately 237 million yuan, an 18.6% increase year-on-year, and a net profit of about 10.68 million yuan, up 11.5%[35]. - The company plans to expand its seamless production capacity by relocating some weaving machines from Shaoxing to Guizhou and has purchased 50 new seamless knitting machines[36]. - A new company, Guizhou Jiansheng Sportswear Co., Ltd., was established to add 1,000 sock machines, with the first phase of 440 machines expected to be operational in Q3[36]. Environmental Responsibility - The company emphasizes environmental responsibility, with a focus on reducing emissions and adhering to pollution discharge standards[65]. - The company has not experienced any environmental pollution incidents or received administrative penalties during the reporting period[65]. - The company’s wastewater discharge includes pollutants such as ammonia nitrogen and COD, with a total annual discharge limit of 39.96 tons for COD[67]. - The company’s environmental protection measures have been effective, with no exceedances in pollutant discharge limits reported[73]. - The company has established a wastewater treatment facility with a designed capacity of 800 m³/d, compliant with GB4287-2012 standards for textile dyeing and finishing industrial wastewater discharge[94]. Shareholder and Equity Information - The company completed a share buyback amounting to approximately ¥200 million in May 2021, with an additional buyback plan of up to ¥200 million currently in progress[39]. - The company completed the transfer of 14,863,209 shares to the second employee stock ownership plan at a price of 4.00 CNY per share, representing 3.57% of the total share capital[63]. - The company reported a total equity of CNY 2,348,479,737.64 at the end of the reporting period[184]. - The company distributed CNY 140,522,599.00 to shareholders during the reporting period[186]. - The company has a total of 14,863,209 shares held by the second phase employee stock ownership plan, accounting for 3.78%[142]. Risks and Challenges - The company is facing operational risks due to the ongoing impact of COVID-19, particularly in communication with clients and local employee recruitment in Vietnam[52]. - Rising labor costs in Vietnam are expected to equalize with inland China within 3-5 years, prompting the company to invest in automation projects to enhance productivity[51]. - The company is actively mitigating exchange rate risks through hedging strategies and expanding overseas production capacity to diversify risks[50]. Strategic Initiatives - The company has established partnerships with brands such as PUMA, DECATHLON, and UNIQLO, focusing on ODM and OEM services[30]. - The company has a global production base layout, with significant investments in Vietnam to leverage local labor cost advantages and tax policies[32]. - The company is actively optimizing its customer base, adjusting prices due to rising raw material costs, and has begun collaborations with new clients like HM and Li Ning[36].