ZPEC(SH:603637)2021-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2021 was RMB 463,384,188.10, representing a 35.19% increase compared to RMB 342,761,930.95 in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached RMB 34,369,031.23, a 56.08% increase from RMB 22,020,724.60 in the previous year[18]. - The basic earnings per share for the first half of 2021 was RMB 0.14, up 7.69% from RMB 0.13 in the same period last year[19]. - The weighted average return on net assets increased to 4.28%, up by 1.46 percentage points from 2.82% in the previous year[19]. - The total assets of the company at the end of the reporting period were RMB 1,399,367,893.60, a 1.05% increase from RMB 1,384,887,186.43 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 4.63% to RMB 772,401,510.42 from RMB 809,887,552.49 at the end of the previous year[18]. - The company reported a non-recurring profit of 10,622,088.45, with a significant portion attributed to non-operating income and expenses[23]. - The company reported a non-recurring loss of -1,801,308.95 due to tax impacts, affecting overall profitability[23]. Cash Flow and Investments - The net cash flow from operating activities was RMB 135,778,885.75, a significant improvement from a negative cash flow of RMB -139,199,258.87 in the same period last year, marking a 197.54% change[18]. - The net cash flow from investment activities decreased by 62.48% to RMB 86,093,192.58, attributed to reduced purchases of structured deposits[42]. - The net cash flow from financing activities was -72,205,444.50 RMB, compared to -35,223,125.64 RMB in the previous period, reflecting a worsening of approximately 104.5%[124]. - The company reported a beginning cash balance of 601,512,677.20 RMB, which contributed to the overall increase in cash and cash equivalents[124]. Business Operations and Strategy - The company specializes in professional technical services for the petrochemical industry, providing a comprehensive range of services from planning and consulting to construction management and operational services[25]. - Engineering general contracting business constitutes a high proportion of the company's revenue, with a focus on quality, safety, schedule, and cost management[25]. - The company holds Class A engineering design qualifications in the chemical, petrochemical, and oil and gas sectors, indicating strong technical capabilities[26]. - The company’s business model primarily relies on bidding for projects, integrating various departments to execute services efficiently[27]. - The company has a strong market position in the petrochemical sector, with its business positively correlated to industry development and investment[28]. - The company is focused on innovation in environmental protection and energy efficiency within the petrochemical sector[25]. - The company is actively developing a digital factory construction project to improve operational safety and efficiency for major petrochemical groups[40]. Market and Industry Trends - The petrochemical industry experienced significant revenue and profit growth, driven by strong market consumption of natural gas and refined oil products[31]. - The global petrochemical fuel market is slowly recovering, primarily driven by economic rebounds in China, the US, and Europe[30]. - The company is positioned to benefit from the ongoing structural reforms and green development initiatives in the petrochemical sector[31]. - In the first half of 2021, Brent crude oil prices showed an upward trend, with average prices ranging from $54.73 to $73.41 per barrel[30]. Research and Development - Research and development expenses rose by 3.87% to ¥10,034,277.40, indicating stable investment in innovation[42]. - The company has filed 9 patents during the reporting period, focusing on enhancing core competitiveness through technological innovation[40]. - The company has successfully applied multiple technological innovations, including ammonia-based flue gas desulfurization and sulfur recovery technology, enhancing the application range of ZHSR technology[35]. - The company has developed advanced technologies, achieving a sulfur recovery rate of 99.98% and SO2 emissions concentration below 100 mg/Nm³[32]. Shareholder and Equity Information - The company repurchased 4,992,496 shares of its circulating stock during the first half of 2021 as part of its share repurchase plan approved on December 28, 2020[20]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period, indicating a focus on reinvestment[71]. - The total equity attributable to shareholders decreased to CNY 772,401,510.42 from CNY 809,887,552.49, indicating a decline of about 4.6%[105]. - The company’s limited sale shares decreased from 130,575,674 shares to 904,020 shares after the first public offering on February 10, 2020, and further reduced to 848,900 shares after the repurchase of restricted stocks[89]. Risk Management - The company did not identify any significant risks that could adversely affect its future development strategy or ongoing operations during the reporting period[5]. - The company faces risks related to significant fluctuations in operating performance due to the long project cycles and high contract values in its engineering contracting business[59]. - The procurement costs for equipment and materials account for approximately 60% of total project costs, making price fluctuations a significant risk[60]. - The ongoing COVID-19 pandemic presents uncertainties, prompting the company to innovate across six key areas to enhance operational efficiency and value[65]. Corporate Governance and Compliance - The company has experienced a management change with the resignation of the deputy general manager, Yu Peidi, due to personal reasons[70]. - The company adheres to the accounting standards and its financial statements reflect a true and complete view of its financial position and operating results[141]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[139].