Great Shengda(SH:603687)2023-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥939,346,241.72, a decrease of 2.81% compared to ¥966,465,180.84 in the same period last year [17]. - The net profit attributable to shareholders for the first half of 2023 was ¥40,621,958.39, down 23.49% from ¥53,092,649.24 in the previous year [17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥27,661,563.34, a decrease of 8.50% compared to ¥30,230,980.05 in the same period last year [17]. - The basic earnings per share decreased to 0.1 yuan, a decline of 23.08% from 0.13 yuan in the previous year [18]. - The weighted average return on equity fell to 1.97%, a decrease of 0.74 percentage points year-on-year [18]. - The company achieved operating revenue of 939.35 million yuan in the first half of 2023, a decrease of 2.81% year-on-year [18]. - The company reported a total comprehensive income of CNY 53,200,798.13 for the first half of 2023, compared to CNY 56,307,577.36 in the previous year, reflecting a decrease of 5.4% [148]. - The company reported a net profit from the main subsidiaries included ¥15,362,902.42 from Hangzhou Shengming Paper Co., Ltd. and ¥21,852,042.84 from Sichuan Dazhengda Zhongfei Packaging Technology Co., Ltd. [75]. Cash Flow and Assets - The net cash flow from operating activities increased by 6.77% to ¥134,263,371.15 from ¥125,755,897.19 in the previous year [17]. - The company's total assets at the end of the reporting period were ¥3,596,000,560.49, reflecting a growth of 4.44% from ¥3,443,277,464.02 at the end of the previous year [17]. - The company's accounts receivable increased by 41.98% to ¥6,889,153.76, compared to ¥4,852,217.16 in the previous year [65]. - Prepayments surged by 118.78% to ¥37,206,148.20, up from ¥17,005,920.28, mainly due to increased advance payments for raw materials [65]. - The construction in progress rose significantly by 412.85% to ¥222,268,846.40, compared to ¥43,339,930.11 last year, attributed to the expansion of the Hainan project [65]. - The company's total current assets as of June 30, 2023, amount to 1,796,120,355.03 CNY, an increase from 1,754,672,278.46 CNY at the end of 2022 [139]. - Cash and cash equivalents increased to 948,431,853.50 CNY from 845,315,981.05 CNY at the end of 2022 [139]. Market and Industry Insights - The global corrugated packaging market is projected to grow at a rate of 3.7% annually, reaching a value of 300 billion USD by 2023, with e-commerce packaging expected to grow from 34.7 billion USD in 2019 to 101.7 billion USD by 2027, reflecting a compound annual growth rate of 9.8% [38][39]. - The packaging industry in China is a crucial part of the economy, with significant growth driven by the expansion of manufacturing and logistics sectors [40]. - The company continues to focus on the corrugated box business while expanding into high-end packaging for tobacco and alcohol through acquisitions and new constructions [23]. - The company is actively expanding into the environmentally friendly paper tableware sector, benefiting from national policies promoting green consumption and the replacement of plastic with paper [44]. Risk Management and Compliance - There were no significant risks that materially affected the company's operations during the reporting period [5]. - The company has a rigorous supplier evaluation process, ensuring that raw material suppliers meet strict environmental and quality standards before being included in the approved supplier list [29]. - The company actively improves its operational methods to reduce environmental impact and complies with multiple environmental protection laws in China [90]. - The company has developed emergency response plans for chemical leaks and hazardous waste pollution incidents to prevent and mitigate environmental pollution events [91]. Research and Development - As of June 30, 2023, the company has obtained 48 invention patents, 127 utility model patents, 1 design patent, and 22 software copyrights, showcasing its strong R&D capabilities [53]. - The company has developed an industry-leading E-packET industrial internet platform, recognized as a pilot project for the integration of manufacturing and the internet by the Ministry of Industry and Information Technology [51]. - The company has increased R&D expenses to CNY 43.41 million, reflecting a 19.99% increase, primarily due to higher investments from subsidiaries Sichuan Dashengda Zhongfei and Zhejiang Aideer [63]. Shareholder and Capital Management - The company has established a profit distribution policy to strengthen investor return mechanisms, ensuring a minimum dividend ratio and enhancing transparency in profit distribution decisions [100]. - The company commits to repurchase all newly issued shares if there are significant misstatements or omissions in the prospectus, with adjustments made for any stock splits [100]. - The company has committed to not transferring or managing its shares for 36 months following the public offering of stocks [94]. - The company will ensure compliance with legal regulations regarding share transfers after the lock-up period [94]. Corporate Governance - The board of directors confirmed the authenticity, accuracy, and completeness of the semi-annual report [6]. - The semi-annual report has not been audited [6]. - The company has established a mechanism to report any breaches of commitments and will compensate for any economic losses caused by such breaches [94]. - The company has a stable management team with most key personnel having over 10 years of experience, ensuring a strong foundation for sustainable development [54].