TAM(SH:603789)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 279,211,232.99, representing a 102.52% increase compared to CNY 137,867,032.25 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 45,372,124.44, an improvement from a loss of CNY 51,142,859.71 in the previous year[21]. - The net cash flow from operating activities was CNY 3,583,737.68, a significant recovery from a negative cash flow of CNY -115,389,780.78 in the same period last year[21]. - The total assets at the end of the reporting period were CNY 1,444,116,276.28, an increase of 3.07% from CNY 1,401,112,773.67 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company decreased by 5.81% to CNY 740,379,684.56 from CNY 786,075,146.77 at the end of the previous year[21]. - The basic earnings per share for the first half of 2021 was -CNY 0.1745, an improvement from -CNY 0.1967 in the same period last year[22]. - The weighted average return on net assets was -5.95%, compared to -5.02% in the previous year[22]. - The company reported a non-recurring profit of RMB 2,883,460.14, primarily from government subsidies and other non-operating income[23]. - The company achieved a revenue of 279.21 million yuan in the first half of 2021, representing a 102.52% increase compared to the same period last year[40]. - The net profit attributable to shareholders was -45.37 million yuan, an improvement of 5.77 million yuan compared to the previous year, primarily due to effective pandemic control and supportive national policies[44]. Operational Highlights - The company is engaged in the research, manufacturing, sales, and service of agricultural machinery, covering six major crop types and various operational processes[26]. - The company’s production model combines self-research, self-manufacturing, and outsourcing, ensuring high value-added core components are produced in-house[27]. - The mechanization rate for major crops in China has exceeded 70%, but there are still significant gaps in agricultural machinery supply in hilly areas and for livestock farming[29]. - The government has introduced policies to enhance agricultural machinery service levels, including continued implementation of purchase subsidies[30]. - The company aims to enhance its core competitiveness by improving product quality, expanding domestic and international markets, and focusing on high-end intelligent products[32]. - The company plans to target high-end intelligent agricultural machinery and expand into underdeveloped areas such as livestock and facility agriculture[31]. - The company’s strategy includes producing stylish, comfortable, and reliable agricultural machinery to meet user demands and leverage product and technology advantages[31]. - The company has established a comprehensive sales system based on market demand and national policies, ensuring rapid market response[28]. - The company has expanded its product range to cover six major crops, including rice, corn, wheat, cotton, rapeseed, and peanuts, enhancing its competitive edge in the market[33]. - The company has established a comprehensive service network across 21 provinces and regions in China, with over 220 dealers, and exports to multiple countries including the Philippines and Indonesia[38]. Research and Development - The company has a strong focus on independent research and development, holding multiple patents and participating in the formulation of national standards[35]. - The company has implemented a standardized system for parts production, enhancing supply chain management and production efficiency[36]. - The company prioritizes quality management, adopting a zero-tolerance policy for quality issues and conducting regular inspections[37]. - The company is actively building strategic alliances with dealers to enhance market share and brand recognition[38]. - The company has developed new products in emerging industries, but their performance and reliability are still under market evaluation, posing risks to future growth[67]. - The company plans to enhance product development focusing on high-tech, competitive products with independent intellectual property rights, particularly in balers, rotary tillers, and cotton harvesters[45]. - The company has developed a unique corporate culture that emphasizes innovation and customer value, contributing to sustainable growth[39]. - The company has implemented an automated production line for agricultural waste recycling, focusing on zero emissions and resource utilization[79]. - The company has developed a dry toilet and human waste harmless treatment system aimed at achieving "waterless, odorless, harmless, and no discharge" technology requirements, converting human waste into high-quality organic fertilizer to support agricultural development[80]. - The company is focused on green, intelligent, and efficient agriculture, implementing standardized production systems and fully mechanized agricultural operations to enhance the quality of grain and oil products[82]. Financial Position and Risks - Operating costs rose by 86.00% to ¥245,067,756.44 from ¥131,754,043.01 year-on-year[52]. - Research and development expenses increased by 46.74% to ¥14,577,310.94, up from ¥9,934,422.23 in the previous year[52]. - The company’s cash and cash equivalents decreased by 38.28% to ¥56,210,881.59 from ¥91,071,801.35 year-on-year[54]. - Accounts payable surged by 95.20% to ¥172,427,140.78 compared to ¥88,334,793.80 in the previous year[54]. - The company faces risks related to a single revenue structure, as the combine harvester remains the largest source of income[59]. - Increased competition in the agricultural machinery market poses a risk to future performance due to price wars and market share battles[60]. - Steel prices have risen due to global supply mismatches, which could increase production costs and impact profitability if the trend continues[64]. - The ongoing COVID-19 pandemic presents uncertainties that could adversely affect the company's overseas revenue and overall performance[68]. - The company has restricted assets totaling ¥196,392,980.83, including bank acceptance bill guarantees and fixed asset mortgages[56]. - Long-term borrowings increased by 36.96% to ¥54,866,666.66 from ¥40,060,833.33 year-on-year[54]. Corporate Governance and Compliance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[6]. - The company has committed to maintaining independence from Xingguang Agricultural Machinery and will not engage in any business that constitutes competition with it[86]. - The company will continue to manage related transactions with Xingguang Agricultural Machinery in a standardized manner, ensuring fair market pricing and compliance with legal disclosure obligations[86]. - The company has not reported any violations or guarantees during the reporting period[90]. - The company has conducted self-inspection and rectification following the regulatory measures imposed by the CSRC[94]. - The company is involved in a significant lawsuit regarding patent infringement, with a claim amounting to RMB 30 million[92]. - The company has initiated legal proceedings against Jiangsu Wode Agricultural Machinery Co., Ltd. for patent infringement, seeking to halt the production and sales of infringing products[92]. - The company has received regulatory measures from the China Securities Regulatory Commission, requiring corrective actions and a report on compliance[94]. - The company has no outstanding loans, guarantees, or any agreements that could lead to conflicts of interest[88]. Shareholder Information - The company has 18,319 ordinary shareholders as of the end of the reporting period[103]. - The top ten shareholders include Zhejiang Green Pulse Yicheng Technology Development Co., Ltd. as the controlling shareholder, holding 39,000,000 shares (15.00%) and Huzhou New Home Investment Management Co., Ltd. with 46,738,250 shares (17.98%)[105]. - The actual controller of the company, Qian Juhua, holds 30,000,000 shares of the company and has a 40% stake in Huzhou New Home Investment Management Co., which holds 65,688,000 shares of the company[86]. - The company holds 65,688,000 shares, with the actual controller owning 24,312,000 shares directly[87]. - The actual controller has a 60% stake in Huzhou New Home Investment Management Co., Ltd., which holds 40% of the company's shares[87]. - Any transfer of shares by the actual controller during their tenure will not exceed 25% of their total holdings[88]. - After leaving the company, the actual controller will not transfer shares for six months and will limit sales to 50% of their holdings in the following twelve months[88]. Special Reserves and Capital Management - The company reported a capital reserve increase of RMB 43,538,436.16 from surplus reserves and undistributed profits[89]. - The company extracted a total of CNY 921,236,000 for special reserves during the reporting period[134]. - The total amount of special reserves at the end of the reporting period was CNY 1,407,480,000[134]. - The company utilized CNY 560,788,000 from special reserves during the reporting period[134]. - The company reported a decrease in retained earnings of CNY 54,351,825.84[138]. - The total owner's equity at the end of the period was 1,019,502,280.00, with a registered capital of 260,000,000.00[141]. Accounting Policies and Financial Instruments - The preparation of consolidated financial statements is based on the financial statements of the parent company and its subsidiaries, in accordance with relevant accounting standards[156]. - The company classifies financial assets into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[162]. - Financial assets measured at amortized cost are aimed at collecting contractual cash flows, with gains or losses recognized in profit or loss[162]. - The company uses the expected credit loss model to recognize impairment for financial assets measured at amortized cost and fair value through other comprehensive income[165]. - The company recognizes impairment losses for held-for-sale assets when the carrying amount exceeds the adjusted net realizable value[177]. - The company will assess impairment for investments in subsidiaries, joint ventures, and associates when there is objective evidence of impairment, recognizing the corresponding impairment provision[183]. - Fixed assets are recorded at actual cost and depreciated using the straight-line method over their useful lives, with specific depreciation rates outlined for different asset categories[186]. - Borrowing costs directly attributable to the acquisition or construction of qualifying assets can be capitalized, while other borrowing costs are recognized as expenses in the current period[190].