First(SH:603806)2021-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥5,715,649,358.37, representing a 69.29% increase compared to ¥3,376,226,655.06 in the same period last year[13]. - Net profit attributable to shareholders was ¥903,623,386.30, up 98.08% from ¥456,192,095.92 in the previous year[13]. - The net profit after deducting non-recurring gains and losses was ¥875,388,467.26, reflecting a 97.81% increase compared to ¥442,540,501.88 in the same period last year[13]. - The basic earnings per share increased to ¥0.98, an 88.46% rise from ¥0.52 in the previous year[15]. - The weighted average return on equity rose to 9.62%, an increase of 2.86 percentage points compared to 6.76% in the previous year[15]. - The company achieved a revenue of CNY 5,715,649,358.37, representing a year-on-year growth of 69.29%[33]. - The net profit attributable to shareholders reached CNY 90,362.34 million, an increase of 98.08% compared to the previous year[33]. - The company reported a total comprehensive income of ¥861,310,964.48 for the first half of 2021, compared to ¥450,527,069.64 in the same period of 2020, indicating an increase of about 91.1%[115]. Revenue Drivers - The increase in revenue was primarily driven by higher sales volumes and average selling prices of photovoltaic films and photosensitive dry films[16]. - The company sold 461 million square meters of photovoltaic encapsulant, representing a year-on-year growth of 23.19%[20]. - The company sold 31.3683 million square meters of photovoltaic backsheet, with a year-on-year increase of 26.44%[20]. - The company sold 45.4715 million square meters of photosensitive dry film, achieving a remarkable year-on-year growth of 210.95%[20]. - The company’s electronic materials segment is experiencing rapid growth, driven by the increasing demand in the PCB industry[25]. - The company anticipates that the demand for photosensitive dry film will accelerate due to the growth in the automotive electronics and medical device sectors[26]. Asset and Liability Management - Total assets increased to ¥12,275,061,531.32, a 6.32% rise from ¥11,544,851,528.69 at the end of the previous year[14]. - The net assets attributable to shareholders increased to ¥9,835,733,037.91, reflecting an 8.99% growth from ¥9,024,819,981.64 at the end of the previous year[14]. - The net cash flow from operating activities decreased by ¥631,672,016.91, a decline of 375.45% compared to ¥229,324,171.28 in the previous year[14]. - Total liabilities decreased to ¥2,436,304,758.43 from ¥2,515,630,723.30, showing a reduction of about 3.15%[109]. - Owner's equity increased to ¥9,838,756,772.89, up from ¥9,029,220,805.39, marking a growth of approximately 8.95%[109]. Research and Development - Research and development expenses amounted to CNY 186,339,045.56, reflecting a 60.30% increase from the previous year[36]. - Research and development expenses increased to ¥186,339,045.56 in the first half of 2021, up from ¥116,242,647.40 in the same period of 2020, reflecting a growth of approximately 60.3%[113]. Environmental and Compliance - The company is committed to environmental protection, adhering to the Environmental Protection Law of the People's Republic of China, and has effectively managed waste during production[69]. - The company has implemented strict management of pollution prevention facilities, ensuring they operate in sync with production facilities to enhance stability and efficiency[63]. - Environmental impact assessments were conducted for all new or expanded projects, ensuring compliance with environmental regulations[64]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and revised according to legal requirements[66]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[68]. Shareholder and Capital Management - The company distributed a cash dividend of RMB 4.50 per 10 shares, totaling RMB 346,298,567.40, and issued 153,910,474 new shares[88]. - The company has made commitments regarding share transfer restrictions for its actual controllers and shareholders, including a lock-up period of 36 months post-IPO[72]. - The company plans to limit share reductions to no more than 5% of total shares post-IPO within 24 months after the lock-up period[72]. - The company has established a voluntary commitment to not reduce its holdings in Foster shares for 12 months starting from November 9, 2016[73]. Financial Instruments and Accounting Policies - The company recognizes financial assets when cash flow rights are terminated or when the transfer meets the criteria for derecognition as per accounting standards[149]. - The fair value of financial assets and liabilities is determined using valuation techniques supported by sufficient data, categorized into three levels based on observability[150]. - The company applies the expected credit loss method for accounts receivable and notes receivable, as detailed in section 10 of the report[154]. - The company recognizes revenue based on the progress of performance obligations, confirming income when control of goods or services is transferred to the customer[184]. - The company has implemented the new leasing standards since January 1, 2021, which is not expected to have a significant impact on its operating results[192]. Future Outlook and Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue increase of 20% based on current market trends[75]. - New product development is underway, with two major products expected to launch in Q3 2021, potentially increasing market share[75]. - The company is expanding its market presence in Southeast Asia, targeting a 10% increase in market penetration by the end of the fiscal year[75]. - A strategic acquisition is planned, aimed at enhancing technological capabilities and expanding the product line, with an estimated cost of $50 million[75].