FLYCO(SH:603868)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,750,888,670.04, representing a 17.72% increase compared to ¥1,487,374,872.21 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was ¥313,899,918.13, up 9.63% from ¥286,333,908.64 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥273,864,400.09, an increase of 7.06% from ¥255,801,794.22 year-on-year[16]. - Basic earnings per share for the reporting period (January to June) increased by 9.09% to CNY 0.72 compared to CNY 0.66 in the same period last year[17]. - The weighted average return on equity rose to 10.76%, an increase of 0.16 percentage points from 10.60% in the previous year[17]. - The company reported a net profit of RMB -5.84 million for Shanghai Feike Personal Care Electric Co., Ltd., while Wuhu Feike Electric Co., Ltd. achieved a net profit of ¥28.91 million[49]. - The company’s total comprehensive income for the first half of 2021 was CNY 490,571,735.64, compared to CNY 242,469,172.59 in the same period of 2020, showing a growth of about 102.5%[98]. Cash Flow and Assets - The net cash flow from operating activities decreased by 38.28% to ¥214,335,124.46 from ¥347,262,446.41 in the same period last year[16]. - Total assets at the end of the reporting period were ¥3,714,356,382.72, down 4.50% from ¥3,889,241,723.10 at the end of the previous year[16]. - The balance of trading financial assets decreased by 61.89% to ¥262,294,172.10, accounting for 7.07% of total assets[39]. - Cash and cash equivalents increased to CNY 510.26 million from CNY 413.29 million, reflecting a growth of approximately 23.5% year-over-year[87]. - The total current assets as of June 30, 2021, amounted to approximately CNY 1,938.76 million, a decrease from CNY 2,170.57 million as of December 31, 2020, representing a decline of about 10.65%[87]. Liabilities and Equity - The total liabilities of the company are not specified in the provided documents, indicating a need for further financial details[87]. - The total liabilities reached CNY 1,056,295,831.09, with current liabilities at CNY 952,548,733.33 and non-current liabilities at CNY 103,747,097.76[185]. - Shareholders' equity totaled CNY 2,832,945,892.01, with CNY 1,490,897,663.79 in undistributed profits[185]. - The total equity attributable to shareholders of the parent company was ¥1,369,197,581.92, reflecting a decrease of 8.2% from ¥1,490,897,663.79 at the end of the previous year[103]. Research and Development - The company launched 63 new patents and obtained 75 authorized patents, totaling 348 authorized patents by the end of the reporting period, indicating a strong focus on R&D[31]. - Research and development expenses increased to ¥53,244,821.25, a rise of 85.5% from ¥28,749,031.53 in the first half of 2020[94]. - Research and development expenses increased to CNY 52,754,100.94 in the first half of 2021, compared to CNY 26,916,432.05 in the same period of 2020, marking a rise of about 96.5%[97]. Market and Product Strategy - The company’s main products include personal care appliances, home appliances, and electrical appliances, with a significant market share in the personal care sector[20]. - The brand "FLYCO" achieved a retail market share of 40.3% online and 47.26% offline for electric shavers in the first half of 2021[20]. - The company plans to continue expanding its product categories and investing in R&D to meet consumer demand and enhance brand recognition[24]. - The projected market size for small household appliances in China is expected to reach CNY 486.8 billion in 2021, indicating significant growth potential[19]. Operational Efficiency - The company’s production model combines in-house manufacturing and outsourcing, with 56.31% of total production outsourced in the first half of 2021[22]. - Sales expenses surged by 84.34% to CNY 318,449,962.67 due to increased investment in self-operated e-commerce and social media marketing[36]. - The average selling price of shavers increased by 16.3% year-on-year, contributing to the overall revenue growth[29]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations, which can impact the demand for personal care and household appliances[50]. - The company has noted that fluctuations in raw material prices could directly affect product costs and profitability[53]. - Labor cost increases pose a challenge, and the company is implementing strategies to enhance production efficiency and product value to counteract these pressures[55]. Environmental and Compliance - The company is not subject to any environmental penalties and complies with national environmental protection laws and regulations[61]. - The company emphasizes environmental protection and has implemented measures to reduce waste generation and pollution through process improvements and material recycling[62]. - The company has signed a service agreement for the collection and transportation of industrial waste, which has been filed with the local environmental protection bureau[61]. Shareholder Information - Total number of ordinary shareholders as of the end of the reporting period is 9,293[80]. - The largest shareholder, Shanghai Feike Investment Co., Ltd., holds 352,800,000 shares, accounting for 80.99% of total shares[81]. - The second largest shareholder, Li Gaiteng, holds 39,200,000 shares, representing 9.00% of total shares[81]. Accounting Policies - The financial statements have been prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy[111]. - The company applies fair value measurement for financial instruments, classifying them based on the business model and cash flow characteristics[123]. - The company recognizes revenue when control of goods or services is transferred to the customer, which is when the customer can direct the use and obtain almost all economic benefits[167].