HOLSIN(SH:603909)2021-08-09 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 347,314,848.15, representing a 22.79% increase compared to CNY 282,842,015.51 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 19,361,210.54, up 28.34% from CNY 15,085,564.13 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 19,319,821.53, which is a 46.02% increase from CNY 13,230,975.25 year-on-year[19]. - The basic earnings per share for the first half of 2021 was CNY 0.0966, an increase of 27.44% compared to CNY 0.0758 in the same period last year[20]. - The total operating revenue for the first half of 2021 was RMB 347,314,848.15, an increase of 22.8% compared to RMB 282,842,015.51 in the same period of 2020[146]. - The total profit for the first half of 2021 was RMB 23,930,490.73, an increase from RMB 18,445,932.08 in the first half of 2020, reflecting a growth of 29.9%[146]. - The company reported a comprehensive income total of approximately 15.09 million RMB for the period[164]. - The company’s total comprehensive income for the first half of 2021 was RMB 22,365,048.56, compared to RMB 16,436,038.68 in the first half of 2020, indicating a growth of 36.0%[147]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,397,581,880.06, a decrease of 6.59% from CNY 1,496,113,611.81 at the end of the previous year[19]. - The total liabilities decreased from CNY 602,813,846.20 on December 31, 2020, to CNY 460,091,658.71 on June 30, 2021, representing a reduction of approximately 23.6%[141]. - The total owner's equity attributable to shareholders increased from CNY 853,570,464.75 on December 31, 2020, to CNY 857,179,103.95 on June 30, 2021, a rise of about 0.7%[141]. - The company's total assets decreased from CNY 1,496,113,611.81 at the end of 2020 to CNY 1,397,581,880.06 by June 30, 2021, reflecting a decline of approximately 6.6%[141]. - The total current liabilities increased from CNY 156,337,405.96 on December 31, 2020, to CNY 207,968,173.26 on June 30, 2021, an increase of about 33.1%[144]. Cash Flow - The net cash flow from operating activities was negative at CNY -46,379,404.42, compared to CNY -41,387,585.39 in the previous year, indicating a 12.06% decline[19]. - The cash inflow from operating activities for the first half of 2021 was CNY 494,977,386.02, an increase of 30.9% compared to CNY 377,508,179.40 in the first half of 2020[153]. - The ending cash and cash equivalents balance was CNY 114,718,594.00, an increase from CNY 80,121,281.46 at the end of the first half of 2020[154]. - The cash inflow from investment activities was CNY 371,241.00, up from CNY 157,580.00 in the first half of 2020[153]. - The cash inflow from financing activities totaled CNY 62,325,010.00, compared to CNY 35,400,000.00 in the first half of 2020, representing a growth of 76.1%[154]. Business Operations - The company operates in five main sectors: surveying and design, engineering management, testing and inspection, comprehensive maintenance, and new engineering materials, primarily serving civil engineering fields such as highways, bridges, tunnels, and urban rail[25]. - The company aims to be a leading provider of full lifecycle engineering services for transportation and municipal infrastructure, focusing on urban renewal and smart infrastructure operation projects[31]. - The company has established a "group collaboration value-added model" to enhance its comprehensive engineering consulting services, actively participating in EPC and PPP projects[32]. - The company is actively pursuing mergers and acquisitions to integrate high-quality resources and enhance its capabilities in providing comprehensive lifecycle services for civil engineering projects[44]. - The company is focusing on expanding its market presence in road maintenance, with new contracts increasing by 135% compared to the previous year[51]. Research and Development - Research and development expenses rose by 16.85% to CNY 13,646,184.40, up from CNY 11,678,686.07 in the previous year[58]. - The company is committed to strengthening its technological innovation and has developed a standardized management system for technology control[54]. - The company’s new materials business focuses on high-value-added products such as cement-based materials and epoxy resins, which are expected to have a promising development outlook[30]. Corporate Governance and Shareholder Matters - The company is undergoing a control rights change with a significant shareholder transfer, which may impact future governance and operations[68][69]. - The company has implemented an employee stock ownership plan involving 61 core employees, with the plan approved in November 2020[78]. - The company’s actual controller and shareholders have made commitments to maintain the current control structure and not seek to become the controlling shareholder[86]. - The company will strictly adhere to legal regulations and internal procedures for related party transactions, ensuring fair pricing and timely information disclosure to protect all shareholders' interests[88]. - Shareholders have pledged not to engage in any direct or indirect investments that would create competition with the company, ensuring no conflicts of interest arise[89]. Risks and Challenges - The company faces risks including policy risks, human resource risks, safety production risks, accounts receivable risks, goodwill impairment risks, and control rights change risks[67][68]. - The company is subject to risks related to the acquisition process, including compliance confirmations and potential unforeseen circumstances[119]. - The company is facing uncertainties regarding its ability to continue as a going concern, which may impact future financial stability[136]. Awards and Recognition - The company has received 22 national-level awards and 64 provincial-level awards for its engineering design and consulting achievements, showcasing its technical advantages[43]. - The company signed new contracts worth 561 million yuan, representing a year-on-year growth of 61.38%, with 237 million yuan from outside Fujian province, accounting for 42.30%[51].