Xingye(SH:603928)2021-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥915,658,367.51, representing a 41.31% increase compared to ¥647,982,828.09 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 24.13% to ¥54,120,152.42 from ¥71,331,557.61 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥49,489,614.53, down 25.99% from ¥66,871,248.17 in the same period last year[19]. - Basic earnings per share decreased by 22.86% to CNY 0.27 compared to the same period last year[20]. - Weighted average return on equity dropped by 1.48 percentage points to 3.80%[20]. - The company achieved a sales revenue of 915.66 million RMB in the first half of 2021, representing a year-on-year growth of 41.31% due to increased product sales and rising raw material prices[46]. - The net profit for the same period was 54.41 million RMB, a decrease of 23.72% compared to the previous year, primarily due to the significant rise in raw material prices outpacing product price increases[46]. - In Q2 2021, the company reported a sales revenue of 494.26 million RMB and a net profit of 38.68 million RMB, indicating improved profitability compared to Q1 2021 and Q4 2020[41]. Cash Flow and Assets - The net cash flow from operating activities was ¥27,455,691.26, a significant decrease of 73.42% compared to ¥103,312,373.91 in the previous year[19]. - The company's total assets at the end of the reporting period amounted to 1,760,000,000.00 RMB, with cash and cash equivalents increasing by 445.01% to 47,444,496.34 RMB, representing 2.69% of total assets[48]. - Accounts receivable rose by 16.04% to 640,004,559.60 RMB, accounting for 36.26% of total assets, with no significant changes reported during the period[48]. - Inventory increased by 13.00% to 94,945,411.24 RMB, which is 5.38% of total assets, with no major changes noted[48]. - The company reported a significant increase in prepaid expenses, which rose by 106.06% to 24,804,084.90 RMB, primarily due to increased material payments[48]. Investment and Projects - The company plans to invest in a new project covering approximately 447 acres in the Taixing Economic Development Zone, aiming to establish a modern "garden-style" production base for organic synthetic resins and new materials[42]. - The company plans to invest 3 billion RMB in a new project in Jiangsu Province, with funding sourced from its own or self-raised funds[49]. - A new subsidiary, Xingye Taizhou, was registered with a capital of 500 million RMB, with the company holding a 99% stake[51]. Research and Development - Research and development expenses rose by 67.53% to 30.93 million RMB, reflecting increased costs of raw materials and additional R&D projects by subsidiaries[46]. - The company focuses on developing functional new materials, including casting process materials and specialty phenolic resins[31]. - The company is focusing on personalized, ecological, and functional resin products, aligning with market trends and customer needs[44]. Market Position and Competition - The company maintains a competitive position in the casting resin market, holding the second and first market shares for self-hardening furan resin and cold box resin, respectively[24]. - The automotive industry remains the largest consumer of castings, accounting for 28.9% of total casting demand in 2020[27]. - The company has successfully entered partnerships with Fortune 500 companies and top 100 foundries in China, establishing itself as a qualified supplier[38]. Risk Management - The report includes a detailed discussion of various risks faced during production and operations, along with corresponding countermeasures[6]. - The company employs a diversified risk management strategy, reducing reliance on single products or markets by developing a wide range of products across various industries[39]. - The company faces significant risks related to raw material price fluctuations, which can adversely affect production costs and profits[58]. Environmental Compliance - The company has been listed as a key pollutant discharge unit, but there were no major environmental violations or penalties during the reporting period[66]. - The company has implemented a wastewater treatment process that includes pre-treatment, Fenton oxidation, and biochemical treatment, ensuring that treated water meets discharge standards before being sent to local treatment facilities[72]. - The company has established an environmental self-monitoring plan, with third-party monitoring confirming compliance with discharge standards[78]. Corporate Governance - The company has established measures to prevent related party transactions that could harm shareholder interests, ensuring fair market pricing[85]. - The company has a long-term commitment to compensate investors for losses incurred due to false statements in the prospectus, with a 60-day timeline for compensation post-judgment[85]. - The company has maintained its total share capital structure without any changes during the reporting period[96]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 11,695[97]. - The top two shareholders are Wang Jinxing with 56,782,900 shares (28.17%) and Wang Quanxing with 52,334,600 shares (25.96%)[98]. - The company distributed 40,320,000.00 in profits to shareholders during the reporting period, indicating a commitment to shareholder returns[140].