Greenda(SH:603931)2023-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 454,821,949.75, a decrease of 25.30% compared to CNY 339,735,185.62 in the same period last year [22]. - The net profit attributable to shareholders for the same period was CNY 77,717,628.83, down 16.45% from CNY 93,017,286.41 in the previous year [22]. - The basic earnings per share decreased to CNY 0.39, a decline of 17.02% from CNY 0.47 in the previous year [23]. - The weighted average return on equity decreased by 1.72 percentage points to 5.64% from 7.36% in the previous year [23]. - The company's net cash flow from operating activities increased by 25.15% to CNY 99,712,056.27 compared to CNY 79,673,992.81 in the same period last year [22]. - The total assets at the end of the reporting period were CNY 1,560,608,027.70, a slight increase of 0.47% from CNY 1,553,351,646.74 at the end of the previous year [22]. - The company reported a total comprehensive income of CNY 77,725,100.89 for the first half of 2023, down from CNY 93,023,576.39 in the same period last year [155]. - The company reported a significant increase in cash outflows related to investment activities, which may impact future liquidity and investment capacity [164]. Shareholder Information - No profit distribution plan or capital reserve transfer plan was proposed during the reporting period [4]. - The company’s major shareholders have committed to not transferring or entrusting the management of their shares for 36 months from the date of the stock listing, ensuring stability in shareholding [93]. - The company has a continuous commitment to long-term holding of shares, reflecting confidence in future development [94]. - The company plans to gradually reduce its holdings in the issuer's stock after the lock-up period, adhering to regulations from the China Securities Regulatory Commission and the stock exchange [96]. - The company will initiate a stock buyback plan if the stock price falls below the latest audited net asset value for 20 consecutive trading days [98]. - The stock buyback must be completed within 60 trading days after the board's decision, and the total buyback in a single fiscal year cannot exceed 5% of the company's total shares [99]. - The controlling shareholder is required to notify the company of any stock purchase plans within 10 trading days after the buyback conditions are triggered [100]. - The company will disclose the specific details of any stock buyback or purchase plans, including the number of shares, price range, and total amount [100]. Risk Management - The company has detailed potential risks in the report, which investors should review [6]. - The company faces safety production risks due to the nature of its chemical products, which could lead to significant operational impacts if accidents occur [76]. - Environmental risks are present as the company must manage waste emissions, with increasing costs associated with compliance to environmental regulations [77]. - The company is exposed to technology leak risks, as its core technologies are critical for maintaining competitive advantage in the wet electronic chemicals industry [78]. - Market risks include potential fluctuations in macroeconomic conditions and downstream industry demands, which could adversely affect the company's performance [79]. - The company has a customer concentration risk, relying heavily on major clients like BOE Technology Group and LG Group, which could impact order volumes if relationships deteriorate [80]. - The company faces financial risks related to gross margin fluctuations due to high raw material costs, particularly for dimethyl carbonate and trimethylamine [81]. Operational Strategy - The company specializes in the R&D, production, and sales of ultra-pure electronic chemicals, with key products including TMAH developer solutions used in LCD and OLED panel manufacturing [27]. - The company employs a "make-to-order" production model, aligning production with customer orders to optimize efficiency [28]. - The company has established a rigorous procurement process, ensuring multiple qualified suppliers for critical materials to maintain production stability [29]. - The company primarily sells products directly to end-users in the domestic market, establishing long-term stable relationships with major display panel manufacturers after a lengthy certification process [34]. - The company has achieved a technological breakthrough in TMAH developer solutions, enabling it to replace imports and expand its market reach to regions such as South Korea, Japan, and Taiwan [33]. - The company has established a robust procurement and production system, leveraging its first-mover advantage in the wet electronic chemicals industry, which is experiencing significant demand growth due to the rapid development of downstream industries [43]. Corporate Governance - The company guarantees the authenticity, accuracy, and completeness of the semi-annual report [7]. - The management team is committed to ensuring the financial report's integrity and has taken legal responsibility for its accuracy [7]. - The company has established a mechanism to compensate investors for losses caused by any false statements or omissions in the IPO prospectus [108]. - The company will publicly explain any failure to implement stock price stabilization measures and apologize to investors if necessary [103]. - The company has pledged to strictly adhere to all public commitments made regarding the IPO and will accept social supervision [112]. Market Trends - In the first half of 2023, the semiconductor display industry showed signs of recovery, with TV LCD panel prices rising and production capacity utilization increasing, leading to higher demand for upstream materials [46]. - The OLED penetration rate in the smartphone market increased from 30% in 2020 to 42% in 2022, with expectations for continued growth in both small and large-sized displays [47]. - The demand for wet electronic chemicals is expected to grow as the downstream markets, including semiconductors and solar cells, continue to develop [46]. - The demand for display panels is expected to see moderate growth in Q3 2023, leading to a comprehensive price increase for display panels [48]. Financial Commitments - The company will strictly manage the use of raised funds to ensure they are utilized effectively for their intended purposes [104]. - The company has committed to enhancing asset quality and increasing profitability to mitigate the dilution of immediate returns from the public offering [104]. - The company plans to strengthen cost and expense management, focusing on procurement, production, and quality control to improve operational efficiency [105]. - The company has implemented an active profit distribution policy to ensure stable and continuous returns for investors [106]. - The company is committed to enhancing its investor return mechanism to improve future return capabilities [106].