Yongjin Technology (SH:603995)2021-04-14 16:00Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥7.93 billion, an increase of 11.07% compared to ¥7.14 billion in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2020 was approximately ¥156.65 million, representing a 6.42% increase from ¥147.21 million in the previous year[18]. - The net cash flow from operating activities increased significantly by 147.40%, reaching approximately ¥351.30 million compared to ¥141.99 million in the same period last year[18]. - The total assets at the end of the reporting period were approximately ¥5.31 billion, a 2.35% increase from ¥5.19 billion at the end of the previous year[18]. - The basic earnings per share for the first half of 2020 decreased by 20.00% to ¥0.68, down from ¥0.85 in the same period last year[18]. - The weighted average return on net assets decreased by 4.63 percentage points to 5.26% compared to 9.89% in the previous year[18]. - The company reported a slight decrease of 0.16% in net assets attributable to shareholders, totaling approximately ¥2.89 billion compared to ¥2.90 billion at the end of the previous year[18]. - The net profit after deducting non-recurring gains and losses was approximately ¥140.97 million, a slight increase of 2.62% from ¥137.37 million in the previous year[18]. - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[6]. Production and Technology - The company has an annual production capacity exceeding 1.4 million tons, positioning itself as a well-known professional stainless steel cold-rolling enterprise in China[26]. - The company has developed a series of core technologies for the production of cold-rolled stainless steel strips, ensuring superior product quality and market competitiveness[37]. - As of June 30, 2020, the company has obtained a total of 115 patents, including 18 invention patents and 97 utility model patents[38]. - The main products include precision cold-rolled stainless steel strips with thicknesses ranging from 0.08mm to 1.5mm, widely used in various industries such as home appliances and automotive parts[26]. - The company is recognized as a national high-tech enterprise and has established several research and development centers, enhancing its technological capabilities[38]. - The company has developed four high-tech products, including precision cold-rolled stainless steel ultra-thin strips, which have been recognized as high-tech products[41]. - The company has independently designed and developed 16 sets of 1,350mm reversible precision cold-rolling mills, significantly reducing procurement and maintenance costs[48]. - The company has established a comprehensive ISO9001 quality management system, ensuring strict adherence to quality control throughout the production process[44]. Market and Sales - The company’s sales model involves prepayment of 10%-20% deposit for most customers, resulting in low overdue risk for sales receivables[30]. - The company’s main business remains focused on the research, production, and sales of cold-rolled stainless steel strips, with no significant changes in its operating model during the reporting period[24]. - The company has successfully bid for key projects under the "Made in China 2025" initiative, indicating its strong position in the industry[26]. - The company has actively expanded its market presence, particularly in the automotive sector, and has made progress in obtaining TS16949 certification[57]. Financial Management and Investments - The company reported a substantial increase in cash and cash equivalents, totaling approximately ¥1.62 billion, which is a 280.06% increase from ¥427.31 million in the same period last year[65]. - Research and development expenses decreased by 8.90%, amounting to approximately ¥93.67 million, down from ¥102.82 million in the previous year[60]. - Long-term borrowings increased by 201.21%, totaling approximately ¥149.70 million, reflecting the financing needs for the Guangdong Yongjin project[70]. - The company decided to use raised funds of 150 million yuan for capital increase in its wholly-owned subsidiary Jiangsu Yongjin to implement fundraising projects[73]. - During the reporting period, the company made new equity investments of 59.25 million yuan in Guangdong Yongjin and 16.22 million yuan in Vietnam Yongjin[76]. - The company received a total relocation compensation of 232.11 million yuan from the Lankou Economic Development Zone Management Committee, including 137.24 million yuan for building compensation and 94.87 million yuan for equipment relocation[79]. Risk Management - The company faced a supplier concentration risk, with the top five suppliers accounting for 95.28% of total purchases in the first half of 2020[94]. - Market price fluctuation risk was highlighted, with raw material costs constituting approximately 95% of the main business costs, indicating vulnerability to price changes[96]. - The company faces foreign exchange risk as overseas investment projects increase, with foreign currency settlements expected to rise, making it challenging to fully hedge against currency fluctuations[101]. - The company has implemented measures to control foreign exchange risks, although complete hedging remains difficult due to the complexity of foreign currency transactions[101]. Corporate Governance and Compliance - The company has improved its governance structure and compliance with regulatory requirements since its IPO, enhancing transparency in decision-making processes[58]. - The company has maintained active investor relations, engaging with investors through various channels to promote understanding and acceptance in the capital market[58]. - The company has not reported any significant changes in its operational commitments or shareholder agreements during the reporting period[108]. - The company emphasizes compliance with laws and regulations regarding share reductions to ensure transparency and accountability[129]. Environmental and Social Responsibility - Jiangsu Yongjin is classified as a key pollutant discharge unit, with all major pollutants' emissions below government-approved limits and in compliance with national standards[182]. - The company achieved zero industrial wastewater discharge and all environmental monitoring results for wastewater, noise, and waste gas were stable and met standards[183]. - The company has established an emergency response plan for environmental pollution incidents, ensuring rapid and effective handling of such events[185]. - The company has committed 430,000 RMB to poverty alleviation projects in Fuan City, focusing on infrastructure development[175]. - The company has not incurred any costs related to environmental protection initiatives during the reporting period[180]. Shareholder Structure and Stock Management - As of the end of the reporting period, the total number of ordinary shareholders was 21,553, with the largest shareholder holding 26.09% of the shares[192]. - The company’s stock price has been under pressure, leading to an extension of the lock-up period for certain shareholders due to the stock price being below the issue price for 20 consecutive trading days within six months post-listing[198]. - The overall shareholder structure reflects a mix of institutional and individual investors, which may influence future corporate governance and strategic decisions[198].