Yongjin Technology (SH:603995)2021-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥14,134,777,143.20, representing a year-on-year increase of 78.34% compared to ¥7,925,805,313.54 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥284,584,521.92, an increase of 81.67% from ¥156,653,093.62 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥271,892,323.02, up 92.87% from ¥140,969,919.83 in the same period last year[20]. - The net cash flow from operating activities was ¥590,927,152.09, reflecting a 68.21% increase from ¥351,299,924.64 in the previous year[20]. - Basic earnings per share for the first half of 2021 were ¥1.22, representing a 79.41% increase from ¥0.68 in the same period last year[21]. - The weighted average return on net assets increased by 3.46 percentage points to 8.72% compared to 5.26% in the previous year[21]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥7,629,912,000.74, a 22.93% increase from ¥6,206,491,959.84 at the end of the previous year[20]. - The total liabilities rose to ¥3,817,958,855.50 from ¥2,596,542,226.98, marking an increase of around 47.0%[152]. - The company's total equity increased to ¥3,811,953,145.24 from ¥3,609,949,732.86, which is an increase of about 5.6%[152]. - The company's cash and cash equivalents decreased to ¥1,154,481,853.75 from ¥1,275,683,417.36, a decline of about 9.5%[149]. - The company's inventory increased significantly to ¥1,080,715,587.93 from ¥711,205,106.85, reflecting a rise of approximately 52.0%[149]. Production and Capacity - The company has developed a processing capacity exceeding 2 million tons, positioning itself as a leading manufacturer in the cold-rolled stainless steel industry[27]. - In the first half of 2021, the company achieved a production volume of 1.052 million tons, a year-on-year increase of 59.01%[44]. - Sales reached 1.046 million tons, reflecting a year-on-year growth of 58.62%[44]. - The company is expanding its production capacity with new projects, including a 75,000-ton ultra-thin precision stainless steel strip project and a 250,000-ton project in Vietnam[46]. Research and Development - The company holds 174 patents, including 23 invention patents and 151 utility model patents, reflecting its strong focus on R&D and technological innovation[37]. - Research and development expenses increased by 51.88% to CNY 142.27 million, up from CNY 93.67 million in the previous year[50]. - The company is actively involved in the development of new products and technologies, aiming to maintain its leadership position in the cold-rolled stainless steel sector[37]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with all major pollutants' emissions below government-approved limits and in compliance with national standards[78][79]. - The company has successfully managed hazardous waste disposal through qualified third-party companies, ensuring compliance with environmental regulations[78][79]. - Jiangsu Yongjin's environmental monitoring shows stable compliance in wastewater, noise, and air emissions, with hazardous waste managed by qualified units[80]. Shareholder and Management Structure - The controlling shareholders, Yu Jiqun and Cao Peifeng, committed not to transfer or entrust the management of their shares for 36 months post-IPO[95]. - Shareholders in key management positions are restricted from transferring more than 25% of their shares annually during their tenure and for 6 months post-termination[96]. - The company has undergone a change in its board and supervisory committee members, with new appointments made during the annual shareholders' meeting[72]. Financial Management and Risks - The company faces risks related to supplier concentration, which may impact production if key suppliers fail to deliver quality materials on time[64]. - Market price volatility poses a risk to the company's operating performance, as raw material costs significantly affect overall expenses[66]. - The company has experienced management risks as its asset and sales scale rapidly expand, necessitating adjustments in organizational structure and management systems[69]. Capital and Investment - The company made a total of CNY 3.32 billion in new equity investments, primarily for acquiring 51% of Silver Sheep Industry[58]. - The company has cumulatively invested RMB 539 million in the Jiangsu Yongjin project for an annual processing capacity of 75,000 tons of ultra-thin precision stainless steel strips, with an additional investment of RMB 142 million during the reporting period[60]. - The company reported a significant decrease in expected related party transactions for 2021, with actual procurement of hot-rolled stainless steel materials and other services amounting to ¥414,320.71 million, compared to an expected ¥1,223,500.00 million[118].