Taihe(SH:605081)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥181,088,632.56, a decrease of 16.97% compared to ¥218,090,589.37 in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2021 was ¥41,793,997.01, down 23.34% from ¥54,520,206.82 in the previous year[21]. - Basic earnings per share for the first half of 2021 were ¥0.61, a decrease of 34.41% from ¥0.93 in the same period last year[22]. - The weighted average return on net assets decreased by 3.5 percentage points to 3.03% from 6.53% in the previous year[22]. - Operating costs decreased by 19.80% to CNY 72.11 million, primarily due to the decline in operating revenue[37]. - The company reported a total profit of RMB 46,318,674.20, down 28.1% from RMB 64,338,633.09 in the first half of 2020[115]. - The company experienced a decrease in sales expenses to RMB 12,831,211.64, down 18.3% from RMB 15,716,322.43 year-on-year[114]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥119,976,294.19, compared to -¥49,976,368.65 in the same period last year, indicating a significant decline[21]. - Cash flow from operating activities showed a net outflow of CNY 119.98 million, a significant decline attributed to reduced collections[38]. - The company reported a significant increase in cash and cash equivalents to CNY 851.22 million, up 224.79% due to IPO financing[41]. - The net increase in cash and cash equivalents was ¥592,104,325.85 in H1 2021, contrasting with a decrease of ¥54,815,646.52 in H1 2020[123]. - The ending balance of cash and cash equivalents rose to ¥837,569,992.16 in H1 2021 from ¥183,954,660.46 in H1 2020, showing improved liquidity[123]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,038,349,057.53, an increase of 60.52% from ¥1,269,819,984.68 at the end of the previous year[21]. - The company's total liabilities were ¥222,667,827.72, a decrease from ¥282,098,623.36, reflecting a reduction of about 21.1%[106]. - The company's accounts receivable stood at ¥469,202,078.26, slightly down from ¥478,616,002.95, showing a decrease of about 1.7%[105]. - The company's non-current assets totaled ¥298,926,261.67, up from ¥221,351,080.10, indicating an increase of about 35.1%[106]. Shareholder Information - The company completed its initial public offering (IPO) of 19.53 million shares at a price of RMB 43.3 per share, increasing total shares from 58.57 million to 78.10 million[93]. - The largest shareholder, He Wenhui, holds 17,623,150 shares, representing 22.56% of the total shares[96]. - The company has 58,571,429 restricted shares, which constitute 74.99% of total shares post-IPO[92]. - Major shareholders have committed not to transfer or manage their shares for 12 months post-IPO, with specific conditions for those holding over 5% of shares[67]. Risks and Challenges - The company faces challenges in securing large orders traditionally obtained through direct bidding, as larger state-owned enterprises gain advantages in the evolving market[33]. - The company faces market competition risks, which could lead to performance decline if it fails to maintain a competitive advantage[45]. - Talent retention is a significant risk due to the competitive nature of the water environment ecological governance industry[45]. - Extreme weather changes pose risks to project timelines and costs, potentially leading to increased expenses[46]. Corporate Governance and Compliance - The company did not distribute profits or increase capital reserves during the reporting period[5]. - The company has outlined potential risks in the management discussion and analysis section of the report[7]. - The company guarantees that the IPO prospectus does not contain false records or misleading statements, and will compensate investors for losses if such issues arise[69]. - The company has not experienced any significant litigation or arbitration matters during the reporting period[86]. Research and Development - Research and development expenses increased by 22.06% to CNY 11.48 million, reflecting the company's commitment to enhancing R&D investment[37]. - The company’s operational focus includes water ecological restoration technology and water pollution control engineering, indicating a strategic emphasis on environmental sustainability[141]. Environmental Impact - The company’s main business in aquatic ecological restoration contributes to carbon reduction, with submerged plants in the Yangtze River basin sequestering approximately 370,602 tons of carbon annually[58]. - The ecological protection industry is recognized as a strategic emerging industry, supported by national policies aimed at improving ecological quality[32].