KSHG(SH:605333)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥984,602,609.95, representing a 70.18% increase compared to ¥578,570,904.48 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥26,121,978.15, up 12.85% from ¥23,147,365.18 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥21,926,168.14, reflecting an 18.38% increase from ¥18,521,389.91 in the same period last year[20]. - The basic earnings per share for the first half of 2021 remained at ¥0.06, unchanged from the same period last year[21]. - The weighted average return on net assets decreased to 3.19%, down by 1.03 percentage points from 4.22% in the previous year[21]. - The company reported a total comprehensive income of ¥43,699,542.47 for the first half of 2021, compared to ¥24,511,359.62 in the previous year, marking an increase of around 78.5%[104]. - The total profit for the first half of 2021 was ¥49,133,643.40, compared to ¥28,280,371.20 in the same period of 2020, representing an increase of approximately 73.7%[104]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥47,797,106.18, a significant decrease compared to ¥58,608,568.31 in the previous year, marking a decline of 181.55%[20]. - The company's operating cash flow for the first half of 2021 was negative at -47,797,106.18 RMB, compared to a positive cash flow of 58,608,568.31 RMB in the same period of 2020, indicating a significant decline[107]. - Cash outflow for purchasing goods and services increased to 608,662,547.16 RMB from 397,436,685.06 RMB, reflecting a rise of about 53.0% year-over-year[107]. - The net cash flow from investing activities was -77,673,881.09 RMB, worsening from -68,653,451.43 RMB in the previous year, indicating increased investment expenditures[108]. - Cash inflow from financing activities was 245,300,000.00 RMB, down from 277,608,449.37 RMB in the first half of 2020, a decrease of approximately 11.6%[108]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥2,377,486,135.49, which is a 23.21% increase from ¥1,929,604,919.96 at the end of the previous year[20]. - Total liabilities reached CNY 1,597,469,799.48, up from CNY 1,148,788,588.25, which is an increase of approximately 39.1%[93]. - Accounts receivable rose by 38.66% to ¥850,571,837.94, reflecting the increase in operating revenue[38]. - Inventory increased by 57.90% to ¥384,976,240.14, driven by the need to ensure normal deliveries and support new project ramp-ups[38]. - Short-term borrowings increased by 32.34% to ¥403,764,957.59, primarily due to new short-term loans taken during the reporting period[38]. Research and Development - Research and development expenses surged by 85.33% to ¥51,972,856.25, driven by increased staffing for new projects and higher material costs[36]. - The company is focused on continuous product development and technology upgrades to meet the evolving demands of the automotive industry[50]. - The application of aluminum wire in new product development has entered the trial production and product qualification testing phase[34]. - The company has developed a fully automated production line for high-voltage wiring harnesses, which is the first of its kind globally[32]. Market Position and Strategy - The company has established stable partnerships with major automotive manufacturers, including Volkswagen, Daimler, and General Motors[28]. - The company is actively expanding its business in high-voltage wiring harnesses for new energy vehicles, securing multiple project contracts[34]. - The company is strategically positioning itself in the new energy high-voltage harness business to mitigate risks associated with automotive industry cycles[46]. - The company is actively expanding its customer base, including partnerships with Ideal Automotive, Changan Ford, Jaguar Land Rover, and Daimler Benz[47]. Shareholder and Governance - The actual controller and shareholders have committed to a 36-month lock-up period for their shares following the company's listing[61]. - The company has established a long-term commitment to avoid engaging in competitive activities with its controlling shareholders and related parties[66]. - The controlling shareholder commits to stabilize the company's stock price by increasing shareholdings if the stock price falls below the net asset value per share for 10 consecutive trading days after the share repurchase plan is completed[73]. - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[54]. Compliance and Legal Matters - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[77]. - The company has not received any penalties or corrective actions related to legal violations during the reporting period[78]. - The financial report complies with the accounting standards issued by the Ministry of Finance, accurately reflecting the company's financial position as of June 30, 2021[134]. Accounting Policies and Financial Instruments - The financial statements are prepared based on the going concern principle, ensuring the company's ability to continue operations for the next 12 months[130][132]. - The company recognizes revenue when control of goods or services is transferred to the customer, indicating a clear performance obligation fulfillment[199]. - Financial liabilities are classified at initial recognition as either fair value through profit or loss or amortized cost[148]. - The company measures expected credit losses for receivables and contract assets at the amount equivalent to the expected credit losses over the entire duration of the financial instrument[155].