S-KING(SH:688328)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 413,516,657.51, representing a 112.18% increase compared to CNY 194,886,163.80 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was CNY 25,704,833.22, up 79.27% from CNY 14,338,562.57 in the previous year[18]. - The net cash flow from operating activities was negative CNY 133,305,047.49, worsening from negative CNY 49,447,152.74 in the same period last year, a decline of 169.59%[18]. - The total assets at the end of the reporting period were CNY 1,407,305,635.99, an increase of 29.00% from CNY 1,090,927,186.17 at the end of the previous year[18]. - The net assets attributable to shareholders increased to CNY 738,283,981.37, a 60.53% rise from CNY 459,916,299.47 at the end of the previous year[18]. - Basic earnings per share for the first half of 2021 were CNY 0.36, a 50.00% increase from CNY 0.24 in the same period last year[19]. Research and Development - The R&D expenditure as a percentage of operating revenue decreased to 8.42%, down 4.32 percentage points from 12.74% in the previous year[19]. - The company achieved a 40.18% increase in R&D expenditures, totaling ¥34,805,366.35, compared to ¥24,829,517.85 in the previous period[38]. - The company obtained 4 new invention patents and 56 utility model patents during the reporting period, contributing to a total of 11 invention patents and 263 utility model patents[37]. - The company focuses on the development of customized equipment, ensuring that R&D activities are centered around customer needs[29]. - R&D activities are categorized into demand-driven development and forward-looking development, with a focus on market trends and customer requirements[29]. Market and Industry Trends - The global AMOLED semiconductor display panel market sales increased from $21.986 billion in 2017 to $34.234 billion in 2020, with a CAGR of 15.9%, and is expected to reach $40.148 billion in 2021[32]. - The global semiconductor market was valued at $439.8 billion in 2020 and is projected to reach $1.1304 trillion by 2030, with a CAGR of 9.90%[32]. - China's linear motor market is primarily concentrated in South China (44.50%), East China (27.90%), and North China (19.10%), with a production growth rate of over 10% in recent years[33]. - The automatic focusing module has captured over 70% of the main camera market share, with three out of the top five market players being manufacturers from mainland China[33]. Financial Position and Investments - The company raised CNY 120 million in capital for its wholly-owned subsidiary Huizhou Shenkeda, increasing its registered capital from CNY 15 million to CNY 135 million[63]. - The company invested a total of 400 million CNY in the vehicle display device bonding automation production line project, with 93.49 million CNY invested in the current period and a cumulative investment of 395.34 million CNY, achieving sample verification[39]. - The company has invested 450 million CNY in the fully automated large-size display bonding production line project, with 29.77 million CNY invested in the current period and a cumulative investment of 399.29 million CNY, currently in the sample verification stage[39]. - A total of 300 million CNY has been allocated to the glue 3D printing project, with 77.83 million CNY invested in the current period and a cumulative investment of 334.80 million CNY, currently in the sample verification stage[39]. Shareholder and Governance - The largest shareholder, Huang Yihong, committed to not transferring or entrusting the management of shares held before the IPO for 36 months from the date of listing[77]. - If the stock price falls below the IPO price for 20 consecutive trading days within 6 months post-listing, the lock-up period will automatically extend by 6 months[78]. - The company will not repurchase shares held by major shareholders during the lock-up period[80]. - After the lock-up period, shareholders can only transfer up to 25% of their total shares held each year while serving as directors or senior management[81]. Environmental Compliance - The company strictly adheres to national environmental protection laws and regulations, ensuring all pollutants are discharged within standards, with no significant environmental violations reported during the reporting period[72]. - The company has established facilities for wastewater treatment and dust removal, which are regularly maintained to ensure stable operation and compliance with discharge standards[73]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations in the next 12 months[158]. - The company adheres to the accounting policies and estimates in accordance with the enterprise accounting standards, ensuring the financial statements reflect a true and complete view of its financial position[161]. - The company recognizes goodwill when the purchase price exceeds the fair value of identifiable net assets acquired in a business combination[165]. - The company employs a method for determining expected credit losses that reflects factors such as unbiased probability-weighted amounts and the time value of money[198].