Feymer(SH:688350)2021-08-09 16:00Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2021, representing a year-on-year increase of 20%[1]. - The company's operating revenue for the first half of 2021 was ¥667,460,031.82, representing a 29.70% increase compared to ¥514,612,992.29 in the same period last year, primarily due to enhanced market development and brand influence[20]. - The net profit attributable to shareholders for the first half of 2021 was ¥62,109,220.49, a 7.90% increase from ¥57,564,233.97 in the previous year[20]. - The net cash flow from operating activities decreased by 49.05% to ¥53,185,810.74 from ¥104,380,331.32 in the same period last year[20]. - The company's total assets increased by 29.37% to ¥1,695,181,381.11 from ¥1,310,341,841.89 at the end of the previous year[21]. - The net assets attributable to shareholders rose by 39.06% to ¥1,349,141,133.65 from ¥970,190,247.08 at the end of the previous year[21]. - Basic earnings per share for the first half of 2021 were ¥0.53, down 15.87% from ¥0.63 in the same period last year[22]. - The net profit excluding non-recurring gains and losses was ¥48,974,432.98, a decrease of 8.19% year-on-year[23]. - The company received government subsidies amounting to ¥12,264,210.77, contributing positively to the financial results[26]. Market Strategy and Expansion - The company expects a revenue growth forecast of 25% for the second half of 2021, driven by new product launches and market expansion strategies[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[1]. - The company continues to focus on expanding its market presence and enhancing brand recognition as part of its growth strategy[20]. - The company is positioned in the water-soluble polymer and water treatment membrane market, which is expected to grow due to increasing environmental regulations and demand for resource recycling[30]. - The national policy aims for a 25% reuse rate of reclaimed water in major cities by 2025, with specific targets for different regions, which supports the company’s market potential[36]. Research and Development - Research and development expenses increased by 30% to RMB 50 million, focusing on new technologies in water treatment solutions[1]. - The research and development expenditure accounted for 4.53% of operating revenue, slightly increasing from 4.51% in the previous year[22]. - The company has multiple R&D centers focusing on polymer and membrane technology, emphasizing independent research and external collaboration[47]. - The company has undertaken several national and provincial research projects, including the "Liquid Water-Soluble Polymer Concentrate (CAPC) Project" and "Oil-in-Water Polyacrylamide Emulsion Technology Development"[48]. - The company has developed a functional monomer manufacturing technology with a conversion rate and selectivity of over 99.9% for acrylamide production, achieving high product yield and purity[50]. - The company has developed a new organic sludge dewatering technology that utilizes high-charge, high-channel organic water-soluble polymer dewatering agents[53]. - The company is currently working on 14 R&D projects, focusing on water-soluble polymer manufacturing and water treatment membrane technology[54]. Operational Efficiency and Cost Management - The company has implemented new strategies to enhance operational efficiency, aiming for a 15% reduction in production costs by the end of 2021[1]. - The procurement model combines market-based and strategic purchasing, maintaining long-term agreements with quality suppliers to stabilize supply and control costs[44]. - The production model for functional monomers and water-soluble polymers is based on monthly planning, ensuring safety stock while meeting customer orders[44]. - The company is committed to continuous improvement in production efficiency and safety through lean management practices[75]. Environmental Compliance and Sustainability - The company has implemented effective monitoring and treatment of pollution sources, ensuring compliance with national and local emission standards[110]. - The company has committed to zero wastewater discharge through upgraded treatment projects, achieving water reuse[109]. - The company is participating in the national carbon market trading, with a focus on reducing carbon emissions through various measures[115]. - The "All-in-One Thermal Power Cloud" project is expected to reduce carbon dioxide emissions by 6,500 tons annually by improving production efficiency and reducing coal consumption[115]. Risks and Challenges - The company has identified potential risks related to supply chain disruptions and has outlined mitigation strategies in the report[1]. - The company faces risks related to technological updates, core personnel retention, and potential R&D failures that could impact operational performance[79]. - The competitive landscape in the functional monomer and water treatment sectors is intensifying, with significant pressure from established multinational companies[86]. - The ongoing global pandemic and extreme weather events pose uncertainties that could disrupt supply chains and affect business operations[88]. Shareholder Commitments and Governance - The company commits to not transferring or entrusting the management of its pre-IPO shares for 36 months from the date of listing[125]. - The company will publicly disclose any failure to fulfill commitments and apologize to shareholders if it causes losses in securities trading[126]. - The company will ensure compliance with all legal and regulatory requirements regarding shareholder obligations and shareholding changes[151]. - The company will conduct profit distributions annually, with the possibility of mid-term dividends based on profitability and funding needs[172].