DEVELOP(SH:688377)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 414.63 million, a 66.80% increase compared to CNY 248.58 million in the same period last year [20]. - Net profit attributable to shareholders reached CNY 56.84 million, up 194.02% from CNY 19.33 million year-on-year [20]. - The net profit after deducting non-recurring gains and losses was CNY 47.55 million, a significant increase of 413.70% compared to CNY 9.26 million in the previous year [20]. - Basic earnings per share rose to CNY 0.29, reflecting a 190.00% increase from CNY 0.10 in the same period last year [21]. - The weighted average return on equity increased by 2.54 percentage points to 3.81% compared to 1.27% in the previous year [21]. - The company reported a total revenue of 46 million, with a net profit of approximately 16.09 million, representing a significant increase compared to the previous year [42]. - The company achieved a revenue of 414.63 million yuan, representing a growth of 66.80% compared to the same period last year [63]. - The net profit attributable to shareholders reached 56.84 million yuan, marking a significant increase of 194.02% year-on-year [63]. - The net profit excluding non-recurring gains and losses was 47.55 million yuan, reflecting a remarkable growth of 413.70% compared to the previous year [63]. Financial Position - The company's total assets increased by 19.03% to CNY 2.20 billion from CNY 1.85 billion at the end of the previous year [20]. - Total current assets increased to CNY 1,347,063,458.85 from CNY 1,174,337,693.90, representing a growth of approximately 14.68% [131]. - Total non-current assets reached CNY 849,565,375.44, up from CNY 743,586,528.86, indicating an increase of around 14.25% [132]. - Total liabilities reached CNY 649,706,014.66, up from CNY 426,203,474.79, indicating a growth of around 52.52% [133]. - Shareholders' equity increased to CNY 1,546,922,819.63 from CNY 1,491,720,747.97, marking a growth of approximately 3.70% [133]. Cash Flow - The company reported a decrease in net cash flow from operating activities to -CNY 33.28 million, down 189.37% from CNY 37.24 million in the previous year [22]. - The net cash flow from operating activities turned negative at CNY -48,611,781.04, compared to a positive CNY 37,279,666.63 in the first half of 2021 [150]. - Cash inflow from financing activities was CNY 101,547,500.00, compared to CNY 130,174,081.01 in the first half of 2021 [151]. - The ending balance of cash and cash equivalents was CNY 83,878,282.99, compared to CNY 75,095,070.87 at the end of the first half of 2021 [151]. Research and Development - Research and development expenses totaled approximately ¥19.06 million, representing a 66.66% increase compared to ¥11.44 million in the same period last year, with R&D expenses accounting for 4.60% of operating income [37]. - The company has obtained a total of 109 patents, including 41 invention patents, and has participated in the formulation of 3 national standards and 4 industry standards [32]. - The company has made significant progress in the research and development of key components for underwater oil and gas drilling equipment, enhancing its competitive advantage in the global market [34]. - The number of R&D personnel increased to 116, accounting for 15.34% of the total workforce, with an average salary of 7.92 million [44]. Market and Orders - The company has seen an increase in high-value product orders, particularly in the deep-sea and fracturing sectors, indicating a shift from "parts" orders to "components" orders [29]. - The company received orders for 175 deep-sea oil and gas project components, including a bulk order for "deep-sea connectors" for underwater conditions at 3,000 meters in Brazil, with a long-term supply agreement in place [30]. - The company's main business revenue composition includes 46% from wellhead and Christmas tree components, 30% from deep-sea equipment components, 19% from fracturing equipment components, and 3% from drilling equipment components, with a 6% increase in the proportion of deep-sea and fracturing components compared to the same period last year [31]. Risks and Compliance - The company faced various risks including industry, geopolitical, market, and quality risks as detailed in the report [4]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties [9]. - The company has established an HSE department to improve environmental awareness and ensure compliance with national standards for emissions [86]. - The company has passed ISO14000 and OHSAS18000 certifications, indicating adherence to environmental management standards [84]. Corporate Governance - The financial report for the first half of 2022 has not been audited [5]. - The company has not disclosed any special arrangements for corporate governance during the reporting period [8]. - The company has not made any changes to its information disclosure practices during the reporting period [17]. - The company has not disclosed any new employee stock ownership plans or other incentive measures during the reporting period [82]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 6,501 [118]. - The company reported no changes in the total number of ordinary shares and capital structure during the reporting period [117]. - The company has a total of 50,250,000 restricted shares held by Nanjing Diwei Real Estate Co., Ltd., which will become tradable on July 8, 2023 [124]. - The company will limit share transfers to 25% of the total shares held within 4 years after the lock-up period [97]. Future Outlook - The company provided guidance for the next quarter, expecting revenue growth of 20% year-over-year [91]. - New product launches are anticipated to contribute an additional $50 million in revenue by Q3 2022 [92]. - Market expansion plans include entering three new international markets by the end of 2022 [91]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals [92].