Crown Advanced Material (SH:688560)2021-08-25 16:00Financial Performance - The company reported a total revenue of 500 million CNY for the first half of 2021, representing a 20% increase compared to the same period last year[1]. - The company's operating revenue for the first half of 2021 reached ¥617,053,754.37, representing an increase of 80.64% compared to ¥341,591,337.46 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥55,284,519.92, up 12.71% from ¥49,051,656.55 in the previous year[18]. - The net cash flow from operating activities was negative at -¥220,884,835.26, a decrease of 520.54% compared to ¥52,524,058.99 in the same period last year[18]. - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management[1]. - Revenue increased by 80.64% year-on-year, driven by a 73.43% increase in solar cell backplane revenue, a 102.78% increase in aluminum-plastic film revenue, and a 1507.71% increase in adhesive film revenue[20]. - The net profit after deducting non-recurring gains and losses was ¥38,845,590.97, which is a 4.84% increase from ¥37,050,575.03 in the previous year[18]. - Basic earnings per share for the first half of 2021 were ¥0.34, a decrease of 15.00% compared to ¥0.40 in the same period last year[19]. - The weighted average return on net assets was 4.08%, down 3.22 percentage points from 7.30% in the same period last year[19]. Research and Development - The company has allocated 50 million CNY for R&D in new technologies aimed at improving product efficiency[1]. - The research and development expenditure accounted for 3.83% of operating revenue, slightly increasing from 3.82% in the previous year[19]. - The company achieved a total R&D investment of ¥23,648,979.18, representing an increase of 81.37% compared to the previous period[40]. - The company has developed a new integrated packaging material for solar cells that combines the functions of traditional solar adhesive films and back sheets, enhancing production efficiency and reducing defect rates[34]. - The company is focusing on the development of new adhesive materials for aluminum-plastic films, with a production volume of 2,000,000 units and revenue of 203,361.44, breaking foreign monopolies in the market[44]. - The company has developed a new type of CPP adhesive for aluminum-plastic films, which enhances product quality and reduces reliance on foreign products[45]. - The company has received 3 new patents during the reporting period, bringing the total number of patents to 118[39]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in sales in that region by the end of 2021[1]. - A strategic acquisition of a local competitor is in progress, expected to enhance production capacity by 40%[1]. - The company plans to expand its production capacity for POE film by 120 million square meters annually to capture the growing market share of bifacial components[32]. - The company is actively expanding its product line to include various solar cell packaging films to meet the diverse needs of bifacial component packaging[37]. - The company has established a production base in Vietnam to expand its overseas market share for solar cell backplanes and encapsulation films, enhancing its international presence[54]. - The company is focused on the development of environmentally friendly materials, successfully passing rigorous reliability tests from third-party certification bodies[54]. Risks and Challenges - The company has identified potential risks related to supply chain disruptions but has implemented strategies to mitigate these risks[1]. - The company faces risks from raw material price fluctuations, particularly for PVF fluoropolymer film supplied exclusively by DuPont[69]. - Increased competition in the photovoltaic industry may lead to further price declines for the company's products, impacting profitability[68]. - The company is at risk of talent loss due to intensified competition for skilled personnel in the industry[68]. - The overall economic environment and changes in macroeconomic policies could adversely affect the photovoltaic industry and the company's performance[69]. Shareholder and Governance - The board has approved a profit distribution plan, with no plans for capital increase through reserves during this period[1]. - The company has made commitments regarding share transfer restrictions for major shareholders and management for a period of 36 months post-IPO[94]. - The company will comply with relevant laws and regulations regarding share transfers as stipulated by the Company Law and Securities Law of the People's Republic of China[101]. - The company has committed to ensuring that there are no fraudulent activities in its public offering and will buy back shares if it fails to meet listing conditions[114]. - The company has established measures to ensure compliance with commitments made during its IPO process, including timely disclosures and potential compensation for investor losses[134]. Production and Sales - The company achieved a production volume of 4,000,000 units for integrated building photovoltaic products, generating revenue of 1,585,036.04[44]. - The sales volume of solar cell backplanes reached 44.67 million square meters in the first half of 2021, representing an increase of 83.4% compared to the same period last year[58]. - The company has completed the installation of six production lines for POE encapsulation film, aiming to capture market share in double-glass component encapsulation materials[62]. - The company has developed a high-reflective backplane with a reflectivity exceeding 90%, which can enhance the conversion efficiency of photovoltaic modules by approximately 1%[52]. - The company is producing high-reflective EVA films for photovoltaic modules, with a production volume of 5,000,000 units and revenue of 1,902,717.56, enhancing power generation efficiency[44]. Financial Health - The total assets at the end of the reporting period were ¥1,841,038,884.02, reflecting a 5.87% increase from ¥1,739,023,376.06 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 1.71% to ¥1,348,404,033.90 from ¥1,325,751,208.84 at the end of the previous year[18]. - The company reported a significant increase in other payables, which rose by 577.75% to 37,466,003.61 RMB, mainly due to increased dividend payables[75]. - The company has not reported any new product launches or technological advancements in the current period[194]. - The company’s future outlook remains cautiously optimistic, with a focus on maintaining equity growth and profitability[194].