HANGZHOU TOKA(SH:688571)2021-08-24 16:00Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching RMB 500 million, representing a year-on-year growth of 20%[1]. - The company's operating revenue for the first half of 2021 increased by 28.46% to approximately RMB 534.54 million compared to the same period last year[20]. - Net profit attributable to shareholders rose by 41.87% to approximately RMB 52.59 million, while net profit excluding non-recurring gains and losses increased by 35.01% to approximately RMB 42.03 million[20]. - The basic and diluted earnings per share both grew by 6.67% to RMB 0.16[20]. - The net cash flow from operating activities surged by 78.06% to approximately RMB 60.80 million due to increased sales and faster collection of receivables[21]. - The company achieved a revenue of 534.54 million yuan in the first half of 2021, representing a year-on-year increase of 28.46%[59]. - The net profit for the first half of 2021 was ¥52,571,960.01, representing a 40.5% increase compared to ¥37,392,277.04 in the first half of 2020[190]. Market Expansion and Product Development - The company has provided a positive outlook for the second half of 2021, projecting a revenue growth of 25% based on current market trends and demand[1]. - New product development includes the launch of a UV ink product line, which is expected to contribute an additional RMB 50 million in revenue by the end of the year[1]. - The company is expanding its market presence, targeting a 10% increase in market share in the Southeast Asia region by the end of 2021[1]. - The company is actively exploring potential mergers and acquisitions to enhance its product offerings and market reach[1]. - The company emphasizes innovation in product design and technology, aiming to enhance product lines to meet customer demands and improve environmental friendliness[26]. - The company is expanding the market for its SURFACE series and low-odor plant-based products, focusing on high concentration and printing stability[40]. Research and Development - The management has highlighted ongoing research and development efforts aimed at improving product quality and reducing production costs by 5%[1]. - Research and development expenses accounted for 3.76% of operating revenue, a decrease of 0.60 percentage points from the previous year[20]. - The company achieved a total R&D investment of ¥20,081,784.96, representing a 10.60% increase compared to the previous period[46]. - The company has developed a comprehensive R&D system and possesses 17 invention patents, focusing on energy-saving and environmentally friendly ink products[35]. - The company has initiated the development of a "cloud-based color management system," which is currently being implemented in phases[17]. - The company is developing high bio-based UV inks with a target bio-content of ≥20%[14]. Environmental Commitment - The company is recognized as a "Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technology, highlighting its commitment to sustainable practices[35]. - The company has implemented pollution prevention facilities that comply with environmental regulations, with all systems operating normally[92]. - The wastewater treatment system utilizes A/O + membrane treatment and meets discharge standards[93]. - The company has completed the environmental impact assessment for the "5000 tons/year UV ink capacity replacement technology transformation project" and received approval in June 2016, with the project undergoing self-environmental acceptance in August 2020[96]. - The company reported a reduction of 6.5 tons of CO2 emissions for every ton of equivalent replaced with LED-UV curing ink, contributing to improved carbon emission levels in the printing process[102]. Financial Management and Shareholder Relations - The company has no plans for profit distribution or capital increase through reserves during this reporting period[1]. - The company has a profit distribution policy that prioritizes cash dividends, with a minimum of 10% of distributable profits to be distributed annually[144]. - The company will conduct cash dividends once a year after the annual shareholders' meeting, with potential mid-term dividends based on profitability[146]. - The company guarantees that there will be no fraudulent issuance of shares during the public offering and will repurchase all newly issued shares if conditions are not met[129]. - The company commits to fulfilling all public commitments made during its IPO and accepts social supervision[141]. Risks and Challenges - The company faced rising costs due to global commodity price increases but managed to mitigate these through refined management and locking in raw material prices[21]. - The company is facing risks related to intensified market competition and fluctuations in raw material prices, which could impact its market share and profitability[65]. - The printing industry, a key downstream sector, has seen revenue growth slow from over 40% at the beginning of the year to below 20%, indicating potential demand risks for the company[68]. Corporate Governance - The company held 2 shareholder meetings during the reporting period, with all proposals approved and no rejected resolutions[85]. - The company has established a long-term commitment to resolve related party transactions[107]. - The company has a commitment to report shareholding changes in a timely manner during the tenure of its directors and senior management[110].