HIGHLY(SH:900910)2019-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2019 was ¥6,824,846,183.72, a decrease of 2.27% compared to ¥6,983,295,592.26 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥169,488,881.38, representing a slight increase of 0.78% from ¥168,176,883.73 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥138,278,341.68, down 10.98% from ¥155,329,712.44 in the same period last year[18]. - Basic earnings per share for the first half of 2019 were ¥0.20, an increase of 5.26% compared to ¥0.19 in the same period last year[20]. - The weighted average return on net assets was 3.83%, a decrease of 0.13 percentage points from 3.96% in the previous year[20]. - The net cash flow from operating activities was negative at -¥165,271,207.74, compared to -¥65,699,744.03 in the same period last year, indicating a significant decline[18]. - The company reported a non-recurring profit of RMB 31,210,539.70, primarily from government subsidies and other non-operating income[22]. - The company achieved a sales volume of 15.44 million air conditioning compressors in the first half of 2019, representing a year-on-year increase of 7%[30]. - The electric motor business sold 16.47 million units in the same period, marking a 6% year-on-year growth[30]. - The sales of automotive electric scroll compressors reached 80,000 units, a significant increase of 138% year-on-year[30]. Assets and Liabilities - The company's total assets increased by 5.42% to ¥15,112,766,017.22 from ¥14,335,310,829.93 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company rose by 0.53% to ¥4,387,619,534.06 from ¥4,364,490,584.94 at the end of the previous year[19]. - The total assets of the company as of June 30, 2019, amounted to RMB 15,112,766,017.22, with overseas assets accounting for 4.87%[27]. - The company's total assets at the end of the reporting period amounted to RMB 3,583,547,000[132]. - Total liabilities reached CNY 9.78 billion, compared to CNY 9.00 billion, marking an increase of approximately 8.6%[100]. - The company's total liabilities at the end of the reporting period were 2,045,644,178.22 RMB[129]. Research and Development - Research and development expenses rose significantly by 38.15% to ¥221,036,734.86, reflecting increased investment in R&D projects[33]. - The company is focused on technological innovation and has established a strong core competitive advantage in lean manufacturing and independent technology development[28]. - Ongoing research and development efforts are focused on enhancing product offerings and technological advancements to maintain competitive advantage[99]. Risks and Challenges - The company faces various risks including industry environment risk, production cost price risk, and technology risk, which are detailed in the report[6]. - The company faces industry risks due to market fluctuations and competition, with a slowdown in growth observed in the air conditioning compressor market in 2019[48]. - The company is addressing production cost risks by implementing smart manufacturing and real-time tracking of raw material prices[49]. - The company has established an overseas factory in India, facing exchange rate risks due to the country's economic conditions[49]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 53,034, with 23,978 being B-share holders[88]. - The largest shareholder, Shanghai Electric Group, held 211,700,534 shares, representing 24.44% of the total shares[90]. - Zhuhai Gree Electric Appliances held 90,223,164 shares, accounting for 10.41% of the total shares[90]. - Hangzhou Fusheng Holdings held 70,485,572 shares, which is 8.14% of the total shares[90]. Environmental Compliance - The company’s subsidiary, Haili Electric, was listed as a key regulatory unit for hazardous waste in Shanghai, ensuring compliance with environmental monitoring standards[73]. - The company has implemented an online monitoring system for COD and pH levels, with regular inspections conducted by external agencies[81]. - The company adheres to national environmental laws and has established a comprehensive environmental management system[83]. Financial Management - The company obtained a total of CNY 1 billion in various financial facilities from its financial company, including CNY 100 million in bill discounting and CNY 300 million in bill issuance[60]. - The company provided a full unconditional and irrevocable joint liability guarantee of RMB 1 billion for short-term financing bonds, with a guarantee period from December 3, 2018, to August 30, 2019[61]. - The company has committed to maintaining a strict adherence to its financial obligations and has no significant litigation or arbitration matters during the reporting period[58]. Future Plans - The company plans to invest CNY 48 million to establish a new automotive parts production capacity project through its subsidiary Anhui Haili, with a registered capital of CNY 30 million[40]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[125]. - The company plans to continue its strategy of capital reserve transfers to increase its registered capital[128].