HIGHLY(SH:900910)2020-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥5,022,433,174.21, a decrease of 26.41% compared to ¥6,824,846,183.72 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was ¥53,750,552.92, down 68.29% from ¥169,488,881.38 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥20,611,364.12, a decline of 85.09% compared to ¥138,278,341.68 in the same period last year[20]. - The net cash flow from operating activities was -¥985,336,527.97, compared to -¥165,271,207.74 in the previous year, indicating a significant deterioration[20]. - The overall operating revenue declined by 26.41% compared to the previous year[32]. - The net profit attributable to shareholders decreased by 68.29% year-on-year[32]. - Basic earnings per share for the first half of 2020 were ¥0.06, a decrease of 70.00% from ¥0.20 in the same period last year[21]. - The weighted average return on net assets was 1.20%, down 2.63 percentage points from 3.83% in the previous year[21]. Assets and Liabilities - The total assets at the end of the reporting period were ¥14,589,243,531.62, an increase of 4.67% from ¥13,938,331,468.71 at the end of the previous year[20]. - The total liabilities as of June 30, 2020, were RMB 5,000,000,000, compared to RMB 4,500,000,000 at the end of 2019, showing an increase of approximately 11.1%[103]. - The total equity decreased to ¥5,308,029,675.90 from ¥5,482,006,890.53, a decline of approximately 3.17%[105]. - The company's total liabilities amounted to CNY 3,782,556,352.41, a slight decrease from CNY 3,858,216,235.41 in the previous year[109]. Market Performance - The company's sales of rotary compressors reached 12.1 million units, a year-on-year decrease of 21.62%[31]. - The sales of electric motors amounted to 13.67 million units, down 16.99% year-on-year[31]. - The company achieved a 31.4% year-on-year growth in the non-residential air conditioning compressor market[33]. - The overall market share increased by approximately 2 percentage points year-on-year, despite a 36.5% decline in domestic new energy vehicle production[34]. Research and Development - Research and development expenses were reduced by 5.49% to ¥208,905,173.08, primarily due to decreased project expenditures[36]. - The company is committed to increasing research and development investments to address technological advancements, particularly in finding new environmentally friendly refrigerants[57]. - The company plans to increase product development investments and expand its product line in response to market changes[34]. Environmental and Social Responsibility - The company has established wastewater treatment facilities in both the East and West districts, with normal operation during the reporting period[79]. - The company has engaged in targeted poverty alleviation efforts, including a donation of RMB 50,000 to a partnered village and RMB 87,380 for agricultural product sales assistance[72]. - The company has implemented three sets of activated carbon adsorption devices and one set of particulate matter filtration equipment for air pollution control, with normal operation during the reporting period[79]. Risks and Uncertainties - The company faced various risks including industry environment risk, product price risk, technology risk, exchange rate risk, and goodwill impairment risk[7]. - The report includes a forward-looking statement risk warning, indicating that actual results may differ significantly from the management's expectations due to various uncertainties[7]. - The company faces industry environment risks due to market fluctuations influenced by climate change and supply-demand dynamics in the air conditioning compressor sector[56]. Financing and Investments - The company has obtained a total of CNY 1.5 billion in working capital loans from its financial company, with CNY 500 million drawn down in the first half of 2020[65]. - The company issued electronic bank acceptance bills totaling CNY 1.21669 billion in the first half of 2020[65]. - The net cash flow from financing activities increased by ¥896,081,235.71, indicating a rise in net borrowings[38]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,545, with a significant portion being state-owned enterprises[92]. - The largest shareholder, Shanghai Electric Group, holds 23.97% of the company's shares, while Gree Electric Appliances holds 10.21%[94]. Accounting Policies and Compliance - The financial statements are prepared based on the going concern principle, ensuring the company's ability to continue operations[145][146]. - The company adheres to the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission, ensuring compliance and transparency[149]. - The accounting policies include specific measures for expected credit losses on receivables and inventory valuation methods[147].