JCF(SZ:000420)2021-08-13 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,679,051,345.91, representing a 65.71% increase compared to CNY 1,013,270,792.30 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 40,768,987.99, a significant turnaround from a loss of CNY 81,422,028.94 in the previous year, marking a 150.07% increase[23]. - The net cash flow from operating activities was CNY 24,954,169.69, improving by 123.50% from a negative cash flow of CNY 106,193,692.23 in the same period last year[23]. - Basic and diluted earnings per share were both CNY 0.0188, compared to a loss of CNY 0.0413 per share in the previous year, reflecting a 145.52% increase[23]. - The weighted average return on equity was 1.31%, an increase of 4.05% from -2.74% in the same period last year[23]. - The gross profit margin for the chemical fiber segment was 15.47%, with operating revenue increasing by 65.71% and operating costs increasing by 67.55% year-on-year[49]. - The total profit for the first half of 2021 was CNY 39,380,152.77, compared to a total loss of CNY 80,859,067.61 in the first half of 2020[172]. - The company's total comprehensive income for the first half of 2021 was CNY 40,575,138.72, compared to a total comprehensive loss of CNY 77,587,225.28 in the first half of 2020[172]. Cash Flow and Liquidity - The company's cash and cash equivalents increased by 973.44% to ¥186,143,327.62, driven by improved cash collection[47]. - The company's cash and cash equivalents decreased to CNY 820,910,060.06 as of June 30, 2021, down from CNY 880,503,837.05 at the end of 2020, a decline of approximately 6.8%[162]. - The ending balance of cash and cash equivalents was ¥364,792,813.44, compared to ¥400,308,524.06 at the end of the first half of 2020[184]. - The total cash inflow from operating activities reached ¥1,026,320,819.47, compared to ¥742,365,441.94 in the previous year, indicating a year-over-year increase of approximately 38.3%[180]. - The net cash flow from operating activities for the first half of 2021 was ¥24,954,169.69, a significant improvement from a net outflow of ¥106,193,692.23 in the same period of 2020[180]. Business Operations - The main business remains focused on the production and sales of viscose fibers, including viscose filament and short fibers, with ongoing construction of a carbon fiber project by its wholly-owned subsidiary[31]. - The domestic viscose filament industry is experiencing a recovery, with overall economic performance improving, but international demand remains affected by ongoing COVID-19 outbreaks in countries like India[32]. - The viscose staple fiber market is currently in a state of oversupply, with production capacity reaching 120,000 tons per year, and it has accounted for over one-third of the company's total sales during the reporting period[34][37]. - The company has optimized its production processes, resulting in a significant reduction in unit production costs and improved overall efficiency[38]. - The company has established itself as the largest viscose filament manufacturer globally, benefiting from the exit of less competitive players in the market[41]. - The company is focusing on innovation and upgrading its product offerings while also actively transitioning towards carbon fiber production[43]. Research and Development - The company has a strong R&D team and has accumulated nearly 60 years of experience, leading to numerous patents and process innovations[44]. - The company plans to increase R&D investment to enhance the technological content and added value of viscose fiber products while actively transitioning to carbon fiber new materials[60]. Environmental and Social Responsibility - Jilin Chemical Fiber Co., Ltd. reported a total wastewater discharge of 960 tons for chemical oxygen demand, which is below the approved limit of 1161 tons[77]. - The company achieved a total ammonia nitrogen discharge of 150 tons, also below the approved limit of 179 tons[77]. - The company has been actively involved in poverty alleviation efforts, providing assistance to impoverished households in Ma Hutou Village, including food and financial support[81]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[6]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[84]. - The company has not issued any external guarantees that violate regulations during the reporting period[85]. - The total amount of related party transactions for the first half of 2021 was 1,352.65 million yuan, with a significant portion (88.68%) attributed to the purchase of compressed air[94]. - The company’s major shareholder, a state-owned entity, holds 64.79% of the shares, while domestic private investors hold 35.21%[120]. Risks and Challenges - The company faces cyclical risks in the chemical fiber industry, influenced by global economic fluctuations and the ongoing recovery from the COVID-19 pandemic[58]. - The price of main raw materials, particularly pulp, has increased significantly, impacting production costs and future performance[61]. - The company aims to strengthen market trend analysis and implement effective measures to stabilize supply and reduce procurement costs[61]. Capital and Financing - The company issued 197,604,787 new shares through a private placement, raising a total of approximately RMB 329.99 million[121]. - The issuance price for the new shares was set at RMB 1.67 per share[121]. - The net proceeds from the issuance, after deducting related expenses, amounted to approximately RMB 324.85 million[121].