SHREG(SZ:000803)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥271,760,525.18, representing a significant increase of 718.78% compared to ¥33,190,849.89 in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached ¥14,018,917.42, up 432.66% from ¥2,631,869.99 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥13,310,458.25, a turnaround from a loss of ¥16,919,091.20 in the same period last year, marking an increase of 178.67%[21]. - The basic earnings per share increased to ¥0.07, a rise of 250.00% compared to ¥0.02 in the previous year[21]. - The total operating revenue for the reporting period reached ¥271,760,525.18, a significant increase of 718.78% compared to ¥33,190,849.89 in the same period last year[55]. - The net profit for the first half of 2021 was ¥17,798,058.45, a substantial rise from ¥3,215,849.98 in the first half of 2020, reflecting an increase of approximately 453.5%[159]. - The operating profit for the first half of 2021 was ¥17,136,280.62, compared to a loss of ¥13,846,182.60 in the same period of 2020, marking a turnaround in performance[157]. - The company reported a basic earnings per share of ¥0.07 for the first half of 2021, up from ¥0.02 in the same period of 2020[159]. - The total comprehensive income for the first half of 2021 was ¥17,798,058.45, compared to ¥3,215,849.98 in the same period of 2020, indicating strong overall performance[159]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,963,029,616.13, reflecting an increase of 8.12% from ¥1,815,558,671.25 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were ¥625,754,467.57, up 4.57% from ¥598,412,616.15 at the end of the previous year[21]. - The company's total assets included cash and cash equivalents of ¥152,479,052.44, representing 7.77% of total assets, an increase from 4.74% last year[61]. - The total liabilities increased to CNY 1,301,054,622.83, up from CNY 1,174,112,565.72, representing a growth of approximately 10.7%[151]. - Non-current liabilities totaled CNY 638,584,558.66, compared to CNY 298,402,806.80, indicating a significant increase of 113.5%[151]. - Current liabilities amounted to CNY 662,470,064.17, down from CNY 875,709,758.92, reflecting a decrease of about 24.4%[151]. - The total equity attributable to shareholders was CNY 625,754,467.57, up from CNY 598,412,616.15, showing an increase of about 4.4%[151]. Cash Flow - The company reported a net cash flow from operating activities of -¥46,908,040.19, which is a decline of 13.51% compared to -¥41,324,931.24 in the previous year[21]. - The net cash flow from investment activities was -¥213,042,895.89, a drastic decline of 484.16% compared to ¥55,457,409.20 last year, primarily due to payments for new city heating projects[53]. - The net cash flow from financing activities increased to ¥328,569,649.14, a significant change from -¥25,445,516.45, reflecting a 1,391.27% increase driven by loans and leasing increases[53]. - The company reported a net increase in cash and cash equivalents of ¥68,618,713.06, compared to a decrease of -¥11,313,038.49 in the previous year, indicating a shift in financing strategy during the business transformation[53]. - The company's operating cash inflow for the first half of 2021 was CNY 267,351,601.32, a significant increase from CNY 19,658,655.81 in the same period of 2020, reflecting a growth of approximately 1,360%[163]. - The net cash flow from operating activities was negative CNY 46,908,040.19, compared to negative CNY 41,324,931.24 in the first half of 2020, indicating a decline in operational efficiency[165]. - The cash inflow from financing activities totaled CNY 390,546,150.00, a substantial increase from CNY 23,440,000.00 in the same period last year, marking an increase of over 1,600%[165]. - The net cash flow from financing activities was positive CNY 328,569,649.14, compared to a negative CNY 25,445,516.45 in the first half of 2020, indicating improved financing conditions[165]. Market and Business Expansion - The company has a current operational capacity of 1,480 tons/day for kitchen waste treatment, with an additional 350 tons/day expected to be operational by the end of 2021[33]. - The market for wet waste disposal is projected to grow significantly, with an estimated market size of CNY 1,786 billion by 2025[33]. - The company has signed a framework agreement with LITASCO for the sale of recycled cooking oil, with an expected delivery volume exceeding 36,000 tons for the year[36]. - The company is actively expanding its capacity through acquisitions and tenders, aiming for substantial growth in its kitchen waste business[33]. - The company’s projects include a total waste disposal capacity of 1,830 tons/day across various operational and in-progress projects[34]. - The government is promoting the construction of "waste-free cities," which is expected to drive demand for kitchen waste treatment services[29]. - The company’s kitchen waste treatment projects are aligned with national policies encouraging waste classification and resource utilization[29]. - The company has identified a significant market opportunity in the organic solid waste sector, particularly in kitchen waste processing[28]. Research and Development - Research and development investment surged by 185,180.17% to ¥4.20 million, reflecting the company's commitment to innovation following the restructuring[51]. - The company has established a long-term collaboration with Tsinghua University, enhancing its technological capabilities in environmental energy solutions[45]. - Research and development expenses increased to ¥4,195,039.53 in the first half of 2021, compared to only ¥2,264.16 in the first half of 2020, indicating a focus on innovation[157]. Risks and Challenges - The management has outlined potential risks and corresponding measures in the report, emphasizing the importance of investor awareness regarding these risks[5]. - The company faces risks related to changes in environmental industry policies and local subsidies, which could adversely affect future operations[78]. - The company is also exposed to risks from fluctuations in heating charge prices and heat source prices, which are influenced by government regulations[78]. - The company plans to enhance its project investment and operational capabilities in organic waste treatment and expand its equipment manufacturing and sales business to mitigate risks[79]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for this period[6]. - The company held two temporary shareholder meetings with an investor participation rate of 37.42% on January 19, 2021, and February 1, 2021, respectively[82]. - The annual shareholder meeting for 2020 had a participation rate of 35.24% and was held on April 13, 2021[82]. - The first phase of the restricted stock incentive plan was implemented in 2019, granting 7.62 million shares at a price of 7.51 CNY per share[85]. - In September 2020, the company granted 865,400 reserved restricted shares at a price of 7.82 CNY per share[86]. - The company adjusted the first phase of the restricted stock incentive plan in December 2020 due to the adverse impact of COVID-19 on business development[87]. - In June 2021, the company approved the unlocking of restricted shares for six incentive objects as the first unlocking condition was met[88]. Legal and Compliance - The company reported no significant environmental penalties during the reporting period, with a minor penalty of 10,417 CNY for a violation related to waste management[91]. - The company did not engage in any poverty alleviation or rural revitalization efforts during the reporting period[92]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[96]. - The company reported a litigation amount of 7,477.9 million yuan related to a construction contract dispute, with no expected liability formed[101]. - A settlement agreement was reached in a dispute involving 3,600 million yuan, with the parties agreeing on specific execution arrangements[101]. - The company is involved in a labor dispute with a claim amount of 39 million yuan, with the arbitration request rejected[102]. - A judgment was made requiring the company to return 40 million yuan in a sales contract dispute, with overdue penalty payments also involved[102]. - The company has initiated a lawsuit for a debt of 10,000 million yuan, with the second instance yet to be heard[102]. - A criminal case resulted in a judgment against an individual for embezzlement, with a compensation order of 39.82 million yuan[103]. Corporate Structure and Ownership - The company completed the acquisition of 100% equity in Taiyuan Tianrun Bioenergy Co., Ltd. for cash, making it a wholly-owned subsidiary[129]. - The total number of shares outstanding is 191,090,731, with 33.16% being restricted shares and 66.84% being unrestricted shares[134]. - The total share capital of the company reached 191,090,731 shares after the issuance of 27,102,802 new shares and the listing of 865,400 restricted stocks[192][198]. - The new controlling shareholders include Beijing Beikong Photovoltaic Technology Development Co., Ltd. and Fuzhou Beikong Yuyang Equity Investment Partnership[139]. Financial Reporting and Compliance - The financial report was approved for release on August 28, 2021[194]. - The company's financial statements reflect its financial position, operating results, and cash flows accurately and completely[200]. - The financial statements are prepared based on actual transactions and in accordance with the accounting standards issued by the Ministry of Finance[197]. - The company has implemented specific accounting policies and estimates, including the recognition and measurement of bad debt provisions and the capitalization of research and development expenses[199].