CHENGZHI(SZ:000990)2021-07-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥6,402,363,245.19, representing a 60.86% increase compared to ¥3,980,131,140.83 in the same period last year[28]. - The net profit attributable to shareholders was ¥738,730,738.74, a significant turnaround from a loss of ¥206,260,431.96, marking an increase of 458.15%[28]. - The net profit after deducting non-recurring gains and losses was ¥728,555,580.07, compared to a loss of ¥200,145,237.73, reflecting a 464.01% increase[28]. - The net cash flow from operating activities reached ¥915,885,671.17, a remarkable increase of 1,446.78% from ¥59,212,448.20[28]. - Basic earnings per share were ¥0.6079, compared to a loss of ¥0.1697 in the previous year, representing an increase of 458.22%[28]. - Total assets at the end of the reporting period were ¥24,999,576,542.88, up 2.41% from ¥24,412,388,516.82 at the end of the previous year[28]. - The net assets attributable to shareholders increased to ¥17,309,016,500.71, a rise of 4.98% from ¥16,487,191,786.71[28]. - Operating profit surged to ¥896,443,241.92, representing a 492.79% increase from a loss of ¥228,222,827.32 in the previous year[59]. - The company achieved a gross margin of 22.63% for clean energy products, with revenue of ¥5,455,713,648.98, up 68.38% year-on-year[63]. - The semiconductor display materials segment generated revenue of ¥550,778,405.99, a 36.90% increase from the previous year[63]. - The life medical services segment reported revenue of ¥348,636,403.27, reflecting a year-on-year growth of 29.05%[63]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares during this reporting period[7]. - The company is closely monitoring the potential transfer of control related to the equity transfer of Chengzhi Kerong, which may impact its actual controller[7]. - The company has established a joint venture for hydrogen energy technology and fuel cell development, indicating a strategic move towards renewable energy[38]. - The company is actively expanding into semiconductor display materials, becoming a major supplier of TN/STN mixed liquid crystal materials[38]. - The company is actively exploring applications for high-purity CBD crystals and other cannabinoids in various industries, including biomedicine and food and beverage[54]. - The company is committed to achieving carbon peak and carbon neutrality as part of its ecological civilization construction strategy[126]. - The company maintains a strong development resilience and adheres to a development strategy centered on clean energy and semiconductor display materials[126]. - The company emphasizes ESG management, integrating safety, environmental protection, and social responsibility into its operational strategy[127]. Subsidiary Performance - The subsidiary Nanjing Chengzhi produces industrial gases and methanol products using advanced clean combustion technology, primarily serving stable downstream clients[38]. - Chengzhi Yongqing's main products include ethylene, propylene, and butadiene, with a production capacity of 600,000 tons/year for methanol to olefins[38]. - Chengzhi Life, a subsidiary, holds a 50% market share in dietary supplements and health products related to D-ribose, showcasing strong brand and quality advantages[38]. - The company’s subsidiary, Nanjing Chengzhi, achieved historical highs in performance during the reporting period, despite challenges from rising raw material prices and safety regulations[43]. - The company’s subsidiary, Shijiazhuang Chengzhi Yonghua, is recognized as a leading enterprise in the semiconductor display materials industry, having applied for 749 patents, with 281 granted[50]. - The company’s subsidiary, Baolong Environmental Protection, reported significant growth in sales revenue and net profit during the reporting period[43]. - The company’s subsidiary, Dandong Hospital, improved its operational performance with a notable increase in surgical cases and other diagnostic projects[48]. Environmental Responsibility - Environmental compliance is a priority, with the company classified as a key pollutant discharge unit, adhering to strict emission standards[104]. - The company reported total emissions of COD at 124.275 tons/year and nitrogen oxides at 37.667 tons/year, indicating a focus on environmental responsibility[104]. - The company has implemented advanced wastewater treatment processes, ensuring effective management of wastewater discharge[108]. - The company has invested in additional wet dust removal devices to reduce coal dust emissions, significantly decreasing VOCs emissions[111]. - The company has established an emergency response plan for environmental incidents, with recent updates approved by relevant authorities[118]. - The company conducts regular environmental monitoring, including wastewater and air emissions, to ensure compliance with standards[119]. Legal Matters - The company is currently involved in an arbitration case with Shanghai Kaiji Industrial Co., Ltd., with a claim amounting to 1,282.23 million yuan[172]. - The company has ongoing litigation with Shenzhen Xiaoniao Technology Co., Ltd., with a judgment requiring the latter to pay 4.8163 million yuan plus penalties[178]. - The company is pursuing claims against Fuzhou Jietongsheng Communication Equipment Co., Ltd. for 18.7743 million yuan, with the case currently on hold due to lack of enforceable assets[182]. - The company has successfully obtained a judgment against Baotou Beichi Wheel Co., Ltd. for 15.8969 million yuan, with enforcement proceedings initiated[183]. - The company has reported ongoing legal proceedings involving multiple parties, with various amounts owed in principal and associated fees[190]. - The total amount involved in the legal disputes includes significant sums, with one case alone involving 2,350,810 yuan in principal[190]. - The company is actively pursuing legal remedies to recover outstanding debts from various parties, including guarantors[190]. Governance and Compliance - The company has established a comprehensive governance structure and management system, ensuring compliance with relevant laws and regulations, and has effectively executed its governance framework since its listing[128]. - The company has established specialized committees under the board of directors to oversee various responsibilities, ensuring effective governance and accountability[128]. - The company has a clear strategy to ensure compliance with legal and regulatory requirements regarding related party transactions[149]. - The company guarantees that its assets are entirely under its control and will not be used to secure debts of other entities[161]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[168].