SLC(SZ:002106)2019-08-26 16:00Financial Performance - The company's operating revenue for the reporting period was ¥2,185,000,005.01, representing a 12.05% increase compared to ¥1,950,088,692.01 in the same period last year[29]. - Net profit attributable to shareholders was ¥95,286,037.10, a significant increase of 72.62% from ¥55,199,034.04 in the previous year[29]. - The net cash flow from operating activities reached ¥458,724,102.97, marking a substantial increase of 314.30% compared to ¥110,723,772.48 in the same period last year[29]. - Basic and diluted earnings per share were both ¥0.1350, reflecting a 72.63% increase from ¥0.0782 in the previous year[29]. - Total assets at the end of the reporting period were ¥5,073,149,624.10, up 4.71% from ¥4,845,035,176.21 at the end of the previous year[29]. - The company's net assets attributable to shareholders increased to ¥3,866,742,662.20, a 0.65% rise from ¥3,841,954,455.16 at the end of the previous year[29]. - Gross profit reached RMB 283.97 million, reflecting a year-on-year increase of 28.57%[49]. - The company achieved operating revenue of RMB 2,185 million in the first half of 2019, an increase of 12.05% compared to the same period last year, primarily due to increased sales of large-size integrated capacitive touch screens[49]. - The company's cash flow from operating activities was RMB 458.72 million, an increase of RMB 348.00 million compared to the previous year, mainly due to increased sales collections[51]. - Cash and cash equivalents increased by ¥327,674,657.88, a remarkable growth of 706.75% compared to a decrease of ¥54,005,030.84 in the previous year[56]. Risk Factors - The company faces operational risks and exchange rate fluctuation risks, which are detailed in the "Major Risk Warning" section[8]. - The company faces exchange rate risks due to significant export sales denominated in USD, which may lead to substantial foreign exchange losses if the RMB appreciates significantly against the USD[21]. - The company plans to closely monitor exchange rate trends and engage in foreign exchange derivative transactions to mitigate potential losses[21]. - The company faces significant operational risks due to market fluctuations in large-sized integrated capacitive touch screens, which are the main source of operating profit[96]. - The company exports a large portion of its sales in USD, making it vulnerable to exchange rate fluctuations, particularly if the RMB appreciates significantly against the USD[98]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the financial report for the half-year period[7]. - The company has not issued any non-standard audit opinions for the half-year report[7]. - The company has not distributed cash dividends or bonus shares for the half-year period and does not plan to increase capital from reserves[101]. - The company experienced changes in its board of directors, with several members leaving and new members being elected on April 19, 2019[186]. - There were no changes in the controlling shareholder or actual controller during the reporting period[178][179]. Subsidiaries and Investments - The company has a wholly-owned subsidiary, Chongqing Laibo Technology Co., Ltd.[12]. - The company has a controlling subsidiary, Zhejiang Laibo Technology Co., Ltd., formerly known as Zhejiang Jinlai Coating Co., Ltd.[12]. - The company utilized self-raised funds of RMB 359,292,334.76 for the preliminary construction of factory buildings and equipment for integrated capacitive touch screens[84]. - The company is involved in a joint investment with China Energy Conservation and Environmental Protection Group, focusing on CIGS thin-film solar cell production[119]. - The CIGS project management agreement with Chongqing Shenhua was signed on June 11, 2018, with a management fee income of CNY 3,799,905.40 during the reporting period[122]. Research and Development - The company is actively developing new products and technologies, including anti-reflective coatings and anti-glare films, to strengthen its competitive advantage[20]. - The company has developed a new integrated capacitive touch screen product using Metal Mesh technology, which has successfully entered mass production[43]. - Research and development expenses amounted to RMB 80.28 million, representing a 24.88% increase year-on-year, attributed to higher spending on new products and technologies[51]. - The company holds 279 patents as of June 30, 2019, showcasing its strong intellectual property position in the touch screen market[44]. - The company is focusing on expanding its market share in commercial and gaming laptops, as well as the automotive touch screen market[48]. Environmental Compliance - The company ensures compliance with national environmental laws and regulations, achieving standard discharge of pollutants through optimized production processes[144]. - The wastewater treatment facilities at both the Guangming factory and Chongqing Laibao operate efficiently, ensuring that wastewater and exhaust gases meet discharge standards[144]. - The company has implemented an environmental monitoring plan, regularly commissioning third-party testing agencies for wastewater and exhaust gas[149]. - Both companies have obtained ISO 14001 environmental management system certification, demonstrating their commitment to environmental protection and sustainable development[150]. - The company has established a comprehensive environmental protection management system to support ongoing improvements in environmental protection and energy conservation[150]. Market Position and Strategy - The company has a strong market position in the mid-to-high-end ITO conductive glass sector, ranking among the top three in China[38]. - The company operates the only mass production line for fifth-generation (G5) touch screens in China, maintaining a leading position in the mid-to-large size capacitive touch screen market[38]. - The company focuses on integrated capacitive touch screens, which are the main source of operating profit, and market fluctuations may significantly impact performance[19]. - In response to market competition, the company aims to enhance market share for large-sized integrated capacitive touch screens and improve production efficiency and yield rates[20]. - The company is developing new structures such as OGM, SFM/SFI flexible touch screens, and enhancing the promotion of its products in automotive, industrial control, and smart home markets[20].