BOSUN(SZ:002282)2020-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 535,389,338.21, a decrease of 0.97% compared to the same period last year[16]. - The net profit attributable to shareholders of the listed company increased by 13.36% to CNY 49,663,969.71 compared to the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 43,228,580.21, reflecting a growth of 12.45% year-on-year[16]. - The basic earnings per share rose by 10.00% to CNY 0.11 per share[16]. - The diluted earnings per share also increased by 10.00% to CNY 0.11 per share[16]. - The weighted average return on net assets improved to 2.22%, up from 2.03% in the previous year[16]. - The company's diamond tool segment generated operating revenue of CNY 300.59 million, down 8.55% year-on-year, while the operating profit decreased by 35.76% to CNY 39.14 million[38]. - The hardware tools segment saw operating revenue of CNY 228.34 million, an increase of 7.73% year-on-year, with operating profit soaring by 1,324.35% to CNY 22.76 million[38]. - The net profit for the first half of 2020 was CNY 49,712,084.86, an increase of 12.93% compared to CNY 44,086,755.90 in the same period of 2019[170]. Cash Flow and Investments - The net cash flow from operating activities decreased significantly by 78.20% to CNY 15,016,425.00 compared to the same period last year[16]. - Cash flow from investing activities saw a substantial increase of 392.74%, reaching CNY 57,260,198.91, compared to -CNY 19,560,366.44 in the previous year[43]. - The net cash flow from operating activities decreased to ¥5,894,386.76 from ¥40,124,399.62, representing a decline of approximately 85.3%[182]. - Cash inflow from investment activities increased significantly to ¥171,624,744.38 compared to ¥22,648,832.95, marking a growth of approximately 658.5%[182]. - The company reported a significant increase in cash received from investment recoveries, rising to ¥129,500,000.00 from ¥19,223,982.00, an increase of about 573.5%[182]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,690,988,462.80, down 1.80% from the end of the previous year[16]. - The total liabilities decreased to CNY 226,701,055.10 from CNY 295,393,311.08, reflecting a reduction of 23.27%[171]. - The company's equity attributable to shareholders increased to CNY 2,235,571,444.60 from CNY 2,213,805,323.79, reflecting a growth of approximately 1.0%[163]. - Current assets totaled ¥968,319,300.39, down from ¥1,007,538,926.65, indicating a decrease of about 3.9%[161]. - The company's total liabilities decreased to CNY 631.64 million at the end of the reporting period[194]. Subsidiaries and Market Presence - The company has a global sales network with subsidiaries in the USA, Thailand, Canada, and multiple locations in China, making it one of the few diamond tool enterprises with a worldwide presence[26]. - The company's overseas assets include a subsidiary in the USA with a net asset scale of RMB 75.27 million and a net profit of -RMB 0.92 million[29]. - The company’s subsidiary in Thailand has a net asset scale of RMB 207.38 million, contributing a net profit of RMB 84.74 million[29]. - The subsidiary Korea BST Co., Ltd. was deregistered on June 5, 2020[197]. - The company’s subsidiary, Changzhou Jinniu Grinding Co., Ltd., is involved in the processing of abrasives and related products[195]. Research and Development - The company holds 126 valid national patents, including 31 invention patents, and has several key projects recognized at national and provincial levels[32]. - The company plans to enhance R&D investment to maintain its technological leadership in the abrasive tools industry, focusing on high-end manufacturing and product certification[80]. - Research and development expenses were CNY 16,994,214.76, a slight decrease from CNY 17,565,214.10 in the previous year[168]. Risks and Challenges - The company faces risks from raw material price fluctuations, which account for over 60% of total production costs, potentially impacting profit margins[79]. - The integration of the newly acquired companies, including Jin Niu Grinding and Haiwei Locomotive, poses management and operational challenges that could affect overall performance[78]. - The market expansion risk is heightened due to economic slowdowns and intense competition in the hardware tools industry, necessitating effective sales strategies[82]. - Approximately 34% of the company's sales revenue comes from overseas markets, with significant exposure to U.S. anti-dumping duties affecting diamond saw blade exports[77]. Shareholder and Governance - The company has not engaged in any significant related party transactions during the reporting period[109]. - The company did not experience any changes in its controlling shareholder during the reporting period[144]. - The company’s major shareholder, Chen Huairong, is involved in a civil lawsuit due to providing a guarantee for a loan of 400 million RMB, with a court ruling freezing assets worth 584 million RMB[104]. - The company has fulfilled all commitments made to minority shareholders on time[98]. Future Plans - The company plans to enhance support for Jinniu Grinding and Haiwei Locomotive in terms of funding and talent to maintain good operational status and avoid goodwill impairment[85]. - The company aims to implement a multi-currency settlement strategy to mitigate the impact of exchange rate fluctuations on operations[84]. - The company plans to acquire an 86.53% stake in Wenshang Haiwei Locomotive Parts Co., Ltd. through a share issuance and cash payment, which has been approved by the China Securities Regulatory Commission[114].