BOSUN(SZ:002282)2021-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 803,037,627.15, representing a 49.99% increase compared to CNY 535,389,338.21 in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached CNY 105,243,328.41, a significant increase of 111.91% from CNY 49,663,969.71 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was CNY 98,949,031.42, up 128.90% from CNY 43,228,580.21 in the previous year[21]. - The net cash flow from operating activities was CNY 36,377,586.01, an increase of 142.25% compared to CNY 15,016,425.00 in the same period last year[21]. - Basic earnings per share rose to CNY 0.20, an increase of 81.82% from CNY 0.11 in the previous year[21]. - Total assets at the end of the reporting period were CNY 3,764,147,627.68, reflecting a 7.68% increase from CNY 3,495,822,661.67 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company increased to CNY 3,258,495,778.46, a growth of 19.99% from CNY 2,715,642,024.27 at the end of the previous year[21]. - The weighted average return on net assets was 3.39%, up from 2.22% in the previous year, indicating improved profitability[21]. - The company reported a total comprehensive income of ¥172,919,225.89 for the first half of 2021, compared to ¥48,078,546.62 in the previous year, showing a substantial increase[186]. Revenue Breakdown - The abrasive tools segment generated operating revenue of CNY 473.34 million, up 57.47% year-on-year, with a net profit of CNY 48.20 million, increasing by 41.26%[42]. - The hardware tools segment reported operating revenue of CNY 272.40 million, a 19.30% increase, and a net profit of CNY 46.67 million, up 124.63%[43]. - The rail transit equipment segment saw a significant revenue increase of 787.02% to CNY 57.30 million, with a net profit of CNY 10.37 million, growing by 298.10%[45]. - The revenue from the coated abrasives industry surged to ¥472,683,369.88, making up 58.86% of total revenue, with a significant year-on-year increase of 57.35%[48]. - The revenue from diamond tools was ¥207,914,624.94, with a year-on-year increase of 21.59%[50]. Investment and R&D - The company’s R&D investment rose to CNY 29.41 million, a 73.08% increase compared to the previous year, reflecting a focus on innovation and product development[47]. - The company aims to increase R&D investment to maintain its technological leadership in the abrasive tools industry and accelerate the industrialization of high-speed railway brake pads[88]. - The total investment amount for the reporting period was 23,488,839.02 yuan, representing an increase of 84.66% compared to the previous year[66]. Market Position and Strategy - The company has expanded its business into three main areas: diamond tools, coated abrasives, and rail transit equipment components[29]. - The diamond tools segment is one of the largest in China, with a global sales network covering North America, Europe, Southeast Asia, the Middle East, and North Africa[30]. - The company is positioned to benefit from increasing industry concentration as regulatory frameworks improve, enhancing the competitive advantage of leading firms[32]. - The company’s products are closely linked to construction investment, real estate investment, and housing transaction trends in China[32]. - The company is focusing on expanding its market presence through strategies such as ODM sales in Europe and North America and regional agency sales in Southeast Asia and South America[89]. Subsidiaries and International Operations - The company completed the acquisition of Haiwei Locomotive in August 2020, enhancing its capabilities in the production and sales of rail transit brake discs[31]. - The company holds 145 valid national patents, including 32 invention patents, and has several key projects recognized at national and provincial levels, showcasing its commitment to innovation[38]. - The company has established a foreign exchange hedging management system to mitigate the adverse effects of exchange rate fluctuations on its operations[73]. - Approximately 30% of the company's sales revenue comes from overseas markets, with the U.S. being a significant market[84]. Financial Health and Liquidity - The company’s cash and cash equivalents increased to ¥361,189,033.88, up from ¥178,204,209.74, reflecting a significant improvement in liquidity[53]. - Accounts receivable rose to ¥428,358,257.95, representing 11.38% of total assets, compared to 9.02% the previous year[53]. - Inventory increased to ¥458,190,429.94, accounting for 12.17% of total assets, up from 11.30% last year[54]. - The company reported a significant reduction in short-term borrowings, decreasing to CNY 115,101,666.58 from CNY 242,249,624.29, a decline of approximately 52.4%[177]. Risks and Challenges - The company faces risks from raw material price fluctuations, with raw materials accounting for over 60% of total product costs, impacting profitability[86]. - The ongoing COVID-19 pandemic presents uncertainties for the company's operations, particularly for its six overseas subsidiaries[93]. - The company is exposed to foreign exchange risks, with approximately 30% of its revenue coming from international markets, primarily settled in USD and EUR[90]. Governance and Compliance - The company has not experienced any significant changes in accounting policies or principles regarding derivatives compared to the previous reporting period[73]. - The company has not conducted any major related party transactions during the reporting period[119]. - The company has established an emergency response plan for environmental incidents, which was completed and accepted by experts in October 2019[102]. Shareholder Information - The company’s stock increased from 490,825,151 shares to 543,944,364 shares due to the issuance of new shares for fundraising purposes[150]. - The largest shareholder, Chen Huairong, holds 9.43% of the shares, totaling 51,316,818 shares[161]. - The company’s actual controller and major shareholders have not changed during the reporting period[165].