huasi(SZ:002494)2021-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥185,428,070.73, representing a 73.34% increase compared to ¥106,975,450.93 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥2,626,850.67, a significant turnaround from a loss of ¥17,479,881.97 in the previous year, marking a 115.03% improvement[22]. - The net profit after deducting non-recurring gains and losses was ¥206,924.52, compared to a loss of ¥68,000,128.46 in the same period last year, reflecting a 100.30% increase[22]. - The basic earnings per share increased to ¥0.0070 from a loss of ¥0.0463, showing a 115.12% improvement[22]. - The company's operating revenue for the reporting period reached ¥185,428,070.73, representing a 73.34% increase compared to ¥106,975,450.93 in the same period last year, primarily due to the easing of pandemic impacts[45]. - The gross profit margin improved, with operating costs increasing by only 10.17% to ¥136,445,596.94, compared to the previous year's ¥123,854,938.56[46]. - Research and development expenses rose by 32.08% to ¥5,320,083.34, up from ¥4,028,053.01, reflecting increased investment in innovation as pandemic impacts lessened[46]. - The company reported a substantial increase in other business income, which surged by 234.99% to ¥108,607,078.99, compared to ¥32,420,941.48 last year[49]. - The company reported a net loss of CNY 90,969,862.48, compared to a loss of CNY 93,596,713.15 at the end of 2020, indicating an improvement in loss by approximately 2.79%[143]. - The company reported a total comprehensive income of ¥1,051,664.30 for the first half of 2021, a significant improvement from a loss of ¥18,823,767.66 in the same period of 2020[151]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,032,659,344.40, a decrease of 3.54% from ¥2,107,263,121.04 at the end of the previous year[22]. - The total liabilities decreased to CNY 502,797,316.18 from CNY 578,452,757.12, a reduction of approximately 13.06%[142]. - The company's total assets at the end of the reporting period amounted to 1,890,589,027.28 RMB, indicating growth from the previous year[172]. - Current assets totaled CNY 873,417,457.69, down from CNY 896,941,414.45 at the end of 2020, indicating a decrease of about 2.63%[141]. - Cash and cash equivalents decreased to CNY 243,580,613.31 from CNY 331,884,133.13, reflecting a decline of approximately 26.56%[140]. - Total inventory increased to RMB 445,652,588.90, representing 21.92% of total assets, up from 18.86% the previous year[67]. - The total equity attributable to shareholders increased slightly to CNY 1,550,417,217.13 from CNY 1,548,183,791.64, showing a marginal increase of about 0.08%[143]. Cash Flow - The net cash flow from operating activities was negative at -¥44,457,457.37, a decline of 4,224.05% compared to ¥1,078,006.11 in the same period last year[22]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥44,457,457.37 compared to a positive cash flow of ¥1,078,006.11 in the previous year, indicating increased cash expenditures[46]. - The total cash inflow from operating activities was CNY 167,348,023.69, compared to CNY 180,885,336.10 in the same period last year[158]. - The company incurred a cash outflow of CNY 211,805,481.06 from operating activities, which was higher than CNY 179,807,329.99 in the previous year[158]. - The total cash and cash equivalents at the end of the period were 176,289,692.87 CNY, down from 225,251,210.10 CNY at the end of the previous period[162]. Business Operations - The company operates in the fur fashion industry, focusing on the complete business process from raw material processing to fur apparel sales, establishing a comprehensive service platform for the industry[30]. - The company has built the China Suining International Fur Trading Center with a total construction area of 130,000 square meters, providing a trading platform for fur practitioners[30]. - The company has developed the Huasi Fur Town, which includes the Huasi International Fur City, featuring hundreds of factory-direct stores for mink clothing, leather goods, cashmere, and accessories[30]. - The company employs an order-driven production model, with a focus on research and development, tanning processing, dyeing treatment, and garment production[34]. - The company has a stable procurement channel for raw materials, ensuring a steady supply of fur through both domestic and international markets[33]. - The company operates in the fur industry, which includes a long supply chain from feed processing to fur apparel design and marketing, targeting the domestic and international mid-to-high-end markets[36]. - The company has a competitive advantage through its integrated business model, which includes fur trading, deep processing, design, production, and sales channels[37]. Market and Sales - Domestic sales reached ¥66,417,922.82, representing a 26.53% increase year-on-year, while export sales were ¥10,403,068.92, down 58.00% compared to the previous year[53]. - The total revenue from direct sales was ¥10,954,644.63, with a gross margin of 54.75%, reflecting a significant year-on-year increase of 162.08%[56]. - The company has 73 distributors, and the sales revenue from distributors accounted for over 30% of total sales[59]. - Online sales generated revenue of ¥353,899.97, with a gross margin of 42.69%, showing a year-on-year decrease of 17.02%[56]. - The company opened 1 new direct store and closed 2 stores due to unsatisfactory sales performance, resulting in a total of 12 direct stores[54]. Risks and Challenges - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company faces risks from the ongoing COVID-19 pandemic, macroeconomic uncertainties, exchange rate fluctuations, and raw material price volatility[79]. Environmental and Social Responsibility - The company has established two wastewater treatment systems and implemented rainwater and sewage diversion[87]. - The comprehensive wastewater treatment facility has a processing capacity of 1,600 m³/d, utilizing a multi-step treatment process[88]. - All monitored pollutant indicators met the discharge standards during quarterly inspections by environmental authorities[93]. - The company has a pollution prevention and emergency response plan in place for environmental incidents[91]. - The company adheres to a "safety first, environmental protection priority" principle in its operations[95]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[92]. Shareholder Information - The total number of shares after the recent changes is 385,560,800, with 23.48% being limited shares and 76.52% being unrestricted shares[122]. - The company repurchased a total of 8,250,100 shares, accounting for 2.14% of the total share capital, with a total expenditure of approximately RMB 50 million[124]. - The largest shareholder, He Guoying, holds 31.31% of the shares, totaling 120,720,300 shares[126]. - The top 10 unrestricted ordinary shareholders include He Guoying and Shanghai Textile Investment Management Co., holding 30,180,093 and 6,581,354 shares respectively[128]. - The total number of shares held by the top 10 shareholders reflects a significant concentration of ownership, with the largest shareholder holding over 30%[126]. Governance and Compliance - The financial statements were approved by the board of directors on August 17, 2021, indicating a commitment to transparency and governance[184]. - The company has assessed its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its operational viability[189]. - The company follows specific accounting policies and estimates based on its operational characteristics, particularly in inventory valuation, expected credit loss provisions for receivables, and depreciation of fixed assets[190]. - The company did not engage in any related party transactions during the reporting period[106].