SACRED SUN(SZ:002580)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately CNY 937.68 million, representing a 34.39% increase compared to CNY 697.72 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 20.91 million, up 32.44% from CNY 15.79 million year-on-year[18]. - The net profit after deducting non-recurring gains and losses decreased by 26.59% to CNY 5.75 million from CNY 7.84 million in the previous year[18]. - The company's total assets at the end of the reporting period were CNY 2.36 billion, a decrease of 2.17% from CNY 2.41 billion at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 0.54% to CNY 1.72 billion from CNY 1.71 billion at the end of the previous year[18]. - The company reported a significant decline in net cash flow from operating activities, with a net outflow of CNY 158.98 million compared to a net inflow of CNY 7.76 million in the same period last year, a decrease of 2,149.84%[18]. - The company's gross profit margin decreased to 13.76%, down by 8.09% from the previous year[58]. - The company's revenue for the reporting period was ¥937,682,985.09, representing a year-on-year increase of 34.39% compared to ¥697,721,609.64 in the same period last year[54]. - Operating costs increased by 48.30% to ¥808,664,930.80 from ¥545,289,057.06, primarily due to the growth in main business revenue[54]. - Research and development expenses rose significantly by 68.24% to ¥31,721,368.39, mainly due to increased investment in lithium battery product development[54]. - The net cash flow from operating activities was -¥158,980,581.13, a decrease of 2,149.84% compared to a positive cash flow of ¥7,755,769.81 in the previous year[54]. - The company reported a significant increase in investment income to CNY 8.96 million, up from CNY 4.84 million in the previous year[149]. - The total comprehensive income for the first half of 2021 was approximately 18.70 million, showing a significant increase compared to the previous period[170]. Market and Industry Trends - The lithium battery industry in China saw a production increase of over 60% in the first half of 2021, exceeding 110 GWh, with a total industry output value surpassing 240 billion yuan[29]. - Lithium battery exports reached a total of 74.3 billion yuan in the first half of 2021, marking a year-on-year growth of nearly 70%[29]. - The production of lead-acid batteries in China was stable, maintaining over 20 million KVAh, with a production increase of 29.7% in the first half of 2021, totaling 12,754.80 million KVAh[30]. - The market size for lead-acid batteries is projected to exceed 200 billion yuan by 2026[30]. - The energy storage lithium battery production in China reached 15 GWh in the first half of 2021, reflecting a year-on-year growth of 260%[29]. - The new energy storage market is projected to reach 650 billion yuan by 2030, driven by the increasing demand for renewable energy[39]. - The number of 5G base stations in China reached 961,000 by June 2021, with a target of building 600,000 new stations in 2021[32]. - The average utilization rate of data centers in China is targeted to exceed 55% by the end of 2021, with an annual growth rate of 20% in the number of data center racks expected by 2023[35]. - By 2026, China's urban rail transit operating mileage is expected to exceed 12,000 kilometers, indicating a significant growth opportunity[37]. Strategic Focus and Development - The company plans to focus on network energy, smart storage, and green power applications, providing solutions in these areas without major changes to its main products[25]. - The company is focusing on expanding its market share in the lithium battery sector, successfully winning a procurement project from China Mobile[43]. - The company is actively exploring North American sales channels to enhance its presence in the overseas energy storage market[46]. - The company is committed to optimizing product upgrades and developing integrated energy solutions, laying a solid foundation for future sales[47]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to strengthen its market position[170]. - The company has established deep cooperation with major forklift manufacturers and users, expanding its market share in Southeast Asia[48]. - The company has implemented a direct sales model complemented by agents, leading to stable growth in sales scale and market share[47]. - The company’s R&D department focuses on forward-looking projects based on market trends, ensuring technological capability reserves[28]. Risk Management and Challenges - The company has identified various risks, including industry policy changes, product technology iteration, raw material price fluctuations, and environmental risks[4]. - The company is actively monitoring changes in national policies related to new infrastructure and renewable energy, which could impact its business development[71]. - The company is facing challenges from global economic recovery and political instability, which may affect its operational environment[71]. - The company has implemented strategic procurement relationships with suppliers to mitigate the impact of raw material price fluctuations, particularly for lead and lithium iron phosphate[72]. - The company is utilizing futures hedging strategies to offset the adverse effects of raw material price volatility on its financial performance[72]. Environmental and Social Responsibility - The company focuses on green development and has been recognized as a 4A-rated enterprise for producer responsibility extension[51]. - The company has established industrial wastewater treatment facilities with a design capacity of 80m³/h, ensuring compliance with environmental standards[85]. - The company has implemented a comprehensive environmental management system, including emergency response plans and regular employee training[86]. - The company actively engages in social responsibility initiatives, including donations to impoverished employees and support for education[88]. - The company has established a dedicated environmental safety leadership team to oversee environmental protection efforts[84]. Shareholder and Capital Structure - The company has a total share capital of 453,868,993 shares after a private placement of 104,738,998 shares, increasing from 349,129,995 shares[120]. - The largest shareholder, Shandong Guohui Investment Co., Ltd., holds 23.08% of the shares, totaling 104,738,998 shares[128]. - The second-largest shareholder, Song Bin, holds 5.66% of the shares, totaling 25,704,287 shares[128]. - The controlling shareholder changed to Shandong Guohui Investment Co., Ltd. on January 12, 2021[131]. - The actual controller changed to the State-owned Assets Supervision and Administration Commission of the Shandong Provincial Government on January 12, 2021[131]. - The company has undergone multiple capital increases and stock repurchases, with the latest total share capital being RMB 354,057,227[185]. Financial Management and Compliance - The semi-annual financial report was not audited[139]. - The financial statements are presented in RMB[140]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[197]. - The accounting period for the company is from January 1 to December 31 each year[198]. - The company uses Renminbi as its functional currency for accounting purposes[200].