LEEJUN(SZ:002651)2020-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 276,291,249.75, a slight increase of 0.01% compared to CNY 276,257,477.00 in the same period last year[23]. - Net profit attributable to shareholders decreased by 15.23% to CNY 69,274,271.39 from CNY 81,718,741.78 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 57,751,382.19, a decrease of 14.71% compared to CNY 67,710,204.16 in the same period last year[23]. - The basic earnings per share for the first half of 2020 was CNY 0.07, down 12.50% from the previous year[23]. - The operating profit for the same period was CNY 82 million, a decrease of 11.50% year-on-year, while net profit fell by 15.23% to CNY 69 million[52]. - The company's operating costs rose by 4.51% year-on-year, totaling CNY 157.72 million[56]. - The company reported a decrease in sales expenses by 11.57% to CNY 15,565,872.51, and management expenses decreased by 18.76% to CNY 26,126,725.58[63]. Cash Flow and Assets - The net cash flow from operating activities significantly improved to CNY 56,173,820.78, a 3,495.45% increase compared to a negative cash flow of CNY -1,654,386.79 in the previous year[23]. - The company's cash and cash equivalents saw a net decrease of CNY 15.27 million, a decline of 631.91% compared to the previous year[52]. - The net cash flow from investing activities was CNY -72,857,753.09, a decrease of 6,455.80% year-on-year, primarily due to payments related to the aerospace equipment intelligent production line project[66]. - The net increase in cash and cash equivalents was CNY -15,268,729.14, a decline of 631.91% compared to the previous year, attributed to significant payments for project-related costs[66]. - The company's total assets as of June 30, 2020, were CNY 2,727,094,872.65, reflecting a 2.38% increase from CNY 2,663,609,543.60 at the end of the previous year[23]. - The company's other current assets increased by 829,063.42 yuan, a growth of 187.66 times, mainly due to the increase in deductible VAT input tax[42]. - The company's non-current assets increased by 68,195,899.30 yuan, a growth of 2,492.29%, primarily due to payments for the aerospace equipment intelligent production line project[42]. - The company's accounts receivable increased by 1,658,009.77 yuan, a growth of 39.81%, mainly due to an increase in commercial acceptance bill settlements by customers[42]. - The company's cash and cash equivalents at the end of the reporting period amounted to CNY 645.59 million, representing 23.67% of total assets, up from 18.67% in the previous year[75]. - Accounts receivable increased to CNY 207.08 million, accounting for 7.59% of total assets, compared to 6.70% in the previous year[75]. - Inventory rose to CNY 399.29 million, making up 14.64% of total assets, an increase from 13.08% year-on-year[75]. Business Operations and Strategy - The company focuses on the manufacturing of high-efficiency, energy-saving, and environmentally friendly grinding systems and their supporting equipment, primarily serving the cement, mining, and metallurgy industries[36]. - The company's roller press (high-pressure roller mill) is recognized as one of the most efficient and energy-saving crushing devices, significantly improving metal recovery rates and reducing steel and electricity consumption[36]. - The company's aerospace subsidiary, Chengdu Dekun Aviation Equipment Manufacturing Co., has a comprehensive manufacturing chain and serves major clients like Boeing and Airbus, with a focus on precision machining and assembly of aerospace components[37]. - The company’s grinding equipment aligns with national policies promoting energy conservation and emission reduction, indicating a positive development outlook[36]. - The company’s production model is based on sales contracts, ensuring production is organized according to customer delivery dates[36]. - The company plans to continue enhancing its product processing and supporting service capabilities to adapt to market demands[48]. Research and Development - The company obtained 3 new national patents during the reporting period, maintaining its core competitiveness in the grinding system and supporting equipment manufacturing business[46]. - Research and development expenses increased by 69.05% to CNY 8,887,703.71, mainly due to increased investment in aerospace research and development[66]. - The company plans to enhance its research and development efforts to maintain its competitive edge in grinding technology and equipment[118]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[7]. - The total number of shares increased from 100.25 million to 101.75 million after the completion of the restricted stock incentive plan[140]. - The largest shareholder, He Yamin, holds 34.60% of the shares, while He Jia holds 28.48%[191]. - The top three shareholders collectively own 76.37% of the company, indicating a high concentration of ownership[192]. - The company has a total of 33,830 shareholders, with significant holdings by the top shareholders[191]. - The first employee stock ownership plan holds 9,600,000 shares, representing 0.94% of the total shares[191]. Fundraising and Investments - The total amount of raised funds is RMB 97,759.54 million, with a total investment of RMB 2,523.64 million during the reporting period[88]. - Cumulative investment of raised funds amounts to RMB 62,656.93 million, with 37.79% of the funds having been repurposed[88]. - The company terminated three fundraising projects, with total committed investments of RMB 74,405 million and actual investments of RMB 28,109.19 million[88]. - The company used RMB 32,100 million of raised funds to acquire 100% equity of Chengdu Dekun Aviation Equipment Manufacturing Co., Ltd.[91]. - The company plans to invest RMB 15,000 million in its wholly-owned subsidiary for the aerospace equipment intelligent production line project[91]. - The total investment for the new aerospace equipment intelligent production line project is RMB 600 million, with a signed investment agreement with the local government[173]. Risks and Challenges - The company faces risks related to aviation industry policy adjustments, economic policy regulation, raw material price fluctuations, and market expansion challenges in the mining sector[117][118]. - The company emphasizes the importance of monitoring industry policies and trends to seize development opportunities and enhance its risk management capabilities[117]. Legal and Compliance - The semi-annual financial report for the company has not been audited[128]. - There were no significant litigation or arbitration matters during the reporting period[130]. - The company is involved in ongoing litigation regarding a rental contract, with a claim for approximately 2.09 million CNY in unpaid rent and penalties[157]. - The company has not engaged in any entrusted financial management during the reporting period[159]. - The company has not reported any major contracts that significantly impact its profit during the reporting period[157]. Employee Stock Ownership Plans - The company implemented its first employee stock ownership plan, acquiring a total of 13,700,000 shares from major shareholders[136]. - The first employee stock ownership plan's lock-up period lasted for 12 months from the purchase date, which was November 23, 2017[136]. - The first restricted stock incentive plan was approved, granting 15 million shares at a price of 3.36 yuan per share[140]. - The company has extended the duration of the first employee stock ownership plan twice, with the latest extension until October 30, 2020[139]. - In July 2020, the company completed the acquisition of 17,820,000 shares from its controlling shareholder, representing 1.7514% of the total share capital, as part of the second employee stock ownership plan[144]. - The second phase of the restricted stock incentive plan was approved, granting 15.96 million shares to 65 incentive targets at a price of 2.38 CNY per share, with the grant date set for July 22, 2020[144].