SD HEAD(SZ:002810)2022-07-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥907,384,821.89, representing a 20.54% increase compared to ¥752,762,204.93 in the same period last year[29]. - Net profit attributable to shareholders of the listed company reached ¥225,326,149.08, up 21.28% from ¥185,790,873.08 in the previous year[29]. - The net profit after deducting non-recurring gains and losses was ¥223,644,017.69, reflecting a 26.03% increase from ¥177,456,099.78 year-on-year[29]. - The basic earnings per share increased to ¥0.66, a 20.00% rise compared to ¥0.55 in the same period last year[29]. - The gross profit margin for the main business income was 37.41%, slightly down by 1.25% from the previous year[87]. - Export revenue amounted to ¥564,440,378.39, accounting for 62.21% of total revenue, with a year-on-year growth of 34.93%[87]. - The company achieved a significant increase in trade product sales, with revenue rising by 44.83% year-on-year[87]. - The company invested ¥37,914,560.93 in R&D, which is a 14.65% increase from ¥33,068,715.32 in the previous year[84]. - The management expenses increased by 65.54% to ¥54,237,881.67, primarily due to maintenance costs and increased personnel expenses related to the pandemic[84]. - The company reported a significant increase in financing activities, with net cash flow from financing activities rising by 578.28% to ¥227,030,763.39[84]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥3,096,982,100.91, which is a 17.51% increase from ¥2,635,527,092.73 at the end of the previous year[29]. - The net assets attributable to shareholders of the listed company were ¥1,779,166,962.02, up 14.92% from ¥1,548,237,528.78 at the end of the previous year[29]. - The net cash flow from operating activities was ¥123,772,622.19, a decrease of 54.33% compared to ¥271,018,678.53 in the same period last year[29]. - Total assets at the end of the reporting period amounted to 3,090,000,000.00 CNY, with cash and cash equivalents accounting for 4.96% of total assets, down from 6.29% in the previous year[90]. - Accounts receivable increased to 465,408,645.61 CNY, representing 15.03% of total assets, up from 11.31% year-over-year, indicating a 3.72% increase in proportion[90]. - Inventory stood at 240,476,544.43 CNY, which is 7.76% of total assets, slightly down from 8.80% in the previous year, reflecting a decrease of 1.04%[90]. - Long-term borrowings rose to 307,256,776.97 CNY, representing 9.92% of total liabilities, an increase of 3.00% from the previous year[90]. - The construction in progress increased to 1,015,052,387.13 CNY, accounting for 32.78% of total assets, up from 26.32% year-over-year, indicating a growth of 6.46%[90]. Market and Industry Insights - The company specializes in the research, production, and sales of water-soluble polymers, primarily non-ionic cellulose ethers and plant capsules, establishing itself as a leader in the cellulose ether industry[39]. - The demand for construction-grade cellulose ether is driven by the growth of the construction industry in China, with increasing investment scale and housing renovation areas[50]. - The promotion of premixed mortar by policies is expected to boost the demand for construction-grade cellulose ether due to its advantages in quality stability and environmental friendliness[52]. - The market for pharmaceutical-grade cellulose ether is expanding, particularly for controlled-release formulations, which are technically challenging and have high added value[48]. - The company’s cellulose ether products are utilized in various applications, including construction, pharmaceuticals, and food, highlighting their versatility[50]. - The cellulose ether market is influenced by urbanization trends and consumer upgrades, which are expected to drive future demand[50]. - The company has extended its product line to include chemical equipment and other chemical products, diversifying its business operations[39]. Research and Development - The company has invested in advanced cellulose ether production equipment, achieving full-process automation and smart manufacturing[39]. - The company has received recognition for its technological innovations, including a national invention patent for controlled-release cellulose ether[39]. - The company is focusing on developing specialized cellulose ethers for controlled-release formulations, which is crucial for upgrading China's pharmaceutical industry and ensuring public health[53]. - The company’s new product development includes a patented controlled-release HPMC, filling a domestic market gap and enhancing its product portfolio[73]. Risk Management - The company faces various risks including market competition, raw material price fluctuations, and international trade risks[6]. - The company emphasizes the risk of market competition affecting its main products, cellulose ether and plant capsules, which could lead to decreased profitability if market conditions change unfavorably[117]. - The company faces raw material price fluctuation risks, particularly for refined cotton and basic chemical raw materials, which could impact gross margins[118]. - Environmental protection risks are highlighted, with potential increased costs due to stricter regulations and the need for compliance with environmental standards[119]. - The company has implemented internal control measures for its forward foreign exchange business to mitigate risks associated with exchange rate fluctuations[110]. Environmental Compliance - The company has implemented advanced wastewater treatment technologies, significantly reducing wastewater discharge and resource usage[144]. - The company has completed the construction of a new wastewater treatment facility, which is currently in the commissioning phase[144]. - The company has received environmental impact approvals for multiple projects, including a 20,000 tons/year cellulose ether project[145]. - The company has engaged third-party testing firms to monitor environmental compliance as per regulatory requirements[150]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[150]. Corporate Governance and Social Responsibility - The company emphasizes the protection of shareholder and creditor rights, ensuring fair treatment and timely information disclosure to all investors[151]. - The company has established a robust internal control system and an interactive platform for investor communication[151]. - The company actively engages in community support, contributing to local education, culture, and health initiatives[154]. - The company reported a total donation of 1 million yuan for various social welfare activities during the reporting period[154]. - The company has implemented various employee welfare measures to create a comfortable working environment and retain talent[152].