LECRON(SZ:300343)2023-08-18 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥481,390,967.93, a decrease of 59.67% compared to ¥1,193,620,621.55 in the same period last year[23]. - The net profit attributable to shareholders was ¥23,763,080.00, down 96.47% from ¥673,399,390.04 year-on-year[23]. - The net cash flow from operating activities was ¥147,412,745.49, representing a decline of 60.49% compared to ¥373,081,035.95 in the previous year[23]. - Basic earnings per share decreased to ¥0.02, down 96.61% from ¥0.59 in the same period last year[23]. - Total assets at the end of the reporting period were ¥2,856,164,511.38, a decrease of 2.30% from ¥2,923,543,788.41 at the end of the previous year[23]. - The weighted average return on net assets was 1.33%, down 50.26% from 51.59% in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥19,544,126.20, a decrease of 96.64% from ¥580,958,344.34 year-on-year[23]. - The company reported a significant decrease in revenue for its subsidiary, Shandong Huazhong New Materials Co., Ltd., with operating income of 29,195.58 million, down 68.79% year-on-year, and net profit of 8,380.52 million, down 98.6%[71]. - The company’s total comprehensive income for the first half of 2023 was CNY 29,229,595.64, down from CNY 553,383,801.45 in the same period of 2022, reflecting a decrease of approximately 94.7%[174]. Operational Strategy - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company plans to increase its production capacity by 6,000 tons in the second half of the year, aiming to benefit from market recovery and improved supply capabilities[33]. - The company is focused on improving raw material supply and reducing production costs to drive high-quality development in the refrigerant sector[35]. - The company plans to strengthen new product research and development, optimize product structure, and expand production capacity to enhance competitiveness in response to market risks[75]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and expand its product offerings[186]. Market Conditions - The company faced various risks including market competition, environmental risks, and policy changes, which may impact future performance[4]. - In the lithium battery new materials segment, the company experienced a significant decline in demand, leading to a decrease in profitability compared to last year, although product prices have stabilized towards the end of the reporting period[32]. - The company expects a recovery in product prices and shipment volumes in the second half of the year, indicating a potential improvement in industry conditions[72]. Research and Development - The company has invested in R&D, with 95 effective patents and several awards, including the National Technology Invention Second Prize, indicating strong technological capabilities[45]. - The company has allocated 10 million yuan for research and development in new technologies, aiming to enhance competitive advantage[186]. - The company is engaged in ongoing research and development efforts to innovate and improve its product offerings, which is essential for maintaining competitive advantage[199]. Environmental Responsibility - The company has implemented various environmental protection measures, including wastewater treatment and emission reduction facilities, to comply with national environmental regulations[84]. - The company has established a new wastewater treatment system that effectively manages COD and ammonia nitrogen levels[89]. - The company has achieved a VOCs emission concentration of 0.04 mg/m³, significantly below the regulatory limit of 1 mg/m³[89]. - The company has implemented a comprehensive environmental monitoring plan, conducting monthly and quarterly tests on various pollutants[97]. - The company is actively engaged in improving its environmental management practices to mitigate risks associated with potential environmental incidents[104]. Financial Liabilities and Guarantees - The company’s financial liabilities remain at zero, indicating a strong balance sheet position[57]. - The total amount of external guarantees approved during the reporting period was 0, with an actual occurrence amount of 2,400 million yuan[138]. - The company provided guarantees for related parties, with amounts including 1,500 million yuan and 1,800 million yuan for Shandong Hongxin Chemical[138]. - The company has not provided guarantees for debtors with asset-liability ratios exceeding 70%[140]. Shareholder Information - The total number of limited sale shares remains unchanged at 73,248,201, with no shares released from restrictions during the period[150]. - The largest shareholder, Li Hongguo, did not change his holdings during the reporting period[152]. - The company has not reported any major changes in shareholder structure or significant shareholder activities[149]. Legal and Compliance Issues - The company is currently involved in a criminal case related to contract fraud, which may significantly impact its financial statements[121]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[116]. - There were no significant litigation or arbitration matters during the reporting period[125].