SLAC(SZ:300382)2021-08-23 16:00Financial Performance - The company's operating revenue for the reporting period was ¥389,052,096.31, representing a 1.67% increase compared to ¥382,667,295.50 in the same period last year[21]. - The net profit attributable to shareholders decreased by 13.73% to ¥36,970,533.34 from ¥42,853,485.00 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥32,276,307.81, down 16.67% from ¥38,732,779.73 in the previous year[21]. - The net cash flow from operating activities significantly improved to ¥118,283,848.69, a 368.50% increase from a negative cash flow of ¥44,053,424.24 in the same period last year[21]. - Total assets increased by 11.35% to ¥2,453,787,377.95 from ¥2,203,602,541.63 at the end of the previous year[21]. - The company's basic earnings per share decreased by 12.50% to ¥0.07 from ¥0.08 year-on-year[21]. - The company reported a total of ¥4,694,225.53 in non-recurring gains and losses for the reporting period[26]. - Operating costs decreased by 0.85% to ¥235.74 million from ¥237.75 million year-over-year[46]. - The net increase in cash and cash equivalents was ¥24.26 million, a 123.99% improvement from a decrease of ¥101.13 million in the previous year[46]. - The company reported a significant increase in investment income, which rose by 196.02% to ¥197,820.28 from a loss of ¥206,009.59 in the previous year[47]. Research and Development - R&D investment accounted for 4.26% of the company's revenue during the reporting period, focusing on improvements in can and lid production technology, digital printing equipment, and battery shell production lines[42]. - Research and development expenses increased by 13.02% to ¥17.98 million, up from ¥15.91 million in the previous year[46]. - The company is focusing on enhancing its R&D capabilities to meet the increasing demands for product performance and customization in the fast-evolving market[81]. - New product development initiatives are underway, with an investment of 100 million RMB allocated for R&D in advanced manufacturing technologies[121]. Market Position and Strategy - The company is engaged in the research, design, and production of high-speed metal packaging equipment, including easy-open lids and cans, and is expanding into related fields such as new energy battery shell production lines[29]. - The company is positioned in a market that has historically relied on imports for high-speed production equipment, indicating a strategic opportunity for domestic manufacturing[38]. - The domestic aluminum two-piece can market is expected to grow significantly, with a projected market size reaching approximately 27.03 billion yuan by 2025[38]. - The company is expanding its investment in the new energy sector, specifically in cylindrical battery shell manufacturing, leveraging its existing technology[81]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[121]. - A strategic acquisition of a local competitor is being considered to enhance market capabilities and product offerings[121]. Risks and Challenges - The report includes a section on risks faced by the company and corresponding countermeasures[4]. - The company faces risks related to market competition, particularly from established players like STOLLE and CMB Engineering, which dominate the market[79]. - The company has experienced management challenges due to rapid growth, necessitating improvements in its organizational structure to manage expanded operations effectively[81]. - The company faces risks related to human resources, particularly in acquiring skilled talents in precision machinery, automation, and project management as business scales up[82]. - Operating costs are expected to increase due to rising depreciation, labor, and management expenses, which may lead to a decrease in profit margins[82]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[3]. - The company emphasizes corporate social responsibility and has established a comprehensive internal management system to enhance governance and protect investor rights[115]. - The company maintains a quality management system to ensure product safety and customer satisfaction, thereby enhancing its corporate image[116]. - There are no penalties or rectification measures reported during the period, reflecting compliance with regulatory standards[132]. Shareholder and Investor Relations - The company has a dedicated contact for investor relations, Wu Xiaoyan, reachable at stock@slac.com.cn[17]. - The company is committed to transparency and regular communication with its investors through various channels[1]. - The company has engaged with various institutional investors, indicating strong interest in its performance and future strategies[1]. - The company plans to issue convertible bonds to fund the production line projects for cans, lids, and battery shells, with the total amount expected to be between 60 million to 80 million USD for the period from 2021 to 2024[152]. Stock Options and Incentives - The company plans to grant 1.2 million stock options under the 2016 stock option incentive plan, with 120,000 options reserved[94]. - The company has implemented a stock option incentive plan to motivate and retain key employees[94]. - The company approved the cancellation of 1,068,903 stock options from the first exercise period of the 2016 stock option incentive plan, with actual exercise being 0[96]. - The company canceled 921,938 stock options from the third exercise period of the 2016 stock option incentive plan due to not meeting exercise conditions[97]. Financial Management - The company has a total borrowing balance of RMB 40 million listed as current liabilities due within one year[56]. - As of June 30, 2021, the company has a long-term borrowing balance of RMB 67 million[58]. - The total amount of raised funds is RMB 388 million, with RMB 55.67 million invested during the reporting period[63]. - The company has approved the use of up to RMB 280 million of idle raised funds for cash management, focusing on low-risk financial products[66]. - The company has not engaged in derivative investments during the reporting period[74]. Legal Matters - The company is actively pursuing legal avenues to recover funds lost due to a telecom fraud incident, with a significant chance of success[131]. - The company has initiated legal proceedings in Ukraine to recover the lost funds, with a court ruling to seize approximately 58.25 million Ukrainian Hryvnias (around $2.05 million) from the fraudster's account[157]. - The company’s legal actions against NIDEC MINSTER LLC resulted in a court ruling that dismissed NIDEC's appeal against the recovery of the lost funds[158].