BAOSE(SZ:300402)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥588,269,880.37, representing a 7.85% increase compared to ¥545,473,047.65 in the same period last year[23]. - The net profit attributable to shareholders for the first half of 2021 was ¥22,966,034.90, a 22.25% increase from ¥18,785,881.83 in the previous year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥19,997,906.73, reflecting a 28.79% increase from ¥15,527,881.55 in the same period last year[23]. - The net cash flow from operating activities was ¥158,403,271.09, which is a significant increase of 131.71% compared to ¥68,362,427.04 in the previous year[23]. - The basic earnings per share for the first half of 2021 was ¥0.1137, up 22.26% from ¥0.0930 in the same period last year[23]. - Total assets at the end of the reporting period were ¥1,948,081,881.79, a 12.83% increase from ¥1,726,489,021.88 at the end of the previous year[23]. - The net assets attributable to shareholders decreased by 11.45% to ¥603,740,615.46 from ¥681,774,580.56 at the end of the previous year[23]. - The weighted average return on net assets was 3.14%, an increase of 0.33% compared to 2.81% in the previous year[23]. Operational Strategy - The main business remains unchanged, focusing on the R&D, design, manufacturing, and installation of special materials and non-standard pressure vessel equipment, primarily used in industries such as chemical, metallurgy, and renewable energy[30]. - The company employs an "order-based production" model, customizing products based on specific customer requirements, with a production cycle generally ranging from 6 to 12 months[32][37]. - The company has established a strong cooperation mechanism with major domestic and international engineering companies, covering most regions in China and exporting products to international markets[33]. - The company’s pricing model is based on "raw material cost + processing fee," reflecting the complexity and customization of its products[34]. - The procurement strategy is "sales-driven," ensuring a stable supply of raw materials through long-term partnerships with qualified suppliers[35]. Market and Industry Insights - The industry has seen significant advancements, with China becoming a major player in pressure vessel manufacturing, yet still facing challenges in international competitiveness and innovation capabilities[39]. - The market for pressure vessel manufacturing is expected to expand due to the ongoing structural adjustments in the downstream chemical industry and the government's support for strategic emerging industries[39]. - The overall market concentration in the industry is expected to increase, with larger companies gaining more market share while smaller firms face challenges[39]. - The company has established a significant market share in the domestic special material equipment market while actively participating in international competition, successfully expanding into markets such as the USA, Canada, Germany, Australia, Chile, and Indonesia[54]. Research and Development - The company has ongoing research projects focusing on new titanium alloys and equipment, with 18 research initiatives launched during the reporting period[49]. - The company has a total of 52 patents, including 24 invention patents, enhancing its technological capabilities[49]. - The company has accumulated over 40 internationally advanced and domestically leading technologies, including advanced welding techniques for titanium, nickel, and zirconium equipment, enhancing its core competitiveness[56]. - The company has a robust R&D team and has completed several key projects, including the "Intelligent Manufacturing New Model Application for Marine Engineering Equipment and Key Components of Titanium and Titanium Alloys" project, enhancing its technological capabilities[57]. Financial Management - Operating costs rose to ¥484,608,900.65, reflecting an increase of 8.40% in line with the growth in operating revenue[66]. - Research and development investment increased by 19.52% to ¥24,085,414.47, indicating a focus on innovation and product development[67]. - The gross profit margin for the reaction containers was 19.32%, with a slight increase of 1.66% compared to the previous year[69]. - The company reported a significant reduction in sales expenses by 68.65% to ¥6,154,322.66, attributed to the reclassification of freight costs[67]. Risk Management - The company has faced various operational risks, which are detailed in the report[4]. - The company faces risks related to accounts receivable due to long payment cycles and high customer concentration, particularly in large-scale projects[86]. - Measures are being implemented to strengthen project management and enhance the collection of accounts receivable, including credit evaluations and legal actions if necessary[86]. - The company emphasizes quality control and timely delivery to mitigate risks associated with contract performance[87]. Corporate Governance and Compliance - The company has revised its internal control systems and governance structure, holding 4 board meetings and 2 shareholder meetings during the reporting period[100][101]. - The company has maintained a strong commitment to employee rights, ensuring timely payment of social insurance and benefits[107]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[97]. - The company has established a dedicated safety and environmental protection department to oversee compliance and management procedures[98]. Shareholder Information - The total number of shares remains at 202,000,000, with no changes in shareholding structure reported[146]. - The largest shareholder, Baotai Group Co., Ltd., holds 57.52% of the shares, totaling 116,200,000 shares[150]. - The second-largest shareholder, Shanxi Huaxin Haimao Trading Co., Ltd., holds 10.22% of the shares, totaling 20,650,000 shares[150].