Feilu(SZ:300665)2020-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥183,582,620.15, representing a 7.44% increase compared to ¥170,871,801.40 in the same period last year[19]. - The net profit attributable to shareholders decreased by 61.58% to ¥1,731,155.67 from ¥4,505,426.36 year-on-year[19]. - The net profit after deducting non-recurring gains and losses fell by 85.93% to ¥529,855.23 compared to ¥3,766,099.29 in the previous year[19]. - The net cash flow from operating activities was negative at -¥50,723,302.59, worsening by 38.67% from -¥36,578,117.80 in the same period last year[19]. - Basic earnings per share decreased by 61.73% to ¥0.0142 from ¥0.0371 year-on-year[19]. - Total assets increased by 24.74% to ¥1,262,806,749.27 from ¥1,012,349,829.12 at the end of the previous year[19]. - The net assets attributable to shareholders rose by 10.22% to ¥498,998,374.70 from ¥452,728,891.78 at the end of the previous year[19]. - The weighted average return on net assets decreased to 0.38% from 1.02% year-on-year[19]. - The overall gross profit margin decreased by 3.39%, but the gross profit margins for key products such as anti-corrosion coatings and waterproof membranes increased, with the latter rising by 4.82%[64]. - The net profit for the period was 140.73 million yuan, a decrease of 337.51 million yuan year-on-year[64]. Research and Development - The company adopts a dual-track R&D model focusing on customized solutions based on customer needs and innovative development for market demands, emphasizing lightweight, environmentally friendly, and functional new materials[28]. - Research and development expenses decreased by 13.39% to 5,539,996.41 yuan, reflecting a reduction in R&D investment during the period[64]. - The company holds 36 intellectual property rights, including 23 authorized invention patents, indicating a strong focus on technological innovation[43]. - The company has developed water-based coatings for high-end rail vehicles, achieving qualification for use in major manufacturers like Qingdao Sifang and Nanjing Puzhen[44]. - New product developments include anti-icing coatings and odorless elastic putty, which have been successfully tested and are expected to address health concerns in construction[45]. Market and Industry Trends - The cumulative operational railway mileage in China has reached 140,000 kilometers, with high-speed railway mileage at 35,000 kilometers, ranking first globally[33]. - National railway fixed asset investment completed was 325.8 billion yuan, a year-on-year increase of 1.2%, with new railway lines opened totaling 1,178 kilometers, including 605 kilometers of high-speed rail[34]. - The wind power investment amount reached 85.4 billion yuan, showing a year-on-year growth of 152.2%, with newly added wind power generation capacity of 6.32 million kilowatts[35]. - The average annual growth rate of major waterproof materials production is expected to remain above 6% during the 13th Five-Year Plan period, with total production projected to reach 2.3 billion square meters by 2020[34]. - The Chinese paint industry has seen a compound annual growth rate of 10.89% over the past decade, with a total paint sales volume of 55.34 million tons in 2019[36]. Business Strategy - The company specializes in the research, production, sales, and service of anti-corrosion and protective materials for metal, non-metal, and concrete surfaces, focusing on sectors such as rail transit and civil construction[26]. - The sales model includes direct sales, integrated coating services, and construction services, primarily targeting the rail transit and civil construction markets[31]. - The company aims to expand into the building waterproofing market while maintaining its existing business in the rail transit sector[34]. - The company is positioned to benefit from the increasing demand for maintenance services in the rail transit sector due to the rapid expansion of rail infrastructure[34]. - The company has established strategic supply cooperation with major real estate developers, securing contracts worth 151.84 million RMB with China Resources Land and 16.82 million RMB with Guangzhou Meilin[60]. Financial Management - Cash and cash equivalents grew by 83.17% year-on-year, primarily due to the issuance of convertible bonds raising 177 million yuan[42]. - Cash flow from financing activities increased significantly by 710.72% to 236,441,272.20 yuan, primarily due to the proceeds from the issuance of convertible bonds[64]. - The company's debt-to-asset ratio increased to 60.15% from 47.08%, a change of 13.07% attributed to the issuance of convertible bonds[170]. - EBITDA interest coverage ratio decreased to 2.34 from 3.16, a decline of 81.61% due to a decrease in total profit[171]. - The company maintained a loan repayment rate and interest repayment rate of 100%[171]. Environmental and Social Responsibility - The company has implemented a clean production and low-carbon development approach, including the transition from fuel oil boilers to natural gas boilers[142]. - The company has established an emergency response plan for sudden environmental incidents, filed with the local environmental bureau[142]. - The company provided job opportunities for 96 disabled individuals in the first half of 2020, enhancing their employment capabilities[145]. - The company invested a total of 1.4116 million yuan in poverty alleviation efforts during the reporting period[146]. - The company is committed to social responsibility and aims to create a better community through its initiatives[148]. Corporate Governance - The company has not undergone any bankruptcy reorganization during the reporting period[115]. - There are no significant litigation or arbitration matters during the reporting period[116]. - The company has implemented an employee stock ownership plan, granting 1.47 million restricted shares at a price of 5.92 CNY per share to 34 incentive targets[121]. - The company has not faced any penalties or rectification issues during the reporting period[118]. - The half-year financial report has not been audited[113].