HQHB(SZ:300929)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 305,108,400.73, representing a 5.01% increase compared to CNY 290,543,312.61 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was CNY 31,413,066.72, up by 7.99% from CNY 29,090,110.79 year-on-year[21]. - The net profit after deducting non-recurring gains and losses decreased by 14.90% to CNY 24,039,198.94 from CNY 28,248,981.60 in the previous year[21]. - The total operating revenue for the reporting period was CNY 305,108,400.73, representing a year-on-year increase of 5.01% compared to CNY 290,543,312.61 in the same period last year[39]. - The company reported a total profit for the first half of 2021 of CNY 36,644,345.55, an increase from CNY 33,586,415.18 in the same period of 2020[158]. - The company reported a net profit margin of 71.7% for the current period, indicating strong profitability despite a decrease in total income[175]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -91,964,892.07, a decline of 197.35% compared to CNY -30,927,724.59 in the same period last year[21]. - The company's total cash flow from operating activities was CNY 225,195,009.81, compared to CNY 258,267,402.43 in the previous year[165]. - The net cash flow from operating activities for the first half of 2021 was -91,964,892.07 CNY, compared to -30,927,724.59 CNY in the same period of 2020, indicating a significant decline[166]. - The ending balance of cash and cash equivalents was 299,660,682.69 CNY, up from 103,722,630.17 CNY at the end of the previous period[168]. - The company received 258,113,613.21 CNY from investment absorption, indicating strong investor confidence[167]. Assets and Liabilities - The total assets at the end of the reporting period increased by 26.43% to CNY 1,752,541,059.38 from CNY 1,386,136,647.83 at the end of the previous year[21]. - Total liabilities reached CNY 968,875,499.18, up from CNY 861,318,433.62, indicating a rise of around 12.5%[150]. - Long-term borrowings increased to CNY 376.09 million, representing 21.46% of total liabilities, up from 19.29% last year[45]. - The company's accounts receivable decreased to CNY 187,716,928.11 from CNY 231,927,978.74, indicating a reduction of about 19%[148]. - The total current liabilities slightly increased to CNY 562,044,735.89 from CNY 561,937,714.11, indicating a marginal rise of 0.2%[150]. Research and Development - Research and development expenses increased by 38.98% to CNY 9.66 million, reflecting the company's commitment to enhancing its technological capabilities[38]. - The company has established itself as a leader in the BAF technology sector, with multiple research centers and a strong focus on innovation and industry standards[33]. - The company aims to enhance its market competitiveness by focusing on urban wastewater treatment plant upgrades, rural wastewater treatment, and the remediation of polluted water bodies[34]. - The company has initiated research and development for new products aimed at improving environmental sustainability[175]. Business Operations and Strategy - The company operates in three main business areas: urban water environment governance, black and odorous water treatment, and rural water environment governance[28]. - The company aims to become a leading enterprise in the water environment governance sector by targeting wastewater treatment quality improvement and rural wastewater treatment[32]. - The company has developed the "Rapid-Move" system for black and odorous water treatment, which utilizes magnetic loading clarification technology and BAF proprietary technology[29]. - The company has a diversified product line for water treatment, including BAF core products and various customized solutions[30]. - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[175]. Shareholder and Equity Information - The actual controller holds 14.10% of the company's shares, and the dispersed shareholding structure may lead to control instability, which the company is monitoring[76]. - The company plans no cash dividends or stock bonuses for the half-year period, focusing on reinvestment strategies instead[83]. - The company completed its initial public offering on January 20, 2021, issuing 20,650,000 shares, increasing total shares from 61,933,098 to 82,583,098[124]. - The net asset value per share for the first half of 2021 decreased from 12.55 RMB to 9.42 RMB after the share issuance[125]. - The total number of shares held by the company is 82,583,098, with 22.12% being freely tradable shares[193]. Environmental and Regulatory Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[87]. - The total COD discharge is 547.5 tons per year, with a concentration of 9.3 mg/L, which meets the GB18918 standard[87]. - The company has established and operates pollution prevention facilities that have passed environmental acceptance inspections[87]. - The company has implemented an environmental self-monitoring plan in compliance with national regulations[89]. - There were no administrative penalties due to environmental issues during the reporting period[89]. Risk Management - The company faces risks that have been detailed in the report, which investors should carefully consider[5]. - The company has implemented measures to mitigate risks related to government contracts and accounts receivable collection[73]. - Future growth is influenced by macroeconomic conditions, market competition, and technological innovation in wastewater treatment, with adverse changes potentially impacting profitability[75]. Miscellaneous - The company has not made any significant changes in the measurement attributes of its main assets during the reporting period[47]. - The company has not engaged in derivative investments or entrusted loans during the reporting period[69][70]. - The half-year financial report has not been audited[96]. - The company has not reported any instances of overdue or unrecoverable funds from entrusted financial management[68].