SHANSHUI TECH.(SZ:301190)2022-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 246,368,928.40, representing a 4.86% increase compared to CNY 234,950,502.83 in the same period last year[30]. - The net profit attributable to shareholders was CNY 69,249,315.93, a significant increase of 39.42% from CNY 49,668,957.69 year-on-year[30]. - The net cash flow from operating activities reached CNY 91,486,382.80, marking a 72.86% increase compared to CNY 52,924,172.58 in the previous year[30]. - The basic earnings per share rose to CNY 0.3226, up 4.57% from CNY 0.3085 in the same period last year[30]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 58,262,539.93, which is a 24.28% increase from CNY 46,878,245.94 year-on-year[30]. - The company's operating costs decreased by 3.17%, amounting to CNY 149,407,658.98, down from CNY 154,302,958.50 in the previous year[56]. - The company achieved a significant increase in cash flow from operating activities, which rose by 72.86% to CNY 91,486,382.80, attributed to higher sales revenue and cash received from services[56]. - The company reported a significant increase in non-operating income, which rose by 4,446.93% to CNY 10,150,200.32, primarily due to government subsidies received during the reporting period[57]. Market and Competitive Position - The company is engaged in the research, production, and sales of dye intermediates, pesticides, and pharmaceutical intermediates, indicating a focus on the fine chemical industry[38]. - The fine chemical market is expected to maintain a high growth trend due to increasing demand for new materials and sustainable development practices[38]. - The core product 6-nitro compound has a market capacity of approximately 35,000 tons, with the company holding a market share of about 30%[46]. - The average selling price of related products during the reporting period was higher than the same period last year, contributing to the revenue growth despite the pandemic's impact[45]. - The company's market share in the dye intermediate sector remains strong, maintaining a leading position due to stable product quality and excellent customer service[52]. Research and Development - The company has developed a core technology system for products like 6-nitro and 5-nitro intermediates, but must keep pace with market demands to maintain its competitive edge[9]. - The company has implemented measures to protect its intellectual property, but risks of technology leakage still exist, which could harm business performance[10]. - The company has developed three core technology platforms that enhance product quality while reducing costs, leading to a competitive advantage in niche markets[44]. - Research and development expenses increased by 37.84% to CNY 10,762,741.73, driven by increased costs associated with university-enterprise cooperation projects[56]. - The company is focused on R&D in fine chemicals, particularly in 6-nitro and 5-nitro products[82]. Environmental and Safety Measures - The company emphasizes environmental protection and has invested in facilities to manage waste, but increasing environmental regulations may raise costs and affect performance[6]. - The company has implemented a comprehensive hazardous waste management plan, with a total of 389.8 tons of waste processed[94]. - The wastewater treatment plant achieved a chemical oxygen demand (COD) concentration of 58.5 mg/L, well below the standard limit of 500 mg/L[94]. - The company has established wastewater treatment facilities and air pollution control facilities, all operating normally to ensure compliance with pollutant discharge standards[99]. - The company has established a self-built wastewater treatment facility at the Qishan Industrial Park, ensuring compliance with environmental regulations[94]. - The company has taken measures to reduce carbon emissions, including energy-saving training for employees and implementing energy-saving modifications, resulting in reduced energy consumption and lower pollutant emissions[106]. - The company has established a dedicated safety and environmental protection department to oversee compliance with safety production laws and regulations[109]. - The company has implemented a standardized safety production management system and has passed the ISO 45001:2018 certification[110]. Corporate Governance and Shareholder Matters - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[11]. - The company held its first extraordinary general meeting of 2022 on February 18, with an investor participation ratio of 58.97%[87]. - The company appointed a new independent director, Wang Zhigang, on March 25, 2022, following the resignation of Yi Youru[89]. - The company did not implement any equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[91]. - The total number of shares before the change was 163,744,913, with a post-change total of 160,976,500, reflecting a decrease of 2,768,413 shares[137]. - The overall shareholding structure remains stable, with no new major shareholders entering the market[138]. - The total number of common shareholders at the end of the reporting period is 23,092[142]. - The largest shareholder, Huang Guorong, holds 18.64% of the shares, amounting to 40,000,000 shares[142]. Operational Challenges - The ongoing COVID-19 pandemic presents uncertainties for the company's operations, potentially affecting production and logistics[8]. - The company has faced price fluctuations in its dye intermediates, pesticides, and pharmaceutical intermediates due to raw material costs and market competition, impacting revenue significantly if adverse changes occur[4]. - The company aims to strengthen its core competitiveness in response to external challenges such as the COVID-19 pandemic and the Russia-Ukraine conflict[38]. - The company is actively managing risks related to COVID-19 that may affect operations and supply chains[81]. Financial Position and Assets - Total assets at the end of the reporting period were CNY 2,266,559,258.10, reflecting a 2.07% increase from CNY 2,220,602,138.72 at the end of the previous year[30]. - The total liabilities increased to CNY 254,329,668.69 from CNY 245,976,239.79, reflecting a growth of about 3.5%[157]. - The company's equity attributable to shareholders reached CNY 2,012,229,589.41, up from CNY 1,974,625,898.93, indicating an increase of approximately 1.9%[157]. - The total amount of funds raised was ¥1,383.97 million, with ¥3.15 million invested during the reporting period[65]. - The company has committed to a project with a total investment of ¥126.03 million, which is expected to be completed by December 31, 2023[67].