HONGHUI(002802)2024-08-28 07:44Company Overview - The company's stock is listed on the Shenzhen Stock Exchange with the stock code 002802[5] - The company's legal representative is Chen Tian[5] - The company's registered and office addresses, as well as contact information, remained unchanged during the reporting period[7] - The company's semi-annual report is available on the designated media and the Shenzhen Stock Exchange website, with no changes in the disclosure and placement locations[8] - The company's subsidiaries include Hongsong (Shanghai) Technology Co., Ltd., Honghui (Hainan) Technology Co., Ltd., and Honghui New Materials (Hong Kong) Co., Ltd.[4] - The company is a leading enterprise in the special vinyl chloride copolymer industry and one of the few companies globally capable of water-based application of special vinyl chloride copolymers[14] - The company has been continuously recognized as a high-tech enterprise in Jiangsu Province since 2009 and was designated as a 2022 Jiangsu Province Specialized and Sophisticated SME[21] - The company's R&D center is recognized as a provincial enterprise technology center and a provincial engineering technology research center[21] - The company's products are exported to over 50 countries and regions, with a stable long-term customer base both domestically and internationally[20] - The company employs a "production based on sales" model with appropriate stock for conventional products, and its sales are divided into domestic and international markets[20] - The company uses a "technical R&D to assist sales" mechanism to help downstream customers solve product formulation and production process issues[20] - The company is committed to technological innovation and the development of green and environmentally friendly chemical materials, with over 20 years of experience in safety, environmental protection, production control, and market expansion[22] Financial Performance - Revenue for the reporting period increased by 16.18% to RMB 209,873,461.01 compared to the same period last year[10] - Net profit attributable to shareholders of the listed company increased by 2.82% to RMB 27,066,054.16[10] - Net cash flow from operating activities decreased by 70.11% to RMB 13,043,911.83[10] - Basic earnings per share increased by 7.14% to RMB 0.15[10] - Total assets increased by 1.04% to RMB 728,746,566.97 compared to the end of the previous year[10] - Non-recurring gains and losses amounted to RMB 3,530,297.23, including government subsidies of RMB 306,783.43 and financial asset gains of RMB 3,784,143.24[12][13] - Revenue for the reporting period increased by 16.18% to 209,873,461.01 yuan compared to the same period last year[25] - Operating costs rose by 20.71% to 146,665,921.83 yuan year-over-year[25] - Sales expenses surged by 47.19% to 4,841,262.94 yuan due to increased market promotion costs[25] - Net cash flow from operating activities decreased by 70.11% to 13,043,911.83 yuan, primarily due to reduced cash received from sales and increased cash paid for goods and services[25] - Net cash flow from investing activities increased by 143.87% to 59,221,445.18 yuan, mainly due to higher cash received from investment recoveries[25] - Net cash flow from financing activities improved by 68.29% to -26,915,261.12 yuan, driven by reduced cash payments for dividends and interest[25] - Net increase in cash and cash equivalents was 46,270,250.02 yuan, a 375.79% increase, largely due to higher net cash flow from investing and financing activities[25] - Total revenue increased by 16.18% to 209,873,461.01 RMB, with domestic sales growing by 27.34% to 139,715,551.12 RMB[26] - Revenue from water-based emulsions (resins) surged by 495.84% to 56,548,182.95 RMB, while chlorinated vinyl resin revenue decreased by 10.54% to 153,054,448.04 RMB[26] - Gross profit margin for water-based emulsions (resins) improved by 29.27% to 24.84%, whereas the margin for chlorinated vinyl resin declined by 2.85% to 31.96%[26] - Export sales slightly decreased by 1.10% to 70,157,909.89 RMB, with a gross margin of 40.08%[26] - Monetary funds increased by 6.26% to 105,760,186.89 RMB, accounting for 14.51% of total assets[29] - Accounts receivable rose by 4.93% to 95,098,305.07 RMB, representing 13.05% of total assets[29] - Investment income from financial management reached 2,378,414.74 RMB, contributing 7.67% to total profit[28] - Fair value changes from financial assets amounted to 1,405,728.50 RMB, accounting for 4.53% of total profit[28] - Credit impairment losses were -1,923,044.36 RMB, representing -6.20% of total profit[28] - Restricted assets, primarily in the form of endorsed bills, totaled 17,615,363.03 RMB[32] - Total revenue for the first half of 2024 reached 209.87 million yuan, a 16.2% increase compared to 180.65 million yuan in the same period of 2023[103] - Operating profit for the first half of 2024 was 31.04 million yuan, slightly higher than the 30.45 million yuan in the same period of 2023[103] - Net profit attributable to the parent company for the first half of 2024 was 27.07 million yuan, up 2.8% from 26.32 million yuan in the same period of 2023[104] - Basic earnings per share for the first half of 2024 were 0.15 yuan, compared to 0.14 yuan in the same period of 2023[104] - Total liabilities as of the end of the first half of 2024 were 104.63 million yuan, a significant increase from 54.18 million yuan at the end of the same period in 2023[101] - Total owner's equity as of the end of the first half of 2024 was 636.40 million yuan, a decrease from 677.58 million yuan at the end of the same period in 2023[101] - R&D expenses for the first half of 2024 were 12.09 million yuan, slightly lower than the 12.23 million yuan in the same period of 2023[103] - Sales expenses for the first half of 2024 increased to 4.84 million yuan, up 47.2% from 3.29 million yuan in the same period of 2023[103] - Accounts payable decreased to 11.72 million yuan as of the end of the first half of 2024, down from 15.12 million yuan at the end of the same period in 2023[101] - Other payables increased significantly to 44.88 million yuan as of the end of the first half of 2024, compared to 68,000 yuan at the end of the same period in 2023[101] - Operating profit for the first half of 2024 was RMB 32.35 million, a slight increase from RMB 31.72 million in the same period last year[106] - Net profit for the first half of 2024 was RMB 28.38 million, up from RMB 27.59 million in the same period last year[106] - Operating cash flow for the first half of 2024 was RMB 13.04 million, a significant decrease from RMB 43.64 million in the same period last year[108] - Investment cash flow for the first half of 2024 was RMB 59.22 million, more than double the RMB 24.28 million in the same period last year[109] - R&D expenses for the first half of 2024 were RMB 12.07 million, a slight increase from RMB 11.85 million in the same period last year[106] - Sales revenue from goods and services for the first half of 2024 was RMB 145.96 million, down from RMB 156.85 million in the same period last year[108] - Cash and cash equivalents at the end of the first half of 2024 were RMB 105.76 million, up from RMB 49.75 million at the end of the same period last year[109] - Total comprehensive income for the first half of 2024 was RMB 28.38 million, slightly higher than RMB 27.59 million in the same period last year[107] - Income tax expense for the first half of 2024 was RMB 3.95 million, similar to RMB 3.93 million in the same period last year[106] - Cash received from investment returns for the first half of 2024 was RMB 3.76 million, down from RMB 4.14 million in the same period last year[108] - Operating cash flow decreased to RMB 14.77 million in H1 2024 from RMB 44.29 million in H1 2023, a decline of 66.6%[110] - Sales revenue from goods and services dropped to RMB 145.96 million in H1 2024 from RMB 156.89 million in H1 2023, a decrease of 7%[110] - Investment cash inflow increased to RMB 453.91 million in H1 2024 from RMB 429.16 million in H1 2023, up by 5.8%[111] - Net cash flow from investment activities rose to RMB 59.22 million in H1 2024 from RMB 24.13 million in H1 2023, an increase of 145.5%[111] - Cash and cash equivalents at the end of the period stood at RMB 99.69 million, up from RMB 41.44 million in H1 2023, a 140.6% increase[111] - Comprehensive income for the period was RMB 27.07 million, contributing to the increase in owner's equity[113] - Total owner's equity at the end of the period was RMB 623.15 million, down from RMB 665.64 million at the beginning of the period, a decrease of 6.4%[114] - The company allocated RMB 44.81 million for profit distribution to owners (or shareholders)[113] - Special reserves increased by RMB 706,787.76 during the period, reflecting additional provisions for specific purposes[114] - The company's total comprehensive income for the first half of 2024 was RMB 26,324,276.85[116] - The company's capital reserve increased by RMB 1,457,072.40 during the first half of 2024[115] - The company's undistributed profit decreased by RMB 57,815,103.15 in the first half of 2024[115] - The company's total equity at the end of the first half of 2024 was RMB 640,674,700.18[117] - The company's capital reserve at the end of the first half of 2024 was RMB 152,846,222.62[117] - The company's total equity at the beginning of 2024 was RMB 690,257,634.42[115] - The company's total equity decreased by RMB 49,582,934.24 in the first half of 2024[115] - The company's total comprehensive income for the first half of 2024 was RMB 28,376,557.73[118] - The company's undistributed profit decreased by RMB 16,436,688.77 in the first half of 2024[118] - The company's total equity decreased by RMB 41,180,965.90 in the first half of 2024[118] - The company's total share capital as of June 30, 2024, is RMB 182,301,990.00[122] - The company's comprehensive income for the period is RMB 27,591,410.00[120] - The company allocated RMB 84,139,380.00 for distribution to shareholders[120] - The company's capital reserve decreased by RMB 37,931,713.49 during the period[120] - The company's special reserve increased by RMB 1,457,072.40 during the period[121] - The company's undistributed profit decreased by RMB 56,547,969.45 during the period[120] - The company's total equity decreased by RMB 48,315,800.54 during the period[120] - The company's capital reserve was reduced by RMB 42,069,690.00 due to capital conversion[121] - The company's special reserve usage for the period was RMB 927,856.92[121] Products and Market - The company's main products include special vinyl chloride copolymers, binary series, carboxyl ternary series, and hydroxyl ternary series[4] - Main products include vinyl chloride-vinyl acetate copolymer resins and vinyl chloride copolymer emulsions, widely used in inks, coatings, adhesives, and plastic processing[15][17] - The company's main products, including binary vinyl chloride-vinyl acetate copolymer resin, carboxyl-containing vinyl ternary copolymer resin, hydroxyl-containing vinyl ternary copolymer resin, and water-based copolymer emulsion, were recognized as "2024 Wuxi High-Tech Products (Services)" by the Wuxi Science and Technology Bureau[21] - The company's main products include vinyl binary copolymer resin, carboxyl-containing vinyl ternary copolymer resin, hydroxyl-containing vinyl ternary copolymer resin, and vinyl chloride copolymer emulsion[123] - The company's upstream raw materials include vinyl chloride monomer (VCM) and vinyl acetate (VAc), which are subject to market price fluctuations[16] - The development of the company's products is closely related to downstream industries such as food, pharmaceuticals, printing, and automotive[16] - The company's main raw materials, including VCM, VAc, hydroxypropyl acrylate, and maleic acid, have obtained EU REACH registration[21] - The company's main raw materials include VCM, VAc, and epoxy resin, which are downstream products of the petrochemical industry. Price fluctuations of these materials are influenced by oil prices, market supply and demand, transportation, and production processes, impacting the company's operating costs and profit levels[37] - The company's export business is primarily settled in USD, with a small portion in EUR. Fluctuations in RMB exchange rates could affect the company's profitability. The company will adjust product prices and shorten the collection cycle for export business to mitigate the impact of exchange rate fluctuations[37] - The company exports to over 50 countries and regions, including India, Italy, South Korea, Thailand, Germany, the USA, the Netherlands, and South Africa. Political instability or policy changes in these regions could affect demand for the company's products[38] - The company's products are recognized and used by international clients such as Akzo Nobel, PPG, and Sherwin Williams, enhancing its global brand value[23] Risks and Challenges - The company did not distribute cash dividends, issue bonus shares, or convert capital reserve into share capital during the reporting period[1] - The company faces risks such as fluctuations in raw material prices, market policy risks, and safety and environmental risks[1] - The company is a fine chemical manufacturer, and some of its raw materials are flammable and explosive, requiring special storage and transportation conditions. The company has implemented advanced production systems and strict internal management to ensure safety and environmental compliance[38] - The company is recognized as a high-tech enterprise in Jiangsu Province, enjoying a 15% corporate income tax preferential rate (2021-2023). If the company fails to maintain this status or if tax policies change, it could adversely affect the company's performance[38] - The company's accounts receivable have increased with the expansion of its product market. While the current level of accounts receivable is reasonable, there is a risk of bad debts due to market conditions, economic policies, or customer financial situations[38] Environmental and Safety Compliance - The company adheres to environmental protection laws and standards, including the "Synthetic Resin Industrial Pollutant Emission Standard" (GB31572-2015) and "Air Pollutant Comprehensive Emission Standard" (DB32/4041-2021)[46] - The company's 100,000-ton vinyl chloride-vinyl acetate copolymer resin project received environmental approval in 2011 and passed environmental acceptance in 2014[47] - The company's 60,000-ton water-based industrial coating base material project received environmental approval in 2012 and passed environmental acceptance in 2019[47] - The company's new material R&D center project received environmental approval in 2012 and passed environmental acceptance in 2019[47] - The company's pollutant emissions include volatile organic compounds (VOCs) at 60mg/Nm³, with a total annual emission of 34.276 tons, meeting regulatory standards[47] - The company's vinyl chloride emissions are 36mg/Nm³, with a total annual emission of 8.672 tons, within the permitted limits[48] - The company's particulate matter emissions are 20mg/Nm³, with a total annual emission of 17.424 tons, compliant with standards[48] - The company's methanol emissions are 190mg/Nm³, with a total annual emission of 0.58 tons per year, meeting regulatory requirements[48] - The company invested a total of 4.2232 million yuan in environmental governance and protection, including environmental protection taxes during the reporting period[50] - The company reduced carbon dioxide emissions by approximately 300 tons through energy-saving measures, including the use of variable frequency motors and LED lighting[50] - The company's COD (Chemical Oxygen Demand) emissions were 11.83 tons, with an annual emission of 33.827 tons, complying with the national wastewater discharge standards[49] - Volatile organic compounds (VOCs) emissions from the new wastewater treatment plant were 0.575 tons, with an annual emission of 1.893 tons[49] - The company recycled and reused energy and raw materials, including steam condensate and methanol, to minimize waste and improve efficiency[50] - The company implemented an environmental emergency response plan, which was filed with the local environmental supervision department in March 2022[50] - The company replaced traditional diesel forklifts with electric forklifts to reduce diesel consumption and lower emissions[50] - The company conducted regular environmental monitoring, including water, air, and noise, through third-party testing agencies to ensure compliance with standards[50] - The company achieved zero environmental penalties during the reporting period, demonstrating effective environmental management[50] - The company improved reaction efficiency for certain product models and implemented energy-saving measures to