回天新材(300041) - 2023 Q2 - 季度财报

Financial Performance - Revenue for the reporting period was 2.08 billion yuan, a 9.54% increase compared to the same period last year[23] - Net profit attributable to shareholders of the listed company was 223.38 million yuan, a 22.60% increase year-on-year[23] - Net cash flow from operating activities decreased by 17.63% to 104.83 million yuan compared to the same period last year[23] - Total assets at the end of the reporting period were 5.96 billion yuan, a slight decrease of 0.51% compared to the end of the previous year[23] - Shareholders' equity attributable to the listed company increased by 4.37% to 2.84 billion yuan[23] - Basic earnings per share decreased by 5.71% to 0.4126 yuan per share due to the dilution effect of capital reserve to share capital conversion[23] - Revenue for the first half of 2023 reached RMB 2,080.81 million, a year-on-year increase of 9.54%[55] - Net profit attributable to shareholders of the listed company was RMB 223.38 million, up 22.60% year-on-year[55] - Sales revenue in the transportation equipment manufacturing and maintenance sector increased by 56.95% year-on-year, driven by strong performance in new energy vehicles and power battery businesses[60] - Export business revenue reached RMB 324 million, a year-on-year increase of 28.57%, accounting for 15.55% of total revenue[60] - Revenue from organic silicone products reached 1.08 billion yuan, with a gross margin of 26.59%, an increase of 8.70% year-over-year[65] - Revenue from polyurethane adhesives grew by 55.35% year-over-year to 377.68 million yuan, with a gross margin of 25.41%[65] - Revenue from non-adhesive products decreased by 10.33% year-over-year to 467.59 million yuan, with a gross margin of 20.57%[65] - Revenue from the renewable energy sector increased by 3.00% year-over-year to 1.16 billion yuan, with a gross margin of 22.99%[65] - Revenue from the electronics and electrical sector grew by 3.43% year-over-year to 300.92 million yuan, with a gross margin of 39.60%[65] - Revenue from the transportation equipment manufacturing and maintenance sector surged by 56.95% year-over-year to 404.18 million yuan, with a gross margin of 28.24%[65] - Overseas revenue increased by 28.57% year-over-year to 323.66 million yuan, with a gross margin of 33.31%[65] Business Operations and Strategy - The company's main business includes the development, production, and sales of high-performance adhesives and solar cell backsheets, with applications in various industries such as new energy, electronics, and automotive[33] - The company's main products include silicone adhesives, polyurethane adhesives, anaerobic adhesives, epoxy resin adhesives, acrylic adhesives, automotive brake fluid, solar cell backsheet, fluoropolymer film, and UV adhesive[16] - The company's main products include high-performance silicone, polyurethane adhesive, lithium battery anode adhesive, acrylic adhesive, foam adhesive, UV adhesive, and three-proof paint, widely used in 5G base stations, new energy vehicles, photovoltaic inverters, and other fields[34] - The company adopts a centralized procurement strategy for key raw materials and local procurement for specific materials, leveraging economies of scale to control costs and maintain stable supply relationships with multiple suppliers[36] - The production cycle for adhesive products is typically 3 to 7 days, with production plans based on sales forecasts, customer orders, and inventory levels to ensure efficient production and timely delivery[37] - The domestic sales model includes five major sales divisions: photovoltaic, electronics, new energy vehicles, general, and consumer, combining direct sales to large customers and a first-tier distributor network[38] - The international market focuses on regions such as Southeast Asia, South Asia, the Middle East, and South Korea, employing a similar sales model of direct supply to large customers and first-tier distributors[39] - The company has established specialized R&D and marketing teams for each adhesive product category, enhancing the alignment between R&D, sales, and market needs[40] - The company operates a dual sales model, combining direct industrial sales and distributor networks, with specialized teams for key sectors[53] - The company plans to focus on import substitution and industry consolidation opportunities, enhance independent innovation, and develop high-end products to mitigate risks from downstream industry fluctuations[101] Research and Development - R&D investment in the first half of 2023 was RMB 79.42 million, a year-on-year increase of 28.74%[63] - The company obtained 13 authorized invention patents and filed 17 new invention patent applications during the reporting period[61] - The company holds 185 patents, including 142 invention patents, with an average R&D investment of 4.67% of revenue over the past three years[50] - The company has replaced imported products in multiple fields, with increasing market share and strong brand recognition[52] - Strategic partnerships with key clients like CATL, BYD, and Trina Solar have strengthened its position in emerging industries[52] Environmental and Social Responsibility - The company's chemical oxygen demand (COD) emissions at the main plant's northeast wastewater discharge outlet were 180.67 mg/L, well below the standard limit of 500 mg/L, with a total emission of 1.36 tons[119] - The company's volatile organic compounds (VOCs) emissions were 2.7 mg/m³, significantly lower than the standard limit of 80 mg/Nm³, with a total emission of 1.68 tons[119] - The company's ammonia nitrogen emissions at the main plant's northeast wastewater discharge outlet were 2.51 mg/L, far below the standard limit of 45 mg/L, with a total emission of 0.013 tons[119] - The company's suspended solids emissions at the main plant's northeast wastewater discharge outlet were 396.00 mg/L, just under the standard limit of 400 mg/L, with a total emission of 0.27 tons[119] - The company's PH value at the main plant's northeast wastewater discharge outlet was 7.22, within the standard range of 6-9[119] - The company's particulate matter emissions at various workshop exhaust outlets ranged from 2.0 mg/m³ to 10.7 mg/m³, all below the standard limit of 120 mg/Nm³, with a total emission of 0.78 tons[119] - The company's chemical oxygen demand (COD) emissions at Yicheng plant's northeast wastewater discharge outlet were 260 mg/L, below the standard limit of 500 mg/L, with a total emission of 2.34 tons[119] - The company's ammonia nitrogen emissions at Yicheng plant's northeast wastewater discharge outlet were 7.12 mg/L, well below the standard limit of 45 mg/L, with a total emission of 0.048 tons[119] - The company strictly complies with environmental protection laws and regulations, including the Environmental Protection Law, Air Pollution Prevention and Control Law, and Water Pollution Prevention and Control Law[121] - The company holds valid排污许可证 (Pollutant Discharge Permits) for all its plants, with the main plant's permit valid until August 19, 2023[121] - Environmental governance and protection investment amounted to 2.1414 million yuan, with environmental protection tax paid at 225.06 yuan[126] - The company and its subsidiaries strictly comply with national and local environmental protection laws and regulations, with no violations[127] - The company conducts annual environmental monitoring through qualified third-party agencies[124] - The company has formulated emergency plans for environmental incidents and conducts regular drills[125] - The company focuses on reducing energy and raw material consumption and promoting clean production processes[126] - The company has passed ISO14001 environmental management system certification and occupational health and safety management system certification[126] - The company provides comprehensive employee benefits, including social insurance, housing fund, and additional insurance for high-risk positions[131] Risk Factors - The company faces risks such as macroeconomic fluctuations, downstream industry cyclical changes, raw material price fluctuations, and intensified market competition[4] - The company faces risks from macroeconomic fluctuations and downstream industry cyclical changes, particularly in industries like photovoltaic new energy, automotive, electronics, and rail transportation[100] - Raw material price fluctuations, particularly for 107 silicone rubber, pose a risk to production costs and budget control[102] - The adhesive industry is highly competitive, with domestic and international players vying for market share, but the company has advanced technology in certain segments and aims to increase market competitiveness[103] - Financial risks include increased accounts receivable and inventory balances, which could impact cash flow and working capital, especially with ongoing capacity expansion projects[105] Corporate Governance and Shareholder Information - The company's stock is listed on the Shenzhen Stock Exchange with the stock code 300041[18] - The company's legal representative is Zhang Li[18] - The company's registered office and mailing address are located at No. 1 Guanyu Road, High-tech Zone, Xiangyang City, Hubei Province[19] - The company's contact information, including phone, fax, and email, remained unchanged during the reporting period[20] - The company's information disclosure and placement locations remained unchanged during the reporting period[21] - The company's registration status remained unchanged during the reporting period[22] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[5] - The company implemented a 2022 annual equity distribution plan, distributing cash dividends of 64.2651 million yuan and issuing 3 additional shares per 10 shares[129] - The company emphasizes the protection of shareholder rights and maintains good communication channels with investors[129] - The second phase of the employee stock ownership plan involved 268 employees, holding a total of 3,394,832 shares, accounting for 0.61% of the company's total share capital[111] - The third phase of the employee stock ownership plan involved 305 employees, holding a total of 18,684,724 shares, accounting for 3.34% of the company's total share capital[112] - The company's chairman and general manager, Zhang Li, held 378,625 shares at the end of the reporting period, accounting for 0.07% of the company's total share capital[112] - The company's vice president, Wang Zhengye, held 378,625 shares at the end of the reporting period, accounting for 0.07% of the company's total share capital[112] - The company's vice president, Shi Xiangqiao, held 230,100 shares at the end of the reporting period, accounting for 0.04% of the company's total share capital[112] - The company's vice president, Leng Jinzhou, held 313,625 shares at the end of the reporting period, accounting for 0.06% of the company's total share capital[112] - The company's vice president, Zhao Yonggang, held 313,625 shares at the end of the reporting period, accounting for 0.06% of the company's total share capital[112] - The company's vice president, Shi Xuelin, held 313,625 shares at the end of the reporting period, accounting for 0.06% of the company's total share capital[112] - The company's vice president, Han Lin, held 313,625 shares at the end of the reporting period, accounting for 0.06% of the company's total share capital[112] - The company's financial director, Shi Changyin, held 214,500 shares at the end of the reporting period, accounting for 0.04% of the company's total share capital[112] Investments and Capital Expenditures - Investment in the reporting period surged by 128.70% to 329.12 million yuan compared to the same period last year[75] - The company invested CNY 22.18 million in the modified environmentally friendly adhesive relocation project, with a cumulative investment of CNY 308.07 million, achieving 98% of the planned progress[77] - The Guangzhou Communications Electronics New Materials Expansion Project received an investment of CNY 67.31 million, with a cumulative investment of CNY 339.00 million, reaching 90% of the planned progress[77] - The Yicheng Lithium Battery Project saw an investment of CNY 30.02 million, with a cumulative investment of CNY 57.70 million, achieving 30% of the planned progress[77] - The company invested CNY 16.13 million in the Huishen New Energy Materials Industrial Park Project, with a cumulative investment of CNY 16.13 million, reaching 5% of the planned progress[77] - The total investment in fixed assets for the reporting period was CNY 135.65 million, with a cumulative investment of CNY 720.90 million[78] - The company's financial assets measured at fair value showed a loss of CNY 2.99 million, with a total ending balance of CNY 65.75 million[81] - The total raised funds amounted to CNY 850 million, with CNY 215.05 million invested during the reporting period and a cumulative investment of CNY 527.25 million[83] - The Guangzhou Communications Electronics New Materials Expansion Project is expected to reach the usable state by December 31, 2023, with a current investment progress of 79.15%[85] - The 51,000-ton lithium battery electrode adhesive project has an investment progress of 15.20% and is expected to be completed by May 31, 2025[85] - The supplementary working capital project has been fully invested, with a total investment of CNY 244.18 million[85] - The company completed the replacement of self-raised funds with raised funds for pre-invested projects and paid issuance costs by December 31, 2022[87] - The first phase of the 51,000-ton lithium battery electrode adhesive project (15,000-ton lithium battery negative electrode adhesive) was completed and officially put into production in June 2023[87] - The company's entrusted wealth management using raised funds amounted to 6,500 million yuan, with an outstanding balance of 1,500 million yuan[90] - The company's total derivative investment for hedging purposes was 155.2314 million yuan, with a fair value change loss of 2.9391 million yuan[93] - The company's foreign exchange derivative transactions resulted in a loss of 1.2401 million yuan for settled transactions and a fair value change loss of 2.9391 million yuan for unsettled transactions[93] - The company's derivative investments accounted for 2.30% of the net assets at the end of the reporting period[93] - The company's foreign exchange derivative transactions are aimed at hedging against exchange rate and interest rate fluctuations, with a focus on simple and low-risk instruments[94] - The company has established a comprehensive risk management system for derivative investments, including strict approval processes and regular reporting to the board of directors[94] - The company's independent directors approved the foreign exchange derivative transactions, stating they are necessary for risk management and in the interest of shareholders[94] - The company did not engage in any speculative derivative investments during the reporting period[95] Subsidiaries and Affiliates - The company's subsidiaries include Shanghai Huitian, Guangzhou Huitian, Changzhou Huitian, Wuhan Huitian, Huitian Automotive, Nanbei Che, Yicheng Huitian, Huitian Rongsheng, Anhui Huitian, Hefei Huitian, Huitian Automotive Service, Rongsheng Power, Huitian Power Technology, Rongsheng New Materials, Botian Power, Huitian Lithium Battery New Materials, Vietnam Yueyou, Huitian Japan, Shanghai Juche, Shenyang Meixing, and Guoyi Huitian Fund[16] - Shanghai Huitian New Materials Co., Ltd. achieved a year-on-year revenue growth of 26.85% in the reporting period, driven by an increase in revenue scale[99] - The company's subsidiary, Hubei Huitian Lithium Battery New Materials Technology Co., Ltd., is eligible for a reduced VAT rate of 1% on taxable sales income with a 3% levy rate from January 1, 2023, to December 31, 2023[159] - The company's subsidiaries, Changzhou Huitian New Materials Co., Ltd. and Guangzhou Huitian New Materials Co., Ltd., were re-certified as high-tech enterprises and are subject to a 15% income tax rate in 2023[160] Industry Trends and Market Position - The domestic adhesive industry is experiencing rapid development, with product performance improving and domestic products gradually replacing imports in mid-to-high-end markets[41] - Emerging markets drive expansion of adhesive applications, with strong demand from 5G, new energy vehicles, and aerospace industries[42] - Environmental regulations push for eco-friendly adhesives, favoring water-based, UV-cured, and biodegradable products[43] - Industry consolidation accelerates as small, low-tech producers exit, while leading companies expand R&D and production capabilities[44] - The company is a leader in China's engineering adhesive market, with the largest product range and extensive application fields[46] - Annual production capacity includes 160,000 tons of silicone adhesives, 50,000 tons of polyurethane adhesives, and 120 million square meters of solar backsheets[51] Financial Instruments and Accounting Policies - The company's bank acceptance bills increased to 475,139,454.41 yuan from 354,029,390.97 yuan at the beginning of the period[151] - Commercial acceptance bills rose to 316,981,683.46 yuan from 244,117,889.10 yuan[151] - The total value of financial assets, including bank and commercial acceptance bills and letters of credit, reached 792,313,982.67 yuan, up from 605,479,178.00 yuan[151] - The company uses the expected cumulative benefit unit method to allocate benefit obligations to employee service periods[132] - The company measures the net liability or asset of defined benefit plans by subtracting the fair value of plan assets from the present value of plan obligations[132] - The company recognizes revenue when the customer obtains control of the goods or services, considering factors such as present payment obligations and legal ownership transfer[137][138] - The company processes policy-based preferential loan interest subsidies by either reducing related borrowing costs or using the actual loan amount received[140][141] - The company classifies perpetual bonds or preferred shares as equity instruments if they do not meet specific conditions[136] - The company uses the lease's implicit interest rate or incremental borrowing rate as the discount rate for lease liabilities[145] - The company measures loss provisions for lease receivables based on expected credit losses over the entire duration[152] - The company's commercial acceptance bills increased from RMB 12,848,309.96 at the beginning of the period to RMB 16