Jihua Group disclosed its interim report on August 25, 2021. The company achieved total operating income of 1.16 billion in the first half of 2021, a year-on-year increase of 54.7%; net profit attributable to the parent company was 140 million, a year-on-year increase of 76.9%; earnings per share were 0.2 yuan.
The expense rate dropped by 3.8% during the period, and the cost control effect was significant. Operating costs have increased significantly, and operating cash flow has dropped significantly by 201.2%
The company’s operating costs for the first half of 2021 were 920 million, a year-on-year increase of 68.5%, higher than the 54.7% growth rate of operating income. This resulted in a 6.5% drop in gross profit margin. The expense ratio during the period was 14.3%, down 3.8% from last year, and the cost control effect was significant.
Operating cash flow dropped from 57.225 million to -57.89 million, a year-on-year decrease of 201.2%. The company’s R&D investment has increased significantly, with an increase of 25.6% compared to the same period last year to 46.019 million.
This issue’s “Dye and Intermediate Series Products” revenue contribution is relatively large
From the perspective of business structure, “dyes and intermediate products” are the main source of the company’s operating income. Specifically, the operating income of “Dye and Intermediate Series Products” was 1.02 billion, accounting for 89.1% of the revenue, and the gross profit margin was 21.2%.
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