奥普家居(603551) - 2024 Q2 - 季度财报

Definitions Definitions of Common Terms This section defines key terms used in the report, including the company's name change to AUPU Intelligent Technology, controlling shareholders, actual controllers, major subsidiaries, and business models like ODM, OEM, O2O, and KA, with the reporting period from January 1 to June 30, 2024 - The company's name changed from AUPU Home Technology Co., Ltd. to AUPU Intelligent Technology Corporation Limited in June 2024[10] - The controlling shareholder is Tricosco Limited, and the actual controllers are Fang James and Fang Shengkang[10] - The reporting period refers to January 1, 2024, to June 30, 2024[10] Company Profile and Key Financial Indicators Company Information This section provides the company's basic registration details, including its Chinese name, abbreviation, English name and abbreviation, and legal representative - The company's Chinese name is 奥普智能科技股份有限公司, abbreviated as 奥普科技[11] - The company's English name is AUPU Intelligent Technology Corporation Limited, abbreviated as AUPU[11] - The company's legal representative is Fang James[11] Contact Person and Information This section lists the name, contact address, telephone, fax, and email of the company's Board Secretary for investor and stakeholder communication - The Board Secretary is Li Jie, with the contact address at No. 210, 21st Street, Hangzhou Economic and Technological Development Zone, Zhejiang Province[12] - The company's telephone number is 0571-88177925, fax is 0571-88172888 ext. 1213, and email is aupuzqb@aupu.net[12] Brief Introduction to Changes in Basic Information This section outlines the company's registered address, office address, and website, noting no historical changes to the registered address during the reporting period - The company's registered and office address is No. 210, 21st Street, Hangzhou Economic and Technological Development Zone, Zhejiang Province, postal code 310018[13] - The company's website is www.aupu.net, and its email is aupuzqb@aupu.net[13] Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section discloses the company's designated newspapers and website for information disclosure, as well as the location for semi-annual report custody - The company's selected newspapers for information disclosure are Shanghai Securities News and Securities Times[15] - The website address for publishing the semi-annual report is the Shanghai Stock Exchange website (www.sse.com.cn)[15](index=15&type=chunk) Company Stock Overview This section provides the company's stock listing information, including stock type, exchange, stock abbreviation, and code, also mentioning the previous stock abbreviation - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[15] - The stock abbreviation is "AUPU Tech", stock code "603551", and the previous stock abbreviation was "AUPU Home"[15] Company's Key Accounting Data and Financial Indicators This section summarizes the company's key financial performance for the first half of 2024, showing a slight increase in operating revenue but a decrease in net profit attributable to shareholders and net cash flow from operating activities, alongside negative growth in net assets and total assets Key Accounting Data for H1 2024 | Indicator | Current Period (Jan-Jun) (RMB Millions) | Prior Period (RMB Millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 862.49 | 862.26 | 0.03 | | Net Profit Attributable to Shareholders of the Listed Company | 123.24 | 128.95 | -4.43 | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-Recurring Gains and Losses) | 112.80 | 123.46 | -8.63 | | Net Cash Flow from Operating Activities | 44.37 | 95.98 | -53.77 | | Net Assets Attributable to Shareholders of the Listed Company (End of Current Period) | 1,419.87 | 1,604.58 | -11.51 | | Total Assets (End of Current Period) | 2,207.39 | 2,489.64 | -11.34 | Key Financial Indicators for H1 2024 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.32 | 0.33 | -3.03 | | Diluted Earnings Per Share (RMB/share) | 0.32 | 0.33 | -3.03 | | Basic Earnings Per Share (Excluding Non-Recurring Gains and Losses) (RMB/share) | 0.29 | 0.31 | -6.45 | | Weighted Average Return on Net Assets (%) | 7.36 | 7.98 | Decrease of 0.62 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains and Losses) (%) | 6.74 | 7.68 | Decrease of 0.94 percentage points | - Net cash flow from operating activities decreased by 53.77% year-on-year, primarily due to the settlement of some accounts payable in the current period and increased operating expenses[17] Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section states that the company has no differences in accounting data under domestic and overseas accounting standards - The company has no differences in accounting data under domestic and overseas accounting standards[18] Non-Recurring Gains and Losses Items and Amounts This section details the company's non-recurring gains and losses items and their amounts for the first half of 2024, totaling RMB 10,439,269.18, primarily comprising government grants and other non-operating income Non-Recurring Gains and Losses Items and Amounts for H1 2024 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in current profit or loss | 7,520,585.12 | | Other non-operating income and expenses apart from the above | 1,767,558.83 | | Other profit and loss items that meet the definition of non-recurring gains and losses | 2,993,349.20 | | Less: Income tax impact | 1,842,223.97 | | Total | 10,439,269.18 | Management Discussion and Analysis Explanation of the Company's Industry and Main Business During the Reporting Period This section elaborates on the company's position in the electrical machinery and equipment manufacturing and household electrical appliance manufacturing industries, analyzes the development overview and trends of the domestic economy, home appliance, and home furnishing industries in H1 2024, and introduces the company's industry standing and main business models Company's Industry and Industry Development Overview The company operates in the electrical machinery and equipment manufacturing industry, specifically within household electrical appliance manufacturing and residential decoration and renovation sub-sectors. In H1 2024, the domestic economy showed steady progress with consumption potential unleashed, but the home appliance market recovery lagged, with retail sales declining by 3.8% year-on-year. The home furnishing industry was affected by the downturn in the real estate market, yet the second-hand housing market and old community renovations generated demand for improvements. Industry trends focus on digital intelligence innovation, precise marketing, diversified product categories, one-stop space solutions, and cross-border expansion - The company's industry is "C38" electrical machinery and equipment manufacturing, subdivided into household appliance and residential decoration and renovation sub-sectors[21] - In H1 2024, China's GDP grew by 5.0% year-on-year, total retail sales of consumer goods increased by 3.7%, and online retail sales of physical goods grew by 8.8%[21] - In the first half, retail sales of household appliances and audio-visual equipment increased by 3.1%, and home appliance exports grew by 24.9%, but the domestic home appliance retail market size decreased by 3.8% year-on-year[21][22] - New commercial housing sales area decreased by 19.0% year-on-year in the first half, but the second-hand housing market saw a moderate recovery, with transaction share increasing to 62%, making improvement-oriented demand a support for the home furnishing market[23] - Industry development trends include digital intelligence innovation, precise marketing, diversified product categories and one-stop space solutions, and cross-border expansion to seek profit growth[26][27][28] - As a leader in the bath heater and integrated ceiling industry, the company has maintained a leading position for many years and actively implements a multi-category development strategy, setting industry quality standards[29] Company's Business Operations During the Reporting Period As a comprehensive service provider, the company focuses on three spaces—bathroom ceiling, kitchen ceiling, and balcony ceiling—offering home appliance products such as bath heaters, clothes dryers, and lighting, as well as home furnishing products like integrated ceilings, integrated wall panels, and full-function balconies. The company adheres to technological innovation, developing "home appliance + home furnishing" dual-core business segments, and achieves steady development through a comprehensive marketing network, supply chain management, and technology research and development - The company's main business involves the R&D, production, sales, and service of home appliance products such as bath heaters, clothes dryers, and lighting, and home furnishing products like integrated ceilings, integrated wall panels, and full-function balconies[29] - The company adheres to the strategies of "AUPU is more than just bath heaters", "bath heaters are more than just heating", and "one-stop space solutions", developing two core business segments: home appliances and home furnishings[30] - The company's operating model includes procurement (independent production and OEM), production (independent production and outsourced production), and sales (physical stores, e-commerce, engineering, home decoration, and other channels)[34][35][36][37][38] Analysis of Core Competencies During the Reporting Period The company's core competencies are in innovation and R&D, channel network, brand influence, talent team, and service system. The company continuously increases R&D investment, holds numerous patents and operates authoritative laboratories, builds a diversified marketing network, enjoys high brand recognition, and emphasizes talent development and professional services - The company places high importance on R&D investment, with R&D expenses of RMB 49.50 million in the reporting period, a year-on-year increase of 7.64%, accounting for 5.74% of operating revenue, and possesses 839 independent patent technologies[39] - The company has a mature and efficient nationwide dealer network and after-sales service network, forming a diversified marketing system including physical stores, e-commerce, engineering, and home decoration[40] - The "AUPU" brand has a thirty-year history of market development and brand building, recognized as a China Well-known Trademark and Zhejiang Famous Trademark, maintaining a leading position in high-end bath heater categories on Tmall and JD for many years[41] - The company has assembled a core management team with deep technical backgrounds and rich industry experience, as well as a high-level R&D team, and builds a talent supply chain through training programs like the "Spring Orange Plan"[41] - The company adheres to the service philosophy of "user-centric, professional and reassuring", establishing a national service hotline and WeChat official account, and cultivating professional installation personnel through the AUPU Technical Talent Training School[41] Discussion and Analysis of Operating Performance During the reporting period, the company continued to implement its "appliance + home furnishing" dual-gene development strategy, achieving operating revenue of RMB 862 million and net profit attributable to the parent company of RMB 123 million through product iteration, technological innovation, channel expansion, and lean management. The company focused on composite functions and smart technology, expanded product boundaries, and deepened omni-channel marketing and production automation upgrades - The company achieved operating revenue of RMB 862 million and net profit attributable to the parent company of RMB 123 million in H1 2024[42] - The company launched composite function and smart technology products such as beauty cabin bath heaters, kitchen air conditioners, MAX air housekeeper dual-oxygen bath heaters, internal drying clothes dryers, and AUPU Core FX-Pro series[42] - The company's home furnishing products, based on integrated ceilings and integrated wall panels, combined with appliance products, create one-stop space solutions for bathrooms, kitchens, and balconies, increasing customer unit value[43] - The company's R&D expenses were RMB 49.50 million, a year-on-year increase of 7.64%, accounting for 5.74% of operating revenue, continuously innovating in areas such as opto-biological health and smart home control systems[44][45] - The company continuously built its omni-channel marketing network, promoting the integrated development of physical stores, e-commerce, engineering, and home decoration channels, and actively exploring cross-border e-commerce channels[46] - The company implemented refined management, continuously upgrading and transforming production automation, establishing a 24-hour automated injection molding production workshop in its Jiaxing production base to enhance capacity and product quality[47][48] Key Operating Performance During the Reporting Period This section provides a detailed analysis of the company's financial statement item changes, asset and liability situation, and investment status during the reporting period. Operating revenue slightly increased, but net profit and cash flow decreased. The asset and liability structure changed, with a significant reduction in construction in progress, and a notable decrease in notes payable and undistributed profits. The company achieved gains in securities investments and disclosed the operating performance of its major holding and participating companies Analysis of Main Business During the reporting period, the company's operating revenue slightly increased by 0.03%, but net profit attributable to the parent company and non-recurring net profit decreased by 4.43% and 8.63%, respectively. Net cash flow from operating activities significantly decreased by 53.77%, mainly due to the settlement of notes payable and increased operating expenses. R&D expenses increased by 7.64% year-on-year Financial Statement Related Item Fluctuation Analysis Table | Item | Current Period (RMB Millions) | Prior Period (RMB Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 862.49 | 862.26 | 0.03 | | Net Profit Attributable to Shareholders of the Listed Company | 123.24 | 128.95 | -4.43 | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-Recurring Gains and Losses) | 112.80 | 123.46 | -8.63 | | Net Cash Flow from Operating Activities | 44.37 | 95.98 | -53.77 | | Net Cash Flow from Investing Activities | 29.44 | 17.58 | 67.47 | | Net Cash Flow from Financing Activities | -342.09 | -278.29 | Not Applicable | | Other Income | 20.05 | 2.31 | 769.41 | | Investment Income | 2.99 | 1.92 | 56.19 | | R&D Expenses | 49.50 | 45.99 | 7.64 | - Net cash flow from operating activities decreased by 53.77% year-on-year, primarily due to the settlement of some notes payable in the current period and increased operating expenses[48] - Net cash flow from investing activities increased by 67.47% year-on-year, mainly due to the sale of Haixing Electric Power shares and prior period investment in Haibang Shurui[48] - Net cash flow from financing activities was primarily due to share repurchases[48] Analysis of Assets and Liabilities At the end of the reporting period, both the company's total assets and net assets attributable to shareholders of the listed company decreased. Construction in progress significantly decreased by 95.77%, mainly due to transfer to fixed assets. Accounts receivable financing and notes payable also notably decreased, and undistributed profits significantly declined due to current period dividends Assets and Liabilities Status (RMB Millions) | Item Name | End of Current Period (RMB Millions) | % of Total Assets (End of Current Period) | End of Prior Year (RMB Millions) | % of Total Assets (End of Prior Year) | % Change from Prior Year End | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,014.73 | 45.97 | 1,273.37 | 51.15 | -20.31 | | Construction in Progress | 0.09 | 0.00 | 2.13 | 0.09 | -95.77 | | Accounts Receivable Financing | 0.83 | 0.04 | 3.20 | 0.13 | -74.05 | | Notes Payable | 181.13 | 8.21 | 260.06 | 10.45 | -30.35 | | Employee Benefits Payable | 20.88 | 0.95 | 31.76 | 1.28 | -34.25 | | Undistributed Profits | 241.79 | 10.95 | 409.25 | 16.44 | -40.92 | - Construction in progress at the end of the period decreased by 95.77% compared to the end of the prior year, mainly due to the transfer of construction in progress to fixed assets[49] - Accounts receivable financing at the end of the period decreased by 74.05% compared to the end of the prior year, mainly due to the maturity and settlement of bank acceptance bills[49] - Notes payable at the end of the period decreased by 30.35% compared to the end of the prior year, mainly due to the payment of notes that matured last year[49] - Undistributed profits at the end of the period decreased by 40.92% compared to the end of the prior year, mainly due to dividends distributed in the current period[49] Major Asset Restrictions as of the End of the Reporting Period (RMB Millions) | Item | Book Value at Period End (RMB Millions) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 0.19 | Margin Deposit | | Monetary Funds | 5.31 | Letter of Guarantee Margin | | Monetary Funds | 16.35 | Accrued Time Deposit Interest | | Fixed Assets | 285.61 | Buildings Pledged for Guarantees | | Intangible Assets | 44.50 | Land Use Rights Pledged for Guarantees | | Total | 351.95 | / | Analysis of Investment Status The company had no significant equity or non-equity investments during the reporting period. In terms of securities investments, the company held shares in Haixing Electric Power, with a book value of RMB 80,836,656.08 at period-end, a fair value change gain of RMB 32,563,741.16 in the current period, and an investment gain of RMB 1,980,849.20 Securities Investment Information (RMB) | Security Type | Security Code | Security Abbreviation | Initial Investment Cost (RMB) | Book Value at Period End (RMB) | Fair Value Change Gain/Loss for Current Period (RMB) | Investment Gain/Loss for Current Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stock | 603556 | Haixing Electric Power | 40,000,000.00 | 80,836,656.08 | 32,563,741.16 | 1,980,849.20 | Analysis of Major Holding and Participating Companies This section lists the business nature, registered capital, shareholding percentage, total assets, net assets, and net profit of the company's major holding and participating companies. Zhejiang AUPU Home Technology Co., Ltd. is the largest subsidiary, with a net profit of RMB 56.52 million Major Holding and Participating Companies (RMB 10,000) | Enterprise Name | Business Nature | Registered Capital (RMB 10,000) | Shareholding (%) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang AUPU Home Technology Co., Ltd. | Manufacturing | 30,000.00 | 100 | 87,506.50 | 45,848.69 | 5,652.41 | | Shanghai AUPUS Weichu Technology Co., Ltd. | Retail | 1,000.00 | 100 | 152.47 | 129.09 | -31.63 | | Jiaxing AUPU Jindada Kitchen & Bath Technology Co., Ltd. | Manufacturing | 3,500.00 | 55 | 12,194.35 | 5,480.49 | -14.27 | | Jiaxing Jinyao Optoelectronic Technology Co., Ltd. | Manufacturing | 1,500.00 | 52 | 6,069.45 | 3,132.29 | 495.16 | Corporate Governance General Meeting of Shareholders During the reporting period, the company held three general meetings of shareholders, including two extraordinary general meetings and one annual general meeting. The convening, procedures, qualifications of attendees, and voting procedures for all meetings complied with laws, regulations, and the company's articles of association, and all proposals were approved General Meeting Convening Status | Session | Date of Meeting | Disclosure Date of Resolution | | :--- | :--- | :--- | | First Extraordinary General Meeting of 2024 | February 22, 2024 | February 23, 2024 | | 2023 Annual General Meeting | May 14, 2024 | May 15, 2024 | | Second Extraordinary General Meeting of 2024 | May 23, 2024 | May 24, 2024 | - During the reporting period, the convening and procedures of the company's general meetings of shareholders, the qualifications of conveners, attendees, and voting procedures all complied with relevant laws, regulations, normative documents, and the "Articles of Association", with all proposals approved and resolutions being legal and valid[55] Changes in Directors, Supervisors, and Senior Management This section states that there were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[56] Profit Distribution or Capital Reserve Conversion Plan The company's board of directors approved the H1 2024 profit distribution plan, proposing to distribute a cash dividend of RMB 3.0 (tax inclusive) for every 10 shares, based on the total share capital minus repurchased shares, totaling RMB 115,156,950, which accounts for 93.44% of the net profit attributable to the parent company. This plan is subject to approval by the general meeting of shareholders H1 2024 Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Is distribution or conversion applicable | Yes | | Number of bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (RMB) (tax inclusive) | 3 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | | Total proposed cash dividend (tax inclusive) | RMB 115,156,950 | | Percentage of the company's H1 2024 consolidated net profit attributable to parent company shareholders | 93.44% | - This profit distribution plan is subject to approval by the general meeting of shareholders[56] Information and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company implemented the 2023 Restricted Stock Incentive Plan, which included the third grant of the reserved portion, the repurchase and cancellation of some restricted shares already granted but not yet unlocked, and the achievement of the first unlocking condition for the initial grant portion - The company's seventh meeting of the third board of directors approved the "Proposal on the Third Grant of the Reserved Portion of the 2023 Restricted Stock Incentive Plan"[57] - The company's seventh meeting of the third board of directors approved the "Proposal on Repurchasing and Cancelling Restricted Shares Granted but Not Yet Unlocked to Certain Incentive Recipients"[57] - The company's ninth meeting of the third board of directors approved the "Proposal on the Achievement of the First Unlocking Condition for the Initial Grant Portion of the 2023 Restricted Stock Incentive Plan"[57] Environmental and Social Responsibility Environmental Information This section states that the company is not classified as a key pollutant-discharging entity by environmental protection authorities, had no subsequent progress or changes in environmental information disclosure during the reporting period, and did not disclose measures taken or their effects to reduce carbon emissions - The company is not classified as a key pollutant-discharging entity by environmental protection authorities[58] - There was no subsequent progress or changes in environmental information disclosure during the reporting period[58] - Measures taken and their effects to reduce carbon emissions were not disclosed during the reporting period[58] Specific Information on Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc. This section states that the company did not disclose specific information on consolidating and expanding poverty alleviation achievements, rural revitalization, or related work - The company did not disclose specific information on consolidating and expanding poverty alleviation achievements, rural revitalization, or related work[58] Significant Matters Fulfillment of Commitments This section details the various commitments made by the company's actual controllers, controlling shareholders, directors, supervisors, and senior management regarding initial public offerings and other matters, including share lock-ups, avoidance of horizontal competition, reduction of related party transactions, and the truthfulness of the prospectus, confirming that all commitments were timely and strictly fulfilled during the reporting period - Actual controllers Fang James, Fang Shengkang, and their concerted parties committed to share lock-ups, with a reduction price not lower than the issue price within two years after the lock-up period expires, and compliance with reduction regulations[59] - Controlling shareholder Tricosco Limited committed to share lock-ups, with a reduction price not lower than the issue price within two years after the lock-up period expires, and compliance with reduction regulations[60] - The company, its controlling shareholder and actual controllers, directors, supervisors, and senior management all committed that the prospectus contains no false records, misleading statements, or major omissions, and will bear corresponding compensation liabilities[64][65][66][67][68] - The controlling shareholder and actual controllers committed to avoid horizontal competition, and if future businesses constitute competition, they will terminate such businesses or allow the company to acquire them preferentially[72][73] - The controlling shareholder and actual controllers committed to avoid or reduce related party transactions, and for unavoidable related party transactions, they will sign agreements and perform approval procedures in accordance with the law to ensure fairness[74][75] - All commitments were timely and strictly fulfilled during the reporting period, with no instances of failure to fulfill them in a timely manner[59] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period This section states that there was no non-operating fund occupation by the controlling shareholder and other related parties during the reporting period - There was no non-operating fund occupation by the controlling shareholder and other related parties during the reporting period[75] Irregular Guarantees This section states that there were no irregular guarantees by the company during the reporting period - There were no irregular guarantees by the company during the reporting period[75] Semi-Annual Report Audit Status This section states that the company's semi-annual report was not audited - This semi-annual report was not audited[36] Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Previous Annual Report This section states that there were no changes or handling of matters related to non-standard audit opinions in the company's previous annual report - There were no changes or handling of matters related to non-standard audit opinions in the company's previous annual report[36] Bankruptcy and Reorganization Matters This section states that the company has no bankruptcy and reorganization matters - The company has no bankruptcy and reorganization matters[36] Significant Litigation and Arbitration Matters This section states that the company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during this reporting period[36] Suspected Violations, Penalties, and Rectification of Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller This section states that the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in suspected violations, penalties, or rectification during the reporting period - The company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in suspected violations, penalties, or rectification during the reporting period[36] Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period This section states that the company did not disclose an explanation of the integrity status of the company, its controlling shareholder, and actual controller during the reporting period - The company did not disclose an explanation of the integrity status of the company, its controlling shareholder, and actual controller during the reporting period[36] Significant Related Party Transactions This section states that during the reporting period, the company had no significant related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or financial business with affiliated financial companies - During the reporting period, the company had no significant related party transactions related to daily operations[76] - During the reporting period, the company had no related party transactions involving asset or equity acquisitions or disposals[76] - During the reporting period, the company had no significant related party transactions involving joint external investments[77] - During the reporting period, the company had no related party creditor-debtor relationships[77] - During the reporting period, the company had no financial business with affiliated financial companies or between the company's controlling financial company and related parties[77] Significant Contracts and Their Performance This section states that the company had no entrustment, contracting, or leasing matters, no significant guarantees, and no other significant contracts during the reporting period - During the reporting period, the company had no entrustment, contracting, or leasing matters[77] - During the reporting period, the company had no significant guarantees[77] - During the reporting period, the company had no other significant contracts[77] Explanation of Progress in Use of Raised Funds This section states that the company did not disclose an explanation of the progress in the use of raised funds - The company did not disclose an explanation of the progress in the use of raised funds[77] Explanation of Other Significant Matters This section states that the company did not disclose an explanation of other significant matters - The company did not disclose an explanation of other significant matters[77] Share Changes and Shareholder Information Share Capital Changes During the reporting period, the company's total share capital slightly decreased due to the repurchase and cancellation of some restricted shares, with corresponding changes in the number of restricted and unrestricted circulating shares, primarily influenced by equity incentive reserved grants and unlocking events Share Capital Change Table (Shares) | | Number Before This Change | Percentage (%) | Net Increase/Decrease in This Change (+,-) | Number After This Change | Percentage (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,663,000 | 0.6632 | -1,014,000 | 1,649,000 | 0.4109 | | II. Unrestricted Circulating Shares | 398,879,000 | 99.3368 | +809,000 | 399,688,000 | 99.5891 | | III. Total Shares | 401,542,000 | 100.00 | -205,000 | 401,337,000 | 100.00 | - On January 25, 2024, the company granted a total of 280,000 restricted shares to 6 incentive recipients as part of the reserved portion[79] - On January 25, 2024, the company repurchased and cancelled 205,000 restricted shares granted but not yet unlocked to 1 incentive recipient, reducing the total share capital to 401,337,000 shares[80] - On May 6, 2024, the first unlocking condition for the initial grant portion of the company's 2023 Restricted Stock Incentive Plan was met, and 1,089,000 restricted shares became tradable[80] Shareholder Information As of the end of the reporting period, the company had a total of 11,475 common shareholders. Among the top ten shareholders, TRICOSCO LIMITED held the highest percentage at 61.94%. The company's dedicated securities account for share repurchases held 16,029,800 shares, of which 12,794,000 shares will be used to reduce registered capital - As of the end of the reporting period, the total number of common shareholders was 11,475[80] Top Ten Shareholders' Shareholding (Excluding Shares Lent Through Securities Lending) | Shareholder Name | Number of Shares Held at Period End | Percentage (%) | Number of Restricted Shares Held | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | TRICOSCO LIMITED | 248,589,449 | 61.94 | 0 | Overseas Legal Person | | Wu Xingjie | 24,740,113 | 6.16 | 0 | Domestic Natural Person | | PMT HOLDINGS LIMITED | 14,333,603 | 3.57 | 0 | Overseas Legal Person | | Heaven－Sent Capital Apollo AP Company Limited | 10,583,487 | 2.64 | 0 | Overseas Legal Person | | Agricultural Bank of China Co., Ltd. - Ping An Low Carbon Economy Mixed Securities Investment Fund | 6,100,000 | 1.52 | 0 | Other | - As of the end of the reporting period, AUPU Intelligent Technology Corporation Limited's dedicated securities account for share repurchases held 16,029,800 shares, of which 12,794,000 shares will be used to reduce registered capital, and 3,235,800 shares will be used for equity incentives[82] - The company's actual controllers, Fang James and Fang Shengkang, are concerted parties, holding company shares directly and indirectly[82] Top Ten Restricted Shareholders' Shareholding and Restrictions (Shares) | No. | Name of Restricted Shareholder | Number of Restricted Shares Held | Restriction Conditions | | :--- | :--- | :--- | :--- | | 1 | Tang Minqiang | 300,000 | Equity Incentive Restricted Shares | | 2 | Zhang Xinyu | 215,500 | Equity Incentive Restricted Shares | | 3 | Zheng Zihao | 215,500 | Equity Incentive Restricted Shares | | 4 | Li Shize | 125,000 | Equity Incentive Restricted Shares | | 5 | Wang Jichun | 118,500 | Equity Incentive Restricted Shares | Directors, Supervisors, and Senior Management Information During the reporting period, the company's Chief Engineer, Zhang Xinyu, saw an increase of 50,000 shares in his holdings due to equity incentives. Zhang Xinyu was also granted 50,000 stock options, holding 215,500 stock options at period-end Shareholding Changes of Current and Resigned Directors, Supervisors, and Senior Management During the Reporting Period (Shares) | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Xinyu | Chief Engineer | 318,585 | 368,585 | 50,000 | Equity Incentive | Equity Incentive Granted to Directors, Supervisors, and Senior Management During the Reporting Period (Shares) | Name | Position | Number of Stock Options Held at Beginning of Period | Number of Stock Options Newly Granted During Reporting Period | Number of Stock Options Held at End of Period | | :--- | :--- | :--- | :--- | :--- | | Zhang Xinyu | Senior Management | 251,000 | 50,000 | 215,500 | Preferred Shares Information Preferred Shares Information This section states that the company has no preferred shares - The company has no preferred shares[85] Bonds Information Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This section states that the company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[86] Convertible Corporate Bonds This section states that the company has no convertible corporate bonds - The company has no convertible corporate bonds[86] Financial Report Audit Report This section states that the company's semi-annual report was not audited - This semi-annual report was not audited[3] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2024, comprehensively presenting the company's financial position, operating results, and cash flow - Financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[87][90][93][96][99][101][103][111] Company's Basic Information This section introduces AUPU Intelligent Technology Corporation Limited, including its registration information, share capital structure, industry, and main business activities, noting that the financial statements have been approved by the board of directors - The company's registered capital is RMB 401.337 million, with a total of 401.337 million shares, of which restricted circulating shares account for 0.41% and unrestricted circulating shares account for 99.59%[116] - The company belongs to the electrical machinery and equipment manufacturing industry, with its main business activities being the R&D, production, sales, and related services of home furnishing products such as bath heaters and integrated ceilings[116] - These financial statements were approved for external release by the company's eleventh meeting of the third board of directors on August 21, 2024[116] Basis of Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis, and there are no matters or circumstances that raise significant doubts about its ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[117] - There are no matters or circumstances that raise significant doubts about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[118] Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates regarding financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, revenue recognition, and other areas, ensuring that the financial statements accurately and completely reflect the company's financial position - The company adheres to enterprise accounting standards, and the prepared financial statements truly and completely reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows[119] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a short operating cycle, using 12 months as the liquidity classification standard for assets and liabilities[120][121] - The company has established detailed accounting treatment methods for business combinations, financial instruments, inventories, fixed assets, construction in progress, intangible assets, employee compensation, revenue recognition, and government grants[125][131][135][139][140][143][149][156][159] - The company defines materiality standards for individual accounts receivable, other receivables, construction in progress, accounts payable, contract liabilities, and other payables as amounts exceeding RMB 5 million or 0.3% of total assets and exceeding RMB 10 million[123][124] Taxation This section lists the company's main tax categories and rates, and discloses tax incentives enjoyed by the company and its subsidiaries, such as high-tech enterprise income tax preferences, immediate refund of value-added tax for software products, and additional VAT deductions for advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services income | 13%, 6%, 5% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Enterprise Income Tax | Taxable income | 25%, 20%, 16.5%, 15% | | Property Tax | Original value of property or rental income | 12%, 1.2% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - The company and its subsidiaries, Zhejiang AUPU Home Technology Co., Ltd. and Jiaxing Jinyao Optoelectronic Technology Co., Ltd., are recognized as high-tech enterprises and enjoy a 15% preferential enterprise income tax rate[170] - The company and its subsidiary, Zhejiang AUPU Home Technology Co., Ltd., enjoy an immediate refund of the portion of value-added tax exceeding 3% for sales of self-developed and produced software products[170] - The company and its subsidiary, Zhejiang AUPU Home Technology Co., Ltd., enjoy a 5% additional VAT deduction policy for advanced manufacturing enterprises[170] - Some subsidiaries qualify as small and micro-profit enterprises, enjoying a preferential policy of calculating taxable income at 25% and paying enterprise income tax at a 20% rate[170][171] Notes to Consolidated Financial Statement Items This section provides detailed notes on major items in the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, inventories, long-term equity investments, fixed assets, intangible assets, notes payable, employee benefits payable, undistributed profits, operating revenue and cost, various expenses, taxes and surcharges, other income, investment income, credit impairment losses, asset impairment losses, non-operating income and expenses, income tax expenses, other comprehensive income, and cash flow statement items, also disclosing assets with restricted ownership or use rights and foreign currency monetary items Monetary Funds (RMB) | Item | Balance at Period End (RMB) | Balance at Beginning of Period (RMB) | | :--- | :--- | :--- | | Cash on Hand | 18,363.44 | 2,422.30 | | Bank Deposits | 983,458,253.80 | 1,254,081,982.14 | | Other Monetary Funds | 31,255,297.28 | 19,281,518.70 | | Total | 1,014,731,914.52 | 1,273,365,923.14 | | Of which: Total amount of funds deposited overseas | 1,289,019.08 | / | Accounts Receivable Bad Debt Provision (RMB) | Category | Balance at Beginning of Period (RMB) | Provision Made in Current Period (RMB) | Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | | Individually Assessed Bad Debt Provision | 91,690,676.81 | 0 | 91,690,676.81 | | Provision Made by Portfolio | 15,069,167.57 | 5,060,843.25 | 20,130,010.82 | | Total | 106,759,844.38 | 5,060,843.25 | 111,820,687.63 | Inventory Classification and Impairment Provision (RMB) | Item | Book Value at Period End (RMB) | Book Value at Beginning of Period (RMB) | Inventory Impairment Provision at Period End (RMB) | | :--- | :--- | :--- | :--- | | Raw Materials | 51,568,411.13 | 51,041,009.18 | 16,966,168.96 | | Finished Goods | 114,084,209.78 | 103,320,915.46 | 16,627,272.02 | | Goods in Transit | 5,693,293.03 | 5,547,601.57 | 2,751,272.68 | | Total | 187,135,464.09 | 179,557,971.37 | 36,344,713.66 | Fixed Assets (RMB) | Item | Book Value at Period End (RMB) | Book Value at Beginning of Period (RMB) | | :--- | :--- | :--- | | Buildings and Structures | 402,902,495.22 | 415,470,975.34 | | General Equipment | 15,556,267.53 | 16,288,955.15 | | Machinery and Equipment | 49,146,517.95 | 48,883,217.14 | | Transportation Vehicles | 6,074,507.62 | 5,818,570.86 | | Other | 2,043,882.62 | 1,902,842.41 | | Total | 475,723,670.94 | 488,364,560.90 | Operating Revenue and Operating Cost (RMB) | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 839,113,649.00 | 447,772,938.81 | 828,263,610.84 | 433,158,365.00 | | Other Business | 23,378,428.55 | 17,930,176.52 | 33,999,570.96 | 27,852,990.16 | | Total | 862,492,077.55 | 465,703,115.33 | 862,263,181.80 | 461,011,355.16 | Various Expenses (RMB) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Selling Expenses | 171,672,750.19 | 151,087,876.72 | | Administrative Expenses | 59,918,515.02 | 55,327,372.53 | | R&D Expenses | 49,502,079.50 | 45,987,542.03 | | Financial Expenses | -14,819,504.88 | -15,158,423.15 | Research and Development Expenses This section details the company's R&D expenditure composition for the reporting period, totaling RMB 49,502,079.50, a year-on-year increase of 7.64%, primarily comprising employee compensation, mold expenses, and development costs, with all R&D expenditures being expensed R&D Expenses by Nature of Expense (RMB) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 20,395,316.02 | 19,311,459.42 | | Trial Production and Testing Fees | 1,256,998.84 | 940,139.77 | | Mold Expenses | 8,568,123.99 | 6,600,462.75 | | Development Costs | 8,625,555.14 | 8,729,266.96 | | Material Consumption | 1,004,825.84 | 1,169,096.62 | | Consulting Fees | 4,517,666.45 | 4,887,474.19 | | Depreciation and Amortization | 1,988,920.77 | 1,597,957.69 | | Office Expenses | 503,735.00 | 464,582.08 | | Other | 2,640,937.45 | 2,287,102.55 | | Total | 49,502,079.50 | 45,987,542.03 | - All R&D expenditures in the current period were expensed, with no capitalized R&D expenditures[265] Changes in Consolidation Scope This section states that the company had no business combinations under non-common control, common control, or reverse acquisitions during the reporting period, but newly established a subsidiary, AUPU Electric Japan Co., Ltd., which was included in the consolidation scope - During the reporting period, the company had no business combinations under non-common control, common control, or reverse acquisitions[266] - The company newly established a subsidiary, AUPU Electric Japan Co., Ltd., in April 2024, with a 100% shareholding[267] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates. The company owns several wholly-owned or controlled subsidiaries, with Jiaxing AUPU Jindada Kitchen & Bath Technology Co., Ltd. being a significant non-wholly-owned subsidiary. The company also holds equity in associates such as Hunan AUPU Zhongke Chuangxing New Energy Venture Capital Partnership and Ningbo AUPU Chuangxing New Energy Venture Capital Partnership Composition of Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Main Operating Location | Registered Capital (RMB) | Business Nature | Direct Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | Shanghai AUPUS Weichu Technology Co., Ltd. | Shanghai | 10,000,000.00 | Sales | 100.00 | | Zhejiang AUPU Home Technology Co., Ltd. | Jiaxing, Zhejiang | 300,000,000.00 | Manufacturing | 100.00 | | Jiaxing AUPU Jindada Kitchen & Bath Technology Co., Ltd. | Jiaxing, Zhejiang | 35,000,000.00 | Manufacturing | 55.00 | | Jiaxing Jinyao Optoelectronic Technology Co., Ltd. | Jiaxing, Zhejiang | 15,000,000.00 | Manufacturing | 52.00 | | AUPU Electric Japan Co., Ltd. | Japan | JPY 8,000,000.00 | Wholesale | 100.00 | Key Financial Information of Significant Non-Wholly-Owned Subsidiary (Jiaxing AUPU Jindada Kitchen & Bath Technology Co., Ltd., RMB) | Indicator | Balance at Period End (RMB) | Balance at Beginning of Period (RMB) | | :--- | :--- | :--- | | Current Assets | 86,579,798.94 | 71,132,552.44 | | Non-Current Assets | 35,363,741.85 | 35,743,332.99 | | Total Assets | 121,943,540.79 | 106,875,885.43 | | Current Liabilities | 55,508,620.38 | 40,576,225.22 | | Non-Current Liabilities | 11,630,058.67 | 11,630,058.67 | | Total Liabilities | 67,138,679.05 | 52,206,283.89 | | Operating Revenue | 94,542,672.27 | 106,689,001.14 | | Net Profit | -142,727.89 | -571,308.49 | | Total Comprehensive Income | -142,727.89 | -571,308.49 | | Net Cash Flow from Operating Activities | 7,292,768.77 | 6,238,657.55 | Summary Financial Information of Associates (RMB) | Item | Balance at Period End / Amount for Current Period (RMB) | Balance at Beginning of Period / Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Total Book Value of Investments | 97,423,666.95 | 97,423,666.95 | | -- Net Profit | / | -1,058,316.65 | | -- Total Comprehensive Income | / | -1,058,316.65 | Government Grants This section discloses the company's government grant-related liability items and government grants recognized in current profit or loss during the reporting period. The deferred income from government grants had a period-end balance of RMB 42,074,721.46, with RMB 1,426,164.44 transferred to other income in the current period. Total government grants recognized in current profit or loss amounted to RMB 18,793,000.67, with a significant increase in income-related grants Government Grant-Related Liability Items (RMB) | Financial Statement Item | Balance at Beginning of Period (RMB) | New Grants in Current Period (RMB) | Transferred to Other Income in Current Period (RMB) | Balance at Period End (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 43,500,885.90 | / | 1,426,164.44 | 42,074,721.46 | Asset Related | | Total | 43,500,885.90 | / | 1,426,164.44 | 42,074,721.46 | / | Government Grants Recognized in Current Profit or Loss (RMB) | Type | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Asset Related | 1,426,164.44 | 1,426,164.44 | | Income Related | 17,366,836.23 | 683,814.79 | | Total | 18,793,000.67 | 2,109,979.23 | Risks Related to Financial Instruments This section describes the credit risk, liquidity risk, and market risk (including interest rate risk and foreign exchange risk) faced by the company, and explains the strategies and measures taken to manage these risks, such as depositing monetary funds in highly-rated financial institutions, continuously assessing customer credit, and utilizing various financing methods - The company faces credit risk, liquidity risk, and market risk (interest rate risk and foreign exchange risk)[275] - Credit risk primarily arises from monetary funds and receivables, managed by depositing funds in highly-rated financial institutions and continuously assessing customer credit[277] - Liquidity risk is managed by comprehensively utilizing various financing methods such as bill settlement and bank loans, and adopting an appropriate combination of long-term and short-term financing[277] Financial Liabilities Classified by Remaining Maturity (Period-End, RMB) | Item | Book Value (RMB) | Within 1 Year (RMB) | 1-3 Years (RMB) | Over 3 Years (RMB) | | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 2,050,000.00 | 2,051,600.00 | / | / | | Notes Payable | 181,131,549.21 | 181,131,549.21 | / | / | | Accounts Payable | 249,135,156.27 | 249,135,156.27 | / | / | | Other Payables | 74,659,646.81 | 74,659,646.81 | / | / | | Lease Liabilities | 18,711,447.74 | 7,313,882.74 | 12,111,589.93 | / | | Subtotal | 525,687,800.03 | 514,291,835.03 | 12,111,589.93 | / | - The interest rate risk and foreign exchange risk faced by the company are not significant, as its main activities are denominated in RMB[278] Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, primarily including other equity instrument investments and accounts receivable financing. The company uses valuation techniques to determine fair value and explains the methods for determining the fair value of accounts receivable financing and some other equity instrument investments Fair Value of Assets and Liabilities Measured at Fair Value at Period End (RMB) | Item | Level 1 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 80,836,656.08 | 25,550,000.00 | 106,386,656.08 | | Accounts Receivable Financing | / | 829,025.84 | 829,025.84 | | Total Assets Continuously Measured at Fair Value | 80,836,656.08 | 26,379,025.84 | 107,215,681.92 | - The fair value of accounts receivable financing has a small difference from its book value, so the book value is used as the fair value[282] - Some other equity instrument investments, due to no significant influence over the investee and lack of market reference, use cost as the best estimate of fair value[282] - The book value of financial assets and liabilities not measured at fair value (such as monetary funds, accounts receivable, accounts payable) differs very little from their fair value[283] Related Parties and Related Party Transactions This section discloses the company's parent company, subsidiaries, and other related parties, and describes related party guarantees where the company is the guaranteed party during the reporting period. The company's parent company is TRICOSCO LIMITED, with Fang James and Fang Shengkang as the ultimate controlling parties. During the reporting period, the company received multiple guarantees from Hangzhou Molis Technology Co., Ltd - The company's parent company is TRICOSCO LIMITED, registered in Hong Kong, with investment management as its business nature, a shareholding of 61.94%, and ultimate controlling parties Fang James and Fang Shengkang[284] - Hangzhou Molis Technology Co., Ltd. is a related party of the company, sharing the same general manager[284] Related Party Guarantee Information Where the Company is the Guaranteed Party (RMB) | Guarantor | Guaranteed Amount (RMB) | Guarantee Start Date | Guarantee End Date | Has the Guarantee Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Hangzhou Molis Technology Co., Ltd. | 15,052,742.80 | 2024/01/29 | 2024/07/29 | No | | Hangzhou Molis Technology Co., Ltd. | 3,630,000.00 | 2024/02/01 | 2024/08/01 | No | | Hangzhou Molis Technology Co., Ltd. | 28,254,746.00 | 2024/02/27 | 2024/08/27 | No | | Hangzhou Molis Technology Co., Ltd. | 14,770,000.00 | 2024/03/26 | 2024/09/26 | No | | Hangzhou Molis Technology Co., Ltd. | 5,020,000.00 | 2024/04/26 | 2024/10/26 | No | | Hangzhou Molis Technology Co., Ltd. | 11,164,457.00 | 2024/05/27 | 2024/11/27 | No | | Total | 77,891,945.80 | / | / | / | - Key management personnel compensation for the current period was RMB 3.5124 million[287] Share-Based Payments This section discloses the company's share-based payment information for H1 2024, including the grant of 280,000 restricted shares to management and core personnel, and the repurchase and cancellation of 205,000 shares. Equity-settled share-based payment expenses for the current period amounted to RMB 3,760,748.68 Changes in Equity Instruments (Shares, RMB) | Category of Grantee | Number Granted in Current Period | Amount Granted in Current Period (RMB) | Number Unlocked in Current Period | Amount Unlocked in Current Period (RMB) | Number Forfeited in Current Period | Amount Forfeited in Current Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Management and Core Personnel | 280,000.00 | 2,661,148.00 | 1,089,000.00 | 12,969,990.00 | 205,000.00 | 1,201,300.00 | | Total | 280,000.00 | 2,661,148.00 | 1,089,000.00 | 12,969,990.00 | 205,000.00 | 1,201,300.00 | - The exercise price range for outstanding equity instruments at period-end is RMB 5.11-5.135/share,