方盛股份(832662) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The company's management assures the report's accuracy and completeness, which is unaudited, with future plans not constituting commitments, and no delisting risk - The company's management guarantees the truthfulness of the report's content, but this semi-annual report is unaudited by an accounting firm[8] - To protect business secrets, the company has exempted disclosure of the top 5 non-affiliated major customer names for accounts receivable and contract assets[9] - The company faces no delisting risk[10] Definitions This section defines key terms used in the report, including company entities, core products like heat exchangers, and the reporting period of January to June 2024 - The reporting period is defined as January to June 2024[11] - The company's core products are plate-fin heat exchangers and heat exchange systems based on them[11] Company Profile Basic Information and Enterprise Details This section provides the company's basic business and listing information, including its full name, stock code 832662, Beijing Stock Exchange listing on November 28, 2022, and main business in heat exchangers Company Basic Information | Item | Information | | :--- | :--- | | Stock Abbreviation | Fangsheng Shares | | Stock Code | 832662 | | Company Full Name | Wuxi Fangsheng Heat Exchanger Co., Ltd. | | Listing Exchange | Beijing Stock Exchange | | Listing Date | November 28, 2022 | | Main Products | Plate-fin heat exchangers and heat exchange systems | | Controlling Shareholders | Ding Yunlong, Ding Zhenfang | Accounting Data and Operating Performance Key Accounting Data and Financial Indicators During the reporting period, the company's profitability significantly declined, with revenue down 15.38% and net profit down 45.24%, while solvency remained stable and operating cash flow grew strongly by 274.31% Profitability | Indicator | Current Period | Prior Year Same Period | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 155,936,482.55 | 184,273,013.97 | -15.38% | | Gross Margin % | 25.47% | 33.20% | - | | Net Profit Attributable to Shareholders (Yuan) | 19,961,966.86 | 36,453,796.08 | -45.24% | | Basic Earnings Per Share (Yuan) | 0.23 | 0.42 | -45.24% | Solvency | Indicator | End of Current Period | End of Prior Year | Change Percentage | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 568,438,452.16 | 581,713,011.81 | -2.28% | | Total Liabilities (Yuan) | 123,082,394.62 | 136,379,057.67 | -9.75% | | Asset-Liability Ratio % (Consolidated) | 21.65% | 23.44% | - | - Net cash flow from operating activities was 40,466,662.80 Yuan, a significant increase of 274.31% compared to 10,810,897.89 Yuan in the prior year period[21] Business Overview The company specializes in R&D, production, and sales of heat exchangers and systems for various industries, maintaining its 'production-based procurement', 'sales-based production', and 'direct sales' models without significant changes - The company's business covers multiple fields including wind power, waste heat recovery, rail transit, air compressors, and construction machinery, while actively expanding into emerging areas like energy storage, hydrogen energy, and data center liquid cooling[24] - The company adopts 'production-based procurement', 'sales-based production', and 'direct sales' business models, which remained unchanged during the reporting period[26][27][28][29] - The company emphasizes R&D, establishing industry-university-research cooperation with multiple universities, and as of the end of the reporting period, has obtained 112 patents, including 19 invention patents[29] Operating Performance Review In H1 2024, sales decreased by 15.38% and net profit by 45.24%, primarily due to reduced demand in waste heat recovery and delayed deliveries in construction machinery, alongside a 7.73 percentage point drop in gross margin - Operating revenue decreased by 15.38% year-on-year during the reporting period, primarily due to decreased demand or delayed deliveries in the waste heat recovery and construction machinery sectors[31] - Net profit decreased by 45.24% year-on-year, mainly due to the dual impact of declining revenue and gross margin[32] - Gross margin decreased by 7.73 percentage points due to: ① increased unit fixed costs from lower output; ② a 6.98% year-on-year increase in aluminum ingot prices with delayed price transmission; ③ decreased product prices in the wind power sector; and ④ reduced revenue from high-margin construction machinery and waste heat recovery sectors[32][33] - The company's fundraising investment projects have transitioned from the engineering construction phase to the production line layout phase, progressing smoothly[31] Financial Analysis This section analyzes the company's asset-liability structure, operating performance, and cash flow, noting a significant increase in fixed assets due to project capitalization, a 51.02% drop in operating profit, and a strong 274.31% increase in operating cash flow Asset-Liability Structure Analysis At period-end, the asset-liability structure significantly changed, with fixed assets increasing by 84.87% to 148 million Yuan due to project capitalization, a 95.15% decrease in construction in progress, and a 53.86% rise in monetary funds Major Balance Sheet Item Changes | Item | Period-End Amount (Yuan) | Period-Start Amount (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Monetary Funds | 105,251,935.45 | 68,405,979.37 | 53.86% | | Fixed Assets | 147,804,233.80 | 79,950,215.17 | 84.87% | | Construction in Progress | 3,261,090.48 | 67,256,296.31 | -95.15% | | Short-term Borrowings | 0 | 1,202,317.78 | -100.00% | | Receivables Financing | 6,040,071.14 | 16,369,540.23 | -63.10% | | Contract Liabilities | 7,246,705.20 | 13,642,167.98 | -46.88% | - The drastic changes in fixed assets and construction in progress are primarily due to the completion of the building portion of fundraising investment projects during this reporting period, transferred from construction in progress to fixed assets, involving an amount of 73.2285 million Yuan[35] Operating Performance Analysis During the reporting period, operating revenue decreased by 15.38% and operating profit by 51.02%, primarily due to a 40.05% drop in heat exchange system revenue, with domestic sales declining more significantly Profit Composition | Item | Current Period Amount (Yuan) | Prior Year Same Period Amount (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 155,936,482.55 | 184,273,013.97 | -15.38% | | Operating Cost | 116,212,317.22 | 123,088,876.59 | -5.59% | | Operating Profit | 20,485,387.89 | 41,827,429.33 | -51.02% | | Net Profit | 20,071,048.87 | 36,453,796.08 | -44.94% | Revenue Composition (by Product) | Product Category | Operating Revenue (Yuan) | Operating Revenue YoY Change | | :--- | :--- | :--- | | Heat Exchange Systems | 43,495,510.34 | -40.05% | | Plate-Fin Heat Exchangers | 105,579,017.87 | -2.84% | | Aluminum Profiles | 4,395,307.78 | 100.00% | - The significant decrease in heat exchange system revenue was mainly affected by the slowdown in lithium battery construction projects and delays in core component certification for overseas customers[41] Cash Flow Status Cash flow significantly improved, with operating cash flow surging by 274.31% to 40.47 million Yuan due to bill discounting and extended payment terms, and investing cash flow turning positive to 21.54 million Yuan from matured structured deposits Cash Flow Status | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 40,466,662.80 | 10,810,897.89 | 274.31% | | Net Cash Flow from Investing Activities | 21,537,317.13 | -67,719,631.39 | 131.80% | | Net Cash Flow from Financing Activities | -20,048,945.47 | -20,138,514.11 | 0.44% | - The significant increase in operating cash flow was due to: 7.5769 million Yuan from early bill discounting, 11.8890 million Yuan from centralized collection of other matured bills, and 13.4225 million Yuan reduction in cash paid for goods due to lower purchase volumes and extended payment terms[43] Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, raw material price volatility, exchange rate changes, and international trade friction, addressed by diversifying products, establishing price linkage, using financial hedging, and exploring new markets Major Risks and Countermeasures | Risk Type | Countermeasures | | :--- | :--- | | Macroeconomic Fluctuation Risk | Strengthen R&D, expand into new application areas, and consolidate market position | | Raw Material Price Volatility Risk | Establish price linkage mechanisms with downstream customers and conduct futures hedging | | Exchange Rate Fluctuation Risk | Settle foreign exchange promptly and use financial instruments like forward foreign exchange to mitigate risks | | Impact of Trade Friction | Actively explore new markets in countries and regions with relaxed trade policies | Significant Events Details of Significant Events During the reporting period, the company had no significant lawsuits, with cumulative litigation at 0.13% of net assets, engaged in routine related-party transactions within estimates, and had some restricted assets without major impact - During the reporting period, the company had no significant lawsuits or arbitrations, with cumulative amounts involved totaling 567,845.05 Yuan, accounting for 0.13% of net assets at period-end[50] - The company engaged in routine related-party transactions, primarily for raw material procurement and acceptance of services from related parties, with actual amounts totaling 1,916,941.10 Yuan, not exceeding the estimated limit of 7,500,000.00 Yuan[50] Restricted Asset Status | Asset Name | Type of Restriction | Book Value (Yuan) | Percentage of Total Assets % | | :--- | :--- | :--- | :--- | | Monetary Funds | Guarantee Deposit | 3,146,681.71 | 0.55% | | Notes Receivable | Endorsed but not derecognized | 11,421,208.02 | 2.01% | | Total | - | 14,567,889.73 | 2.56% | Share Changes and Financing Common Share Capital As of period-end, the company's total share capital was 87,550,002 shares, with 71.92% restricted, and the top ten shareholders holding 72.54%, indicating a stable equity structure controlled by the Ding family Common Share Capital Structure | Share Nature | Period-End Quantity (Shares) | Percentage % | | :--- | :--- | :--- | | Unrestricted Shares | 24,580,687 | 28.08% | | Restricted Shares | 62,969,315 | 71.92% | | Total Share Capital | 87,550,002 | 100.00% | - The top five shareholders are Ding Yunlong (32.69%), Wuxi Fangsheng Industrial Co., Ltd. (12.80%), Ding Zhenhong (8.11%), Sun Yaochun (5.48%), and Ding Zhenfang (5.30%). Ding Yunlong and Ding Zhenfang are father and son, jointly controlling Wuxi Fangsheng Industrial Co., Ltd., and are the company's actual controllers[57] Use of Raised Funds As of June 30, 2024, the company has cumulatively invested 67.68 million Yuan of raised funds, achieving an overall progress of 47.16%, with the production base project at 49.83% and the R&D center project at 24.28% Progress of Raised Funds Utilization | Use of Raised Funds | Planned Total Investment (Yuan) | Cumulative Investment Amount (Yuan) | Investment Progress (%) | | :--- | :--- | :--- | :--- | | Production Base Construction Project | 128,493,113.22 | 64,033,946.19 | 49.83% | | R&D Center Construction Project | 15,000,000.00 | 3,642,000.00 | 24.28% | | Total | 143,493,113.22 | 67,675,946.19 | 47.16% | - As of the end of the reporting period, the company used 70,000,000.00 Yuan of idle raised funds to purchase wealth management products[59] Changes in Directors, Supervisors, Senior Management, and Core Employees Directors, Supervisors, and Senior Management During the reporting period, core management remained stable, with changes only in the Supervisory Board where Xu Weibin became Chairman and Qin Jun the Employee Representative Supervisor, while their collective shareholding was 56.543% - During the reporting period, no changes occurred among senior management, including the Chairman, General Manager, Board Secretary, and CFO[65] - The Supervisory Board underwent re-election, with Qin Beijie stepping down as Chairman and Xu Weibin appointed as the new Chairman, and Qin Jun as the new Employee Representative Supervisor[66] Employee Status As of period-end, the company and its subsidiaries had 471 employees, an increase of 5, with production personnel forming the largest group at 319, and the majority holding college degrees or below Employee Structure (by Job Nature) | Job Nature | Period-End Number of Employees | | :--- | :--- | | Management Personnel | 70 | | Production Personnel | 319 | | Sales Personnel | 22 | | Technical Personnel | 52 | | Financial Personnel | 8 | | Total Employees | 471 | Financial Accounting Report Financial Statements This section presents the company's unaudited consolidated and parent financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, reflecting H1 2024 performance Notes to Financial Statements This section details the basis of financial statement preparation, key accounting policies, and provides notes on major consolidated financial statement items like monetary funds, receivables, inventory, fixed assets, revenue, and related-party transactions Reference Documents Catalog Reference Documents This section lists available reference documents, including financial statements signed by company and accounting officers, audit reports (if applicable), and originals of all publicly disclosed documents and announcements - Reference documents are stored at the company's Board Secretary's Office[366]