双飞集团(300817) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential preliminary information, including the table of contents and key definitions for the report Company Profile and Key Financial Indicators This section introduces the company and presents its key accounting data and financial performance metrics Company Profile Shuangfei Oil-Free Bearing Group Co., Ltd. (stock code: 300817) is a company listed on the Shenzhen Stock Exchange, specializing in the R&D and production of oil-free bearings Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Shuangfei Group | | Stock Code | 300817 | | Listing Exchange | Shenzhen Stock Exchange | | Full Company Name | Shuangfei Oil-Free Bearing Group Co., Ltd. | | Legal Representative | Zhou Yinchun | Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue grew by 12.54% to 413.11 million RMB, and net profit attributable to shareholders increased by 21.48% to 34.05 million RMB, while net cash flow from operating activities significantly decreased by 111.15% to -3.75 million RMB Key Financial Performance Indicators | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 413,111,659.78 | 367,090,456.18 | 12.54% | | Net Profit Attributable to Shareholders (RMB) | 34,053,286.80 | 28,032,411.46 | 21.48% | | Net Cash Flow from Operating Activities (RMB) | -3,749,266.51 | 33,624,259.25 | -111.15% | | Basic Earnings Per Share (RMB/share) | 0.156 | 0.128 | 21.88% | | Weighted Average ROE | 3.30% | 2.79% | Increased by 0.51 percentage points | | Total Assets (RMB) | 1,317,459,700.38 | 1,348,437,260.81 (Prior Year-End) | -2.30% | | Net Assets Attributable to Shareholders (RMB) | 1,004,202,068.86 | 1,014,102,929.27 (Prior Year-End) | -0.98% | Non-Recurring Gains and Losses and Amounts Total non-recurring gains and losses amounted to 1.51 million RMB, primarily comprising government subsidies of 2.04 million RMB and fair value changes in financial assets of 0.13 million RMB Non-Recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -41,591.38 | | Government Subsidies Included in Current P&L | 2,038,927.66 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities | 134,986.40 | | Other Non-Operating Income/Expenses | -112,840.58 | | Less: Income Tax Impact | 293,776.94 | | Less: Impact on Minority Interests (After Tax) | 218,828.49 | | Total | 1,506,876.67 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, and future outlook Company's Main Business As a national 'Little Giant' enterprise, the company specializes in R&D, production, and sales of sliding bearings, self-lubricating materials, and copper powder, serving various industrial sectors with 12.54% revenue growth and 21.48% net profit growth Key Business Performance Indicators | Indicator | Amount (million RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 413.11 | 12.54% | | Total Profit | 36.40 | 26.76% | | Net Profit Attributable to Shareholders | 34.05 | 21.48% | - The company is a national high-tech and 'Little Giant' enterprise integrating R&D, production, and sales, specializing in sliding bearings and self-lubricating materials[14] - The company's products are widely used in automotive manufacturing, construction machinery, hydraulic systems, mold manufacturing, new energy, and aerospace[15][16][17] - The company's sales model is primarily direct sales, supplemented by distribution, with direct sales dominating the domestic market and a mix for international markets[19] Core Competitiveness Analysis The company's core competitiveness stems from innovation, R&D, quality control, scale production, brand, customer base, and management, having led or participated in 39 national and industry standards while maintaining strong customer relationships - The company is a secretariat unit of the Self-Lubricating Bearings Sub-Technical Committee of the Sliding Bearings Standardization Technical Committee, having led or participated in 39 national and industry standards[22] - The company has established long-term stable partnerships with high-quality clients, including MISUMI, CCVISPA, XCMG Group, Sany Group, Sinotruk, and Zoomlion Heavy Industry[23] - The acquisition of copper powder supplier Jinhua Chengkai enabled supply chain collaborative R&D, improving raw material quality and supply, and resolving technical challenges in high-hardness bimetallic material production[26] Main Business Analysis Operating revenue and cost increased by 12.54% and 14.31% respectively, while financial expenses surged by 12,527.28% due to reduced exchange gains; operating cash flow turned negative, decreasing by 111.15%, and financing cash outflow expanded by 278.56% Key Financial Indicators and Changes | Key Financial Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 413,111,659.78 | 367,090,456.18 | 12.54% | - | | Operating Cost | 307,032,944.30 | 268,595,022.94 | 14.31% | - | | Financial Expenses | 1,397,471.93 | 11,067.09 | 12,527.28% | Primarily due to reduced net exchange gains | | Net Cash Flow from Operating Activities | -3,749,266.51 | 33,624,259.25 | -111.15% | Decrease in sales receipts exceeded decrease in purchase payments | | Net Cash Flow from Investing Activities | -34,839,424.24 | -67,418,209.08 | 48.32% | Reduced cash paid for subsidiary acquisition | | Net Cash Flow from Financing Activities | -58,548,724.54 | -15,466,272.73 | -278.56% | Due to increased repayment of bank loans | Non-Core Business Analysis Non-core business incurred an investment loss of 0.28 million RMB, mainly from wealth management and bank acceptance bill discount interest, alongside a 1.69 million RMB inventory impairment provision which is non-recurring Non-Core Business Items | Item | Amount (RMB) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | -276,318.68 | Mainly from wealth management income and bank acceptance bill discount interest | Bank acceptance bill discount interest expense is sustainable | | Asset Impairment | -1,691,718.53 | Mainly due to inventory impairment provision | No | | Non-Operating Income | 1,422.00 | Other fine income | No | | Non-Operating Expenses | 114,262.58 | Mainly due to donation expenses | No | Analysis of Assets and Liabilities Total assets stood at 1.32 billion RMB, a 2.30% decrease from year-end, with cash and equivalents dropping from 16.04% to 9.10% of total assets due to significant outflows, while accounts receivable increased from 16.20% to 21.23% Key Asset Items and Proportions | Key Asset Item | Period-End Amount (RMB) | Proportion of Total Assets | Prior Year-End Amount (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 119,901,915.68 | 9.10% | 216,352,691.57 | 16.04% | -6.94% | | Accounts Receivable | 279,708,196.04 | 21.23% | 218,387,851.04 | 16.20% | 5.03% | - As of the reporting period end, 55.92 million RMB of assets were restricted, primarily fixed assets, intangible assets pledged for bank loans, and bank acceptance bill deposits[33] Investment Analysis Total investment decreased by 30.26% to 47.34 million RMB, with 20 million RMB in fair value financial assets primarily in trust products; cumulative raised funds invested reached 323.43 million RMB, but key projects' completion is delayed to September 30, 2024, due to construction and approval delays - Investment during the reporting period was 47.34 million RMB, a 30.26% decrease from 67.88 million RMB in the prior year[34] - The company used 20 million RMB of its own funds to purchase financial assets, including 10 million RMB in funds and 10 million RMB in trust products[36] Raised Funds Utilization Summary | Raised Funds Utilization | Amount (million RMB) | | :--- | :--- | | Total Raised Funds | 335.76 | | Total Investment in Reporting Period | 12.24 | | Total Cumulative Investment | 323.43 | | Unused Raised Funds Balance | 23.37 | - Due to civil engineering, design changes, and acceptance issues, the completion dates for the 'Automated Production Project for 136 Million Sets of Sliding Bearings', 'Annual Production Project for 0.5 Million Square Meters of Composite Materials', and 'R&D Center Project' have been postponed from September 30, 2023, to September 30, 2024[44] Overall Investment Situation Total investment during the reporting period was 47.34 million RMB, a 30.26% decrease compared to 67.88 million RMB in the prior year Investment Amount Comparison | Investment Comparison | Amount (RMB) | | :--- | :--- | | Reporting Period Investment | 47,341,436.64 | | Prior Period Investment | 67,884,709.08 | | Change Percentage | -30.26% | Financial Assets Measured at Fair Value The company purchased 20 million RMB in financial assets using its own funds, comprising 10 million RMB in funds and 10 million RMB in trust products, with 10 million RMB in trust products held at period-end Fair Value Financial Assets | Asset Category | Amount Purchased in Reporting Period (RMB) | Amount Sold in Reporting Period (RMB) | Period-End Amount (RMB) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | | Funds | 10,000,000.00 | 100,000,000.00 | 0.00 | Own Funds | | Trust Products | 10,000,000.00 | - | 10,000,000.00 | Own Funds | | Total | 20,000,000.00 | 100,000,000.00 | 10,000,000.00 | -- | Utilization of Raised Funds The company's IPO raised 336 million RMB net, with 323.43 million RMB cumulatively invested and 12.24 million RMB in the current period; due to project delays, the completion of three key projects is postponed to September 2024, with 23.37 million RMB unused funds held in special accounts Raised Funds Investment Progress | Committed Raised Fund Project | Adjusted Total Investment (million RMB) | Cumulative Investment (million RMB) | Investment Progress | Expected Completion Date | | :--- | :--- | :--- | :--- | :--- | | Project to Increase Production of 136 Million Sets of Sliding Bearings | 189.88 | 191.58 | 100.90% | September 30, 2024 | | Project for Annual Production of 0.5 Million Square Meters of Composite Materials | 105.80 | 100.04 | 94.56% | September 30, 2024 | | R&D Center Construction Project | 40.08 | 31.81 | 79.36% | September 30, 2024 | | Total | 335.76 | 323.43 | -- | -- | - The main reason for the delay in raised fund projects is the involvement of civil engineering, government approvals, design changes, acceptance, and decoration processes[42][44] - As of June 30, 2024, the company has 23.37 million RMB in unused raised funds, all deposited in special accounts[40][45] Analysis of Major Holding and Participating Companies Jiaxing Shuangfei Lubricating Material Co., Ltd. and Jinhua Shuangfei Chengkai Alloy Material Co., Ltd. were major profit contributors with net profits of 12.32 million RMB and 6.75 million RMB respectively, while Sichuan Shuangfeihong Precision Components Co., Ltd. reported a loss of 4.02 million RMB Major Subsidiaries' Financial Performance | Company Name | Main Business | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiaxing Shuangfei Lubricating Material Co., Ltd. | Manufacturing of Oil-Free Lubricating Materials | 257,345,264.59 | 179,272,183.93 | 192,459,723.26 | 12,317,219.12 | | Jinhua Shuangfei Chengkai Alloy Material Co., Ltd. | Manufacturing of Non-Ferrous Metal Alloys | 145,124,738.45 | 83,913,980.81 | 118,128,732.26 | 6,751,394.25 | | Sichuan Shuangfeihong Precision Components Co., Ltd. | Manufacturing of Bearings, Auto Parts | 95,941,349.81 | 40,463,139.11 | 12,490,983.07 | -4,021,530.44 | | Zhejiang Bole Hydraulic Technology Co., Ltd. | Manufacturing of Hydraulic Power Machinery | 39,165,559.46 | 27,087,141.40 | 15,070,259.00 | 1,316,864.10 | Risks Faced by the Company and Countermeasures The company faces risks from raw material price fluctuations, intensified industry competition, and exchange rate volatility, addressed by dynamic price tracking, inventory adjustments, process improvements, customer optimization, and enhanced financial management - Fluctuations in key raw material prices (copper powder, steel plates) pose a significant risk to the company's gross margin, addressed by dynamic price tracking, inventory adjustments, and process improvements[52] - The self-lubricating bearing industry is highly competitive, requiring the company to maintain technological and quality advantages to mitigate risks of market share or profit margin decline due to price competition[52] - Export business is primarily settled in USD and EUR, making exchange rate fluctuations a risk to operating performance, which the company mitigates through enhanced financial planning and management[52] Corporate Governance This section details the company's governance structure, shareholder meetings, and management stability - During the reporting period, the company held its 2023 Annual General Meeting, with an investor participation rate of 68.65%[55] - There were no changes in the company's directors, supervisors, or senior management during the reporting period[56] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[57] Environmental and Social Responsibility This section outlines the company's environmental protection measures, compliance, and commitment to social responsibility initiatives Significant Environmental Issues The company and its subsidiary Shuangfei Chengkai are designated key polluting units, adhering strictly to environmental regulations with established wastewater treatment and monitoring systems, and no violations or penalties reported - The company's headquarters and its subsidiary, Jinhua Shuangfei Chengkai Alloy Material Co., Ltd., are listed as key polluting units by environmental protection authorities[60] Key Pollutant Discharge Information | Company Name | Main Pollutants | Discharge Method | Number of Outlets | Total Discharge | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Shuangfei Group | COD, Ammonia Nitrogen | Discharge into Municipal Pipe Network | 2 | COD 1.859 tons/year; Ammonia Nitrogen 0.186 tons/year | No Exceedance | | Jinhua Shuangfei Chengkai | COD, Ammonia Nitrogen, Particulates, Lead Dust | Pipe Network/High-Altitude Discharge | 6 | - | No Exceedance | - The company has developed and filed emergency response plans for environmental incidents, with no pollution accidents or environmental administrative penalties during the reporting period[61][63] Social Responsibility Performance The company integrates social responsibility into its strategy, protecting stakeholders' rights, maintaining stable cash dividends since listing, recognized as a 'Leading Enterprise for Happy Community' in Zhejiang, and actively engaging in public welfare initiatives - The company strictly adheres to its profit distribution policy, providing stable cash dividends annually since its listing to actively reward shareholders[65] - The company prioritizes employee rights protection, recognized as a 'Leading Enterprise for Happy Community' in Zhejiang Province and awarded 'National Model Employee Home'[65] - The company actively participates in social welfare, including establishing the 'Shuangfei Scholarship', pairing assistance, and sponsoring underprivileged students, to fulfill its social responsibilities[66] Significant Matters This section covers the fulfillment of commitments, major related-party transactions, and other significant corporate events Fulfillment of Commitments The company and related parties strictly fulfilled all IPO commitments, with share lock-up commitments completed, while long-term commitments regarding share reduction, avoiding competition, regulating related-party transactions, and dividends remain in effect - The IPO share lock-up commitments (36 or 12 months) for controlling shareholders Zhou Yinchun, Gu Meijuan, and other senior executives have been fulfilled[68][69] - Long-term commitments regarding share reduction, avoiding horizontal competition, regulating related-party transactions, stabilizing stock price, and profit distribution are still being fulfilled[70][71][72] Major Related-Party Transactions No related-party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments occurred during the reporting period - The company had no related-party transactions concerning daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period[79] Other Significant Matters The company disclosed transactions with entities controlled by the actual controller's relatives, including 13.30 million RMB in copper sleeve purchases from Jiaxing Jiexing and 2.30 million RMB in scrap copper sales, plus 1.46 million RMB in packaging material purchases from Fanyue Packaging, all deemed fair by the board - The company disclosed transactions with entities controlled by the actual controller's relatives, managed and disclosed as related-party transactions despite not being legally defined as such[90] Transactions with Related Parties (Referenced) | Counterparty | Transaction Content | Amount for H1 2024 (million RMB) | | :--- | :--- | :--- | | Jiaxing Jiexing Oil-Free Bearing Co., Ltd. | Purchase of Copper Sleeves | 13.30 | | | Sale of Scrap Copper | 2.30 | | Jiashan Fanyue Packaging Co., Ltd. | Purchase of Packaging Materials, etc. | 1.46 | Share Changes and Shareholder Information This section details changes in share capital, shareholder structure, and holdings of directors, supervisors, and senior management Share Capital Changes Following the 2023 profit distribution plan, the company increased its share capital by 43,659,648 shares through a 2.5-for-10 bonus issue from capital reserves, raising total share capital from 175 million to 218 million shares, with executive restricted shares increasing proportionally - Due to the capital reserve capitalization (2.5 shares for every 10 shares), the company's total share capital increased from 174,638,592 shares to 218,298,240 shares[95] Share Capital Changes | Share Class | Quantity Before Change | Quantity After Change | | :--- | :--- | :--- | | Restricted Shares | 75,271,680 | 94,089,600 | | Unrestricted Shares | 99,366,912 | 124,208,640 | | Total Share Capital | 174,638,592 | 218,298,240 | Shareholder Numbers and Shareholding As of the reporting period end, the company had 16,987 common shareholders, with actual controller Zhou Yinchun as the largest shareholder at 41.74%, forming a concerted action group with his spouse Gu Meijuan and controlled entities Shunfei Investment and Tengfei Investment - As of the reporting period end, the company had a total of 16,987 common shareholders[98] Top Ten Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Zhou Yinchun | Domestic Natural Person | 41.74% | 91,108,800 | | Pu Zhilin | Domestic Natural Person | 5.44% | 11,871,360 | | Jiashan Shunfei Equity Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 5.11% | 11,155,310 | | Jiashan Tengfei Equity Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.05% | 8,840,150 | | Gu Meijuan | Domestic Natural Person | 3.38% | 7,387,200 | - Shareholders Zhou Yinchun and Gu Meijuan are a married couple, and Shunfei Investment and Tengfei Investment are entities controlled by Zhou Yinchun, forming a concerted action relationship[98] Changes in Holdings of Directors, Supervisors, and Senior Management Holdings of the company's directors, supervisors, and senior management increased due to capital reserve capitalization, with no active share purchases or sales during the reporting period - The increase in shareholdings of the company's directors and senior management resulted from the capital reserve capitalization plan, not active share purchases[101][102] Preferred Shares Information This section confirms the absence of preferred shares within the company's capital structure - The company had no preferred shares during the reporting period[104] Bonds Information This section confirms the absence of any bond-related activities or instruments for the company - The company had no bond-related matters during the reporting period[105] Financial Report This section presents the company's comprehensive financial statements, including balance sheets, income statements, and cash flow statements Financial Statements As of June 30, 2024, total assets were 1.32 billion RMB, total liabilities 277 million RMB, and equity attributable to parent 1.00 billion RMB; H1 2024 saw 413 million RMB in revenue, 34.05 million RMB net profit, with operating cash flow at -3.75 million RMB, investing outflow 34.84 million RMB, and financing outflow 58.55 million RMB Consolidated Balance Sheet As of June 30, 2024, total assets were 1.32 billion RMB, a 2.3% decrease from the beginning of the period, with current assets at 632 million RMB and non-current assets at 685 million RMB; total liabilities were 277 million RMB, a 6.9% decrease, and equity attributable to the parent was 1.00 billion RMB Consolidated Balance Sheet Summary | Key Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Total Current Assets | 632,126,449.91 | 656,339,491.89 | | Total Non-Current Assets | 685,333,250.47 | 692,097,768.92 | | Total Assets | 1,317,459,700.38 | 1,348,437,260.81 | | Total Current Liabilities | 234,316,628.41 | 237,628,052.31 | | Total Non-Current Liabilities | 42,485,357.39 | 60,034,424.39 | | Total Liabilities | 276,801,985.80 | 297,662,476.70 | | Total Equity Attributable to Parent Company | 1,004,202,068.86 | 1,014,102,929.27 | | Total Equity | 1,040,657,714.58 | 1,050,774,784.11 | Consolidated Income Statement In H1 2024, the company achieved total operating revenue of 413 million RMB and total operating costs of 381 million RMB; total profit was 36.40 million RMB, up 26.8%, with net profit attributable to parent shareholders at 34.05 million RMB, up 21.5%, and basic EPS of 0.156 RMB Consolidated Income Statement Summary | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 413,111,659.78 | 367,090,456.18 | | II. Total Operating Costs | 380,820,015.99 | 341,293,715.70 | | III. Operating Profit | 36,510,146.83 | 29,014,438.19 | | IV. Total Profit | 36,397,306.25 | 28,714,591.19 | | V. Net Profit | 34,237,077.68 | 26,614,002.93 | | Net Profit Attributable to Parent Company Shareholders | 34,053,286.80 | 28,032,411.46 | | VIII. Earnings Per Share: | | | | (I) Basic Earnings Per Share | 0.156 | 0.128 | | (II) Diluted Earnings Per Share | 0.156 | 0.128 | Consolidated Cash Flow Statement In H1 2024, net cash flow from operating activities deteriorated significantly to -3.75 million RMB from 33.62 million RMB year-over-year; investing activities saw a 34.84 million RMB outflow, financing activities a 58.55 million RMB outflow, and period-end cash and equivalents decreased by 97.23 million RMB to 113 million RMB Consolidated Cash Flow Statement Summary | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -3,749,266.51 | 33,624,259.25 | | II. Net Cash Flow from Investing Activities | -34,839,424.24 | -67,418,209.08 | | III. Net Cash Flow from Financing Activities | -58,548,724.54 | -15,466,272.73 | | V. Net Increase in Cash and Cash Equivalents | -97,229,431.81 | -48,100,932.14 | | Add: Cash and Cash Equivalents at Beginning of Period | 210,442,511.09 | 194,757,762.21 | | VI. Cash and Cash Equivalents at End of Period | 113,213,079.28 | 146,656,830.07 | Notes to Consolidated Financial Statements Notes detail account compositions and changes, highlighting accounts receivable at 280 million RMB (top five clients 18.03%), inventory at 164 million RMB with 12.59 million RMB impairment, construction in progress at 87.63 million RMB (mainly raised fund projects), goodwill at 41.75 million RMB, and revenue primarily from sliding bearings (251 million RMB) and composite materials (97.54 million RMB) - Period-end accounts receivable balance was 299 million RMB, with 19.98 million RMB in bad debt provisions, resulting in a carrying value of 280 million RMB; the top five customers accounted for 18.03% of total accounts receivable[213][215][219] - Period-end inventory carrying value was 164 million RMB, including 48.88 million RMB in raw materials and 87.13 million RMB in finished goods, with a total inventory impairment provision of 12.59 million RMB[241][243] - Period-end construction in progress had a carrying value of 87.63 million RMB, primarily comprising the 'Annual Production Project for 0.5 Million Square Meters of Composite Materials' (27.77 million RMB), 'Factory No. 14 Project' (29.64 million RMB), and 'R&D Center Construction Project' (12.19 million RMB)[264] Operating Revenue and Cost by Business Type | Business Type | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | Sliding Bearings | 251,174,949.22 | 184,359,816.04 | | Composite Materials | 97,537,569.03 | 73,073,819.99 | | Copper Powder | 39,807,503.19 | 35,485,525.19 | | Hydraulic Parts | 14,896,697.57 | 11,221,638.55 | | Other | 9,060,016.37 | 2,228,338.85 |