Company Overview - Wasion Holdings is a leading provider of smart metering, smart power distribution, and energy efficiency management solutions in China, with over 20% market share in high-end metering products domestically[7]. - The company focuses on research, development, production, and sales of energy metering and efficiency management solutions, applicable across various sectors including electricity, water, gas, and heat supply[7]. - Wasion's subsidiary, Wasion Information Technology Co., Ltd., holds a 58.56% stake and became the first Hunan Province enterprise listed on the Sci-Tech Innovation Board in January 2020[8]. - The company aims to become a leading supplier of smart power distribution systems and solutions in China, addressing the significant demand for energy internet transformation[8]. - Wasion is committed to innovation and aims to establish itself as a major supplier in the international smart grid and metering sectors[8]. - The company emphasizes its mission to be an "energy metering and efficiency management expert," aligning with global trends towards carbon neutrality and energy consumption transformation[8]. Product and Market Development - Wasion's advanced smart metering products include a full range of smart electricity meters, water meters, gas meters, and ultrasonic heat meters[7]. - The company is actively involved in developing new energy storage solutions and integrated systems for various applications, including industrial automation and demand-side management[7]. - Future outlook includes a focus on expanding market presence and enhancing product offerings to meet evolving energy management needs[8]. - The company plans to launch a smart electric carbon fusion meter in the first half of 2024, leading the industry in research and development capabilities[41]. - The company aims to enhance its position as a major supplier of electric meters in target countries through continuous technological innovation and product optimization[42]. Financial Performance - Revenue for the six months ended June 30, 2024, increased by 16% to RMB 3,741.54 million compared to RMB 3,225.68 million in the same period of 2023[11]. - Gross profit rose by 13% to RMB 1,327.73 million, with a gross margin of 35.49%, down from 36.48% in the previous year[11]. - Operating profit increased by 43% to RMB 623.31 million, with an operating margin of 17%, up from 14% in the prior year[15][10]. - Net profit attributable to shareholders increased by 55% to RMB 331.03 million, with a net profit margin of 8.8%, compared to 6.6% in the same period last year[16][10]. - Other income rose to RMB 147.17 million, up from RMB 100.25 million in the previous year, primarily from interest income and government grants[12]. Asset and Liability Management - Total assets increased to RMB 14,338.12 million from RMB 13,391.90 million, with total equity attributable to shareholders rising to RMB 5,205.02 million from RMB 4,817.44 million[10]. - The debt ratio increased to 21% from 18% as of December 31, 2023, indicating a rise in total borrowings to RMB 2,970.55 million[17]. - The accounts receivable turnover period improved to 231 days from 260 days, while the accounts payable turnover period decreased to 296 days from 315 days[10]. - Employee costs for the first half of 2024 amounted to RMB 494.58 million, up from RMB 413.87 million in the same period last year[19]. Research and Development - The company continues to invest in research and development, with R&D expenses amounting to RMB 308,187 thousand, slightly up from RMB 304,627 thousand in the previous year[80]. - The company’s R&D efforts include the development of an AI edge computing gateway and a smart security management platform to enhance digital transformation in the power industry[47]. - The group has obtained 67 authorized patents during the reporting period, including 30 invention patents, and currently holds a total of 1,942 effective patents and 1,811 software copyrights[60]. International Expansion - The company has established new subsidiaries in Mexico and Indonesia and is planning factories in Saudi Arabia, Indonesia, and Mexico, with an investment of HKD 800 million for international market expansion[47]. - The group is actively exploring opportunities in the European market, with contracts exceeding RMB 200 million for large-scale meter projects in Austria and Germany[58]. - The group aims to expand its production scale in Mexico and Brazil, focusing on enhancing market share in the electric meter sector and increasing research outcomes in new energy and distribution equipment[59]. Shareholder and Governance - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024[67]. - The company’s major shareholder, controlled by Ji Wei, holds 534,388,888 shares, representing 53.66% of the issued share capital[68]. - The company maintained compliance with the corporate governance code as per the listing rules throughout the reporting period[73]. Market Trends and Economic Indicators - The GDP of the domestic market for the first half of 2024 is RMB 61.7 trillion, reflecting a year-on-year growth of 5.0%[32]. - The total electricity consumption in China reached 4.66 trillion kWh, a year-on-year increase of 8.1%[33]. - The retail sales of new energy vehicles reached 4.11 million units in the first half of 2024, representing a growth of 33.1% year-on-year[32]. Cash Flow and Financial Position - Operating cash flow for the six months ended June 30, 2024, was RMB (85,431,000), a significant decrease from RMB 206,084,000 in the previous year, indicating a decline in operational efficiency[86]. - The company incurred a net cash outflow from investing activities of RMB (364,252,000) for the six months ended June 30, 2024, compared to RMB (304,032,000) in the same period last year, representing an increase in investment expenditures[86]. - Financing activities generated a cash inflow of RMB 1,682,109,000, while cash outflows included RMB 1,262,525,000 for bank loan repayments and RMB 253,332,000 for dividends paid[86]. Share-Based Payments and Incentives - The share award plan is set to remain effective for 10 years from its adoption date on May 3, 2016, with a maximum share limit of 10% of the total issued shares[24]. - The company has launched a restricted share incentive plan for mid-level and above management, which was approved on April 3, 2024, and will be effective for five years, with a total number of shares not exceeding 10% of the issued shares[137]. - The company reported a share-based payment expense of RMB 8,935,000 for the six months ended June 30, 2024, compared to RMB 0 for the same period in 2023[139].
威胜控股(03393) - 2024 - 中期财报