好太太(603848) - 2019 Q2 - 季度财报

Part I Glossary This section provides definitions for key terms, abbreviations, and timeframes used throughout the report - The report defines common terms, abbreviations for key business systems, and clarifies reporting period timeframes[14] Part II Company Profile and Key Financial Indicators I. Company Information This section provides the company's basic registration details, contact information, disclosure channels, and stock profile, including its legal representative and listing on the Shanghai Stock Exchange - The company's full name is Guangdong Hotata Technology Group Co., Ltd., and its legal representative is Shen Hanbiao[17] - The company's stock abbreviation is "Hotata", stock code 603848, listed on the Shanghai Stock Exchange[17] - The company's registered and office address is located at No. 21-1, No. 21-2, Shihua Road, Hualong Town, Panyu District, Guangzhou[17] VII. Key Accounting Data and Financial Indicators Operating revenue and net profit attributable to parent company shareholders saw slight growth, while net cash flow from operating activities significantly decreased, with total assets and net assets increasing and basic EPS remaining flat Key Accounting Data for H1 2019 (Unit: RMB Yuan) | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 576,539,594.09 | 570,467,749.68 | 1.06 | | Net Profit Attributable to Shareholders of Listed Company | 112,244,336.17 | 110,986,185.67 | 1.13 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 95,580,730.59 | 85,618,916.30 | 11.64 | | Net Cash Flow from Operating Activities | 19,372,321.68 | 55,576,269.80 | -65.14 | | Period-End Indicators | Current Period End | Prior Year End | % Change from Prior Year End | | Net Assets Attributable to Shareholders of Listed Company | 1,298,569,445.47 | 1,286,573,151.45 | 0.93 | | Total Assets | 1,682,841,646.19 | 1,630,018,839.42 | 3.24 | Key Financial Indicators for H1 2019 | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB Yuan/share) | 0.28 | 0.28 | 0 | | Diluted Earnings Per Share (RMB Yuan/share) | 0.28 | 0.28 | 0 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (RMB Yuan/share) | 0.24 | 0.21 | 14.29 | | Weighted Average Return on Net Assets (%) | 8.36% | 9.70% | Decrease of 1.34 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 7.12% | 7.49% | Decrease of 0.37 percentage points | IX. Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to RMB 16.66 million, mainly from entrusted investments and government subsidies Non-Recurring Gains and Losses Items and Amounts for H1 2019 (Unit: RMB Yuan) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Government subsidies recognized in current profit or loss | 1,235,210.08 | | Gains and losses on entrusted investments or asset management | 18,072,311.56 | | Other non-operating income and expenses apart from the above | 320,939.33 | | Impact of minority interests | -270.73 | | Income tax impact | -2,964,584.66 | | Total | 16,663,605.58 | Part III Company Business Overview I. Main Business, Business Model, and Industry Overview During the Reporting Period The company, a smart home enterprise, specializes in smart drying products, operating with a core model of R&D, design, quality, brand, and channel development, within a rapidly growing smart home industry - The company primarily deals in smart home products, including smart clothes dryers, smart locks, and smart curtains, positioning itself as a leader in the smart drying sector[28] - The company's business model centers on independent R&D, original design, quality management, brand building, and channel development, holding over 400 national patents[28][30] - As of June 30, 2019, the company had over 850 dealers, more than 2,300 exclusive stores, and over 30,000 retail outlets[31] - The smart home industry is in a rapid growth phase, moving towards an era of ubiquitous intelligence, with expanding market size and intensifying competition, demanding higher specialization, branding, and scale from enterprises[31][32][34] III. Analysis of Core Competencies During the Reporting Period Core competencies include R&D, brand, sales channels, e-commerce, services, and informatization, driven by dedicated smart technology departments and industry-university-research collaboration - The company highly values technological innovation, establishing industry-university-research cooperation with universities like South China University of Technology and Guangdong University of Technology, and setting up a "Smart Research Institute" and "Smart IoT Department" to continuously track cutting-edge IoT and AI technologies[35][36] - The company operates under a dual-brand strategy with "Hotata" and "Keleini," engaging well-known artists for endorsements to enhance brand recognition and influence[37] - The company has established a robust sales network, primarily through regional distribution supplemented by direct sales, collaborating with building material retail giants like Red Star Macalline, while its subsidiary, Network Technology, independently operates e-commerce, integrating online and offline resources[40][41] - The company has established a professional integrated service system, offering standardized installation and comprehensive after-sales service, and enhancing its informatization and digital management capabilities by upgrading systems like ERP and CRM[42][43] Part IV Discussion and Analysis of Operations I. Discussion and Analysis of Operations The company effectively navigated challenging economic conditions by advancing its smart home strategy through brand building, R&D, sales, IT, and human resources, achieving notable progress in whole-house smart home development - During the reporting period, the company actively addressed economic downturns and weak consumer markets, promoting whole-house smart home development with smart clothes dryers and smart locks as flagship products, covering all scenarios including smart drying, security, lighting, interaction, and health[45][47][48] (I) Brand Building and Promotion The company reinforced the "Hotata" brand through various promotional events and expanded the "Keleini" smart home brand via high-speed rail advertising and product strategies - The "Hotata" brand expanded its influence and promoted the concept of smart drying through events such as the trade-in season, design competition sponsorship, and China Clothes Drying Festival[47] - The "Keleini" brand collaborated with China High-Speed Rail for advertising, focusing on AI smart lock products, and launched a "two vertical, one horizontal" product strategy to build a multi-category integrated smart home control system[48] (II) Product R&D and Technological Innovation The company accumulated 429 effective patents and filed 99 new applications, enhancing smart drying systems and accelerating whole-house smart home development through "Keleini" brand innovations and five smart cloud platforms - During the reporting period, the company accumulated 429 effective patents and filed 99 new applications (29 invention, 42 utility model, 27 design, 1 software copyright)[49] - The "Hotata" brand achieved new breakthroughs in clothes dryer power and control systems, and was recognized as a municipal industrial design center[49] - The "Keleini" brand focuses on multi-product smart home connectivity, enhancing the core competitiveness of smart locks, and building a whole-house smart platform based on IoT smart cloud and edge intelligent gateways, completing the construction of five major smart cloud platforms[49][51] (III) Sales Operations Development The company enhanced its sales network by upgrading dealers, expanding into lower-tier cities, transforming retail, operating dual brands, integrating e-commerce, and developing engineering and cross-industry partnerships - The company promoted dealer transformation and upgrading, optimized dealer quality, deepened network layout in first and second-tier cities, and increased channel penetration into third and fourth-tier cities[52] - Actively pursuing terminal retail transformation, the company advanced dual-brand operations for dealers, accelerating the "Keleini" brand's market presence[52] - The company integrated e-commerce marketing channels, deeply promoted new retail models, established strategic partnerships with renowned real estate developers like Evergrande, R&F, and Country Garden, and actively explored cross-industry collaborations with leading enterprises such as Huawei, Alibaba, Haier, and JD.com[52] (IV) Information Technology and Process System Development The company advanced its informatization and digitalization by optimizing SAP, SRM, and barcode systems, launching PLM's first phase, and progressing with CRM and call center system implementation - Optimization of SAP, SRM, barcode, and other systems was completed, enhancing production and operational efficiency[53] - The first phase of the PLM system was launched, achieving R&D design document management, change management, and system integration[53] - The large marketing CRM system, call center, and unified seating are currently in the system development and synchronous testing phase[53] (V) Human Resources Development Human resource development supports strategic implementation by building a comprehensive talent value chain through a "five-talent strategy" and a strategic performance system to achieve corporate goals - Human resource development supports the company's strategic implementation, building a "five-talent strategy, three resource supports, one management cornerstone, and one cultural traction" to comprehensively create a talent value chain[54] - Through strategic decoding, a strategic performance system was established, building a performance communication and feedback mechanism to foster a high-performance culture[54] Analysis of Changes in Financial Statement Items Operating revenue slightly increased, costs decreased, while selling and R&D expenses rose; operating cash flow sharply declined, investing cash flow turned negative, and financing cash flow significantly increased Changes in Financial Statement Items for H1 2019 (Unit: RMB Yuan) | Item | Current Period Amount | Prior Year Period Amount | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 576,539,594.09 | 570,467,749.68 | 1.06 | | Operating Cost | 301,939,945.07 | 337,600,666.88 | -10.56 | | Selling Expenses | 102,167,691.56 | 85,107,460.89 | 20.05 | | Administrative Expenses | 25,996,229.19 | 23,826,951.85 | 9.10 | | Financial Expenses | -949,288.96 | -661,564.89 | 43.49 | | R&D Expenses | 22,232,411.53 | 18,753,966.90 | 18.55 | | Net Cash Flow from Operating Activities | 19,372,321.68 | 55,576,269.80 | -65.14 | | Net Cash Flow from Investing Activities | -402,706,288.03 | 70,368,810.22 | -672.28 | | Net Cash Flow from Financing Activities | -12,159,542.15 | -56,887,999.62 | 78.63 | - Selling expenses increased by 20.05%, primarily due to the company's continuous expansion of dual-brand promotional efforts and increased market development investment[57] - Net cash flow from operating activities decreased by 65.14%, mainly due to a reduction in cash received from sales operations[57] - Net cash flow from investing activities decreased by 672.28%, primarily due to the redemption of wealth management products from the previous year during the reporting period[57] Operating Analysis and Cost Structure Main business revenue slightly increased, with smart home products showing significant gross margin improvement and strong e-commerce growth; smart door lock production and sales surged, while manufacturing costs were dominated by materials, with rising labor and manufacturing expenses for smart home products Main Business by Product for H1 2019 (Unit: RMB 10,000) | By Product | Operating Revenue | Operating Cost | Gross Profit Margin (%) | % Change in Operating Revenue YoY | % Change in Operating Cost YoY | % Change in Gross Profit Margin YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Home Products | 31,614.85 | 16,519.63 | 47.75 | 1.95 | -11.13 | 7.69 | | Traditional Clothes Dryer Products | 24,342.49 | 12,880.61 | 47.09 | -1.26 | -10.61 | 5.54 | | Other Products | 1,389.37 | 596.24 | 57.09 | 18.96 | -10.53 | 14.14 | | Total | 57,346.71 | 29,996.48 | 47.69 | 0.91 | -10.90 | 6.93 | Main Business by Region for H1 2019 (Unit: RMB 10,000) | By Region | Operating Revenue | Operating Cost | Gross Profit Margin (%) | % Change in Operating Revenue YoY | % Change in Operating Cost YoY | % Change in Gross Profit Margin YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | East China | 18,819.38 | 10,296.56 | 45.29 | -5.25 | -17.74 | 8.31 | | North China | 5,648.56 | 3,102.76 | 45.07 | -2.63 | -12.43 | 6.15 | | Central China | 6,215.15 | 3,559.64 | 42.73 | -9.04 | -18.39 | 6.56 | | South China | 3,094.46 | 1,613.88 | 47.85 | -19.04 | -28.76 | 7.12 | | Northwest | 4,419.96 | 2,455.14 | 44.45 | 9.67 | -2.91 | 7.19 | | Southwest | 2,466.50 | 1,392.87 | 43.53 | -34.59 | -40.51 | 5.63 | | Northeast | 1,884.47 | 1,070.87 | 43.17 | 3.15 | -7.41 | 6.48 | | E-commerce | 14,798.23 | 6,504.76 | 56.04 | 35.96 | 31.42 | 1.52 | | Total | 57,346.71 | 29,996.48 | 47.69 | 0.91 | -10.90 | 6.93 | Production and Sales of Main Products for H1 2019 (Unit: 10,000 sets) | Main Product | Production Volume | Sales Volume | Inventory Volume | % Change in Production Volume YoY | % Change in Sales Volume YoY | % Change in Inventory Volume YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Clothes Dryer | 24.21 | 28.78 | 2.25 | -21.91 | 3.91 | -57.65 | | Hand-cranked Clothes Rack | 92.72 | 90.66 | 6.11 | 6.43 | 4.78 | 11.62 | | Smart Door Lock | 2.92 | 2.40 | 1.68 | 31.61 | 100.84 | 64.63 | | Outward-floating Clothes Rack | 2.36 | 2.36 | 0.15 | -16.40 | -20.87 | 3.76 | | Floor-standing Clothes Rack | 7.23 | 7.15 | 0.70 | -21.59 | -24.53 | -2.79 | Cost Structure Analysis for H1 2019 (Unit: RMB 10,000) | By Industry | Cost Component | Current Period Amount | Current Period % of Total Cost | Prior Year Period Amount | Prior Year Period % of Total Cost | % Change in Current Period Amount YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing | Material Costs | 25,947.30 | 86.50 | 29,888.19 | 88.78 | -13.19 | | | Labor Costs | 2,501.38 | 8.34 | 2,579.55 | 7.66 | -3.03 | | | Manufacturing Expenses | 1,547.80 | 5.16 | 1,196.46 | 3.55 | 29.37 | | Total | | 29,996.48 | 100.00 | 33,664.20 | 100.00 | -10.90 | | By Product | Cost Component | Current Period Amount | Current Period % of Total Cost | Prior Year Period Amount | Prior Year Period % of Total Cost | % Change in Current Period Amount YoY | | Smart Home Products | Material Costs | 14,307.44 | 47.70 | 16,582.54 | 49.26 | -13.72 | | | Labor Costs | 1,385.21 | 4.62 | 1,304.40 | 3.87 | 6.20 | | | Manufacturing Expenses | 826.98 | 2.76 | 700.92 | 2.08 | 17.99 | | Clothes Dryer Products | Material Costs | 11,133.38 | 37.12 | 12,722.13 | 37.79 | -12.49 | | | Labor Costs | 1,085.84 | 3.62 | 1,230.39 | 3.65 | -11.75 | | | Manufacturing Expenses | 661.39 | 2.20 | 457.43 | 1.36 | 44.59 | | Other | Material Costs | 506.48 | 1.69 | 583.52 | 1.73 | -13.20 | | | Labor Costs | 30.33 | 0.10 | 44.76 | 0.13 | -32.24 | | | Manufacturing Expenses | 59.43 | 0.20 | 38.11 | 0.11 | 55.96 | | Total | | 29,996.48 | 100.00 | 33,664.20 | 100.00 | -10.90 | - Sales to the top five customers accounted for 8.83% of total annual sales, while purchases from the top five suppliers accounted for 37.18% of total annual purchases[70] (III) Analysis of Assets and Liabilities Monetary funds significantly decreased due to wealth management product purchases, while notes and accounts receivable and other current assets grew, and advances from customers declined, indicating engineering business growth and faster inventory turnover Changes in Assets and Liabilities for H1 2019 (Unit: RMB Yuan) | Item Name | Current Period End Amount | Current Period End % of Total Assets | Prior Period End Amount | Prior Period End % of Total Assets | % Change in Current Period End Amount from Prior Period End | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 443,540,974.95 | 26.36 | 839,034,483.45 | 51.47 | -47.14 | | Notes and Accounts Receivable | 80,590,403.18 | 4.79 | 27,209,508.18 | 1.67 | 196.18 | | Inventory | 59,845,752.69 | 3.56 | 69,636,720.67 | 4.27 | -14.06 | | Other Current Assets | 663,749,643.83 | 39.44 | 271,849,438.37 | 16.68 | 144.16 | | Advances from Customers | 20,893,720.30 | 1.24 | 56,796,843.31 | 3.48 | -63.21 | | Equity Attributable to Owners of the Parent Company | 1,298,569,445.47 | 77.17 | 1,286,573,151.45 | 78.93 | 0.93 | | Total Assets | 1,682,841,646.19 | | 1,630,018,839.42 | | 3.24 | - Monetary funds decreased by 47.14% from the beginning of the year, primarily due to the purchase of wealth management products[71] - Accounts receivable and notes receivable increased by 196.18% from the beginning of the year, mainly due to growth in engineering business and increased company support for new product sales[71] - Advances from customers decreased by 63.21% from the beginning of the year, primarily due to the company's increased finished goods turnover speed through flexible order-based production[71] (IV) Analysis of Investment Status External equity investments remained stable, with a new RMB 10 million long-term equity investment in Zhejiang Yonghui Smart Technology Co., Ltd., securing a 51% stake External Equity Investments for H1 2019 (Unit: RMB 10,000) | Name of Investee | Accounting Subject | Beginning Balance | Change | Ending Balance | Shareholding Ratio in Investee (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Hotata Smart Technology Co., Ltd. | Long-term Equity Investment | 1,000.00 | - | 1,000.00 | 100.00 | | Guangdong Hotata Network Technology Co., Ltd. | Long-term Equity Investment | 1,000.00 | - | 1,000.00 | 100.00 | | Guangdong Huixiangjiapin Trading Co., Ltd. | Long-term Equity Investment | 5,000.00 | - | 5,000.00 | 100.00 | | Guangdong Keleini Smart Technology Co., Ltd. | Long-term Equity Investment | 10,000.00 | - | 10,000.00 | 100.00 | | Dessmann Electromechanical (China) Co., Ltd. | Available-for-sale Financial Assets | 2,200.00 | - | 2,200.00 | 3.68 | | Zhejiang Yonghui Smart Technology Co., Ltd. | Long-term Equity Investment | - | 1,000.00 | 1,000.00 | 51.00 | - During the reporting period, a new long-term equity investment was made in Zhejiang Yonghui Smart Technology Co., Ltd., with a 51% shareholding ratio[74] (VI) Analysis of Major Holding and Participating Companies Key holding subsidiaries include Smart Technology (highest net profit), Network Technology, Huixiangjiapin, and Keleini Smart; Zhejiang Yonghui Smart Technology Co., Ltd., a new smart manufacturing subsidiary, is already profitable Financial Information of Major Holding and Participating Companies for H1 2019 (Unit: RMB 10,000) | Name | Business Nature | Registered Capital | Shareholding Ratio (%) | Total Assets | Net Assets | Net Profit | Acquired During Reporting Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Technology | Smart Home | 1,000.00 | 100.00 | 9,935.74 | 4,281.96 | 1,612.86 | No | | Network Technology | E-commerce | 1,000.00 | 100.00 | 1,645.18 | 1,509.72 | 73.67 | No | | Huixiangjiapin | Retail Trade | 5,000.00 | 100.00 | 5,276.78 | 4,707.20 | -270.81 | No | | Keleini Smart | Smart Home | 10,000.00 | 100.00 | 8,773.24 | 7,070.11 | -1,781.37 | No | | Yonghui Smart | Smart Manufacturing | 500.00 | 51.00 | 2,963.29 | 848.78 | 237.05 | Yes | - Zhejiang Yonghui Smart Technology Co., Ltd. is a new holding subsidiary acquired during the reporting period, engaged in smart manufacturing, with a 51% shareholding and a net profit of RMB 2.3705 million[76] II. Other Disclosure Matters (II) Potential Risks The company faces operational risks from raw material price volatility, intense market competition from both small and large enterprises, and potential slowdowns in industry development due to real estate market controls - Raw material price fluctuation risk: Direct material costs account for approximately 85%, and significant price increases will intensify cost pressure and impact profitability[76] - Market competition risk: Fierce competition from small and micro enterprises and future competition from large-scale enterprises in the smart home industry will adversely affect the company's production, operations, and profit levels[76] - Real estate market control risk: The company's operating performance is linked to the real estate industry's development, and control policies may slow industry growth, affecting the company's performance[77] Part V Significant Matters I. Brief Introduction to Shareholders' Meetings The 2018 Annual Shareholders' Meeting was held on April 23, 2019, with resolutions disclosed on the Shanghai Stock Exchange website - The 2018 Annual Shareholders' Meeting was held on April 23, 2019, and its resolutions were disclosed on the Shanghai Stock Exchange website on April 24, 2019[80] II. Profit Distribution or Capital Reserve Conversion Plan The company will not implement profit distribution or capital reserve conversion to share capital for H1 2019 - The company will not carry out profit distribution or capital reserve conversion to share capital for the first half of 2019[81] III. Fulfillment of Commitments All commitment-related parties, including actual controllers and shareholders, timely and strictly fulfilled various commitments during the reporting period, covering share lock-up, price stability, and profit distribution - The share lock-up commitment period for actual controllers and shareholders such as Shen Hanbiao and Wang Miaoyu is 36 months from the listing date[84] - The company, its directors, supervisors, senior management, and actual controllers, as commitment parties, all timely and strictly fulfilled various commitments, including share price stability, share repurchase, profit distribution policies, and avoidance of horizontal competition[84] IV. Appointment and Dismissal of Accounting Firms The company neither appointed nor dismissed any accounting firms during the reporting period, nor did it explain any non-standard audit reports - During the reporting period, the company did not appoint or dismiss any accounting firms[87] VI. Significant Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during the reporting period - There were no significant litigation or arbitration matters for the company in this reporting period[87] IX. Equity Incentive and Employee Stock Ownership Plans and Their Impact The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures[87] X. Significant Related Party Transactions The company engaged in ordinary related party transactions with Guangzhou Holike Creative Home Co., Ltd. and Wang Miaoyu for product sales and office leasing, all within annual expectations Ordinary Related Party Transactions for H1 2019 (Unit: RMB 10,000) | Related Party Transaction Type | Related Party | 2019 Estimated Amount | Amount of Transactions Occurred in Reporting Period | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | | Sale of products and services to related parties | Guangzhou Holike Creative Home Co., Ltd. | 500.00 | 34.35 | 0.06 | | Lease of office space to related parties | Guangzhou Holike Creative Home Co., Ltd. | 190.00 | 80.31 | 100.00 | | Lease of office space from related parties | Wang Miaoyu | 48.00 | 22.86 | 15.43 | XI. Significant Contracts and Their Fulfillment The company had no significant contracts related to trusteeship, contracting, leasing, guarantees, or other major matters during the reporting period - During the reporting period, the company had no significant contracts concerning trusteeship, contracting, leasing, guarantees, or other major matters[93] XIV. Environmental Information The company is not a key pollutant-discharging entity and did not disclose environmental information during the reporting period - The company is not classified as a key pollutant-discharging entity by environmental protection authorities and did not disclose environmental information during the reporting period[93] XV. Explanation of Other Significant Matters The company reported no changes in accounting policies or estimates, no significant accounting error corrections, and no other major matters during the reporting period - During the reporting period, the company had no changes in accounting policies, accounting estimates, or accounting methods, and no significant accounting error corrections[93][96] Part VI Changes in Ordinary Shares and Shareholder Information I. Changes in Share Capital The company's total share capital and share structure remained unchanged during the reporting period - During the reporting period, there were no changes in the company's total share capital or share structure[96] II. Shareholder Information As of the reporting period end, the company had 11,413 ordinary shareholders, with co-controllers Shen Hanbiao and Wang Miaoyu holding a combined 82.26% in restricted shares - As of the end of the reporting period, the total number of ordinary shareholders was 11,413[96] Top Ten Shareholders' Shareholding for H1 2019 | Shareholder Name | Number of Shares Held at Period End | Percentage (%) | Number of Restricted Shares Held | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Shen Hanbiao | 217,395,000 | 54.21 | 217,395,000 | Domestic Natural Person | | Wang Miaoyu | 112,500,000 | 28.05 | 112,500,000 | Domestic Natural Person | | Hou Pengde | 22,500,000 | 5.61 | 0 | Domestic Natural Person | | Guangzhou Zhixiangjia Investment Partnership (Limited Partnership) | 7,605,000 | 1.90 | 0 | Other | - Shen Hanbiao and Wang Miaoyu are a married couple, co-controllers of the company, and acting in concert, holding a combined shareholding of 82.26%[98][101] - All restricted shares held by Shen Hanbiao and Wang Miaoyu can be listed for trading on December 1, 2020[104] Part VII Information on Preferred Shares The company had no preferred share-related matters during the reporting period - There were no preferred share-related matters for the company during the reporting period[104] Part VIII Information on Directors, Supervisors, and Senior Management II. Changes in Company Directors, Supervisors, and Senior Management First-term directors and senior management were re-appointed for a three-year second term, while new supervisors Cao Caifeng and Huang Yong were appointed to the second supervisory board - The first-term directors and senior management were re-appointed as members of the second board of directors and senior management, with a three-year term, upon expiration of their previous term[107] - The terms of first-term supervisors Lin Xiaodong and Su Shaowa expired; Cao Caifeng was newly appointed, and Huang Yong was elected as members of the company's second supervisory board, with a three-year term[107] Part IX Information on Corporate Bonds The company had no corporate bond-related matters during the reporting period - There were no corporate bond-related matters for the company during the reporting period[111] Part X Financial Report I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] II. Financial Statements This section presents the company's H1 2019 consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity - Financial statements include consolidated balance sheets, parent company balance sheets, consolidated income statements, parent company income statements, consolidated statements of changes in owners' equity, and parent company statements of changes in owners' equity[111][112][117][124][132][135][140][143][148][151][155] III. Company Basic Information The company, listed on the Shanghai Stock Exchange since December 1, 2017, primarily engages in smart home R&D, production, and sales, and added Zhejiang Yonghui Smart Technology Co., Ltd. to its consolidated financial statements during the reporting period - The company was listed on the Shanghai Stock Exchange on December 1, 2017, primarily engaging in smart home R&D, production, and sales, with its industry nature being manufacturing[162] - During the reporting period, Zhejiang Yonghui Smart Technology Co., Ltd. was added as a new subsidiary to the scope of consolidated financial statements[163] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, affirming its ability to continue operations for 12 months from the reporting period end - The company's financial statements are prepared on a going concern basis[164] - The company possesses the ability to continue as a going concern for 12 months from the end of this reporting period, with no significant matters affecting its going concern ability[165] V. Significant Accounting Policies and Estimates This section details the company's compliance with accounting standards, accounting period, operating cycle, functional currency, and key accounting policies for business combinations, consolidated financial statements, cash equivalents, foreign currency, and financial instruments - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position[168] - Detailed explanations are provided for the classification, recognition, measurement, transfer, and derecognition conditions of financial instruments, as well as the methods for accruing impairment provisions for financial assets[181][182][184] - The methods for determining expected credit losses and accruing bad debt provisions for notes receivable, accounts receivable, and other receivables are explained, primarily using the aging analysis method[187][189][194] - Inventories are valued at actual cost using the weighted average method, and inventory impairment provisions are accrued for individual inventory items where net realizable value is below carrying cost[197] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 20-30 years for buildings, 5-10 years for machinery and transportation equipment, and 5 years for office equipment[208] - Intangible assets (such as software, land use rights) are amortized using the straight-line method, while intangible assets with indefinite useful lives are not amortized but are subject to impairment testing[217] VI. Taxation The company's main taxes include VAT, Urban Maintenance and Construction Tax, and Enterprise Income Tax, with a 15% preferential rate due to its high-tech enterprise status Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales revenue, rental income | 3%, 6%, 9%, 10%, 11%, 13%, 16%, 17% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7% | | Enterprise Income Tax | Taxable income | 15%, 25% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - The company is recognized as a high-tech enterprise, applying a preferential Enterprise Income Tax rate of 15% during the reporting period[248] VII. Notes to Consolidated Financial Statement Items This section provides detailed disclosures of period-end and beginning balances, and changes for all asset, liability, owners' equity, and profit/loss items in the consolidated financial statements Changes in Key Consolidated Financial Statement Items for H1 2019 (Partial) | Item | Period-End Balance (RMB Yuan) | Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Monetary Funds | 443,540,974.95 | 839,034,483.45 | | Notes Receivable | 4,327,783.15 | 2,628,504.66 | | Accounts Receivable | 76,262,620.03 | 24,581,003.52 | | Inventory | 59,845,752.69 | 69,636,720.67 | | Other Current Assets (primarily wealth management products) | 663,749,643.83 | 271,849,438.37 | | Notes Payable | 18,595,294.70 | 0 | | Accounts Payable | 173,994,946.23 | 208,516,412.92 | | Advances from Customers | 20,893,720.30 | 56,796,843.31 | | Employee Benefits Payable | 20,703,474.73 | 24,753,170.89 | | Taxes Payable | 37,622,979.37 | 33,717,435.00 | | Other Payables | 105,365,985.42 | 16,650,856.19 | | Deferred Income | 1,755,949.58 | 1,830,159.66 | | Operating Revenue | 576,539,594.09 | 570,467,749.68 | | Operating Cost | 301,939,945.07 | 337,600,666.88 | | Selling Expenses | 102,167,691.56 | 85,107,460.89 | | R&D Expenses | 22,232,411.53 | 18,753,966.90 | | Investment Income (bank wealth management products) | 18,072,311.56 | 19,621,191.65 | | Asset Impairment Losses | -2,343,699.90 | -675,260.30 | - Monetary funds at period-end were RMB 444 million, a 47.14% decrease from RMB 839 million at the beginning of the period, primarily due to the purchase of wealth management products[249][71] - Accounts receivable at period-end were RMB 76.26 million, a 196.18% increase from RMB 24.58 million at the beginning of the period, primarily due to growth in engineering business and new product sales support[256][71] - Smart door lock sales volume increased by 100.84% year-on-year, while production volume increased by 31.61% year-on-year[62] - Long-term prepaid expenses at period-end were RMB 19.95 million, a decrease from RMB 25.58 million at the beginning of the period, primarily due to the amortization of endorsement and advertising fees[298][301] - Other payables at period-end were RMB 105 million, a significant increase from RMB 16.65 million at the beginning of the period, primarily due to an increase in other payments[316] VIII. Changes in Consolidation Scope The company acquired Zhejiang Yonghui Smart Technology Co., Ltd. as a new holding subsidiary via a non-common control business combination, with an equity cost of RMB 10 million for a 51% stake on May 1, 2019 Business Combinations Not Under Common Control for H1 2019 | Name of Acquiree | Equity Acquisition Date | Equity Acquisition Cost (RMB Yuan) | Equity Acquisition Ratio (%) | Purchase Date | Basis for Determining Purchase Date | Acquiree's Revenue from Purchase Date to Period End (RMB Yuan) | Acquiree's Net Profit from Purchase Date to Period End (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Yonghui Smart Technology Co., Ltd. | May 1, 2019 | 10,000,000.00 | 51 | May 1, 2019 | Acquisition of control | 10,338,072.49 | 1,150,280.27 | - The merger cost was RMB 10 million, the fair value share of identifiable net assets acquired was RMB 3.74 million, resulting in goodwill of RMB 6.25 million[368] IX. Interests in Other Entities The company holds interests in several wholly-owned or controlling subsidiaries, including Huixiangjiapin, Hotata Smart, Hotata Network, Keleini Smart, and the newly added Zhejiang Yonghui Smart Technology Co., Ltd Enterprise Group Structure for H1 2019 | Subsidiary Name | Main Operating Location | Registered Location | Business Nature | Shareholding Ratio (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Huixiangjiapin Trading Co., Ltd. | Guangzhou | Guangzhou | Retail Trade | 100.00 | Establishment | | Guangdong Hotata Smart Technology Co., Ltd. | Guangzhou | Guangzhou | Manufacturing | 100.00 | Establishment | | Guangdong Hotata Network Technology Co., Ltd. | Guangzhou | Guangzhou | Software and Information Technology Services | 100.00 | Establishment | | Guangdong Keleini Smart Technology Co., Ltd. | Guangzhou | Guangzhou | Manufacturing | 100.00 | Establishment | | Zhejiang Yonghui Smart Technology Co., Ltd. | Zhejiang | Zhejiang | Manufacturing | 51.00 | Business Combination | X. Risks Related to Financial Instruments The company manages credit, market (interest rate, foreign exchange, other price), and liquidity risks through customer credit assessment, rating monitoring, aging analysis, and cash flow forecasting - The company faces credit risk, primarily from accounts receivable, managed through customer credit assessment and quarterly monitoring[375] - The company faces market risk, including interest rate risk, foreign exchange risk, and other price risks, but there were no significant interest rate or foreign exchange risks during the reporting period[375] - The company faces liquidity risk, ensuring sufficient funds by monitoring cash balances and forecasting cash flows for the next 12 months[375] XI. Disclosure of Fair Value This section discloses period-end fair values for assets and liabilities measured at fair value, without detailing market price determination, valuation techniques, or key parameters for fair value hierarchy levels - This section discloses the fair value of assets and liabilities measured at fair value at the end of the period[376] XII. Related Parties and Related Party Transactions The company conducted goods sales and office leasing transactions with Guangzhou Holike Creative Home Co., Ltd. and Wang Miaoyu, with no other significant related party transactions reported Related Party Transactions for H1 2019 | Related Party | Related Party Transaction Content | Amount for Current Period (RMB Yuan) | Amount for Prior Period (RMB Yuan) | | :--- | :--- | :--- | :--- | | Holike | Clothes dryer sales | 343,517.63 | 1,419,600.00 | | Holike | Office space rental income | 803,140.59 | 792,582.00 | | Wang Miaoyu | Office space rental fee | 228,571.42 | - | - During the reporting period, there were no other significant related party transactions such as related party guarantees, fund borrowings, asset transfers, debt restructuring, or key management personnel compensation[381] XIII. Share-based Payment The company had no share-based payment activities, including equity-settled or cash-settled payments, or any modifications or terminations during the reporting period - During the reporting period, the company had no share-based payment related matters[385] XIV. Commitments and Contingencies The company had no significant commitments or important contingencies requiring disclosure during the reporting period - During the reporting period, the company had no significant commitments or important contingencies requiring disclosure[385] XV. Events After the Balance Sheet Date From the reporting period end to the financial report approval date, the company had no significant non-adjusting events, profit distributions, sales returns, or other post-balance sheet events - From the end of the reporting period to the date of approval for issuance of the financial report, the company had no significant non-adjusting events, profit distribution situations, or sales returns, or other events after the balance sheet date[385][388] XVI. Other Significant Matters The company reported no other significant matters during the period, including prior accounting error corrections, debt restructuring, asset exchanges, or discontinued operations - During the reporting period, the company had no other significant matters such as prior period accounting error corrections, debt restructuring, asset exchanges, annuity plans, discontinued operations, or segment information[388] XVII. Notes to Parent Company Financial Statement Items This section details the parent company's accounts receivable, other receivables, and long-term equity investments, noting accounts receivable of RMB 12.69 million with a 5.73% bad debt provision, and long-term equity investments of RMB 180 million, including a RMB 10 million investment in Zhejiang Yonghui Smart Technology Co., Ltd Parent Company Accounts Receivable for H1 2019 | Aging | Period-End Balance (RMB Yuan) | | :--- | :--- | | Within 1 year | 11,993,514.82 | | 1 to 2 years | 1,409,341.10 | | 2 to 3 years | 62,355.96 | | Total | 13,465,211.88 | - The parent company's accounts receivable carrying value at period-end was RMB 12.69 million, with a bad debt provision ratio of 5.73%[393] Parent Company Long-Term Equity Investments for H1 2019 (Unit: RMB Yuan) | Item | Period-End Balance | Beginning Balance | | :--- | :--- | :--- | | Investments in subsidiaries | 180,000,000.00 | 170,000,000.00 | | Total | 180,000,000.00 | 170,000,000.00 | - The parent company's long-term equity investments increased by RMB 10 million this period, due to the investment in Zhejiang Yonghui Smart Technology Co., Ltd[410] - The parent company's operating revenue for this period was RMB 490 million, and operating cost was RMB 293 million[411] XVIII. Supplementary Information This section provides supplementary details on non-recurring gains and losses totaling RMB 16.66 million, a weighted average return on net assets of 8.36%, and basic earnings per share of RMB 0.28 Detailed Statement of Non-Recurring Gains and Losses for H1 2019 (Unit: RMB Yuan) | Item | Amount | | :--- | :--- | | Government subsidies recognized in current profit or loss | 1,235,210.08 | | Gains and losses on entrusted investments or asset management | 18,072,311.56 | | Other non-operating income and expenses apart from the above | 320,939.33 | | Income tax impact | -2,964,584.66 | | Impact of minority interests | -270.73 | | Total | 16,663,605.58 | Return on Net Assets and Earnings Per Share for H1 2019 | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share Basic Earnings Per Share (RMB Yuan/share) | Diluted Earnings Per Share (RMB Yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders of the company | 8.36 | 0.28 | 0.28 | | Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 7.12 | 0.24 | 0.24 | Part XI Catalogue of Documents for Reference This section lists the catalogue of reference documents, including financial statements signed and sealed by the legal representative and accounting personnel - The catalogue of documents for reference includes financial statements bearing the signatures and seals of the legal representative, the person in charge of accounting work, and the head of the accounting department[422]