KEHUA HENGSHENG(SZ:002335)2023-08-30 16:00Financial Performance - The company reported a net profit of approximately ¥113.41 million from its subsidiary Xiamen Kehua Data Energy Technology Co., Ltd., contributing significantly to overall performance [5]. - The subsidiary Guangdong Keyun Chenhang Computing Technology Co., Ltd. generated a revenue of approximately ¥101.15 million, with a net profit of around ¥33.20 million [5]. - Net profit for the first half of 2023 reached ¥328,841,657.89, up from ¥172,997,855.59 in the same period last year, representing an increase of approximately 90.3% [100]. - Net profit attributable to shareholders of the parent company was CNY 321,757,736.71, up 93.6% from CNY 166,087,818.68 year-on-year [113]. - The company's operating profit for the first half of 2023 was ¥377,131,473.42, compared to ¥192,538,894.47 in the previous year, reflecting an increase of approximately 96% [100]. - The company's total operating revenue for the first half of 2023 reached CNY 3,396,562,507, a significant increase of 53.4% compared to CNY 2,212,968,834.67 in the same period of 2022 [110]. - The net cash flow from operating activities was approximately ¥19.59 million, a substantial decline of 95.8% compared to ¥462.96 million in the first half of 2022 [124]. - The total comprehensive income for the first half of 2023 was CNY 173,671,580.94, compared to CNY 175,511,429.43 in the same period of 2022, showing a decrease of approximately 1.05% [119]. Investment and R&D - The company plans to increase R&D investment to enhance product offerings and meet diverse market demands, addressing the risk of declining gross margins due to rising raw material costs [8]. - Research and development expenses rose to ¥210,722,106.21, compared to ¥130,102,449.18, marking an increase of about 62% [100]. - Research and development expenses for the first half of 2023 were CNY 86,009,381.42, an increase of 62.0% compared to CNY 53,118,841.67 in the same period of 2022 [114]. Subsidiaries and Expansion - The company has established new subsidiaries, including Shanghai Mimeng Data Technology Co., Ltd. and Guangzhou Yunchuan Technology Co., Ltd., with no significant impact on overall operations reported [5]. - The company plans to invest up to 150 million RMB to establish a wholly-owned subsidiary in Malaysia, named "KEVATECH SDN.BHD." [66]. - The company operates 9 major data centers in key cities, with over 30,000 self-owned cabinets and more than 20 data centers across over 10 cities nationwide [191]. Financial Management - The company has strengthened its accounts receivable management to improve cash flow and reduce the risk of uncollectible accounts, as the accounts receivable have been growing rapidly [9]. - The company has not engaged in any major asset or equity sales during the reporting period, indicating stability in its asset management [4]. - The company did not distribute cash dividends or issue new shares during the reporting period, reflecting a focus on reinvestment [17]. - The company has committed to a cash dividend policy where the minimum proportion of cash dividends will vary based on the company's development stage and capital expenditure plans [64]. Market Position and Strategy - The company holds the number one market share in China's micro-module data center financial sector for three consecutive years [191]. - The company has maintained the leading market share in China's high-end UPS market, ranking first in 2022 according to FORWARD's report [195]. - The company has launched innovative products under the "AI+ Energy + N Scenarios" model, enhancing energy management across multiple sectors [196]. Social Responsibility and Sustainability - The company emphasizes sustainable development and has made significant advancements in liquid cooling technology, positioning itself as an industry leader [194]. - The company has committed to environmental protection and sustainable development, adhering to national regulations and actively managing pollution [38]. - The company is actively engaging in social responsibility activities, including community development and educational support, through its volunteer service team established in 2022 [125]. - The company made donations totaling ¥1.37 million during the reporting period, contributing to social responsibility initiatives such as poverty alleviation and education [125]. Risks and Challenges - The company is facing risks related to rapid expansion, including management and infrastructure challenges, and is implementing measures to optimize management processes [12]. - The management highlighted potential risks and corresponding mitigation measures in the report [153].