奥马电器(002668) - 2019 Q2 - 季度财报

Important Notice, Table of Contents and Definitions This section provides essential preliminary information, the report's structure, and key definitions Company Profile and Key Financial Indicators This section introduces the company and presents its core financial performance metrics Company Profile Guangdong Homa Appliances Co., Ltd. (stock code: 002668) is a Shenzhen Stock Exchange-listed company with Zhao Guodong as its legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Homa Appliances | | Stock Code | 002668 | | Listing Exchange | Shenzhen Stock Exchange | | Company Name | Guangdong Homa Appliances Co., Ltd. | | Legal Representative | Zhao Guodong | Key Accounting Data and Financial Indicators During the reporting period, the company achieved operating revenue of 4.051 billion yuan, a net profit of 297 million yuan, and a negative operating cash flow of 116 million yuan 2019 H1 Key Financial Indicators | Indicator | Current Reporting Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 4,051,371,046.40 | 3,859,051,655.53 | 4.98% | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 297,340,369.56 | 266,558,509.51 | 11.55% | | Net Cash Flow from Operating Activities (yuan) | -116,259,069.79 | -52,592,743.99 | -121.06% | | Basic Earnings Per Share (yuan/share) | 0.26 | 0.42 | -38.10% | | Weighted Average Return on Net Assets | 10.64% | 7.39% | 3.25% | | Total Assets (yuan) | 9,660,652,224.18 | 9,550,593,162.81 | 1.15% (vs. end of prior year) | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 2,644,871,134.39 | 2,347,530,764.83 | 12.67% (vs. end of prior year) | Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 18.29 million yuan, primarily from government subsidies and other non-operating income/expenses 2019 H1 Non-Recurring Gains and Losses Details | Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | 137,078.03 | | Government subsidies recognized in current profit/loss | 9,668,144.22 | | Fair value changes and investment income from transactional financial instruments | 142,300.00 | | Other non-operating income and expenses | 11,586,062.74 | | Less: Income tax impact | 3,199,779.76 | | Less: Impact on minority interests (after tax) | 40,679.69 | | Total | 18,293,125.54 | Business Overview This section outlines the company's primary business segments and core competitive advantages Main Businesses The company primarily operates in refrigerator manufacturing and sales, alongside financial technology services, with the latter facing some overdue issues - Refrigerator business: Operated by wholly-owned subsidiary Homa Refrigerator, adopting an ODM model for international markets and an OBM model for domestic markets, maintaining the largest refrigerator export volume in China since 2009[40] - Financial technology business: Primarily divided into three segments: - Financial and industrial equity investment: Investments in Changzhi Bank, Guangxi Guangtou Asset Management Co., Ltd., and others, providing stable dividend income - Product and technology services: Operating smart POS projects and computer cloud platform projects - Online lending platform and loan facilitation business: Experienced overdue issues due to industry impacts, but the company has properly handled risks, and its Haodaibao platform has completed all repayments[41][42] Analysis of Core Competitiveness The company's core competitiveness remained unchanged during the reporting period - Company's core competitiveness did not undergo significant changes during the reporting period[46] Management Discussion and Analysis This section provides a detailed analysis of the company's operational performance, financial position, and risk factors Overview In H1 2019, the company achieved revenue growth driven by its refrigerator business, while the financial technology segment experienced a loss, with liquidity pressure eased by a 970 million yuan relief fund - The company secured 970 million yuan in financing from the Zhongshan City Relief Fund, used to repay company debts and effectively alleviate liquidity pressure[50] - Refrigerator business: Achieved operating revenue of 3.783 billion yuan and net profit attributable to the parent company of 313 million yuan, a 44.59% year-on-year increase, primarily driven by export business[51] - Financial technology business: Achieved operating revenue of 268 million yuan and net profit attributable to the parent company of -15.95 million yuan, a 110.80% year-on-year decrease[52] Analysis of Main Business The company's revenue mix shifted significantly towards home appliances, with international sales driving growth, while financial technology revenue declined sharply, and financial expenses surged Key Financial Data Year-on-Year Changes | Item | Current Reporting Period | Prior Year Period | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 241,578,070.23 | 372,529,306.69 | -35.15% | Decrease in financial segment business led to reduced selling expenses | | Financial Expenses | 158,121,492.44 | 31,158,617.01 | 407.47% | Significant increase in financial expenses due to increased borrowings | | Net Cash Flow from Investing Activities | 1,141,595,895.15 | 253,525,135.71 | 350.29% | Primarily due to the recovery of approximately 900 million yuan in wealth management products in the current period | | Net Cash Flow from Financing Activities | -691,937,296.52 | -42,172,421.23 | -1,540.73% | Primarily due to repayment of 887 million yuan in bonds in the current period | Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Revenue (yuan) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Home Appliance Industry | 3,777,171,174.64 | 93.23% | 18.34% | | Information and Technology Services | 188,848,671.13 | 4.66% | -63.11% | | Loan Issuance Income | 30,799,279.78 | 0.76% | -67.55% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Revenue (yuan) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Domestic | 1,022,059,721.30 | 25.23% | -32.85% | | International | 3,029,311,325.10 | 74.77% | 29.63% | Analysis of Non-Core Business Non-core business significantly impacted profit, with fair value changes from forward foreign exchange contracts contributing positively, but disposal losses from these contracts were substantial and unsustainable Non-Core Business Profit and Loss | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -92,179,642.58 | -25.32% | Primarily -116 million yuan in investment losses from disposal of forward foreign exchange contracts | No | | Fair Value Change Gains/Losses | 142,642,062.52 | 39.18% | Fair value changes of forward foreign exchange contracts during the holding period | No | | Non-Operating Income | 21,198,574.17 | 5.82% | Primarily insurance claims and liquidated damages | No | Analysis of Assets and Liabilities Total assets slightly increased, with a higher proportion of accounts receivable, while long-term borrowings increased, and a significant portion of assets, including a fully impaired subsidiary, remained restricted Restricted Assets | Item | Book Value at Period End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 965,952,359.66 | Margin deposits, frozen funds | | Notes Receivable | 92,579,706.80 | Pledged as performance guarantee | | Fixed Assets | 519,093,378.07 | Collateral under credit contracts | | Long-term Equity Investments | 201,119,136.43 | Collateral under credit contracts | | Long-term Equity Investments - Zhongrongjin | 665,457,040.42 | Pledged for bank loans | | Total | 2,444,201,621.38 | -- | - The 100% equity of Zhongrongjin pledged as collateral has a long-term equity investment book balance of 665 million yuan, but has been fully impaired, resulting in an actual book value of 0 yuan[73] Analysis of Investment Status No new major investments were made, and previously planned fundraising projects were terminated, with remaining funds reallocated to working capital due to market changes and operational challenges - The company's general meeting of shareholders approved on January 10, 2019, the termination of the 2015 non-public offering fundraising projects: "Data Management Information System Project Based on Commercial General Use" and "Smart POS Project"[84] - After project termination, the remaining raised funds and interest income, totaling approximately 1.622 billion yuan, were permanently used to supplement working capital[83] - Significant changes in project feasibility were due to: greater-than-expected difficulty in cloud service market promotion, reduced demand for subsequent investment in smart POS projects due to increased barcode payment business, and freezing of project implementation subsidiary accounts due to contract disputes[88] Analysis of Major Holding and Participating Companies Core subsidiary Homa Refrigerator is the company's primary profit source, achieving 313 million yuan in net profit, while financial technology subsidiaries, including Zhongrongjin and Qianbao Huitong, are financially distressed with negative net assets of -408 million yuan and -464 million yuan respectively Major Subsidiary Financial Status | Company Name | Type | Operating Revenue (yuan) | Net Profit (yuan) | Net Assets (yuan) | | :--- | :--- | :--- | :--- | :--- | | Homa Refrigerator | Subsidiary | 3,783,117,359.05 | 313,291,588.79 | 3,011,018,723.84 | | Zhongrongjin | Subsidiary | 187,585,460.31 | 92,541,304.43 | -407,669,038.33 | | Qianbao Xiaodai | Subsidiary | 8,516,935.12 | 7,240,128.36 | 342,360,068.02 | | Qianbao Huitong | Subsidiary | 22,282,344.66 | -543,147.46 | -464,438,756.23 | Risks Faced by the Company and Countermeasures The company faces various risks, including those related to export trade policies, market competition, raw material prices, exchange rate fluctuations, tax policy changes, and overall liquidity - Business operation risks: - Export business risk: Europe is the largest export market, facing uncertainties from trade policies, economic conditions, and China-US trade friction - Market competition risk: The refrigerator industry is highly competitive, and the financial technology industry experiences rapid product iteration - Raw material price fluctuation risk: Costs of compressors, steel, and other materials account for a high proportion, and price fluctuations impact performance[100][102] - Financial and policy risks: - Exchange rate fluctuation risk: Export business is primarily settled in USD and EUR, facing risks of RMB appreciation - Export tax rebate rate fluctuation risk: A reduction or cancellation of export tax rebates by the state would increase export costs - Tax incentive policy change risk: Several subsidiaries enjoy tax incentives as high-tech enterprises, and policy changes would affect performance[103][104] - Liquidity risk: The company faces the risk of not being able to obtain sufficient funds in a timely manner to meet business development or repay maturing debts; the company addresses this by continuously monitoring funding needs and maintaining bank standby credit commitments[105] Significant Matters This section details important events, including unfulfilled commitments, ongoing litigations, integrity issues of the controlling shareholder, and the termination of an equity incentive plan Fulfillment of Commitments Several significant performance commitments remain unfulfilled by original shareholders of Qianbao Haoche and Zhongrongjin, with the controlling shareholder having only partially compensated for Zhongrongjin's shortfall - Original shareholders of Qianbao Haoche, Lin Lanfeng, Li Xia, and Qiankun Investment, failed to fulfill their performance compensation obligations for 2016-2018 as agreed[109] - Original shareholders of Zhongrongjin, Zhao Guodong, Yin Hongwei, and Yang Peng, failed to fulfill their performance compensation obligations for 2017-2019; as of the end of the reporting period, Mr. Zhao Guodong had only paid 13 million yuan in compensation, and the promising parties stated they are actively raising funds[112] Litigation Matters The company is involved in multiple significant litigation cases, primarily financial loan contract disputes, with some resolved through settlement but others still awaiting execution of substantial amounts Major Litigation and Arbitration Overview | Litigant | Amount Involved (yuan) | Progress | Judgment Execution Status | | :--- | :--- | :--- | :--- | | Hunan Asset Management Co., Ltd. | 226,918,900.00 | Concluded | Fully executed | | China Everbright Bank Zhongshan Branch | 100,989,400.00 | Settled in first instance | Remaining 34,109,800.00 yuan pending execution | | Shandong International Trust | 51,009,000.00 | Case in execution | Remaining 31,790,900.00 yuan pending execution | | Xiamen International Bank Zhuhai Branch | 120,065,500.00 | Settled in first instance | Remaining 33,229,100.00 yuan pending execution | Integrity Status of the Company and Its Controlling Shareholders and Actual Controller The controlling shareholder, Zhao Guodong, faces integrity issues due to overdue debt guarantees, resulting in judicial freezing and pledging of all his company shares, posing significant risk - Controlling shareholder Zhao Guodong was subject to court enforcement due to providing joint liability guarantee for the company's 50 million yuan overdue loan from Shandong Trust[124][126] - As of the end of the reporting period, all company shares held by controlling shareholder Mr. Zhao Guodong (182,029,912 shares, accounting for 16.79% of total share capital) have been judicially frozen and rotationally frozen, and all are pledged[127] Implementation of Company Equity Incentive Plans The company's 2016 stock option incentive plan was terminated, and all remaining options were canceled due to the failure to meet performance targets for the third exercise period - The company's 2018 performance did not meet the assessment requirements for the third exercise period of the 2016 stock option incentive plan[137] - The company completed the cancellation of 3.016888 million stock options for the third exercise period that did not meet the exercise conditions on May 10, 2019, concluding the implementation of this incentive plan with no remaining options[140] Explanation of Other Significant Matters On May 17, 2019, the company secured 970 million yuan in financing from the Zhongshan City Relief Fund, managed by Zhongshan Financial Holdings, primarily to repay company debts and effectively alleviate liquidity pressure - The company obtained 970 million yuan in financing from the Zhongshan City Relief Fund on May 17, 2019, used to repay company debts and alleviate liquidity pressure[156] Changes in Shares and Shareholder Information This section details the company's share capital structure, changes in shareholdings, and information on major shareholders Changes in Shares During the reporting period, the company's total share capital of 1,084,111,428 shares remained unchanged, with minor adjustments in restricted and unrestricted shares due to executive share unlocking - The company's total share capital remained unchanged at 1,084,111,428 shares during the reporting period[162] Number of Shareholders and Shareholding Information As of the reporting period end, the company had 96,759 shareholders, with the controlling shareholder and his concerted parties holding 29.23%, and all of the controlling shareholder's shares being pledged and frozen Top Ten Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | :--- | | Zhao Guodong | Domestic Natural Person | 16.79% | 182,029,912 | Pledged/Frozen 182,029,912 | | Tibet Rongtong Zhongjin Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 12.44% | 134,914,597 | Pledged 134,914,584 | | Tianan Life Insurance - Universal Product | Other | 4.90% | 53,121,475 | - | | Cai Shier | Domestic Natural Person | 4.07% | 44,164,484 | - | | Qianhai Open Source Fund - Fixed Increase No. 22 | Other | 3.94% | 42,722,957 | - | - Controlling shareholder Zhao Guodong and Tibet Rongtong Zhongjin Investment Co., Ltd. are concerted parties[170] Information on Preferred Shares This section confirms the absence of preferred shares issued by the company Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[184] Information on Directors, Supervisors, and Senior Management This section details changes in the company's board, supervisory board, and senior management Changes in Directors, Supervisors, and Senior Management The company experienced significant changes in its senior management team, including the replacement of the general manager and the resignation of the board secretary and a vice general manager Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Liu Xiangdong | General Manager | Appointment | 2019-01-31 | Appointment | | Zhao Guodong | Board Secretary | Appointment | 2019-03-29 | Acting as Board Secretary | | Zhao Guodong | General Manager | Dismissal | 2019-01-31 | Personal reasons | | Ning Fangqi | Board Secretary, Vice General Manager | Dismissal | 2019-03-29 | Personal reasons | | Zhang Jia | Vice General Manager | Dismissal | 2019-02-01 | Health reasons | Information on Corporate Bonds This section provides details regarding the company's corporate bonds Corporate Bonds The company has no publicly issued corporate bonds listed on a stock exchange that are either unexpired or overdue for full repayment - The company has no unexpired or overdue corporate bonds that have not been fully repaid[193] Financial Report This section presents the company's complete financial statements, including the balance sheet, income statement, and cash flow statement Financial Statements As of June 30, 2019, the company reported total assets of 9.661 billion yuan, total liabilities of 7.006 billion yuan, and a net profit of 297 million yuan, with negative operating cash flow Consolidated Balance Sheet As of June 30, 2019, total assets slightly increased to 9.661 billion yuan, total liabilities decreased to 7.006 billion yuan, and equity attributable to the parent company increased by 12.67% Consolidated Balance Sheet Key Items (Unit: yuan) | Item | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 9,660,652,224.18 | 9,550,593,162.81 | | Monetary Funds | 1,858,138,102.76 | 2,289,085,953.29 | | Accounts Receivable | 2,852,576,488.29 | 1,972,155,924.25 | | Inventories | 759,425,630.29 | 788,538,143.26 | | Total Liabilities | 7,006,065,036.64 | 7,193,472,801.04 | | Short-term Borrowings | 1,455,423,966.03 | 2,157,295,678.05 | | Long-term Borrowings | 1,047,256,639.43 | 156,161,977.63 | | Total Owners' Equity | 2,654,587,187.54 | 2,357,120,361.77 | | Owners' Equity Attributable to Parent Company | 2,644,871,134.39 | 2,347,530,764.83 | Consolidated Income Statement In H1 2019, total operating revenue grew by 4.98% to 4.051 billion yuan, while total operating costs increased by 10.4%, resulting in a net profit of 297 million yuan Consolidated Income Statement Key Items (Unit: yuan) | Item | 2019 H1 | 2018 H1 | | :--- | :--- | :--- | | I. Total Operating Revenue | 4,051,371,046.40 | 3,859,051,655.53 | | II. Total Operating Costs | 3,723,177,982.89 | 3,371,845,146.55 | | Operating Costs | 2,947,739,560.52 | 2,544,435,606.90 | | Financial Expenses | 158,121,492.44 | 31,158,617.01 | | Investment Income | -92,179,642.58 | 60,579,002.86 | | Fair Value Change Gains/Losses | 142,642,062.52 | -39,952,917.72 | | III. Operating Profit | 352,528,957.02 | 316,446,832.35 | | IV. Total Profit | 364,115,019.76 | 321,790,374.39 | | V. Net Profit | 297,466,825.77 | 264,581,176.20 | | Net Profit Attributable to Parent Company Owners | 297,340,369.56 | 266,558,509.51 | Consolidated Cash Flow Statement In H1 2019, operating cash flow remained negative at -116 million yuan, while investing activities generated a significant inflow, and financing activities resulted in a substantial outflow due to debt repayment Consolidated Cash Flow Statement Summary (Unit: yuan) | Item | 2019 H1 | 2018 H1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -116,259,069.79 | -52,592,743.99 | | Net Cash Flow from Investing Activities | 1,141,595,895.15 | 253,525,135.71 | | Net Cash Flow from Financing Activities | -691,937,296.52 | -42,172,421.23 | | Effect of Exchange Rate Changes on Cash | -97,763,303.32 | 53,023,009.71 | | Net Increase in Cash and Cash Equivalents | 235,636,225.52 | 211,782,980.20 | | Cash and Cash Equivalents at Period End | 892,185,743.10 | 888,139,953.69 | Catalogue of Reference Documents This section lists documents available for inspection