FORE(301368)2023-08-27 16:00Financial Performance - Revenue for the reporting period was RMB 2.00 billion, a decrease of 17.27% compared to the same period last year[23] - Net profit attributable to shareholders of the listed company was RMB 20.21 million, a decrease of 21.48% year-on-year[23] - Net cash flow from operating activities was RMB 10.58 million, a decrease of 39.41% compared to the same period last year[23] - Basic earnings per share were RMB 0.17, a decrease of 41.38% year-on-year[23] - Net profit for the period was 20,205,650.99, down from 25,734,441.29 in the previous period, a decrease of approximately 21.48%[34] - Operating profit was 20,436,883.11, down from 27,096,532.70, a decrease of approximately 24.58%[34] - Revenue for the first half of 2023 decreased to 200,024,792.92 yuan, down 17.3% compared to 241,777,077.30 yuan in the same period last year[35] - Comprehensive income for the first half of 2023 was 20,170,458.81 yuan, down 21.4% from 25,677,371.24 yuan in the same period last year[36] - Basic and diluted earnings per share for the first half of 2023 were both 0.17 yuan, down from 0.29 yuan in the same period last year[36] - Total revenue for the period was 200,024,792.92 yuan, with gear products contributing 93,880,090.18 yuan, accounting for 46.9% of total revenue[194] - Domestic sales accounted for 112,716,731.52 yuan, representing 56.4% of total revenue, while overseas sales were 87,308,061.40 yuan, making up 43.6%[194] Cash Flow and Liquidity - Net cash flow from investment activities for the first half of 2023 was -81,022,331.92 yuan, compared to -51,316,558.39 yuan in the same period last year[38] - Net cash flow from financing activities for the first half of 2023 was -135,366,885.63 yuan, compared to 38,756,659.81 yuan in the same period last year[38] - Cash and cash equivalents at the end of the first half of 2023 were 401,791,649.56 yuan, down from 607,474,722.87 yuan at the beginning of the period[38] - Cash and cash equivalents decreased from 629,962,021.17 to 423,950,814.97, a reduction of approximately 32.70%[30] Assets and Liabilities - Total assets at the end of the reporting period were RMB 1.16 billion, a decrease of 8.95% compared to the end of the previous year[23] - Total assets decreased from 1,274,433,851.20 to 1,160,312,157.89, a reduction of approximately 8.96%[31] - Total liabilities decreased from 313,157,138.03 to 193,842,293.73, a reduction of approximately 38.10%[31] - Total equity increased slightly from 961,276,713.17 to 966,469,864.16, an increase of approximately 0.54%[31] - The company's total equity attributable to shareholders of the listed company was RMB 966.47 million, an increase of 0.54% compared to the end of the previous year[23] - Accounts receivable increased from 100,182,551.73 to 140,972,371.39, an increase of approximately 40.72%[30] - Accounts payable increased from 109,115,269.97 to 123,832,054.95, with goods payable increasing from 70,550,731.25 to 92,020,469.32 and project equipment payable decreasing from 38,564,538.72 to 31,811,585.63[170] - Prepaid accounts receivable over 1 year amounted to 1,713,132.59 yuan, a decrease of 28.5% compared to the beginning of the period[176] Research and Development - Research and development expenses were 7,696,360.17, slightly down from 8,076,129.77 in the previous period[34] Sales and Marketing - Sales expenses increased from 1,349,184.45 to 2,157,573.15, an increase of approximately 59.92%[34] Other Income and Expenses - Other income increased from 2,085,290.07 to 5,499,042.97, an increase of approximately 163.68%[34] - Total financial expenses for the period were 7,696,360.17 yuan, a decrease of 4.7% compared to the previous period[195] Equity and Share Capital - The company's registered capital increased from RMB 90 million to RMB 120.10 million, and the total number of shares increased from 90 million to 120.10 million[22] - The company's initial balance for the period was 120,100,000.00 in share capital and 664,641,729.97 in capital reserve[41] - The company's equity at the beginning of the period was 961,549,098.46, with a significant portion attributed to undistributed profits of 151,841,846.19[41] - The company's equity at the end of the period increased by 25,677,371.24 due to comprehensive income[42] Taxation - The company's main tax types include VAT at rates of 9% and 13%, urban maintenance and construction tax at 5%, and corporate income tax at 15% and 20%[51] - The company's income tax rates are 15% for the parent company and 20% for its subsidiaries, Zhejiang Zhonghao Intelligent Technology Co., Ltd. and Zhejiang Fengxi Technology Co., Ltd.[59] - Corporate income tax payable at the end of the period was 1,465,084.27 yuan[181] - Total taxes payable at the end of the period were 3,003,382.07 yuan, an increase of 54.5% compared to the beginning of the period[181] Environmental and Safety Measures - The company's safety measures include monthly fire equipment inspections, daily workshop patrols, and at least two fire drills annually[118] - The company reported no major environmental safety issues and maintained good environmental sustainability practices[121] - The company implemented environmental protection measures, including waste gas treatment and dust removal systems, with emissions through 15m high exhaust pipes[147][148] - The company's wastewater treatment results at Gaoyang plant: pH daily average 7.2-7.3 (required 6-9), COD 169mg/L (≤500mg/L), SS 33mg/L (≤400mg/L), ammonia nitrogen 3.44mg/L (≤35mg/L), anionic surfactant 1.14mg/L (≤20mg/L), total phosphorus 1.6mg/L (≤8mg/L), petroleum 0.71mg/L (≤20mg/L)[150] - Gaoyang plant's unorganized exhaust monitoring results: TSP 187-542μg/m³ (≤1000), non-methane hydrocarbons 0.18-0.42mg/m³ (≤4), odor concentration <10 (≤20)[150] - Gaoyang plant's organized exhaust monitoring results: non-methane hydrocarbons mean concentration 1.19mg/m³ (≤120), emission rate 0.008-0.015kg/h (≤10), particle concentration <20mg/m³ (≤120), emission rate 0.020kg/h (≤3.5)[150] - Heyu plant's wastewater treatment results: pH daily average 7.4-7.5 (required 6-9), COD 161mg/L (≤500mg/L), SS 57mg/L (≤400mg/L), ammonia nitrogen 25.6mg/L (≤35mg/L), anionic surfactant 1.95mg/L (≤20mg/L), total nitrogen 51mg/L (≤70mg/L), petroleum 23.2mg/L (≤30mg/L)[151] - Heyu plant's unorganized exhaust monitoring results: TSP 180-523μg/m³ (≤1000), non-methane hydrocarbons 0.14-0.35mg/m³ (≤4), odor concentration <10 (≤20)[151] - Heyu plant's organized exhaust monitoring results: sintering exhaust non-methane hydrocarbons mean concentration 0.52mg/m³ (≤120), emission rate 0.001kg/h (≤3.5), heat treatment exhaust non-methane hydrocarbons mean concentration 0.81mg/m³ (≤120), emission rate 0.005-0.007kg/h (≤10)[151] Corporate Governance and Compliance - The company did not plan to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[12] - The company reported no material related-party transactions, illegal external guarantees, or related-party debt and credit transactions during the reporting period[105][108][109][110] - The company received a regulatory warning for incomplete product information disclosure and insufficient risk warnings[129] - The company engaged in related-party transactions amounting to 1.5312 million yuan, accounting for 1.23% of similar transactions[130] - The company reported no major litigation, arbitration, or bankruptcy restructuring during the reporting period[128] - The company's semi-annual financial report was not audited[126] - The company reported no significant non-operational fund occupation by controlling shareholders or related parties[125] - The company's total daily related-party transactions amounted to 560.12 million yuan, with actual transactions not exceeding the approved limit[131] Employee Compensation and Benefits - Short-term employee compensation totaled 6,368,761.65 yuan at the end of the period, a decrease of 8.5% from the beginning of the period[178] - Total employee benefits and social insurance expenses for the period were 38,169,600.06 yuan, with a net decrease of 171,977.51 yuan by the end of the period[178] Inventory and Cost Management - The company uses the perpetual inventory system for inventory management[57] - Inventory is measured at the lower of cost and net realizable value, with impairment recognized for any excess of cost over net realizable value[49] Financial Instruments and Risk Management - Financial assets and liabilities are classified into categories based on their measurement attributes, including amortized cost, fair value through other comprehensive income, and fair value through profit or loss[46] - Financial liabilities measured at amortized cost are recognized using the effective interest method, with gains or losses recognized in profit or loss upon derecognition or amortization[47] - Financial assets are derecognized when the contractual rights to receive cash flows have expired or when the transfer meets the criteria for derecognition under accounting standards[47] - The company's financial instruments are assessed for credit risk using a three-stage model, with expected credit losses calculated based on historical data and future economic predictions[56] - The expected credit loss rates for accounts receivable are 5% for within 1 year, 10% for 1-2 years, 50% for 2-3 years, and 100% for over 3 years[56] - The company holds bank acceptance bills with a total value of 5,236,321.47 yuan, with no bad debt provision recorded[61][62] - Accounts receivable at the end of the period amounted to 148,822,985.63 yuan, with a bad debt provision of 7,850,614.24 yuan, representing a provision ratio of 5.28%[65] - The company's accounts receivable with bad debt provisions amounted to 148,822,985.63 yuan, with a provision ratio of 5.28%[89] - The top five accounts receivable balances account for 58.79% of the total accounts receivable, with the largest single balance being 31,417,204.54 yuan, representing 21.11% of the total[94] - Prepayments to the top five suppliers totaled 1,751,789.58 yuan, accounting for 74.80% of total prepayments[97] - The company's other receivables increased from 2,250,061.88 yuan at the beginning of the period to 2,319,761.63 yuan at the end of the period[98] - The company's bad debt provision for other receivables increased from 95,808.72 yuan to 125,347.13 yuan during the reporting period[104] - Bad debt provision increased from 95,808.72 yuan to 125,347.13 yuan in the first half of 2023, with a significant increase in Stage 1 provision from 35,150.72 yuan to 60,702.41 yuan[116] - The company incurred a bad debt provision of 29,538.41 yuan in the first half of 2023, with 26,924.05 yuan allocated to Stage 1[116] Government Grants and Subsidies - Government grants related to assets are either deducted from the asset's carrying amount or recognized as deferred income and amortized over the asset's useful life[50] - Government grants related to income are recognized as deferred income and amortized over the period in which the related costs are incurred[50] - Government grants related to daily operations are recorded as other income or used to offset related costs, while non-operational grants are recorded as non-operating income or expenses[58] Deferred Tax Assets and Liabilities - Deferred tax assets and liabilities are recognized based on the difference between the carrying amount and tax base of assets and liabilities, calculated using the applicable tax rate during the expected recovery or settlement period[83] - Deferred tax assets increased from 1,377,176.79 to 1,732,202.80, while deferred tax liabilities decreased from 461,388.43 to 431,270.58[158] - Unrecognized deferred tax assets increased from 100,743.02 to 152,247.19, mainly due to an increase in deductible temporary differences from 95,808.72 to 125,347.13 and deductible losses from 4,934.30 to 26,900.06[160] Other Financial Information - The company's weighted average return on equity was 2.08%, a decrease of 5.50 percentage points compared to the same period last year[23] - The company's trade receivables, primarily consisting of bank acceptance bills, amounted to RMB 5,236,321.47 at the end of the period, with no bad debt provision[53] - The company holds financial assets measured at fair value through profit or loss, with a balance of 217,400.00 yuan at the end of the period[60] - The company does not have any significant lease arrangements during the reporting period[78] - The company's export products, including pneumatic tools and gearboxes, enjoy a 13% export tax rebate rate[84] - The company passed the high-tech enterprise review in December 2021, allowing it to enjoy a reduced corporate income tax rate of 15% from 2021 to 2023[84] - Subsidiaries Zhejiang Zhonghao Intelligent Technology Co., Ltd. and Zhejiang Fengxi Technology Co., Ltd. qualify as small and micro-profit enterprises, subject to a 20% corporate income tax rate[84] - The company's asset impairment provision increased from 9.18 million yuan to 11.55 million yuan, with deferred tax assets rising from 1.38 million yuan to 1.73 million yuan[137] - The company's fixed assets one-time pre-tax deduction decreased from 3.08 million yuan to 2.76 million yuan, with deferred tax liabilities dropping from 461,388.43 yuan to 413,900.58 yuan[139] - The company distributed a cash dividend of 1.25 yuan per share, totaling 15.01 million yuan, based on 120.10 million shares[145] - The company invested in automatic testing equipment and established a comprehensive quality control system, including raw material inspection, production process inspection, and finished product inspection[146] - The company donated 60,000 yuan to cultural activities in Gaoyang Village and Heyu Village, and sponsored a basketball tournament with approximately 300,000 yuan[122] - Other payables decreased significantly to 134,841.05 yuan at the end of the period, a 96.3% reduction from the beginning of the period[183]