森鹰窗业(301227) - 2024 Q2 - 季度财报

Important Notices, Table of Contents, and Definitions Company Profile and Key Financial Indicators Company Profile This section outlines the company's fundamental corporate information and stock listing details Company Information | Item | Information | | :--- | :--- | | Stock Ticker | SAYYAS Windows | | Stock Code | 301227 | | Stock Exchange | Shenzhen Stock Exchange | | Company Name (Chinese) | 哈尔滨森鹰窗业股份有限公司 | | Legal Representative | Bian Shuping | Key Accounting Data and Financial Indicators The company experienced a significant performance decline with sharp drops in revenue, net profit, and operating cash flow Key Financial Indicators | Key Financial Indicator | Current Period | Prior-Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 237,432,614.86 | 335,559,926.24 | -29.24% | | Net Profit Attributable to Shareholders (RMB) | 504,877.45 | 43,133,679.58 | -98.83% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | -7,481,375.49 | 34,511,688.20 | -121.68% | | Net Cash Flow from Operating Activities (RMB) | 64,684,215.99 | 107,597,457.90 | -39.88% | | Basic Earnings Per Share (RMB/Share) | 0.01 | 0.45 | -97.78% | | Weighted Average Return on Equity | 0.03% | 2.40% | -2.37% | | Balance Sheet Indicators | End of Current Period | End of Prior Year | YoY Change | | Total Assets (RMB) | 2,170,000,933.92 | 2,260,429,976.07 | -4.00% | | Net Assets Attributable to Shareholders (RMB) | 1,722,028,345.28 | 1,843,165,343.41 | -6.57% | Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss totaled RMB 7.99 million, primarily from government grants and investment income Non-recurring Profit and Loss Items | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Government grants recognized in the current period | 4,072,127.88 | Primarily government grants recognized in the current period | | Gains/losses from entrusting others with investments or asset management | 2,466,077.75 | Primarily from cash management through purchasing income certificates | | Reversal of impairment provision for individually assessed receivables | 3,786,589.00 | Primarily from the recovery of receivables with prior-period impairment provisions | | Other non-operating income and expenses, net | -990,532.96 | - | | Income tax effect | -1,348,008.73 | - | | Total | 7,986,252.94 | - | Management Discussion and Analysis Principal Business Activities During the Reporting Period The company's performance was pressured by the real estate market, prompting strategic shifts in product, capacity, and marketing Overview of Main Business Operations Market pressures led to significant declines in revenue and net profit, prompting strategic initiatives in branding and operations | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Operating Revenue | RMB 237 million | -29.24% | | Net Profit Attributable to Shareholders | RMB 0.50 million | -98.83% | | Gross Profit Margin of Main Business | 22.82% | -8.75 pct | - Facing market challenges, the company implemented five key countermeasures: - Brand Building: Enhanced brand awareness through industrial tours, designer interviews, and co-branding activities centered on the "Energy-saving & Beautiful Windows" positioning[20] - Product Expansion: Adopted a "Three Windows, One Door" strategy, expanding from aluminum-clad wood windows to include wood, aluminum, new plastic windows, and entrance doors to target the mid-range stock market[21] - Capacity Layout: Accelerated construction of investment projects in Nanjing and Harbin to expand supporting capacity for glass and aluminum deep processing[23] - Overseas Planning: Pursued opportunities in overseas markets, accelerating channel development in North America and Japan[24] - Organizational Reform: Restructured the marketing center into product-line-based business units to improve market responsiveness and service capabilities[25] Major Products and Their Applications The company offers a comprehensive product matrix for building openings, with a focus on mid-to-high-end energy-saving windows - The company's product line has expanded from a single focus on energy-saving aluminum-clad wood windows to a diversified portfolio to meet various market demands: - Energy-saving aluminum-clad wood windows: Core products for the mid-to-high-end building exterior window market - Aluminum alloy windows: The "Jian'ai" series, launched to expand into the retail market - New plastic windows (Energy-saving UPVC windows): An investment project aimed at developing products with superior insulation performance to accelerate multi-category expansion - Curtain walls and sunrooms: Extensions of the energy-saving aluminum-clad wood window product line, offering excellent thermal insulation properties[26][27] Principal Operating Models The company operates on a make-to-order model with integrated systems for procurement, production, sales, and R&D - Procurement Model: Centralized procurement managed by the planning center, with a comprehensive supplier management and quality control system; qualified suppliers are entered into the ERP system[28] - Production Model: Adopts a "make-to-order" approach, using KLAES software for detailed design and import into the ERP system for unified production scheduling[31] - Sales Model: Comprises two channels: bulk business (direct sales to real estate developers and decoration companies) and distributor business (covering retail end-customers through distributors)[32] - R&D Model: An R&D center leads a matrix-style product development model with cross-departmental collaboration, adhering to an "end-to-end" innovation approach[35] Overview of the Company's Industry Stricter building energy standards under the "dual carbon" strategy create favorable market conditions for high-performance windows - With the implementation of the "dual carbon" strategy, building energy efficiency requirements are increasing nationwide, directly benefiting the energy-saving window industry, for example: - Beijing: The "Design Standard for Energy Efficiency of Residential Buildings" lowered the required K-value for exterior windows to 1.1 W/(m²·K) - Jiangsu: The "Design Standard for Thermal Environment and Energy Efficiency of Residential Buildings" requires exterior window K-values to be ≤ 1.6-1.8 W/(m²·K) - Anhui: The "Design Standard for Energy Efficiency of Residential Buildings" requires exterior window K-values to be ≤ 1.5-2.2 W/(m²·K) - Shandong: The "Design Standard for Energy Efficiency of Residential Buildings" requires exterior window K-values to be ≤ 1.3-1.5 W/(m²·K) - The enhancement of these mandatory standards accelerates the promotion and application of high-performance energy-saving windows[38] Industry Development Trends The energy-saving window industry is trending towards broader market coverage, higher concentration, and increased demand for customization and efficiency - Market Coverage Extension: The market share of energy-saving aluminum-clad wood windows is expected to increase as energy efficiency standards rise[41] - Increased Industry Concentration: In a fragmented market, leading companies with proprietary brands are gaining market share[42] - Growing Demand for Personalization: Consumers have a clear preference for personalized product styles, colors, and materials[43] - Higher Energy Efficiency Requirements: Policies related to passive ultra-low energy consumption buildings are driving improvements in window performance metrics[44] - Accelerated Demand from Renovations: The renovation of old urban residential communities and second-hand homes is creating new growth opportunities for the energy-saving window industry[46] Company's Industry Position The company is a domestic leader in energy-saving aluminum-clad wood windows, recognized for its scale, technology, and market share - The company holds a leading position in the industry and is one of the few domestic enterprises with large-scale customized production capabilities, holding key positions in several industry associations; from 2017 to 2019, its production scale and market sales of aluminum-clad wood windows ranked first among domestic peers for three consecutive years[50] - The company has received numerous accolades, including "Heilongjiang Provincial Specialized, Refined, Unique, and New SME," "Heilongjiang Provincial Manufacturing 'Invisible Champion' Enterprise," "Provincial Manufacturing Single-item Champion Enterprise," and was named a "Provincial Green Factory" during the reporting period[51] Key Performance Drivers Profitability is under pressure as the core product's revenue and margin declined, alongside a significant margin drop in aluminum alloy windows | Product | Operating Revenue (RMB 10,000) | YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Energy-saving aluminum-clad wood windows | 18,594.67 | -34.31% | 27.34% | -6.48 pct | | Aluminum alloy windows | 4,097.01 | +3.23% | 3.28% | -10.94 pct | Core Competitiveness Analysis The company's core competitiveness is built on its R&D strength, brand recognition, sales network, and advanced manufacturing capabilities - R&D and Technology: As of June 30, 2024, the company holds 147 patents, including 30 invention patents, and has participated in the formulation of multiple industry standards[53] - Brand Advantage: The "SAYYAS" brand has a strong influence in the domestic energy-saving aluminum-clad wood window industry[55] - Marketing Network: A nationwide sales and service network has been established[56] - Manufacturing: Possesses three large-scale customized production systems for energy-saving aluminum-clad wood, aluminum alloy, and new plastic windows, equipped with internationally advanced machinery[59] - Information Technology: Achieved seamless electronic integration of production and sales and full-chain information management, previously selected as a pilot demonstration for the integration of new-generation information technology and manufacturing by the MIIT[62] Analysis of Main Business Operations The company's financial performance declined across the board, with significant revenue drops in core products and key regions Key Financial Data | Item | Current Period | Prior-Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 237,432,614.86 | 335,559,926.24 | -29.24% | | Operating Cost | 180,351,242.67 | 227,421,459.82 | -20.70% | | Net Cash Flow from Operating Activities | 64,684,215.99 | 107,597,457.90 | -39.88% | | Net Cash Flow from Investing Activities | -140,713,319.39 | -5,880,714.58 | -2,292.79% | Performance by Segment | Category | Operating Revenue YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | | By Product | | | | Energy-saving aluminum-clad wood windows | -34.31% | -6.48% | | Aluminum alloy windows | 3.23% | -10.94% | | By Region | | | | East China | 26.59% | -4.50% | | North China | -57.47% | -7.76% | | Northeast China | -54.07% | -11.36% | | By Sales Model | | | | Bulk Model | -36.54% | -0.04% | | Distribution Model | -22.18% | -17.15% | Analysis of Assets and Liabilities Total assets decreased slightly, with a significant increase in construction in progress and a decrease in notes receivable - Construction in Progress: The period-end balance was RMB 166 million, a 46.56% increase from the beginning of the year (an absolute increase of RMB 52.58 million), mainly due to increased investment in fundraising projects - Contract Liabilities: The period-end balance was RMB 59.34 million, a 73.35% increase from the beginning of the year (an absolute increase of RMB 25.11 million), primarily due to an increase in advance payments received - Notes Receivable: The period-end balance was RMB 3.86 million, a sharp decrease of 87.51% from the beginning of the year, mainly due to the maturity and payment of notes - Taxes Payable: The period-end balance was RMB 2.06 million, a significant decrease of 85.24% from the beginning of the year, mainly due to a reduction in VAT and corporate income tax payable[69][70] Investment Analysis The company made significant equity investments to expand its network and reallocated raised funds to higher-potential projects Major Equity Investments | Investee Company | Investment Method | Investment Amount (RMB) | Shareholding Ratio | Funding Source | | :--- | :--- | :--- | :--- | :--- | | SAYYAS Windows (Beijing) Co, Ltd | New Establishment | 50,000,000.00 | 100.00% | Own Funds | | SAYYAS Windows (Qinhuangdao) Co, Ltd | New Establishment | 36,000,000.00 | 60.00% | Own Funds | - The company changed the use of proceeds from the "Nanjing Annual Production of 250,000 sqm of Custom Energy-saving Wood Windows Project" to fund new projects: "Annual Production of 300,000 sqm of Custom Energy-saving Aluminum Alloy Windows Project" and "Annual Production of 150,000 sqm of Energy-saving UPVC Windows Project," to accelerate its diversified product layout and improve the efficiency of raised funds[78][82] Analysis of Major Holding and Associated Companies The main subsidiary reported a net loss despite revenue growth, while newly established subsidiaries had no operational impact Subsidiary Performance | Subsidiary Name | Main Business | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | SAYYAS Windows Nanjing Co, Ltd | Production and sales of aluminum alloy windows | 43,028,620.15 | -9,733,176.19 | Risks and Countermeasures The company faces risks from market competition, price volatility, and policy changes, which it plans to mitigate through innovation and operational efficiency - Risk of Intensified Market Competition: Addressed through product innovation and differentiation strategies[89] - Risk of Raw Material Price Fluctuation: Controlled through coordinated procurement, upstream supply chain extension, and intelligent production[90] - Risk of Bad Debts from Accounts Receivable: Mitigated by cautious customer credit assessment, strengthened collection efforts, and adequate bad debt provisions[91] - Risk of Declining Gross Margin and Performance: Stabilized by optimizing product structure, improving production efficiency, and cost control[92] - Risk of Real Estate Policy Changes: Addressed by expanding into markets like passive buildings and existing home renovations, and accelerating retail channel development to reduce reliance on a single market[93][94] Corporate Governance General Shareholders' Meetings The company held its 2023 Annual General Meeting on May 17, 2024 - The company held its 2023 Annual General Meeting on May 17, 2024[100] Environmental and Social Responsibility Significant Environmental Issues The company adheres to environmental standards, is not a key polluter, and was recognized as a "Provincial Green Factory" - The company has implemented several measures to reduce carbon emissions: - Product Innovation: Developed ultra-low energy consumption products for passive buildings, with related product sales reaching RMB 34.55 million during the reporting period[107] - Green Buildings: Constructed a "Passive Factory" and a "Zero-Carbon Office Building," with the Harbin factory once holding the Guinness World Record for the "World's Largest Passive Factory"[108] - Clean Energy: The Nanjing subsidiary's factory roof is equipped with a distributed photovoltaic power station, expected to reduce CO2 emissions by 1,600 tons annually[109] - Eco-friendly Materials: Promotes the use of water-based paints and has obtained FSC forest certification, supporting sustainable forest resource utilization[110] - Energy and Water Conservation: Optimized energy and water consumption monitoring and implemented water-saving renovations on the spray coating line, saving over 15,000 tons of water annually[111][112] Social Responsibility The company actively engages in social responsibility through donations, university partnerships, and environmental and community initiatives - Social Donations: Donated RMB 10 million (over 10 years) to the Harbin Institute of Technology Education Development Foundation to support higher education development[118] - University-Enterprise Cooperation: Established internship bases with several universities, including Harbin Institute of Technology and Northeast Forestry University, to cultivate talent[119] - Environmental Protection: Continued its public tree-planting activities for over a decade, planting more than 15,000 trees in total[120] - Community Support: Co-launched the "SAYYAS Sight Restoration" program to fund cataract surgery for impoverished patients[121] Significant Events Explanation of Other Significant Events Key events include a major share repurchase plan, the establishment of new subsidiaries, and the 2023 annual equity distribution - Share Repurchase: Initiated a share repurchase program with a total value of not less than RMB 100 million and not more than RMB 200 million to maintain company value, protect shareholder interests, and for future employee incentives; as of July 31, 2024, 2.92 million shares had been repurchased for a total of approximately RMB 79.99 million[139] - Shareholding Increase Plan: The company's controlling shareholder and some directors, supervisors, and senior executives plan to increase their holdings, with a total investment of not less than RMB 50 million and not more than RMB 100 million[144] - Subsidiary Establishment: Invested in the establishment of a wholly-owned subsidiary, SAYYAS Windows (Beijing) Co, Ltd, and a holding subsidiary, SAYYAS Windows (Qinhuangdao) Co, Ltd[145] - Equity Distribution: Implemented the 2023 annual equity distribution plan, paying a cash dividend of RMB 5 (tax inclusive) per 10 shares to all shareholders[146] Share Capital Changes and Shareholder Information Changes in Share Capital Total share capital remained unchanged, while the composition shifted from restricted to unrestricted shares due to lock-up expirations and buybacks - During the reporting period, the company's restricted shares decreased from 61,165,950 to 59,624,500, while unrestricted shares increased from 33,634,050 to 35,175,500[149] - The company implemented a share repurchase program, and as of July 31, 2024, had repurchased a cumulative 2,918,606 shares, representing 3.08% of the total share capital, for a total transaction amount of approximately RMB 79.99 million[151] Number of Shareholders and Shareholding Status The company had 7,796 shareholders, with the controlling shareholder and concerted parties holding a combined 62.51% stake Top 5 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | Bian Shuping | Domestic Individual | 55.42% | 52,540,000 | | Ying Jingfen | Domestic Individual | 7.09% | 6,723,000 | | CEIBS Growth Select Return Hybrid Securities Investment Fund (LOF) | Other | 3.03% | 2,870,382 | | CEIBS Potential Value Flexible Allocation Hybrid Securities Investment Fund | Other | 1.58% | 1,502,190 | | Meizhou Oppein Investment Industrial Co, Ltd | Domestic Non-state-owned Corp | 1.48% | 1,404,300 | - The company's dedicated securities account for share repurchase holds 2,918,606 shares, accounting for 3.08% of the company's total share capital[153] Information on Preferred Shares Information on Preferred Shares The company had no preferred shares during the reporting period Information on Bonds Information on Bonds The company had no bonds during the reporting period Financial Report Financial Statements The company's balance sheet shows total assets of RMB 2.17 billion, with H1 2024 revenue of RMB 237 million Consolidated Balance Sheet Key Items (2024-06-30) | Item | Amount (RMB) | | :--- | :--- | | Cash and cash equivalents | 677,229,012.35 | | Accounts receivable | 350,713,922.36 | | Inventories | 109,056,733.26 | | Fixed assets | 429,005,362.03 | | Construction in progress | 165,506,401.42 | | Total Assets | 2,170,000,933.92 | | Short-term borrowings | 271,175,222.22 | | Accounts payable | 55,799,834.70 | | Total Liabilities | 447,972,588.64 | | Equity Attributable to Owners of the Parent | 1,722,028,345.28 | Consolidated Income Statement Key Items (H1 2024) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 237,432,614.86 | | Total Operating Costs | 240,474,064.27 | | Operating Profit | 1,790,423.40 | | Total Profit | 801,453.88 | | Net Profit | 504,877.45 | Consolidated Cash Flow Statement Key Items (H1 2024) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 64,684,215.99 | | Net Cash Flow from Investing Activities | -140,713,319.39 | | Net Cash Flow from Financing Activities | -79,098,236.10 | | Net Increase in Cash and Cash Equivalents | -155,127,339.50 |