纳睿雷达(688522) - 2024 Q2 - 季度财报

Section I Definitions This section provides definitions of key terms used throughout the report Section II Company Profile and Key Financial Indicators I. Company Basic Information This section outlines Guangdong Naruida Radar Technology Co., Ltd.'s fundamental details, including its name, registered address, legal representative, contact information, and stock overview - The company's full name is Guangdong Naruida Radar Technology Co., Ltd., abbreviated as Naruida Radar, with Bao Xiaojun as its legal representative, and its registered and office address located at No. 2 Gangle Road, Tangjiawan Town, Zhuhai City[12] - The company's shares are A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with stock code 688522[15] II. Contact Persons and Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email - The Board Secretary is Gong Xuehua, and the Securities Affairs Representative is Sun Zhongqiang, both with the contact address at No. 2 Gangle Road, Tangjiawan Town, Zhuhai City, and email address IR@naruida.com[13] III. Information Disclosure and Document Custody Location Changes This section specifies the company's designated newspapers and website for information disclosure, as well as the location for semi-annual report custody, with no changes during the reporting period - The company's selected information disclosure newspapers include "China Securities Journal", "Shanghai Securities News", "Securities Times", "Securities Daily", and "Economic Information Daily", with the semi-annual report published on the Shanghai Stock Exchange website (www.sse.com.cn)[14](index=14&type=chunk) IV. Company Stock/Depositary Receipt Overview This section briefly introduces the company's stock exchange and board of listing, confirming no depositary receipt situation - The company's shares are A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation "Naruida Radar" and stock code 688522[15] VI. Company Key Accounting Data and Financial Indicators In the first half of 2024, the company's operating revenue slightly increased, but net profit attributable to shareholders and non-recurring net profit significantly decreased, mainly due to increased R&D investment, higher bad debt provisions, and public welfare donations; earnings per share declined due to capital reserve conversion to share capital 2024 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 72,776,675.97 | 72,173,246.17 | 0.84 | | Net Profit Attributable to Shareholders (Yuan) | 5,889,147.28 | 19,372,642.48 | -69.60 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (Yuan) | 9,571,238.05 | 16,883,391.37 | -43.31 | | Net Cash Flow from Operating Activities (Yuan) | -7,875,687.96 | -54,410,874.60 | Not Applicable | | Net Assets Attributable to Shareholders (End of Period) (Yuan) | 2,176,359,534.78 | 2,191,475,417.12 | -0.69 | | Total Assets (End of Period) (Yuan) | 2,398,788,618.40 | 2,353,566,465.00 | 1.92 | 2024 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.03 | 0.13 | -76.92 | | Diluted Earnings Per Share (Yuan/share) | 0.03 | 0.13 | -76.92 | | Basic Earnings Per Share Excluding Non-Recurring Items (Yuan/share) | 0.04 | 0.11 | -63.64 | | Weighted Average Return on Net Assets (%) | 0.27 | 1.16 | Decreased by 0.89 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Items (%) | 0.44 | 1.01 | Decreased by 0.57 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 50.44 | 39.24 | Increased by 11.20 percentage points | - Net profit attributable to shareholders decreased by 69.60% year-on-year, primarily due to continuous growth in R&D investment, slower accounts receivable collection leading to increased bad debt provisions, and higher public welfare donations[18] - Basic earnings per share, diluted earnings per share, and basic earnings per share excluding non-recurring items decreased year-on-year, mainly due to the company's implementation of the 2023 annual equity distribution, converting capital reserves into share capital, which increased the total number of shares[18] VIII. Non-Recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the reporting period, totaling -3,682,090.77 Yuan 2024 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -4,107.08 | | Government grants included in current profit and loss (excluding those related to normal business operations) | 1,650,736.62 | | Other non-operating income and expenses | -5,978,501.04 | | Less: Income tax impact | -649,780.73 | | Total | -3,682,090.77 | Section III Management Discussion and Analysis I. Industry and Main Business Overview During the Reporting Period The company primarily engages in the R&D, production, sales, and service of phased array radar systems, belonging to the radar and supporting equipment manufacturing sector within the computer, communication, and other electronic equipment manufacturing industry, holding an internationally advanced position in full-polarization active phased array radar technology, with products mainly used in meteorological detection and hydrological rainfall measurement, and actively expanding into civil aviation, marine monitoring, and low-altitude economy, operating on an independent R&D, small-batch multi-frequency procurement, core-segment in-house production, and bidding-based sales model - The company's industry is classified as "Manufacturing" - "Computer, Communication and Other Electronic Equipment Manufacturing" - "Radar and Supporting Equipment Manufacturing (C3940)", and is listed under "Next-Generation Information Network Industry" as "New Computer and Information Terminal Equipment Manufacturing"[22] - Phased array radar technology is widely used in military applications, while its civil applications (e.g., meteorology, hydrology, air traffic control) are in their nascent stages, but China is rapidly developing and actively promoting industrialization, scale, and commercialization, with future application areas expected to gradually expand[23] - The company is an enterprise that masters key core technologies of full-polarization active phased array radar and was among the first to achieve industrialization of dual-polarization active phased array radar, with its main business of phased array radar system research and application identified as "internationally advanced level" by the China Radar Industry Association[24] - The company's main products are X-band dual-polarization active phased array radar equipment and supporting software/hardware products and computing power/algorithm services, currently primarily applied in meteorological detection and hydrological rainfall measurement, and gradually expanding to civil aviation, marine monitoring, low-altitude economy, and public safety[25] - The company's profit model primarily generates revenue and profit through the sale of active phased array radars and provision of related refined detection system services[35] - The company's production model is mainly based on independent completion of core stages such as R&D design, component assembly, final assembly, and testing, with a small number of processes outsourced to third parties, providing integrated hardware and software "turnkey" system solutions[37] (I) Industry Overview The company operates in the radar and supporting equipment manufacturing industry, a strategic emerging sector, where phased array radar technology is widely used in military applications but is still nascent in civil applications, though China is rapidly advancing towards industrialization, scale, and commercialization, with the company's full-polarization active phased array radar technology recognized as internationally advanced - The company's industry is classified as "Manufacturing" - "Computer, Communication and Other Electronic Equipment Manufacturing" - "Radar and Supporting Equipment Manufacturing (C3940)", and is listed under "Next-Generation Information Network Industry" as "New Computer and Information Terminal Equipment Manufacturing"[22] - Phased array radar technology is widely used in military applications, while its civil applications (e.g., meteorology, hydrology, air traffic control) are in their nascent stages, but China is rapidly developing and actively promoting industrialization, scale, and commercialization[23] - The company is an enterprise that masters key core technologies of full-polarization active phased array radar and was among the first to achieve industrialization of dual-polarization (dual-polarization) active phased array radar, with its main business of phased array radar system research and application identified as "internationally advanced level" by the China Radar Industry Association[24] (II) Main Business Operations The company specializes in providing full-polarization active phased array radar system solutions, with main products being X-band dual-polarization active phased array radar equipment, supporting software/hardware, and computing power/algorithm services, widely applied in meteorological detection and hydrological rainfall measurement, and actively expanding into civil aviation, marine monitoring, and low-altitude economy - The company's main products are X-band dual-polarization (dual-polarization) active phased array radar equipment, including various models such as AXPT0364, AXPT0464, HAXPT0164, WDCPT0164, DXPT0256, WMR-02 mobile emergency command vehicle, TDKFT0104, and AXPN0164, applied in meteorology, hydrology, multi-functional detection, emergency command, low-altitude economy, and marine monitoring scenarios[26][27][28][29] - The company has established a complete radar algorithm software application system, providing full-process software services including radar control, data processing, product generation, and product application, encompassing standalone radar supporting software and radar networking collaborative observation software, the latter capable of achieving high-precision 3D wind field inversion[30][31][32] - The company's independently developed distributed high-speed data processing platform provides high-performance, low-latency radar data processing capabilities, supporting massive meteorological data storage and high-performance computing services[33][34] (III) Main Business Model The company primarily generates revenue and profit by selling full-polarization active phased array radars and providing related services, adopting a small-batch, multi-frequency decentralized procurement model, with production mainly involving in-house completion of core stages and some outsourced processing, sales primarily through bidding and business negotiations, and R&D focused on independent development across multiple technical fields - The company's profit model primarily generates revenue and profit through the sale of active phased array radars and provision of related refined detection system services[35] - The procurement model adopts small-batch, multi-frequency decentralized procurement to meet the demand for a wide variety and complex structure of raw materials[36] - The production model is mainly based on the company's independent completion of core stages such as R&D design, component assembly, final assembly, and testing, with a small number of processes outsourced to third parties, providing integrated hardware and software "turnkey" solutions[37] - The sales model primarily involves selling radar products and services through bidding and business negotiations[38] - The R&D model is primarily based on independent research and development, covering multiple technical fields such as radar systems, signal processing, microwave circuits and antennas, high-speed digital circuits, analog circuits, mechanics, servo control, and chips[39] II. Core Technologies and R&D Progress The company possesses multiple independently developed core technologies, including radar system integration, high-gain low-sidelobe array antennas, all-solid-state transceiver units, modular power networks, digital intermediate frequency processing, beamforming control, high-speed signal processing, and collaborative observation systems; during the reporting period, the company continued to increase R&D investment, obtained new patents and software copyrights, and actively advanced ongoing R&D projects such as multi-beam dual-polarization radar, vehicle-mounted millimeter-wave radar, and full-polarization C/S-band radar - The company's core technologies are all independently developed, covering nine major aspects: radar system integration and application, high-gain low-sidelobe X-band dual-polarization array antenna, all-solid-state all-coherent dual-polarization transceiver unit, modular power synthesis and distribution network, up/down conversion unit, digital intermediate frequency processing unit, beamforming control unit, high-speed signal processing unit, and collaborative refined phased array radar weather observation system[41][42][43][44] - The advanced nature of the company's core technologies is reflected in the integration of phased array and polarization technologies for multi-domain applications, the industrialization of dual-polarization electronically scanned microstrip array antenna technology, a complete radar software system solution, and a high-performance, low-latency radar data processing platform[46] Intellectual Property Acquired During the Reporting Period | Intellectual Property Type | New Applications This Period (units) | New Acquisitions This Period (units) | Cumulative Applications (units) | Cumulative Acquisitions (units) | | :--- | :--- | :--- | :--- | :--- | | Invention Patents | 8 | 6 | 66 | 34 | | Utility Model Patents | 1 | 0 | 59 | 53 | | Design Patents | 1 | 4 | 16 | 15 | | Software Copyrights | 18 | 16 | 46 | 42 | | Other | 0 | 0 | 8 | 8 | | Total | 28 | 26 | 195 | 152 | R&D Investment Status | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 36,706,379.39 | 28,317,551.74 | 29.62 | | Total R&D Investment | 36,706,379.39 | 28,317,551.74 | 29.62 | | Total R&D Investment as Percentage of Operating Revenue (%) | 50.44 | 39.24 | Increased by 11.20 percentage points | - The company's ongoing R&D projects include the development of multi-beam dual-polarization phased array radar and its application in tornado detection, vehicle-mounted millimeter-wave radar, full-polarization digital active phased array C-band radar, full-polarization phased array S-band radar, dual-polarization phased array hydrological rainfall radar, X-band full-polarization multi-functional digital phased array radar, and portable full-polarization active phased array anti-drone radar, with an estimated total investment of 255 million Yuan[51][52][53] R&D Personnel Information | Indicator | Current Period (persons) | Prior Year Period (persons) | | :--- | :--- | :--- | | Number of Company R&D Personnel | 125 | 110 | | R&D Personnel as Percentage of Total Company Staff (%) | 47.35 | 53.66 | | Total R&D Personnel Compensation (10,000 Yuan) | 1,926.93 | 1,828.57 | | Average R&D Personnel Compensation (10,000 Yuan) | 15.42 | 16.62 | Educational Background: | Education Level | Number (persons) | Percentage (%) | | :--- | :--- | :--- | | Doctoral | 4 | 3.20 | | Master's | 36 | 28.80 | | Bachelor's | 76 | 60.80 | | Associate's | 8 | 6.40 | | High School and Below | 1 | 0.80 | | Total | 125 | 100.00 | Age Structure: | Age Range | Number (persons) | Percentage (%) | | :--- | :--- | :--- | | Under 30 | 57 | 45.60 | | 30-40 | 46 | 36.80 | | 40-50 | 16 | 12.80 | | 50-60 | 5 | 4.00 | | 60 and Above | 1 | 0.80 | | Total | 125 | 100.00 | III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its technological advantages, low-cost industrialization capabilities, first-mover advantage in products and markets, and talent and management strengths, with its full-polarization active phased array radar technology offering multi-functionality, high integration, and low cost, achieved through independent design and procurement of general-purpose components, establishing the first ultra-high spatiotemporal resolution radar observation network in the Guangdong-Hong Kong-Macao Greater Bay Area, and possessing an experienced technical and management team - The company's technological advantage lies in its full-polarization active phased array radar, which integrates phased array and polarization technologies for multi-functional applications, adopts a dual-polarization electronically scanned microstrip array antenna technology roadmap, and possesses a high-speed, large-data-volume radar signal processing platform based on a full FPGA structure[56][57] - The company possesses a low-cost industrialization capability advantage, achieving high product cost-effectiveness through general-purpose component design solutions and independent design and production of core modules[58] - The company has a first-mover advantage in products and markets, having deployed dual-polarization active phased array radars in multiple provinces and cities nationwide, and established the first ultra-high spatiotemporal resolution radar weather observation network in the Guangdong-Hong Kong-Macao Greater Bay Area[59] - The company possesses talent and management advantages, with its core technical team having rich experience in radar or communication work and research, and having established a continuous and stable talent pool[60] IV. Discussion and Analysis of Operations In the first half of 2024, the company's operating revenue slightly increased by 0.84%, but net profit decreased by 69.60% year-on-year, mainly due to increased R&D investment, higher bad debt provisions, and public welfare donations; the company actively advanced technology reserves and product innovation, expanded into hydrological flood control, low-altitude economy, and air traffic control markets, strengthened technical exchanges and cooperation, improved its management system, and enhanced talent development - In the first half of 2024, the company achieved operating revenue of 72,776,675.97 Yuan, a year-on-year increase of 0.84%; net profit attributable to the parent company's owners was 5,889,147.28 Yuan, a year-on-year decrease of 69.60%[62] - The decline in net profit was primarily due to continuous growth in R&D investment, slower accounts receivable collection leading to increased bad debt provisions, and higher public welfare donations[62] - During the reporting period, newly signed contracts for the company's projects amounted to approximately 540 million Yuan, but due to the concentrated timing of contract signings and the progress of甲方 infrastructure construction, fewer projects were delivered and accepted in the first half of the year[62] - The company continued to increase R&D investment, with R&D expenses of 36,706,379.39 Yuan in the current period, a year-on-year increase of 29.62%, and obtained multiple patents and software copyrights, actively developing new products such as C-band, S-band, multi-functional digital phased array radars, and anti-drone radars[63] - The company actively expanded its market, consolidated its position in meteorological detection, achieved business sales in hydrological flood control, released Ku-band dual-polarization active phased array radar to expand into low-altitude economy and other application scenarios, and signed cooperation agreements with multiple air traffic control bureaus in the air traffic control sector[63] - The company strengthened technical exchanges and cooperation by participating in exhibitions, forums, new media, and joining industry associations to enhance brand influence, and continuously improved its management system and strengthened talent development, implementing share repurchases for employee incentives[63][64][65] V. Risk Factors The company faces core competitiveness risks, including insufficient R&D investment in new technologies, long R&D cycles, high costs, and significant risks; operational risks include low continuity of customer demand due to long product lifespans, difficulty in securing orders, and seasonal fluctuations in revenue recognition; financial risks primarily involve long accounts receivable collection cycles, inventory impairment, declining gross profit margins, and negative net cash flow from operating activities; additionally, intensifying industry competition and changes in macroeconomic policies also pose risks - Core Competitiveness Risk: Insufficient investment in new technology and product R&D or R&D failure may lead to loss of technological advantage, impacting profitability[66] - Operational Risks: Long product lifespan of radar products leads to low continuity of customer demand and difficulty in securing orders; revenue recognition is significantly seasonal, mainly concentrated in the second half or fourth quarter, which may result in lower profits or losses in the first three quarters; strong comprehensive strength of major competitors may make it difficult to increase market share[67][68] - Financial Risks: Long accounts receivable collection cycle, posing bad debt risk; increased production scale leading to higher inventory, posing impairment risk; market demand, competition, raw material prices, and labor costs may lead to declining gross profit margins; persistently negative net cash flow from operating activities may lead to liquidity risk; changes in tax policies and government subsidies may affect operating performance[69] - Industry Risks: Civil applications of phased array radar are still in their nascent stage, and intensifying market competition may make it difficult for the company to maintain high gross profit margins[70] - Macroeconomic Environment Risks: Changes in national macroeconomic and industrial policies may impact the company's production and operations[71] VI. Key Operating Performance During the Reporting Period This section details the changes in the company's financial statement items during the reporting period, including the reasons for variations in operating revenue, costs, various expenses, and net cash flow from operating activities, while also disclosing asset and liability conditions, such as significant changes in trading financial assets, prepayments, inventories, construction in progress, and contract liabilities, along with their underlying causes Financial Statement Related Item Fluctuation Analysis | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 72,776,675.97 | 72,173,246.17 | 0.84 | | Operating Cost | 15,431,318.70 | 19,277,696.80 | -19.95 | | Selling Expenses | 11,468,091.41 | 11,653,015.83 | -1.59 | | Administrative Expenses | 12,972,259.84 | 15,711,131.51 | -17.43 | | Financial Expenses | -16,050,896.01 | -15,895,099.64 | Not Applicable | | R&D Expenses | 36,706,379.39 | 28,317,551.74 | 29.62 | | Net Cash Flow from Operating Activities | -7,875,687.96 | -54,410,874.60 | Not Applicable | | Net Cash Flow from Investing Activities | -53,211,888.36 | -16,715,755.44 | Not Applicable | | Net Cash Flow from Financing Activities | -25,665,429.99 | 1,602,229,068.96 | Not Applicable | - Changes in administrative expenses were mainly due to a decrease in intermediary service fees; changes in R&D expenses were mainly due to increases in materials, depreciation and amortization, and technical development fees[72] - Changes in net cash flow from operating activities were mainly due to an increase in sales collections in the current period; changes in net cash flow from investing activities were mainly due to increased equipment purchases and construction in progress in the current period; changes in net cash flow from financing activities were mainly due to the receipt of proceeds from the initial public offering in the prior year period and a decrease in cash dividends paid by the company in the current period[72] - Significant changes in profit due to non-operating activities were mainly due to non-operating expenses of 6.0076 million Yuan in the reporting period, an increase of 5.94 million Yuan compared to the prior year period, primarily due to increased public welfare donations[74] Major Changes in Assets and Liabilities | Item Name | Current Period End (Yuan) | Current Period End as % of Total Assets | Prior Year End (Yuan) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 900,000.00 | 0.04 | 0 | Not Applicable | Mainly due to new structured deposits in the current period | | Prepayments | 14,209,724.38 | 0.59 | 9,523,226.85 | 49.21 | Mainly due to increased prepayments for material purchases and advertising expenses in the current period | | Other Receivables | 3,134,031.95 | 0.13 | 1,385,364.53 | 126.22 | Mainly due to increased bid deposits | | Inventories | 178,971,563.11 | 7.46 | 124,531,104.15 | 43.72 | Mainly due to increased inventory for sales business and R&D projects | | Construction in Progress | 49,843,840.15 | 2.08 | 28,477,856.11 | 75.03 | Mainly due to increased investment in fundraising projects | | Contract Liabilities | 64,475,243.11 | 2.69 | 8,444,039.27 | 663.56 | Mainly due to increased advance receipts from customers in the current period | | Taxes Payable | 9,854,378.23 | 0.41 | 611,289.92 | 1,512.06 | Mainly due to increased corporate income tax | Section IV Corporate Governance I. General Meeting of Shareholders Overview During the reporting period, the company held one general meeting of shareholders, which approved all proposals, with the convening and holding procedures complying with laws, regulations, and the company's articles of association, and the voting results being legal and valid - The company held its 2023 Annual General Meeting of Shareholders on May 10, 2024, where all proposals were approved, with no proposals rejected[77] II. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, the company's supervisory board underwent changes, with former supervisor Mr Chen Liang resigning due to personal reasons, and Ms Guo Wei elected as the new non-employee representative supervisor by the general meeting of shareholders - Former supervisor Mr Chen Liang resigned due to personal reasons, and Ms Guo Wei was elected as a non-employee representative supervisor for the company's second supervisory board[78] III. Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the company did not propose any profit distribution or capital reserve conversion to share capital plan - The company's profit distribution plan or capital reserve conversion to share capital plan for this reporting period is "None"[4][78] IV. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact During this reporting period, the company had no disclosed equity incentive plans, employee stock ownership plans, or other incentive measures with subsequent progress Section V Environmental and Social Responsibility I. Environmental Information The company has established environmental protection mechanisms, strictly complies with environmental laws and regulations, and had no significant environmental impact events during the reporting period, actively implementing carbon reduction measures through energy saving and consumption reduction to decrease indirect greenhouse gas emissions, and was recognized as a "Clean Production Enterprise" - The company has established environmental protection mechanisms, strictly complies with national and local environmental protection laws and regulations, and no events with significant environmental impact occurred during the reporting period[80] - The company's fundraising projects are designed with full consideration of environmental factors, and pollution, after treatment, can meet national emission standards[80] - The company implements carbon reduction measures, striving to save energy, reduce consumption, and cut emissions in daily office operations through electricity, water, and paper conservation, and green travel[81][82] - In January 2024, the company was recognized as a "Clean Production Enterprise" by the Zhuhai Municipal Bureau of Industry and Information Technology[81] II. Specific Actions for Consolidating Poverty Alleviation Achievements and Rural Revitalization During the reporting period, the company actively fulfilled its social responsibilities by donating 6 million Yuan to the Zhuhai Care Association for consolidating poverty alleviation achievements, rural revitalization, and charitable public welfare, and 3,519 Yuan for the "High-tech Zone Science and Industry Bureau Green Guangdong Activity" - The company donated 6,000,000 Yuan to the Zhuhai Care Association, primarily for consolidating poverty alleviation achievements, promoting rural revitalization in Zhuhai High-tech Zone's paired assistance areas, and charitable public welfare within Zhuhai High-tech Zone[84] - The company donated 3,519 Yuan to support the "High-tech Zone Science and Industry Bureau Green Guangdong Activity"[84] Section VI Significant Matters I. Fulfillment of Commitments This section details the fulfillment of commitments made by the company's actual controllers, shareholders, related parties, and the company itself regarding share lock-up, share price stability, fraudulent issuance repurchase, return enhancement, resolution of horizontal competition, resolution of related party transactions, and standardized lease arrangements related to the initial public offering; all commitments were timely and strictly fulfilled during the reporting period - Controlling shareholder Zhuhai Jiazhongtong committed not to transfer shares issued before the public offering for sixty months from the date of the company's stock listing, and to comply with share reduction price and extended lock-up period regulations[86] - Actual controllers Bao Xiaojun, Liu Suling, and their concerted action parties Liu Shiliang, Liu Suhong, and Liu Suxin committed to a share lock-up period of sixty months from the listing date[87][88][89] - The company, its controlling shareholder, and actual controllers all committed to initiating a share price stabilization plan if the company's share price falls below its net asset value per share, fulfilling obligations such as increasing shareholdings[95][97][98][99] - The controlling shareholder and actual controllers committed to resolving horizontal competition, not engaging in businesses identical or similar to the company's, and transferring commercial opportunities to the company[105][106][107] - The controlling shareholder, actual controllers, and all directors, supervisors, and senior management committed to standardizing related party transactions, conducting them on fair and equitable principles, and bearing losses caused to the company or investors due to breach of commitment[108][109][110][111][112][113] - All commitments were timely and strictly fulfilled during the reporting period[86][87][88][89][91][93][95][97][98][99][101][103][105][108][110][113] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties[4][115] III. Irregular Guarantees During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures[4][116] IV. Semi-Annual Report Audit Status This semi-annual report has not been audited - This semi-annual report has not been audited[4][117] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in Previous Annual Report During this reporting period, there were no changes or handling of matters related to non-standard audit opinions in the previous annual report VI. Bankruptcy and Reorganization Matters During this reporting period, the company had no bankruptcy or reorganization matters VII. Significant Litigation and Arbitration Matters During this reporting period, the company had no significant litigation or arbitration matters VIII. Suspected Violations, Penalties, and Rectification of Listed Company, Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller During this reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in any suspected violations, penalties, or rectification situations IX. Explanation of Integrity Status of the Company, Controlling Shareholder, and Actual Controller During the Reporting Period During this reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no related matters requiring explanation X. Significant Related Party Transactions During the reporting period, the company did not engage in significant related party transactions such as those related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisition/disposal, joint external investments, or related party creditor-debtor relationships[117][118] XI. Significant Contracts and Their Fulfillment During the reporting period, the company signed a significant contract with Guangdong Yuecai Financial Leasing Co., Ltd., involving the procurement of 35 sets of X-band dual-polarization phased array weather radar systems and ancillary facilities, with a total contract amount of 238.26 million Yuan, which is currently being fulfilled normally - In June 2024, the company signed a weather radar equipment procurement project contract with Guangdong Yuecai Financial Leasing Co., Ltd., for 35 sets of X-band dual-polarization phased array weather radar systems and radar ancillary facilities[118] - The total contract amount is 238.26 million Yuan, and as of the report disclosure date, the contract is being fulfilled normally[118] XII. Progress of Raised Funds Utilization The company's net proceeds from its initial public offering amounted to 1,654.1556 million Yuan, with a committed investment of 968 million Yuan and over-raised funds of 686.1556 million Yuan; as of the end of the reporting period, a cumulative total of 288.5637 million Yuan had been invested, including 171.5389 million Yuan from over-raised funds primarily used for permanently supplementing working capital; the company also used part of its temporarily idle raised funds for cash management and adjusted the investment structure of its fundraising projects Overall Utilization of Raised Funds | Source of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds After Issuance Expenses (10,000 Yuan) | Committed Investment Amount in Prospectus (10,000 Yuan) | Total Over-Raised Funds (10,000 Yuan) | Cumulative Raised Funds Invested as of Reporting Period End (10,000 Yuan) | Cumulative Investment Progress of Raised Funds as of Reporting Period End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 180,496.62 | 165,415.56 | 96,800 | 68,615.56 | 28,856.37 | 17.44 | Details of Fundraising Projects | Project Name | Planned Investment Amount from Raised Funds (10,000 Yuan) | Amount Invested This Year (10,000 Yuan) | Cumulative Raised Funds Invested as of Reporting Period End (10,000 Yuan) | Cumulative Investment Progress as of Reporting Period End (%) | | :--- | :--- | :--- | :--- | :--- | | Full-Polarization Active Phased Array Radar Industrialization Project | 43,688.06 | 3,907.35 | 14.90 | 14.90 | | Radar R&D Innovation Center Project | 41,111.94 | 1,239.72 | 12.63 | 12.63 | | Supplement Working Capital | 12,000.00 | 0.00 | 0.00 | 0.00 | | Over-Raised Funds | 68,615.56 | 17,153.89 | 25.00 | 25.00 | - Over-raised funds are primarily used for permanently supplementing working capital, with 343.0778 million Yuan planned for investment, and a cumulative 171.5389 million Yuan invested as of the end of the reporting period, representing an investment progress of 50.00%[127] - The company uses temporarily idle raised funds not exceeding 600 million Yuan for cash management, purchasing highly secure and liquid investment products, with an effective period of 12 months from April 19, 2024[129] - The company adjusted the investment structure of its fundraising projects, reducing the investment amount for the "Full-Polarization Active Phased Array Radar Industrialization Project" from 571.8806 million Yuan to 436.8806 million Yuan, and increasing the investment amount for the "Radar R&D Innovation Center Project" from 276.1194 million Yuan to 411.1194 million Yuan[130][131] Section VII Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, the company's share capital changed primarily due to the listing and circulation of some restricted shares from the initial public offering and the conversion of capital reserves into share capital as part of the 2023 annual equity distribution, increasing the total number of shares to 216,533,520 shares and altering the structure of restricted and unrestricted tradable shares Share Capital Change Table | Category | Number of Shares Before Change (shares) | Proportion (%) | Increase/Decrease from Capital Reserve Conversion (shares) | Other Increase/Decrease (shares) | Subtotal (shares) | Number of Shares After Change (shares) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 117,086,347 | 75.70 | 37,654,091 | -22,951,120 | 14,702,971 | 131,789,318 | 60.86 | | II. Unrestricted Tradable Shares | 37,580,453 | 24.30 | 24,212,629 | 22,951,120 | 47,163,749 | 84,744,202 | 39.14 | | III. Total Shares | 154,666,800 | 100.00 | 61,866,720 | 0 | 61,866,720 | 216,533,520 | 100.00 | - 23,150,120 restricted shares from the company's initial public offering became tradable on March 1, 2024[133] - The company implemented its 2023 annual equity distribution, converting capital reserves into 4 shares for every 10 shares held by all shareholders, totaling 61,866,720 shares, increasing the company's total share capital to 216,533,520 shares after the conversion[133] Restricted Share Fluctuation | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuhai Jiazhongtong Technology Co., Ltd. | 64,287,200 | 0 | 25,714,880 | 90,002,080 | IPO initial shares restricted and capital reserve conversion to share capital restricted | | Liu Suhong | 17,057,800 | 0 | 6,823,120 | 23,880,920 | IPO initial shares restricted and capital reserve conversion to share capital restricted | | CITIC Securities Investment Co., Ltd. | 1,086,347 | 0 | 713,139 | 1,799,486 | IPO initial strategic placement restricted and capital reserve conversion to share capital restricted | | Zhuhai Gejin Guangfa Xinde Intelligent Manufacturing Industry Investment Fund (Limited Partnership) | 1,849,040 | 1,849,040 | 0 | 0 | IPO initial shares restricted | II. Shareholder Information As of the end of the reporting period, the company had 9,022 common shareholders; this section discloses the shareholding of the top ten shareholders and top ten unrestricted shareholders, and explains the related party relationships and concerted action among major shareholders - As of the end of the reporting period, the company had a total of 9,022 common shareholders[138] Top Ten Shareholders' Shareholding as of Reporting Period End | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Restricted Shares Held (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Zhuhai Jiazhongtong Technology Co., Ltd. | 90,002,080 | 41.56 | 90,002,080 | Domestic Non-State-Owned Legal Person | | Liu Suhong | 23,880,920 | 11.03 | 23,880,920 | Domestic Natural Person | | Liu Suxin | 7,308,000 | 3.37 | 7,308,000 | Domestic Natural Person | | Liu Shiliang | 7,308,000 | 3.37 | 7,308,000 | Domestic Natural Person | | Agricultural Bank of China Co., Ltd. - Great Wall Jiujia Innovation Growth Flexible Allocation Mixed Securities Investment Fund | 3,500,000 | 1.62 | 0 | Other | | Zhuhai Gangwan Kehong Venture Capital Co., Ltd. | 2,460,360 | 1.14 | 0 | State-Owned Legal Person | | Southern Tianchen (Beijing) Investment Management Co., Ltd. - Southern Tianchen Jingcheng Value Selection Phase 5 Private Securities Investment Fund | 2,229,629 | 1.03 | 0 | Other | | CITIC Securities Investment Co., Ltd. | 1,799,486 | 0.83 | 1,799,486 | Domestic Non-State-Owned Legal Person | | Tan Xing | 1,640,372 | 0.76 | 0 | Domestic Natural Person | | Zhuhai Naruida Dacheng Management Consulting Partnership (Limited Partnership) | 1,490,832 | 0.69 | 1,490,832 | Domestic Non-State-Owned Legal Person | - Zhuhai Jiazhongtong Technology Co., Ltd. is the company's controlling shareholder; Bao Xiaojun and Liu Suling, as a couple, jointly control 41.56% of the company's shares through Zhuhai Jiazhongtong Technology Co., Ltd., making them the actual controllers, while Liu Shiliang, Liu Suhong, and Liu Suxin are Liu Suling's father, elder sister, and younger sister, respectively, and these natural persons are concerted action parties[141] III. Directors, Supervisors, Senior Management, and Core Technical Personnel Information During the reporting period, the shareholdings of the company's directors, supervisors, senior management, and core technical personnel increased due to the 2023 annual equity distribution (capital reserve conversion to share capital) Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | Change in Shares (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Bao Xiaojun | Chairman, General Manager, Core Technical Personnel | 33,057,076 | 46,279,906 | 13,222,830 | Capital reserve conversion to share capital | | Liu Suling | Director, Deputy General Manager | 30,351,787 | 42,492,502 | 12,140,715 | Capital reserve conversion to share capital | | Liu Hang | Chairman of Supervisory Board | 113,410 | 158,774 | 45,364 | Capital reserve conversion to share capital | | Huang Yuning | Supervisor | 68,216 | 95,502 | 27,286 | Capital reserve conversion to share capital | | Guo Wei | Supervisor | 35,418 | 49,585 | 14,167 | Capital reserve conversion to share capital | | Liu Yuanxi | Deputy General Manager, Core Technical Personnel | 527,155 | 738,017 | 210,862 | Capital reserve conversion to share capital | | LI LIN | Core Technical Personnel | 527,155 | 738,017 | 210,862 | Capital reserve conversion to share capital | | Huang Hui | Deputy General Manager | 130,597 | 182,836 | 52,239 | Capital reserve conversion to share capital | | Lin Jingduan | Financial Controller | 11,522 | 16,131 | 4,609 | Capital reserve conversion to share capital | IV. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller Section VIII Preferred Shares Related Information The company has no preferred shares related information Section IX Bonds Related Information The company has no bonds related information Section X Financial Report I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[4][151] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024, comprehensively illustrating the company's financial position, operating results, and cash flow Consolidated Balance Sheet Key Data (as of June 30, 2024) | Item | June 30, 2024 (Yuan) | December 31, 2023 (Yuan) | | :--- | :--- | :--- | | Cash and Bank Balances | 1,649,576,988.78 | 1,734,877,189.54 | | Trading Financial Assets | 900,000.00 | 0 | | Accounts Receivable | 271,387,293.98 | 250,199,694.45 | | Inventories | 178,971,563.11 | 124,531,104.15 | | Contract Assets | 51,045,182.90 | 45,620,344.90 | | Fixed Assets | 84,468,013.02 | 69,051,610.88 | | Construction in Progress | 49,843,840.15 | 28,477,856.11 | | Short-term Borrowings | 60,042,916.68 | 60,048,583.33 | | Contract Liabilities | 64,475,243.11 | 8,444,039.27 | | Taxes Payable | 9,854,378.23 | 611,289.92 | | Total Liabilities | 222,429,083.62 | 162,091,047.88 | | Total Equity Attributable to Parent Company Owners | 2,176,359,534.78 | 2,191,475,417.12 | | Total Assets | 2,398,788,618.40 | 2,353,566,465.00 | Consolidated Income Statement Key Data (2024 Semi-Annual) | Item | 2024 Semi-Annual (Yuan) | 2023 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 72,776,675.97 | 72,173,246.17 | | Operating Cost | 15,431,318.70 | 19,277,696.80 | | Selling Expenses | 11,468,091.41 | 11,653,015.83 | | Administrative Expenses | 12,972,259.84 | 15,711,131.51 | | R&D Expenses | 36,706,379.39 | 28,317,551.74 | | Financial Expenses | -16,050,896.01 | -15,895,099.64 | | Credit Impairment Losses | -8,236,861.67 | -656,511.03 | | Asset Impairment Losses | -1,770,533.50 | -168,471.05 | | Operating Profit | 7,200,975.54 | 18,393,852.57 | | Total Profit | 1,218,367.42 | 18,337,213.22 | | Net Profit | 5,889,147.28 | 19,372,642.48 | | Basic Earnings Per Share (Yuan/share) | 0.03 | 0.13 | Consolidated Cash Flow Statement Key Data (2024 Semi-Annual) | Item | 2024 Semi-Annual (Yuan) | 2023 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -7,875,687.96 | -54,410,874.60 | | Net Cash Flow from Investing Activities | -53,211,888.36 | -16,715,755.44 | | Net Cash Flow from Financing Activities | -25,665,429.99 | 1,602,229,068.96 | | Net Increase in Cash and Cash Equivalents | -86,753,006.31 | 1,531,102,438.91 | III. Company Basic Information The company was established on May 22, 2014, and listed on the STAR Market of the Shanghai Stock Exchange on March 1, 2023; during the reporting period, the company implemented its 2023 annual equity distribution, increasing its total share capital to 216,533,520 shares, with its main business being the R&D, production, commissioning, sales, and service of phased array radar systems - The company was listed on the STAR Market of the Shanghai Stock Exchange on March 1, 2023[176] - During the reporting period, the company implemented its 2023 annual equity distribution plan, converting capital reserves into 4 shares for every 10 shares to all shareholders, increasing the total share capital to 216,533,520 shares[176] - The company's main business activities are the R&D, production, commissioning, sales, and related services of phased array radar systems[176] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no events or circumstances that would cause significant doubt about its ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[177] - There are no events or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[178] V. Significant Accounting Policies and Estimates This section outlines the company's statement of compliance with accounting standards, accounting period, operating cycle, functional currency, and materiality criteria determination methods, detailing significant accounting policies and estimates for business combinations, consolidated financial statements, financial instruments, accounts receivable, inventories, contract assets, fixed assets, construction in progress, intangible assets, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases; during the reporting period, the company changed its accounting estimate for fixed asset depreciation periods, resulting in a 373,300 Yuan increase in net profit - The company's financial statements comply with enterprise accounting standards and truly and completely reflect its financial position[180] - The company has formulated specific accounting policies and estimates for transactions and events such as financial instrument impairment, inventories, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition[179] - The company accrues bad debt provisions for accounts receivable, other receivables, and contract assets based on credit risk characteristics, and determines expected credit loss rates based on aging[193][194] - The company's revenue recognition principle is to recognize revenue at the point in time when the customer obtains control of the related goods or services, or over a period of time according to the progress of performance[217][218] - The company changed its accounting estimate for the depreciation period of fixed assets, adjusting the depreciation period for machinery and equipment, transportation vehicles, electronic equipment, and other equipment from 5 years to 5-10 years, while the residual value rate remains 5%[226][227] - Following this accounting estimate change, fixed asset depreciation decreased by 439,200 Yuan and net profit increased by 373,300 Yuan for January-June 2024[227] VI. Taxation This section discloses the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, corporate income tax, education surcharge, local education surcharge, and stamp duty; the company enjoys a 15% corporate income tax preferential rate as a high-tech enterprise, as well as immediate refund of value-added tax for software products exceeding 3% and an additional 5% VAT deduction for advanced manufacturing enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax | 15%, 20% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Stamp Duty | Not Applicable | - As a high-tech enterprise, the company's corporate income tax rate is 15%[232] - The company enjoys the policy of immediate refund of value-added tax for software products where the actual tax burden exceeds 3%, and an additional 5% VAT deduction for advanced manufacturing enterprises against their payable tax amount[232] - Zhuhai Naruida Software Technology Co., Ltd. and Hefei Naruida Technology Co., Ltd., as small and micro-profit enterprises, are subject to corporate income tax at a rate of 20% on the portion of their annual taxable income not exceeding 1 million Yuan, which is reduced by 25% into taxable income[233] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various asset, liability, owner's equity, revenue, cost, and expense items in the consolidated financial statements, with major changes including a decrease in cash and bank balances, new trading financial assets, increases in accounts receivable and inventories, increased investment in construction in progress, a significant rise in contract liabilities, an increase in taxes payable, an increase in share capital due to capital reserve conversion, and a decrease in capital reserves; it also discloses the specific composition and reasons for changes in various expenses and impairment losses - Cash and bank balances at the end of the period amounted to 1,649,576,988.78 Yuan, of which 1,600,039.22 Yuan was restricted funds (large-denomination certificates of deposit interest and letter of guarantee deposits)[234] - Trading financial assets at the end of the period amounted to 900,000.00 Yuan, mainly due to new structured deposits in the current period[235] Top Five Accounts Receivable and Contract Assets at Period End | Unit Name | Accounts Receivable at Period End (Yuan) | Contract Assets at Period End (Yuan) | Total Accounts Receivable and Contract Assets at Period End (Yuan) | Percentage of Total Accounts Receivable and Contract Assets at Period End (%) | Bad Debt Provision at Period End (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Customer 1 | 48,299,192.00 | 17,598,000.00 | 65,897,192.00 | 16.85 | 13,166,157.60 | | Customer 2 | 63,662,640.00 | 0.00 | 63,662,640.00 | 16.28 | 5,520,412.00 | | Customer 3 | 39,027,500.00 | 1,747,500.00 | 40,775,000.00 | 10.43 | 2,038,750.00 | | Customer 4 | 21,619,420.20 | 9,265,465.80 | 30,884,886.00 | 7.90 | 9,221,395.80 | | Customer 5 | 22,646,000.00 | 0.00 | 22,646,000.00 | 5.79 | 3,349,860.00 | | Total | 195,254,752.20 | 28,610,965.80 | 223,865,718.00 | 57.24 | 33,296,575.40 | - Inventories at the end of the period amounted to 178,971,563.11 Yuan, an increase of 43.72% from the beginning of the period, mainly due to increased inventory for sales business and R&D projects[75][258] - Construction in progress at the end of the period amounted to 49,843,840.15 Yuan, an increase of 75.03% from the beginning of the period, mainly due to increased investment in fundraising projects[75][269] - Contract liabilities at the end of the period amounted to 64,475,243.11 Yuan, an increase of 663.56% from the beginning of the period, mainly due to increased advance receipts from customers in the current period[75][285] - Share capital at the end of the period amounted to 216,533,520.00 Yuan, an increase of 61,866,720.00 Yuan from the beginning of the period, due to the 2023 annual equity distribution converting capital reserves into share capital[300] Operating Revenue and Operating Cost | Item | Current Period Revenue (Yuan) | Current Period Cost (Yuan) | Prior Period Revenue (Yuan) | Prior Period Cost (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 72,657,206.94 | 15,343,772.84 | 72,148,909.89 | 19,257,795.88 | | Other Business | 119,469.03 | 87,545.86 | 24,336.28 | 19,900.92 | | Total | 72,776,675.97 | 15,431,318.70 | 72,173,246.17 | 19,277,696.80 | Key Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Selling Expenses | 11,468,091.41 | 11,653,015.83 | | Administrative Expenses | 12,972,259.84 | 15,711,131.51 | | R&D Expenses | 36,706,379.39 | 28,317,551.74 | | Financial Expenses | -16,050,896.01 | -15,895,099.64 | | Credit Impairment Losses | -8,236,861.67 | -656,511.03 | | Asset Impairment Losses | -1,770,533.50 | -168,471.05 | | Non-Operating Expenses | 6,007,626.08 | 67,582.25 | VIII. Research and Development Expenses This section presents the company's R&D expenses by nature of expense, with total expensed R&D investment amounting to 36,706,379.39 Yuan during the reporting period, a 29.62% increase from the prior year period, mainly comprising employee compensation, materials, depreciation and amortization, and technical development fees R&D Expenses by Nature of Expense | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Employee Compensation Expenses | 19,269,256.49 | 18,285,741.43 | | Materials | 5,749,567.46 | 4,143,385.64 | | Depreciation and Amortization Expenses | 7,304,271.60 | 4,526,811.38 | | Travel Expenses | 314,441.03 | 333,127.20 | | Technical Development Fees | 2,830,188.68 | 0 | | Other Expenses | 1,238,654.13 | 1,028,486.09 | | Total | 36,706,379.39 | 28,317,551.74 | | Of which: Expensed R&D Investment | 36,706,379.39 | 28,317,551.74 | | Capitalized R&D Investment | 0 | 0 | IX. Changes in Consolidation Scope During the reporting period, there were no changes in the company's consol