鼎泰高科(301377) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential declarations regarding the report's accuracy and outlines the proposed 2024 interim dividend distribution plan - The company's Board of Directors, Supervisory Board, and all senior executives guarantee the truthfulness, accuracy, and completeness of this semi-annual report, with no false records, misleading statements, or major omissions[1] - The company's 2024 interim profit distribution plan proposes a cash dividend of 2.0 Yuan per 10 shares (tax inclusive) to all shareholders, based on 410 million shares, with no bonus shares or capital reserve conversions[1] Company Profile and Key Financial Indicators This chapter provides the company's basic information, including stock code (301377), legal representative, and contact details, while primarily presenting key financial data for the first half of 2024, showing significant revenue growth but a decline in net profit attributable to shareholders Key Accounting Data and Financial Indicators In the first half of 2024, the company achieved operating revenue of 712.57 million Yuan, a 22.30% year-on-year increase, but net profit attributable to listed company shareholders decreased by 16.05% to 88.86 million Yuan, while net profit after non-recurring items increased by 1.00% to 75.24 million Yuan, indicating stable core business profitability, and total assets grew by 3.30% from the end of the previous year Key Accounting Data and Financial Indicators | Indicator | Current Period (2024 H1) | Prior Period (2023 H1) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 712,571,217.92 | 582,653,097.28 | 22.30% | | Net Profit Attributable to Listed Company Shareholders (Yuan) | 88,858,624.44 | 105,853,324.10 | -16.05% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) (Yuan) | 75,243,701.17 | 74,496,199.56 | 1.00% | | Net Cash Flow from Operating Activities (Yuan) | 120,690,768.05 | 115,421,457.47 | 4.57% | | Basic Earnings Per Share (Yuan/share) | 0.22 | 0.26 | -15.38% | | Weighted Average Return on Net Assets | 3.76% | 4.73% | -0.97% | | Indicator | End of Current Period | End of Prior Year | Change from End of Prior Year | | Total Assets (Yuan) | 3,284,262,396.12 | 3,179,443,666.55 | 3.30% | | Net Assets Attributable to Listed Company Shareholders (Yuan) | 2,417,932,357.51 | 2,318,803,454.08 | 4.28% | Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 13.61 million Yuan, primarily from government grants, fair value changes and disposal gains on financial assets, and entrusted wealth management income, with government grants being the main component at 10.08 million Yuan Non-recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Government grants recognized in current profit/loss | 10,082,357.11 | | Fair value changes and disposal gains/losses from financial assets and liabilities | 3,271,424.65 | | Gains/losses from entrusted investments or asset management | 3,025,225.18 | | Total Impact | 13,614,923.27 | Management Discussion and Analysis This chapter provides an in-depth analysis of the company's operational status, highlighting a 22.30% year-on-year increase in operating revenue driven by PCB industry recovery and deepening AI applications, with robust growth across all product lines, particularly functional film materials and intelligent CNC equipment, alongside increased R&D investment, overseas market expansion, and optimized operational management, while also detailing core competencies, asset and liability status, investment activities, and key operational risks Overview of Principal Businesses The company's main business involves providing tools, abrasive polishing materials, functional film materials, and intelligent CNC equipment to PCB and CNC precision machinery manufacturers, operating in the metal tool manufacturing industry, which is highly correlated with the prosperity of the downstream PCB and electronic information industries, and holds a leading market position as the top supplier in tool-type special materials and global PCB drill bit sales - The company's main products include tools (drill bits, milling cutters), abrasive polishing materials, functional film materials, and intelligent CNC equipment, primarily serving PCB and CNC precision machinery manufacturing customers[20][21] - According to CPCA data, the company ranks first among tool-type special material enterprises; according to Prismark report, the company's global PCB drill bit sales market share was approximately 26.5% in 2023, ranking first[22] Analysis of Core Competencies The company's core competencies are rooted in its supply chain, product strength, self-developed equipment, cost management, and customer resources, demonstrating high barriers in the drill bit industry with a rich product line and leading technologies like self-developed coating, while primarily relying on self-developed core production and testing equipment to achieve import substitution, effectively control costs, and enhance market responsiveness, alongside stable partnerships with numerous renowned domestic and international PCB manufacturers - The company's equipment for producing and testing tool products is primarily self-developed, largely achieving import substitution, resolving issues of high cost and long cycles associated with imported equipment, and effectively reducing product processing costs[25] - The company has established good and stable cooperative relationships with numerous renowned domestic and international PCB manufacturers, including Jianding Technology, TTM Group, Shennan Circuit, and Shenghong Technology, possessing high-quality customer resources[26] Analysis of Principal Business In the first half of 2024, the company's principal businesses experienced comprehensive growth, with tool product revenue increasing by 12.10% and overseas revenue surging by 195.91%, while abrasive polishing materials, intelligent CNC equipment, and functional film materials businesses showed particularly strong performance with year-on-year revenue growth of 28.58%, 265.50%, and 146.34% respectively, alongside a 20.95% increase in R&D investment, accounting for 7.80% of revenue, focusing on micro-drilling for high-end fields like AI and semiconductors, and breakthroughs in new technologies such as automotive light control films Principal Business Revenue by Product/Service | Product/Business | 2024 H1 Operating Revenue (Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Tool Products | 541,000,000 | 12.10% | | Abrasive Polishing Materials | 69,656,900 | 28.58% | | Intelligent CNC Equipment | 24,184,500 | 265.50% | | Functional Film Materials | 68,365,700 | 146.34% | | Overseas Revenue | 35,135,600 | 195.91% | - R&D investment in the first half of 2024 was 55.58 million Yuan, a 20.95% year-on-year increase, accounting for 7.80% of operating revenue[28] - Financial expenses significantly increased by 210.52% year-on-year, primarily due to reduced interest income from wealth management products funded by raised capital[29] Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets reached 3.28 billion Yuan, a 3.30% increase from the beginning of the period, with a stable asset structure primarily comprising fixed assets, accounts receivable, and inventory, while overseas assets, mainly in Hong Kong, Singapore, Vietnam, and Thailand, collectively account for approximately 7% of the company's net assets, and certain assets, including fixed assets and intangible assets pledged for loans, along with bill deposits, are restricted - The company's major overseas assets are distributed in Hong Kong, Singapore, Vietnam, and Thailand, collectively accounting for approximately 6.95% of the company's net assets, with no significant impairment risks[33] - As of the end of the reporting period, the company had 437 million Yuan in restricted assets, primarily including fixed assets and intangible assets pledged for loans, as well as bill deposits and monetary funds frozen due to litigation[36] Analysis of Investment Status During the reporting period, the company's investment amounted to 122 million Yuan, largely consistent with the prior year, with significant non-equity investments primarily directed towards several ongoing factory projects, such as the Dingtai Robot new plant and South China Headquarters Phase II, totaling 24.25 million Yuan, while total raised funds reached 1.14 billion Yuan, with 433 million Yuan cumulatively invested and 89.25 million Yuan invested in the current period, mainly for PCB micro-drill bit production bases and precision tool expansion projects, though the investment pace has slowed due to macroeconomic influences - The company's ongoing significant non-equity investment projects include the Dingtai Robot new plant, South China Headquarters Phase II, and Thailand factory renovation, with a total investment of 24.25 million Yuan during the reporting period[38] - Total raised funds amounted to 1.14 billion Yuan, with 89.25 million Yuan invested during the reporting period and 433 million Yuan cumulatively invested; the investment pace for projects funded by raised capital has slowed due to macroeconomic conditions and downstream industry fluctuations[43][47] - During the reporting period, the company used raised funds and its own capital to purchase bank wealth management products, with amounts of 620 million Yuan and 20 million Yuan respectively[53] Analysis of Major Holding and Investee Companies The company's primary profits are derived from its core subsidiaries, with Nanyang Dingtai High-Tech Co., Ltd. serving as the main production and sales entity, achieving a net profit of 66.26 million Yuan during the reporting period, and Dongguan Dingtai Xin Electronics Co., Ltd. specializing in abrasive products, reporting a net profit of 28.30 million Yuan Major Subsidiaries' Financial Performance | Subsidiary Name | 2024 H1 Operating Revenue (Yuan) | 2024 H1 Net Profit (Yuan) | | :--- | :--- | :--- | | Nanyang Dingtai High-Tech Co., Ltd. | 487,704,899.84 | 66,255,996.00 | | Dongguan Dingtai Xin Electronics Co., Ltd. | 72,380,675.50 | 28,304,897.04 | Risks and Countermeasures The company faces key risks including raw material price fluctuations, delayed revenue recognition under consignment models, intensified market competition, and technological substitution risks from processes like laser drilling, which it addresses by strengthening supplier cooperation, promoting intelligent warehousing systems, continuous technological innovation, and developing new markets - Key risks include: raw material (tungsten steel) price fluctuations, potential delays in revenue recognition under consignment (VMI) models, intense market competition, and the risk of technological substitution by laser drilling processes for existing mechanical drilling[57][58] - Countermeasures include: increasing supply channels, strategic inventory preparation, promoting self-developed intelligent drill bit warehousing systems, continuous innovation to enhance product competitiveness, and monitoring new technology trends for technical reserves[57][58] Corporate Governance This chapter outlines the company's governance structure and related activities, noting that during the reporting period, the company held an annual general meeting that approved the 2024 interim profit distribution plan, and implemented the 2023 restricted stock incentive plan, granting 5.17 million restricted shares to 303 incentive recipients Profit Distribution Plan The company's Board of Directors approved the 2024 interim profit distribution plan, proposing a cash dividend of 2.0 Yuan per 10 shares (tax inclusive) to all shareholders, based on the current total share capital of 410 million shares, totaling 82 million Yuan in cash dividends, which awaits approval from the shareholders' meeting Profit Distribution Plan | Distribution Plan | Content | | :--- | :--- | | Dividend per 10 shares (Yuan) (tax inclusive) | 2.0 | | Share capital base for distribution plan (shares) | 410,000,000 | | Cash dividend amount (Yuan) (tax inclusive) | 82,000,000.00 | | Proportion of total cash dividend to total profit distribution | 100.00% | Implementation of Equity Incentive Plan During the reporting period, the company advanced its 2023 restricted stock incentive plan, with 5.17 million restricted shares initially granted to 303 incentive recipients at an exercise price of 11.17 Yuan per share on January 12, 2024 - On January 12, 2024, the company initially granted 5.17 million restricted shares to 303 incentive recipients at an exercise price of 11.17 Yuan per share[65] Environmental and Social Responsibility The company is not classified as a key pollutant-discharging entity and actively implements energy-saving and emission-reduction measures, with its completed photovoltaic projects generating 3.63 million kWh in the first half of 2024, estimated to reduce 1,725.04 tons of CO2 emissions, while also fulfilling social responsibilities by establishing a welfare fund for employee care and actively participating in public welfare, donating a total of 50,000 Yuan to the Nanyang City Vocational Skills Competition and "Good Deeds in Nanyang" project during the reporting period - The company actively promotes energy conservation and emission reduction, with its photovoltaic projects generating a cumulative 3.63 million kWh in the first half of 2024, estimated to reduce 1,725.04 tons of CO2 emissions[67] - The company actively fulfills its social responsibilities, donating a total of 50,000 Yuan to the Nanyang City Vocational Skills Competition and "Good Deeds in Nanyang" project during the reporting period[68] Significant Matters This chapter discloses the company's significant commitments, related party transactions, and major contracts, indicating that all relevant commitments were fulfilled during the reporting period, with no non-operating fund occupation by controlling shareholders or irregular external guarantees, while daily related party transactions were minor, primarily involving small purchases of services and sales of products to related parties, and major contracts mainly pertained to guarantees provided for subsidiaries, with a total guarantee limit of 730 million Yuan and an actual outstanding guarantee balance of 179 million Yuan at period-end Significant Related Party Transactions During the reporting period, the company's daily related party transactions were minor, primarily involving purchases of rent, utilities, and hospitality services totaling 168,100 Yuan from related parties such as Xinyang Dingbang, and sales of tool products totaling 131,600 Yuan to associate company Guangdong Shenluotaihe, with all transactions remaining within the annual estimated limits Related Party Transactions | Related Party Transaction Type | Related Party | Transaction Content | Related Party Transaction Amount (Yuan) | | :--- | :--- | :--- | :--- | | Procurement | Xinyang Dingbang Industrial Co., Ltd. etc. | Rent/Electricity/Alcohol/Hotel Consumption | 168,100 | | Sales | Guangdong Shenluotaihe Precision Manufacturing Co., Ltd. | Tool Products | 131,600 | Major Contracts and Their Performance During the reporting period, the company's major contracts primarily involved guarantees for subsidiaries, providing a total guarantee limit of 730 million Yuan for subsidiaries including Nanyang Dingtai, Dingtai Robot, and Dingtai Xin, with 240 million Yuan in actual guarantees occurring during the period and an outstanding balance of 179 million Yuan at period-end, representing 7.42% of the company's net assets, all of which were guarantees to subsidiaries with no irregular external guarantees Guarantee Information | Guarantee Situation | Amount (Yuan) | | :--- | :--- | | Total approved guarantee limit for subsidiaries during the reporting period | 730,000,000 | | Total actual guarantees for subsidiaries during the reporting period | 240,158,300 | | Total actual outstanding guarantees for subsidiaries at period-end | 179,491,100 | | Proportion of total actual guarantees to company's net assets | 7.42% | Share Changes and Shareholder Information As of the end of the reporting period, the company's total share capital remained unchanged at 410 million shares, with restricted shares accounting for 82.68% and unrestricted shares for 17.32%, while controlling shareholder Guangdong Taiding Holdings Co., Ltd. held 76.23%, indicating a stable equity structure, and the total number of shareholders was 13,420 Number of Shareholders and Shareholding Structure As of the end of the reporting period, the company had 13,420 common shareholders, with the top two shareholders being Guangdong Taiding Holdings Co., Ltd. and Nanyang Gaotong Partnership (Limited Partnership), holding 76.23% and 5.73% respectively, both comprising restricted shares, while the actual controllers Wang Xin, Wang Junfeng, Wang Xuefeng, and Lin Xia indirectly control the company through these entities and other partnerships Shareholder Information | Shareholder Name | Shareholding Percentage | Shares Held at Period-End | Share Nature | | :--- | :--- | :--- | :--- | | Guangdong Taiding Holdings Co., Ltd. | 76.23% | 312,552,000 | Restricted | | Nanyang Gaotong Partnership (Limited Partnership) | 5.73% | 23,508,000 | Restricted | | Nanyang Ruihai Electronic Product Consulting Center (Limited Partnership) | 1.69% | 6,945,008 | Unrestricted | | Nanyang Ruihong Electronic Product Consulting Center (Limited Partnership) | 1.36% | 5,568,299 | Unrestricted | Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during this reporting period[99] Bonds Information The company had no bond-related information during the reporting period - The company had no bond-related information during this reporting period[100] Financial Report This chapter provides the company's detailed financial statements and notes for the first half of 2024, which are unaudited, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, with notes elaborating on accounting policies, major taxes, consolidated statement item annotations, related party transactions, share-based payments, and other key financial information Financial Statements This section includes the company's consolidated and parent company balance sheets as of June 30, 2024, along with the consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024, comprehensively reflecting the company's financial position, operating results, and cash flow - As of June 30, 2024, the company's total assets were 3.28 billion Yuan, total liabilities were 865 million Yuan, and owners' equity attributable to the parent company was 2.42 billion Yuan[102][103][104] - In the first half of 2024, the company achieved total operating revenue of 713 million Yuan, total profit of 99.77 million Yuan, and net profit of 89.02 million Yuan[108][109][110] - During the reporting period, net cash flow from operating activities was 121 million Yuan, net cash flow from investment activities was -115 million Yuan, and net cash flow from financing activities was -58 million Yuan[114][115] Notes to Consolidated Financial Statements This section provides detailed notes on key items in the consolidated financial statements, indicating that as of the period-end, the company's monetary funds totaled 174 million Yuan, with 36.53 million Yuan restricted, accounts receivable had a carrying value of 555 million Yuan with 36.67 million Yuan in bad debt provisions, and inventory had a carrying value of 367 million Yuan with 31.27 million Yuan in impairment provisions, while operating revenue by product shows tool products remain the primary source, accounting for approximately 76% of total revenue Asset Items and Provisions | Asset Item | Carrying Value at Period-End (Yuan) | Impairment/Provision (Yuan) | | :--- | :--- | :--- | | Accounts Receivable | 554,973,340.02 | 36,669,897.28 | | Inventory | 366,800,659.67 | 31,273,333.01 | Revenue by Classification | Revenue Classification | 2024 H1 Revenue (Yuan) | | :--- | :--- | | Tool Products | 540,608,420.11 | | Abrasive Polishing Materials | 69,656,852.00 | | Intelligent CNC Equipment | 24,184,488.16 | | Functional Film Materials | 68,365,718.84 | Share-based Payment During the reporting period, the company implemented an equity-settled share-based payment plan, with a total of 5.17 million restricted shares granted in the current period, resulting in a total share-based payment expense of 12.77 million Yuan, which has been recognized in relevant costs, expenses, and capital reserves - The total expense recognized for equity-settled share-based payments in this period was 12.77 million Yuan, and the cumulative amount recognized in capital reserves was also 12.77 million Yuan[343][346] Supplementary Information This section provides supplementary financial information, including a detailed statement of non-recurring gains and losses, and data on return on net assets and earnings per share, showing that non-recurring gains and losses totaled 13.61 million Yuan during the reporting period, with a weighted average return on net assets attributable to common shareholders of 3.76% and basic earnings per share of 0.22 Yuan Profit and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (Yuan/share) | Diluted Earnings Per Share (Yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 3.76% | 0.22 | 0.22 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 3.18% | 0.18 | 0.18 |