Company Information Zhejiang Shibao Company Limited is a dual-listed automotive parts manufacturer in China - Zhejiang Shibao Company Limited is a joint-stock company registered in the People's Republic of China, primarily engaged in the manufacturing and sales of automotive parts - The company's shares are listed on both the Shenzhen Stock Exchange (A-shares, stock code: 002703) and The Stock Exchange of Hong Kong Limited (H-shares, stock code: 1057)51549 Key Accounting Data and Financial Indicators This section presents the company's key financial performance and position indicators for the reporting period Key Financial Indicators for H1 2021 | Indicator | Jan-Jun 2021 | Jan-Jun 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 573,007,067.30 | 487,253,473.33 | 17.60% | | Net Profit Attributable to Shareholders (RMB) | 34,445,168.90 | 17,075,548.93 | 101.72% | | Net Cash Flow from Operating Activities (RMB) | 66,004,332.51 | 46,602,751.59 | 41.63% | | Basic EPS (RMB/share) | 0.0436 | 0.0216 | 101.85% | | Weighted Average ROE | 2.53% | 1.30% | Increase by 1.23 percentage points | Key Period-End Asset Indicators | Indicator | June 30, 2021 | Dec 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 2,020,572,528.10 | 1,976,246,329.85 | 2.24% | | Net Assets Attributable to Shareholders (RMB) | 1,377,126,129.24 | 1,342,680,960.34 | 2.57% | Unaudited Interim Financial Statements This section presents the company's unaudited interim financial statements, detailing its financial position, performance, and cash flows Consolidated Balance Sheet As of June 30, 2021, total assets grew 2.24% to RMB 2.021 billion, and parent company owners' equity increased 2.57% to RMB 1.377 billion Key Items from Consolidated Balance Sheet | Item | June 30, 2021 (RMB) | Dec 31, 2020 (RMB) | | :--- | :--- | :--- | | Total Assets | 2,020,572,528.10 | 1,976,246,329.85 | | Total Liabilities | 658,812,507.33 | 647,007,133.92 | | Total Owners' Equity Attributable to Parent Company | 1,377,126,129.24 | 1,342,680,960.34 | | Total Owners' Equity | 1,361,760,020.77 | 1,329,239,195.93 | Parent Company Balance Sheet As of June 30, 2021, the parent company's total assets slightly decreased, while owners' equity showed a modest increase Key Items from Parent Company Balance Sheet | Item | June 30, 2021 (RMB) | Dec 31, 2020 (RMB) | | :--- | :--- | :--- | | Total Assets | 1,258,043,479.19 | 1,261,487,102.50 | | Total Liabilities | 164,888,186.66 | 174,970,488.14 | | Total Owners' Equity | 1,093,155,292.53 | 1,086,516,614.36 | Consolidated Income Statement In H1 2021, the company achieved 17.60% revenue growth and 101.72% net profit increase, significantly enhancing profitability Key Items from Consolidated Income Statement | Item | Jan-Jun 2021 (RMB) | Jan-Jun 2020 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 573,007,067.30 | 487,253,473.33 | | Operating Profit | 33,701,960.72 | 12,095,177.83 | | Total Profit | 33,716,807.39 | 12,084,734.15 | | Net Profit Attributable to Parent Company Owners | 34,445,168.90 | 17,075,548.93 | | Basic EPS | 0.0436 | 0.0216 | Parent Company Income Statement The parent company turned profitable in H1 2021, reporting a net profit of RMB 6.64 million and significant revenue growth Key Items from Parent Company Income Statement | Item | Jan-Jun 2021 (RMB) | Jan-Jun 2020 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 73,838,416.29 | 27,624,187.73 | | Operating Profit | 6,482,569.10 | -7,119,458.36 | | Net Profit | 6,638,678.17 | -7,120,958.29 | Consolidated Cash Flow Statement Net cash flow from operating activities increased 41.63%, but significant investing outflows led to a net decrease in cash and cash equivalents Consolidated Cash Flow Statement Summary | Item | Jan-Jun 2021 (RMB) | Jan-Jun 2020 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 66,004,332.51 | 46,602,751.59 | | Net Cash Flow from Investing Activities | -98,812,820.97 | 17,026,066.48 | | Net Cash Flow from Financing Activities | 4,359,556.00 | -19,942,394.24 | | Net Increase in Cash and Cash Equivalents | -28,653,836.58 | 43,999,992.69 | Parent Company Cash Flow Statement Parent company operating cash flow turned negative, resulting in a net decrease of RMB 1.67 million in cash and cash equivalents Parent Company Cash Flow Statement Summary | Item | Jan-Jun 2021 (RMB) | Jan-Jun 2020 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -12,011,304.53 | 52,605,020.12 | | Net Cash Flow from Investing Activities | 2,425,551.24 | 34,279,263.14 | | Net Cash Flow from Financing Activities | 7,918,988.78 | -22,439,533.54 | | Net Increase in Cash and Cash Equivalents | -1,666,764.51 | 64,442,778.26 | Consolidated Statement of Changes in Owners' Equity The increase in owners' equity attributable to the parent company primarily resulted from the period's total comprehensive income - The change in owners' equity attributable to the parent company for the current period was primarily driven by the total comprehensive income (net profit), amounting to RMB 34,445,168.9045 Parent Company Statement of Changes in Owners' Equity The increase in parent company owners' equity was driven by the current period's net profit and total comprehensive income - The increase in parent company owners' equity for the current period, amounting to RMB 6,638,678.17, entirely resulted from the total comprehensive income for the period47 Notes to Financial Statements This section provides detailed explanations, accounting policies, and disclosures supporting the financial statements Company Overview and Basis of Financial Statement Preparation This section outlines the company's core business as an automotive parts manufacturer and the basis for its financial statement preparation - The company's main business involves the research, development, production, and sales of automotive steering gears and components, falling within the automotive parts manufacturing industry49 - The scope of consolidated financial statements for the current period includes Hangzhou Shibao Automotive Steering Gear Co Ltd and six other subsidiaries50 Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, covering financial instruments, inventories, fixed assets, and revenue recognition - The company applies an expected credit loss model for impairment of financial assets and assesses expected credit risk for different types of receivables using a portfolio approach889398 - Revenue is recognized when the customer obtains control of the related goods or services, with domestic sales recognized upon customer acceptance and export sales upon customs declaration and bill of lading acquisition159162 Taxation The company and its high-tech subsidiaries benefit from a 15% preferential corporate income tax rate, with a primary VAT rate of 13% - The company's headquarters and subsidiaries including Hangzhou Shibao, Hangzhou New Shibao, Beijing Autonick, and Wuhu Sterry are recognized as high-tech enterprises, enjoying a reduced 15% corporate income tax rate for 2020-2022204206 Notes to Consolidated Financial Statement Items This section provides detailed explanations for consolidated financial statement items, including assets, liabilities, profit/loss, and cash flow - Period-end accounts receivable book value increased to RMB 352 million from RMB 326 million at the beginning of the period, with receivables from the top five customers accounting for 43.44% of the total218230 - Period-end inventory book value increased 20% to RMB 305 million from RMB 254 million at the beginning of the period, primarily due to increases in work-in-progress and finished goods254 - Current period operating revenue was RMB 573 million, with primary business revenue of RMB 551 million, mainly from the sales of steering systems and components320 Management Discussion and Analysis This section provides an overview and analysis of the company's operational performance, financial position, and future outlook Analysis of Principal Business The company's principal business experienced significant revenue and net profit growth in H1 2021, driven by automotive industry expansion - During the reporting period, the automotive industry experienced rapid growth, driving the company's operating revenue to RMB 573 million, a 17.60% year-on-year increase479 - Gross profit margin for principal business increased from 20.87% to 22.98%, primarily due to cost optimization from expanded sales volume479 - R&D expenses increased 23.89% year-on-year to RMB 37.41 million, representing 6.53% of revenue, primarily invested in electrification, intelligence, and automation technologies for steering systems480 Analysis of Assets and Liabilities The company's asset and liability structure remained stable at period-end, with a robust capital structure and low financial risk - As of period-end, fixed assets constituted 31.04% of total assets, accounts receivable 17.41%, and inventories 15.09%, representing the main components of assets490 - The company monitors capital risk using the capital gearing ratio (net debt/total capital), which was -0.18% at period-end, a slight increase from -2.95% at the beginning of the year but still negative, indicating ample cash and low capital risk494414 Future Outlook and Risks The company anticipates a challenging future operating environment, focusing on strategic development while managing key risks including supply chain and market factors - Future Outlook: The company anticipates cost pressures from chip shortages and rising raw material prices in the second half of the year, focusing on its principal business and accelerating the development of steering technologies related to intelligent and autonomous driving499 - Key Risks: The company faces risks including industry fluctuations due to macroeconomic conditions, product quality risks, technological updates and iterations, raw material price volatility, high accounts receivable, and uncertainties in overseas market expansion503504505507509 Analysis of Core Competencies The company's core competencies include strong technological R&D, advanced manufacturing, an experienced team, and high-level corporate governance - Technology R&D: Possesses numerous patents in steering technology and has taken a leading role in developing automotive intelligent driving-related technologies516 - Production and Manufacturing: Fully implements lean production models and the IAIF:16949 quality certification system516 Corporate Governance and Other Information This section details the company's corporate governance practices, shareholding structures, and other relevant disclosures Corporate Governance The company largely complied with the Corporate Governance Code, with noted deviations including director insurance and share trading during blackout periods - The company deviated from Corporate Governance Code provisions A.1.8 (no insurance for directors) and A.6.7 (an independent non-executive director's absence from the AGM)528 - Non-executive Director Mr. Zhang Shizhong conducted A-share transactions during blackout periods in February and August 2021, violating Model Code provisions A.3(a) and B.8530 Shareholding of Directors, Supervisors, and Major Shareholders As of June 30, 2021, the controlling shareholder held 43.28% of shares, with directors also holding indirect interests - Controlling shareholder Zhejiang Shibao Holding Group Co Ltd (Shibao Holding) holds 341,786,098 A-shares, representing 43.28% of the total share capital539543 - Directors Zhang Shiquan, Zhang Baoyi, Tang Haohan, Zhang Lanjun, and Zhang Shizhong collectively hold 100% equity in the holding company, Shibao Holding539 Glossary This section provides definitions for specific terms used throughout the report to enhance reader comprehension - This section provides definitions for specific terms used in the report, such as 'A-shares', 'H-shares', 'the Group', and 'Shibao Holding', to aid reader understanding547550
浙江世宝(01057) - 2021 - 中期财报