QI AUTOMOTIVE CO.(BJ:837242)2024-08-23 08:28Subsidiaries and Certifications - The company established a new subsidiary in Thailand, Q-Thai Auto Parts Co., Ltd., on February 16, 2024, enhancing its global market layout and competitiveness [2]. - The wholly-owned subsidiary, Qingdao Tuoman Electronics Technology Co., Ltd., obtained the IATF16949:2016 certification on March 7, 2024, indicating its capability for large-scale production of automotive electronic products [3]. - The company received ISO 14001:2015 and ISO 45001:2018 certifications on April 9, 2024, demonstrating compliance with international standards for environmental management and occupational health and safety [3]. - The company established a subsidiary in Thailand, Auto Parts Co., Ltd., to focus on the production of casting components, with a land purchase agreement already signed [26]. - The company established a holding subsidiary in Thailand, contributing to an increase in minority shareholders' equity due to capital contributions received [40]. - The newly established subsidiary, Jiantai Automotive Parts Co., Ltd., is currently under construction and is expected to contribute to business expansion upon commencement of operations [46]. Financial Performance - The company's operating revenue for the current period reached ¥310,359,102.76, representing a 28.23% increase compared to ¥242,033,364.61 in the same period last year [16]. - Net profit attributable to shareholders was ¥38,848,008.67, up 31.31% from ¥29,584,798.84 year-on-year [16]. - The net cash flow from operating activities increased by 54.99% to ¥64,681,423.55, compared to ¥41,732,638.19 in the previous year [18]. - The gross profit margin remained stable at 27.82%, slightly up from 27.78% in the previous year [16]. - The company's operating revenue reached ¥310,359,102.76, representing a year-on-year increase of 28.23% compared to ¥242,033,364.61 [40]. - The operating cost was ¥224,029,052.05, which is an increase of 28.17% from ¥174,794,998.78, resulting in a gross profit margin of 27.82% [40]. - Net profit for the period was ¥38,824,964.64, reflecting a 31.52% increase from ¥29,519,116.44 in the same period last year [40]. - Domestic sales revenue reached ¥161,522,900.78, up 64.36% year-on-year, while overseas sales were ¥148,836,201.98, a 3.53% increase [42]. Research and Development - R&D investment increased by 92.70% year-on-year, totaling 25,904,328.11 CNY, with the addition of 7 new patents and software copyrights, enhancing the product structure for adapting to automotive updates [26]. - The company plans to launch approximately 2,000-3,000 new product models annually, focusing on automotive electronic products and "soft and hard" combined products [23]. - Research and development expenses increased to ¥10,696,800.50 in the first half of 2024, up 40.5% from ¥7,586,284.30 in the same period of 2023 [93]. - The company has obtained a total of 93 patents, including 10 invention patents, 80 utility model patents, and 3 design patents, showcasing its commitment to R&D [50]. Market Trends and Strategy - The average age of vehicles in the U.S. reached 12.5 years in 2023, indicating a stable growth in the automotive aftermarket, which is expected to continue [29]. - In the first half of 2024, China's automotive production and sales both grew, with production reaching 13.89 million vehicles and sales at 14.04 million vehicles, marking year-on-year increases of 4.9% and 6.1% respectively [30]. - The average age of passenger cars in China reached 6.4 years in 2022, contributing to the growth of the automotive aftermarket [31]. - The company emphasizes a global procurement and sales strategy, enhancing its supply chain management to ensure quality and reliability [23]. - The independent aftermarket's share increased from approximately 35% in 2018 to about 46% in 2022, indicating a trend towards consolidation among leading enterprises [34]. - The company plans to continue investing in the remanufacturing of auto parts, focusing on sustainable development and green production practices [26]. - The company is positioned to benefit from favorable government policies promoting the automotive aftermarket and supply chain management [36]. Financial Management and Shareholder Relations - The company aims to enhance supply chain integration and logistics capabilities to support market expansion [35]. - The company plans to distribute a cash dividend of 32,259,625 RMB based on a total share capital of 64,519,250 shares, with a payout ratio of 5 RMB for every 10 shares held [47]. - The company has a long-term profit distribution plan to ensure reasonable returns to shareholders while pursuing rapid growth and stable economic benefits [47]. - The company has established a direct communication channel with investors, enhancing transparency and protecting the rights of minority shareholders [46]. - The company has maintained a commitment to social responsibility, focusing on shareholder, customer, and employee interests while promoting green and low-carbon development [46]. Risks and Challenges - The company is actively addressing the impact of US-China trade tensions, which have resulted in additional tariffs on automotive parts exported to the US, by engaging in effective communication with suppliers and customers [48]. - The company has reported a significant amount of related party transactions, with sales amounting to approximately ¥2,010,678 [52]. - The company has ongoing risks associated with changes in export tax rebate policies, which could impact its performance [49]. - The actual controller holds 57.65% of the voting shares, which poses a risk of improper control over company decisions [49]. - The company is actively expanding its domestic business to reduce dependence on major customers [49]. Employee and Corporate Governance - The company emphasizes the importance of employee welfare, providing housing subsidies and regular health check-ups to enhance employee satisfaction and retention [47]. - The company held three shareholder meetings, five board meetings, and four supervisory meetings in the first half of 2024, enhancing corporate governance and operational compliance [46]. - The company has three active stock incentive plans, including the first phase and the 2022 stock incentive plan, targeting directors, senior management, and core employees [55]. - The company’s board of directors and senior management have also confirmed compliance with all public commitments made during the issuance process [66]. Asset Management and Financial Position - The company's cash and cash equivalents decreased by 61.70% to ¥117,139,182.12, representing 16.89% of total assets [38]. - The total assets decreased by 1.16% to ¥693,586,935.99 from ¥701,757,889.06 at the end of the previous period [17]. - The total liabilities decreased from 196,836,092.78 to 177,639,133.68, a decline of about 9.73% [88]. - The total equity attributable to shareholders increased from 504,915,368.80 to 515,295,058.98, an increase of about 2.75% [88]. - The company reported a total of 307 employees at the end of the period, an increase of 20 employees from the beginning of the period [78]. Compliance and Legal Matters - The company has not reported any major litigation or arbitration matters during the reporting period, indicating a stable legal standing [52]. - The company has confirmed that there are no false records, misleading statements, or significant omissions in the issuance application documents, and it assumes legal responsibility for their authenticity and completeness [66]. - The company has not violated any commitments made since the signing of the relevant agreements up to the date of the semi-annual report [66].