通光线缆(300265) - 2024 Q2 - 季度财报

Important Notice, Table of Contents and Definitions The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report, free from false records, misleading statements, or major omissions - The company's 2024 semi-annual profit distribution plan is: no cash dividends, no bonus shares, and no capital increase from capital reserves[1] Company Profile and Key Financial Indicators This section provides an overview of the company and its key financial performance during the reporting period Company Profile Jiangsu Tongguang Electronic Wire & Cable Co., Ltd. (stock code: 300265) is a company listed on the Shenzhen Stock Exchange, with Zhang Zhong as its legal representative | Item | Content | | :--- | :--- | | Stock Abbreviation | Tongguang Cable | | Stock Code | 300265 | | Listing Exchange | Shenzhen Stock Exchange | | Full Chinese Name | Jiangsu Tongguang Electronic Wire & Cable Co., Ltd. | | Legal Representative | Zhang Zhong | Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue and net profit attributable to shareholders both declined year-on-year, with operating revenue at 1.15 billion Yuan and net profit at 43.67 million Yuan, while net cash flow from operating activities was -170.00 million Yuan | Key Financial Indicators | Current Reporting Period | Prior Year Period (Adjusted) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,147,177,271.19 | 1,308,610,954.55 | -12.34% | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | 43,673,138.15 | 67,098,691.08 | -34.91% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) (Yuan) | 38,571,533.57 | 68,225,395.27 | -43.46% | | Net Cash Flow from Operating Activities (Yuan) | -170,004,824.18 | -66,860,263.86 | -154.27% | | Basic Earnings Per Share (Yuan/share) | 0.10 | 0.18 | -44.44% | | Weighted Average Return on Net Assets | 1.81% | 4.24% | -2.43% | | Asset Indicators | End of Current Reporting Period | End of Prior Year (Adjusted) | Year-on-Year Change | | Total Assets (Yuan) | 3,534,377,703.01 | 3,513,534,623.40 | 0.59% | | Net Assets Attributable to Shareholders of Listed Company (Yuan) | 2,271,456,271.40 | 2,384,755,207.38 | -4.75% | Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 5.10 million Yuan, primarily from fair value changes in financial assets and liabilities and government subsidies | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -646,918.42 | | Government Subsidies Included in Current Profit/Loss | 1,734,850.71 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities | 4,392,950.00 | | Other Non-operating Income and Expenses | -55,313.31 | | Total | 5,101,604.58 | Management Discussion and Analysis This section provides a detailed analysis of the company's operations, financial performance, and future outlook Main Businesses During the Reporting Period The company's core business involves the R&D, production, and sales of optical fiber and cable, power transmission cables, and equipment cables, serving the power, communication, and military industries - The company's products are primarily applied in the power, communication, and military industries, serving as major suppliers to State Grid, China Southern Power Grid, communication operators, and major military groups[16][18] | Financial Indicators | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 1.15 billion Yuan | -12.34% | | Net Profit Attributable to Shareholders | 43.67 million Yuan | -34.91% | | R&D Expenses | 51.51 million Yuan | +8.44% | Analysis of Core Competitiveness The company's core competitiveness remains stable, characterized by strengths in technology, customer relationships, talent, quality, qualifications, and service - Technical advantages: Possesses 334 patents, participated in formulating 10 international IEC standards, with aviation wires and optical fiber composite low-voltage cables recognized as single-champion products[21] - Customer advantages: Long-term stable cooperation with major high-quality clients such as State Grid, China Southern Power Grid, communication operators, and AVIC Group, Aerospace Science and Technology Group[21] Analysis of Main Business During the reporting period, the company's three main product lines—equipment cables, optical fiber and cables, and power transmission cables—experienced declines in both operating revenue and gross profit margins | By Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Cables | 131,257,970.98 | 92,685,063.58 | 29.39% | -16.70% | -5.33% | | Optical Fiber and Cables | 338,361,840.82 | 272,779,063.70 | 19.38% | -14.54% | -1.26% | | Power Transmission Cables | 576,184,710.81 | 526,777,125.44 | 8.57% | -16.46% | -2.70% | | Other | 101,372,748.58 | 61,180,354.01 | 39.65% | 55.05% | -1.47% | - Net cash flow from operating activities decreased by 154.27% year-on-year, primarily due to increased expenditures for goods purchased; net cash flow from investing activities decreased by 341.27% year-on-year, mainly due to payments for the acquisition of Sichuan Optical Fiber[23] Analysis of Non-Core Business Non-core business activities, including fair value changes and asset impairment losses, significantly impacted the company's total profit during the reporting period | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | -1,526,166.67 | -2.87% | Investment income from associates | | Gains/Losses from Fair Value Changes | 4,392,950.00 | 8.27% | Hedging gains/losses | | Asset Impairment | -5,357,599.05 | -10.09% | Provision for credit impairment and asset impairment | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets were 3.53 billion Yuan, with a slight increase of 0.59% from the beginning of the period, while the asset structure shifted due to changes in cash and accounts receivable - Cash and cash equivalents at period-end were 453 million Yuan, a 33.5% decrease from the beginning of the year, primarily used for payments for goods[26] - Short-term borrowings at period-end were 514 million Yuan, an 81.6% increase from the beginning of the year; long-term borrowings at period-end were 66.55 million Yuan, a significant increase from the beginning of the year, mainly due to new acquisition loans for Sichuan Optical Fiber[27] - As of the end of the reporting period, the company had 139 million Yuan in restricted assets, primarily fixed assets and intangible assets pledged for loans, as well as various deposits[29][30] Analysis of Investment Status During the reporting period, the company's investment activities significantly increased, with a total investment of 306 million Yuan, primarily driven by the acquisition of Sichuan Tongguang Optical Fiber Co., Ltd - Acquired 100% equity of Sichuan Tongguang Optical Fiber Co., Ltd. for 212 million Yuan during the reporting period, funded by self-owned capital and acquisition loans; this subsidiary incurred a loss of 5.63 million Yuan in the current period[32] - The fundraising project "High-end Marine Equipment Energy System Project (Phase I)" continued to advance, with 70.60 million Yuan invested during the reporting period, cumulative investment of 365 million Yuan, and project progress at 52.18%[33] - The company utilized idle raised funds for cash management and engaged in derivative investments for hedging purposes to mitigate raw material price fluctuation risks[37][43][44] Analysis of Major Holding and Associate Companies During the reporting period, the operating performance of major subsidiaries showed divergence, with Tongguang Cable's net profit significantly increasing while Tongguang Qiangneng and Sichuan Optical Fiber experienced declines or losses | Company Name | Type | Main Business | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Tongguang Cable | Subsidiary | Optical Fiber and Cables | 270,064,272.82 | 19,089,465.58 | | Tongguang Qiangneng | Subsidiary | Power Transmission Cables | 593,303,392.66 | 11,778,478.04 | | Tongguang Information | Subsidiary | Optical Fiber and Cables | 211,162,278.20 | 22,398,475.26 | | Derou Cable | Subsidiary | Equipment Cables | 83,301,725.10 | 4,871,887.86 | | Sichuan Optical Fiber | Subsidiary | Optical Fiber | 40,493,361.02 | -5,628,540.31 | - A new wholly-owned subsidiary, Sichuan Tongguang Optical Fiber Co., Ltd., was added through a business combination under common control, aiming to enhance the company's comprehensive competitiveness in the telecom operator market[50] Risks and Countermeasures The company faces key risks including intensified industry competition, raw material price fluctuations, accounts receivable collection, changes in tax preferential policies, core technology, and management risks from scale expansion - Key risk points: - Industry competition risk: Intense competition in the power and communication cable markets - Raw material price fluctuation risk: Price fluctuations of major raw materials like aluminum and optical fiber impact cost control - Accounts receivable collection risk: Expanding business scale may lead to high accounts receivable balances[52] - Countermeasures: - Technology and market: Increase R&D investment, enhance product quality and service capabilities, and expand market share - Cost control: Optimize design, improve production processes, and use hedging tools to offset raw material price risks - Collection management: Strengthen customer credit management and intensify efforts to collect accounts receivable[52][53] Corporate Governance This section details the company's governance structure and activities during the reporting period Annual and Extraordinary Shareholders' Meetings During the Reporting Period During the reporting period, the company held two shareholders' meetings: the first extraordinary general meeting in 2024 and the 2023 annual general meeting - The first extraordinary general meeting was held on January 10, 2024, and the 2023 annual general meeting was held on May 17, 2024[57] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentive Measures During the reporting period, the company did not have an equity incentive plan but implemented an employee stock ownership plan covering 91 employees, holding 425,000 shares - The employee stock ownership plan covers 91 individuals, holding a total of 425,000 shares, accounting for 0.09% of the company's total share capital[59] Environmental and Social Responsibility This section outlines the company's commitment and actions regarding environmental protection and social responsibility Significant Environmental Issues The company and its subsidiaries are not classified as key pollutant-discharging entities and received no environmental administrative penalties during the reporting period - The company and its subsidiaries are not classified as key pollutant-discharging entities and had no environmental administrative penalties during the reporting period[62] Social Responsibility The company actively fulfills its social responsibilities by establishing various management systems, adhering to laws and ethics, and participating in local economic development, education, and charity - The company has established a public welfare goal of "developing the cable business, revitalizing the local economy, and giving back to society," focusing on supporting local economy, education, culture, healthcare, environmental construction, and charity[64] Significant Matters This section covers important events and transactions that occurred during the reporting period Fulfillment of Commitments During and as of the end of the reporting period, the company's actual controller, shareholders, and related parties strictly adhered to their commitments made during initial public offerings or refinancing, with no overdue unfulfilled commitments - All relevant committed parties fulfilled their commitments on time, with no violations[65][71] Significant Related-Party Transactions During the reporting period, the company engaged in significant related-party transactions, including the acquisition of Sichuan Tongguang Optical Fiber Co., Ltd. from its controlling shareholder - The company acquired 100% equity of Sichuan Tongguang Optical Fiber Co., Ltd. from its controlling shareholder, Tongguang Group Co., Ltd., and other related parties, for an actual transaction price of 212,029,318.71 Yuan, using self-owned and self-raised funds[84] Significant Contracts and Their Performance The company disclosed several significant sales contracts with State Grid Corporation of China and China Southern Power Grid Co., Ltd., involving substantial amounts for products like conductors and optical cables, with most contracts progressing as scheduled | Customer | Contract Subject | Total Contract Amount (10,000 Yuan) | Execution Status as of Reporting Period End | | :--- | :--- | :--- | :--- | | State Grid Corporation of China | Conductors, optical cables, optical cable accessories | 20,298 | 90% | | State Grid Corporation of China | Conductors, optical cables, optical cable accessories | 16,488 | 69% | | China Southern Power Grid Co., Ltd. | Aluminum-clad steel core aluminum stranded wire, etc. | 26,074 | 53% | Share Changes and Shareholder Information This section details changes in the company's share capital and information regarding its shareholders Share Changes During the reporting period, the company's total share capital slightly increased from 458.286 million shares to 458.288 million shares, primarily due to convertible bond conversions, while restricted shares significantly decreased - The total share capital increased by 1,625 shares due to the conversion of "Tongguang Convertible Bonds"[101] - 93,301,435 shares issued to specific targets in 2023 were unrestricted on January 19, 2024, leading to a significant reduction in restricted shares[101][103] Number of Shareholders and Shareholding Information As of the end of the reporting period, the company had 43,058 common shareholders, with the controlling shareholder, Tongguang Group Co., Ltd., maintaining a stable 39.89% stake | Shareholder Name | Shareholding Percentage | Number of Shares Held at Period End | | :--- | :--- | :--- | | Tongguang Group Co., Ltd. | 39.89% | 182,830,000 | | Zhang Zhong | 4.53% | 20,766,100 | | Xu Zhenjiang | 1.36% | 6,220,095 | Preferred Shares Information This section confirms the absence of preferred shares during the reporting period No Preferred Shares During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[114] Bond-Related Information This section provides details on the company's convertible corporate bonds Convertible Corporate Bonds The company has outstanding convertible corporate bonds, "Tongguang Convertible Bonds," with the conversion price adjusted due to the 2023 equity distribution plan - Due to the implementation of the 2023 equity distribution plan, the conversion price of "Tongguang Convertible Bonds" was adjusted from 8.00 Yuan/share to 7.92 Yuan/share effective July 4, 2024[117] | Item | Amount (Yuan) | | :--- | :--- | | Total Issuance Amount | 297,000,000.00 | | Cumulative Conversion Amount | 219,237,700.00 | | Unconverted Amount | 77,762,100.00 | | Proportion of Unconverted Amount to Total Issuance | 26.18% | Financial Report This section presents the company's financial statements for the reporting period Audit Report The company's 2024 semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[122] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2024, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes Consolidated Balance Sheet As of June 30, 2024, the company's total assets were 3.53 billion Yuan, total liabilities were 1.22 billion Yuan, and the asset-liability ratio was 34.54%, with net assets attributable to the parent company decreasing by 4.75% | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,534,377,703.01 | 3,513,534,623.40 | | Total Liabilities | 1,220,919,129.52 | 1,008,700,082.66 | | Total Equity Attributable to Parent Company Owners | 2,271,456,271.40 | 2,384,755,207.38 | Consolidated Income Statement In the first half of 2024, the company achieved total operating revenue of 1.15 billion Yuan and total operating costs of 1.11 billion Yuan, resulting in a net profit of 45.29 million Yuan, with 43.67 million Yuan attributable to parent company shareholders | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,147,177,271.19 | 1,308,610,954.55 | | Operating Profit | 53,178,482.01 | 75,923,214.00 | | Total Profit | 53,123,168.70 | 76,708,821.84 | | Net Profit | 45,287,027.60 | 73,061,261.02 | | Net Profit Attributable to Parent Company Shareholders | 43,673,138.15 | 67,098,691.08 | Consolidated Cash Flow Statement In the first half of 2024, the company's net cash flow from operating activities was -170.00 million Yuan, from investing activities was -305.89 million Yuan, and from financing activities was 288.71 million Yuan, leading to a net decrease in cash and cash equivalents of 186.56 million Yuan | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -170,004,824.18 | -66,860,263.86 | | Net Cash Flow from Investing Activities | -305,887,112.47 | -69,319,256.25 | | Net Cash Flow from Financing Activities | 288,714,086.02 | 782,029,424.55 | | Net Increase/Decrease in Cash and Cash Equivalents | -186,561,834.21 | 647,754,562.90 |