视声智能(870976) - 2024 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice Directors, supervisors, and senior management guarantee the report's truthfulness and completeness, noting it is unaudited and forward-looking statements carry inherent risks - Directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, bearing individual and joint and several liability[4] - This semi-annual report has not been audited by an accounting firm[4] - Forward-looking statements regarding future plans in this report do not constitute substantial commitments to investors, who should maintain risk awareness[4] Semi-Annual Report Review Status | Item | Yes or No | | :--- | :--- | | Directors, supervisors, and senior management have objections or cannot guarantee the truthfulness, accuracy, and completeness of the semi-annual report content | √No | | Directors who did not attend the board meeting to review the semi-annual report | √No | | Matters not disclosed as required | √No | | Audited | √No | Significant Risk Warning The company faces no delisting risk, but significant risk factors are detailed in 'Part III Accounting Data and Operating Performance' for investor attention - The company faces no delisting risk[6] - Significant risk factors are analyzed in 'Part III Accounting Data and Operating Performance', Section 'XIV. Risks Faced by the Company and Countermeasures', for investor attention[6] Definitions This section defines common terms used in the report, including company names, subsidiaries, shareholder partnerships, governance bodies, exchanges, currency units, and technical standards like KNX and Zigbee Key Definitions | Definition Item | Definition | | :--- | :--- | | The Company, Video-Star Smart | Guangzhou Video-Star Smart Co., Ltd. | | Reporting Period | January 1, 2024 to June 30, 2024 | | KNX | Abbreviation for Konnex, the sole global standard for home and building control | | Zigbee | Short-range, low-complexity, low-power wireless communication technology based on the IEEE802.15.4 protocol | Part II Company Profile Basic Information The company, Video-Star Smart (stock code 870976), led by Zhu Xiangjun, specializes in R&D, production, sales, and services for smart home, video intercom, and LCD display products Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Video-Star Smart | | Stock Code | 870976 | | Company Full Chinese Name | 广州视声智能股份有限公司 | | Legal Representative | 朱湘军 | | Company Stock Exchange | Beijing Stock Exchange | | Listing Date | September 1, 2023 | | Industry Classification | Manufacturing - Computer, Communication and Other Electronic Equipment Manufacturing | | Main Products and Services | Smart home products, video intercom products, LCD displays and modules, providing intelligent solutions | | Total Common Share Capital (shares) | 70,953,400 | | Controlling Shareholder | 朱湘军 | Contact Information The company's Board Secretary is Dong Hao, located at 3rd Floor, Building 5, Science Park, No. 9 Lanyu 4th Street, Huangpu District, Guangzhou, with contact number 020-82088388 Company Contact Information | Position | Name | | :--- | :--- | | Board Secretary | 董浩 | | Contact Address | 广州市黄埔区蓝玉四街 9 号科技园 5 号厂房 3 楼 | | Phone | 020-82088388 | | Board Secretary Email | Dongh@video-star.com.cn | | Company Website | www.gvssmart.cn | Information Disclosure and Document Storage Location The company's semi-annual report is disclosed on the Beijing Stock Exchange website (www.bse.cn) and Securities Times (www.stcn.com), with physical copies available at the Board Secretary's office Information Disclosure Channels | Disclosure Content | 2024 Semi-Annual Report | | :--- | :--- | | Stock Exchange Website | www.bse.cn | | Media Name and Website | 证券时报 (www.stcn.com) | | Report Storage Location | Company Board Secretary's Office | Actual Controller and Intermediary Agencies Zhu Xiangjun is the actual controller, with Zhu Xiangji as a party acting in concert; Kaiyuan Securities, represented by Chen Liang and Yan Xingbo, provides continuous supervision until December 31, 2026 - The actual controller is Zhu Xiangjun, with Zhu Xiangji as a party acting in concert[13] Intermediary Agency Information | Institution Name | Kaiyuan Securities Co., Ltd. | | :--- | :--- | | Office Address | 陕西省西安市高新区锦业路 1 号都市之门 B 座 5 层 | | Sponsor Representative Names | 陈亮、阎星伯 | | Period of Continuous Supervision | September 1, 2023 - December 31, 2026 | Post-Reporting Period Updates The company completed its 2023 annual equity distribution on June 6, 2024, increasing total share capital from 50.681 million to 70.9534 million shares, with related industrial and commercial changes finalized on August 2, 2024 - The company's 2023 annual equity distribution was completed on June 6, 2024[14] - After the equity distribution, total share capital increased from 50.681 million shares to 70.9534 million shares, and registered capital changed from 50.681 million yuan to 70.9534 million yuan[14] - The company completed industrial and commercial change registration on August 2, 2024[14] Part III Accounting Data and Operating Performance I. Key Accounting Data and Financial Indicators During the reporting period, the company's profitability significantly improved, with net profit attributable to the parent increasing by 47.90% and gross margin rising to 51.90%, while solvency remained stable with a decreased asset-liability ratio and operating cash flow net increase of 139.08% Profitability Indicators (Unit: yuan, %) | Indicator | Current Period | Prior Year Period | Change % | | :--- | :--- | :--- | :--- | | Operating Revenue | 114,936,204.22 | 114,194,387.01 | 0.65% | | Gross Margin % | 51.90% | 46.15% | - | | Net Profit Attributable to Listed Company Shareholders | 23,754,693.30 | 16,061,734.10 | 47.90% | | Net Profit Attributable to Listed Company Shareholders After Non-Recurring Gains and Losses | 18,376,000.13 | 13,630,922.02 | 34.81% | | Basic EPS | 0.33 | 0.30 | 10.00% | Solvency Indicators (Unit: yuan, %) | Indicator | Current Period End | Prior Year End | Change % | | :--- | :--- | :--- | :--- | | Total Assets | 317,215,247.69 | 326,187,774.87 | -2.75% | | Total Liabilities | 56,266,955.42 | 58,599,815.40 | -3.98% | | Net Assets Attributable to Listed Company Shareholders | 260,948,292.27 | 267,587,959.47 | -2.48% | | Asset-Liability Ratio % (Consolidated) | 17.74% | 17.97% | - | | Current Ratio | 5.59 | 5.60 | - | Operating and Growth Performance (Unit: yuan, %) | Indicator | Current Period | Prior Year Period | Change % | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 18,685,602.07 | 7,815,618.51 | 139.08% | | Accounts Receivable Turnover | 3.13 | 2.47 | - | | Inventory Turnover | 1.62 | 1.64 | - | | Total Asset Growth Rate % | -2.75% | 2.82% | - | | Operating Revenue Growth Rate % | 0.65% | 16.01% | - | | Net Profit Growth Rate % | 47.90% | 56.30% | - | II. Non-Recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 5.38 million yuan, primarily from government subsidies, accounting for 25.20% of net profit, indicating significant reliance on such subsidies Non-Recurring Gains and Losses Items and Amounts (Unit: yuan) | Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -15,666.21 | | Government Grants Recognized in Profit or Loss | 5,985,530.00 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 356,233.91 | | Other Non-operating Income and Expenses Apart from the Above | 498.78 | | Total Non-Recurring Gains and Losses | 6,326,596.48 | | Less: Income Tax Impact | 949,033.31 | | Net Non-Recurring Gains and Losses | 5,377,563.18 | - Government subsidies within non-recurring gains and losses amounted to 5.9855 million yuan, accounting for 25.20% of net profit, indicating significant reliance on government subsidies[46] VI. Business Overview The company's business model remains unchanged, focusing on R&D, production, sales, and services for smart home, video intercom, and LCD display products, leveraging core KNX technology and direct sales to domestic and international clients - During the reporting period, the company's business model remained unchanged, focusing on R&D, manufacturing, sales, and technical services for smart home, video intercom, and LCD display products[22] - The company was an early adopter of European KNX technology in China, co-drafting its national recommended standard, mastering core technology, and developing the K-BUS smart bus control system compatible with KNX protocol[22] - The company broke protocol barriers, integrating KNX wired systems with Zigbee 3.0 wireless systems, and pioneered the application of the latest KNX security technology, independently developing 31 KNX security products[22] - The company's sales model is primarily direct sales, serving domestic and international electrical equipment companies like ABB, Legrand, and Oumengte, as well as power engineering integrators, with products sold globally[23] Company Certifications | Certification Type | Status | | :--- | :--- | | "Specialized, Refined, Unique, and New" Certification | √Provincial (Municipal) Level | | "High-tech Enterprise" Certification | √Yes | | Other Related Certifications | National Intellectual Property Advantage Enterprise – National Intellectual Property Administration | VII. Business Review In the first half, the company pursued a 'spatial intelligence' strategy, launching new KNX security and smart control screen products, expanding domestic and international markets, achieving KNX lab accreditation, and completing its 2023 equity distribution Business Plan The company's H1 strategy focused on 'spatial intelligence' and KNX tech breakthroughs, resulting in 0.65% revenue growth, 47.90% net profit increase, and 139.08% operating cash flow growth - The company adheres to its vision of 'making life smarter, making smart simpler' and its 'spatial intelligence' strategy, continuously innovating in KNX technology to launch multiple KNX network security products and flagship smart central control screens[24] Key Operating Data for H1 2024 | Indicator | Amount (yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 114,936,204.22 | 0.65% | | Net Profit Attributable to Parent Company | 23,754,693.30 | 47.90% | | Net Cash Flow from Operating Activities | 18,685,602.07 | 139.08% | - R&D expenditure was significant, totaling 14.72 million yuan from January to June 2024, accounting for 12.81% of operating revenue, a 2.74% year-on-year increase[24] - In marketing, the company actively pursued a dual domestic and international sales strategy, participating in events like the Light + Building Frankfurt and Guangzhou International Lighting Exhibition, deepening its overseas market presence and enhancing brand awareness[24] - In manufacturing, the company's KNX testing laboratory received accreditation from the KNX International Association in May 2024 and began official operations in June, offering interoperability testing services for global KNX products[24] - In the first half, the company completed its 2023 annual equity distribution, transferring 4 bonus shares for every 10 shares and distributing a cash dividend of 6 yuan per 10 shares to all shareholders[25] Industry Overview The smart home and intelligent building market shows strong growth, with global expansion expected; video intercom products, though tied to real estate, show market stabilization, and national policies support smart homes as a new consumption driver - The smart home and intelligent building market maintained strong growth, with the 2023 global smart home market size estimated at 139.3 billion USD, and a projected growth rate of up to 60.01% over the next four years[27] - Video intercom products are highly correlated with the real estate market; in H1 2024, national real estate development investment decreased by 10.4%, but the real estate prosperity index showed clear signs of stabilization[27] - National and local governments introduced policies positioning 'smart homes' as a growth driver for consumption upgrading, indicating bright market prospects[28] Financial Analysis The company's balance sheet saw changes with decreased cash, increased financial assets and inventory; profit composition showed reduced financial expenses due to exchange gains and interest income, and significant growth in other income from government subsidies; smart home revenue grew, while LCD display revenue declined due to real estate; operating cash flow increased, but investment and financing cash flows saw significant outflows from wealth management and dividend payments Asset and Liability Structure Analysis At period-end, cash decreased by 24.21% to 172 million yuan due to cash management and dividends; financial assets increased by 42 million yuan from structured deposits and securities; inventory rose 22.25% to 37.63 million yuan for H2 sales preparation Asset and Liability Item Changes (Unit: yuan, %) | Item | Period-End Amount (yuan) | Share of Total Assets (%) | Prior Year End Amount (yuan) | Share of Total Assets (%) | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 172,406,291.27 | 54.35% | 227,485,760.77 | 69.74% | -24.21% | | Notes Receivable | 4,350,425.96 | 1.37% | 7,475,109.84 | 2.29% | -41.80% | | Trading Financial Assets | 42,000,000.00 | 13.24% | - | - | - | | Inventory | 37,626,566.68 | 11.86% | 30,779,069.26 | 9.44% | 22.25% | | Other Receivables | 4,768,207.39 | 1.50% | 2,282,750.11 | 0.70% | 108.88% | | Other Current Assets | 1,045,459.45 | 0.33% | 169,731.10 | 0.05% | 515.95% | | Accounts Payable | 18,137,907.71 | 5.72% | 14,809,197.03 | 4.54% | 22.48% | | Other Payables | 985,477.48 | 0.31% | 2,092,847.30 | 0.64% | -52.91% | | Other Current Liabilities | 7,024,826.75 | 2.21% | 10,459,074.96 | 3.21% | -32.84% | - Cash decreased by 24.21%, primarily due to increased operating cash inflow, 42 million yuan in cash management expenditures for structured deposits and securities products, and 30.4086 million yuan in dividend payments[31] - Trading financial assets increased by 42 million yuan, mainly due to a 39 million yuan increase in structured deposit balances and a 3 million yuan increase in securities account yield-enhancing product balances[31] - Inventory increased by 22.25%, primarily due to increased raw material stocking for H2 sales and some goods issued not yet meeting revenue recognition criteria[31] Operating Performance Analysis Revenue grew 0.65%, gross margin rose to 51.90%; financial expenses decreased by 182.73% due to exchange gains and interest income; other income surged 122.39% from government subsidies and tax benefits; smart home revenue increased 34.00%, while LCD display revenue fell 42.40% Profit Composition Analysis (Unit: yuan, %) | Item | Current Period Amount (yuan) | Share of Operating Revenue (%) | Prior Year Period Amount (yuan) | Share of Operating Revenue (%) | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 114,936,204.22 | - | 114,194,387.01 | - | 0.65% | | Operating Cost | 55,285,571.88 | 48.10% | 61,489,743.63 | 53.85% | -10.09% | | Gross Margin | 51.90% | - | 46.15% | - | - | | Financial Expenses | -2,091,314.01 | -1.82% | -739,692.97 | -0.65% | 182.73% | | Other Income | 8,310,438.73 | 7.23% | 3,736,846.02 | 3.27% | 122.39% | | Credit Impairment Loss | 494,623.91 | 0.43% | -50,371.92 | -0.04% | -1081.94% | | Asset Impairment Loss | -714,899.23 | -0.62% | -184,149.08 | -0.16% | 288.22% | | Operating Profit | 26,296,699.46 | 22.88% | 17,581,246.04 | 15.40% | 49.57% | - Financial expenses decreased by 182.73%, primarily due to increased exchange gains from USD appreciation and higher interest income from increased IPO proceeds balances[33] - Other income increased by 122.39%, primarily due to higher government listing subsidies, immediate VAT refunds for software, and additional input VAT deductions for advanced manufacturing enterprises[33] Revenue Composition by Product Category (Unit: yuan, %) | Category/Item | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue YoY Change (%) | Operating Cost YoY Change (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Home | 78,302,191.30 | 29,392,031.62 | 62.46% | 34.00% | 35.09% | Decrease of 0.30 percentage points | | Video Intercom | 19,402,662.93 | 11,468,529.40 | 40.89% | -22.07% | -17.09% | Decrease of 3.55 percentage points | | LCD Display and Modules | 16,437,411.81 | 13,715,870.16 | 16.56% | -42.40% | -43.54% | Increase of 1.68 percentage points | - Smart home revenue grew by 34.00%, mainly due to bulk sales from earlier R&D customization projects and increased overseas market expansion efforts[37] - LCD display and module revenue decreased by 42.40%, primarily due to strong correlation with security industry clients and the real estate sector, which is significantly impacted by macroeconomic policies[37] Cash Flow Status Operating cash flow increased by 139.08% due to higher sales, tax refunds, and government subsidies; investment cash flow saw a 2576.71% outflow for wealth management products; financing cash flow outflow increased by 667.15% due to higher dividend payments Cash Flow Status (Unit: yuan, %) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change % | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 18,685,602.07 | 7,815,618.51 | 139.08% | | Net Cash Flow from Investing Activities | -42,535,665.83 | -1,589,105.06 | 2576.71% | | Net Cash Flow from Financing Activities | -31,363,078.70 | -4,088,269.60 | 667.15% | - Net cash flow from operating activities increased by 139.08%, mainly due to higher cash received from sales of goods and services, tax refunds, and government subsidies[37] - Net cash flow from investing activities increased by 2576.71%, primarily due to 39 million yuan in increased expenditures for structured wealth management products and 3 million yuan for broker-managed yield-enhancing products during the reporting period[39] - Net cash flow from financing activities increased by 667.15%, primarily due to a 30.4086 million yuan increase in dividend payments during the reporting period[39] Investment in Wealth Management Products The company invested 141.88 million yuan in wealth management products, with 97.38 million yuan outstanding at period-end, using idle funds without overdue or impairment issues Investment in Wealth Management Products (Unit: yuan) | Wealth Management Product Type | Source of Funds | Amount Incurred (yuan) | Outstanding Balance (yuan) | Overdue Unrecovered Amount (yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Idle Own Funds | 29,000,000 | 29,000,000 | 0 | | Bank Wealth Management Products | Idle Own Funds | 4,900,000 | 4,900,000 | 0 | | Bank Wealth Management Products | Idle Own Funds | 5,100,000 | 5,100,000 | 0 | | Brokerage Wealth Management Products | Idle Own Funds | 3,000,000 | 3,000,000 | 0 | | Bank Deposit Products | Idle Raised Funds | 44,500,000 | 0 | 0 | | Bank Deposit Products | Idle Raised Funds | 10,880,000 | 10,880,000 | 0 | | Bank Deposit Products | Idle Raised Funds | 44,500,000 | 44,500,000 | 0 | | Total | - | 141,880,000 | 97,380,000 | 0 | - The company did not engage in significant single-item entrusted wealth management, nor low-safety, low-liquidity, high-risk entrusted wealth management[39] VIII. Analysis of Major Holding and Participating Companies Key subsidiaries include Guangzhou Video-Star Smart, Guangzhou Video-Star Health, VINE CONNECTED CORP., and Ganzhou Video-Star Smart, with Guangzhou Video-Star Health and VINE CONNECTED CORP. reporting negative net profits Operating Performance of Major Holding Subsidiaries (Unit: yuan) | Company Name | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Video-Star Smart Technology Co., Ltd. | R&D, production, and sales of smart home, video intercom, and LCD display modules | 5,000,000 | 100,161,490.25 | 96,547,400.82 | 18,550,910.00 | 320.00 | | Guangzhou Video-Star Health Technology Co., Ltd. | R&D and sales of medical intercom products | 8,000,000 | 6,339,528.66 | -817,896.77 | 491,322.61 | -1,373,805.12 | | VINE CONNECTED CORP. | Sales of smart thermostat products | 2,414,758.85 | 1,042,939.89 | 343,515.70 | 280,705.30 | -204,367.74 | | Ganzhou Video-Star Smart Technology Co., Ltd. | Not yet commenced actual operations | 1,000,000 | 961,075.35 | 961,075.35 | - | -38,924.65 | - The associate company, Alpha Network Smart Technology (Beijing) Co., Ltd., is related to the company's medical intercom business, held for strategic investment to enhance business expansion capabilities[42] XI. Corporate Social Responsibility The company actively fulfills social responsibilities, prioritizing environmental protection, safety, and people-centric development, leveraging KNX energy-saving tech for its 'dual carbon strategy' and ensuring investor and employee welfare through robust systems - The company actively fulfills its responsibilities to stakeholders including shareholders, employees, customers, suppliers, and government, adhering to environmentally friendly, safe production, and people-oriented development[44] - The company, based on the 'Dual Carbon Strategy', launched headquarters building solutions, utilizing KNX energy-saving control technology to help enterprises achieve dual carbon targets[44] - The company prioritizes investor interest protection, strictly adheres to information disclosure obligations, and has established multi-level, multi-channel investor communication mechanisms[44] - The company values and cares for employee rights and well-being, establishing comprehensive compensation, promotion, and training systems[44] XIV. Risks Faced by the Company and Countermeasures The company faces risks from overseas operations, raw material price volatility, reliance on government subsidies, exchange rate fluctuations, high inventory, and improper control by the controlling shareholder, with countermeasures including market diversification, localization of raw materials, hedging, and governance improvements - Overseas business risk: The company's overseas sales cover multiple countries and regions; political instability or trade policy changes could adversely affect overseas operations. Countermeasures include actively monitoring global policy changes, strengthening communication with overseas clients, expanding product categories and sales regions, and enhancing cash and inventory risk management[43][46] - Raw material price fluctuation risk: Unstable global supply and demand in related industries may adversely affect cost control and product delivery. Countermeasures include preparing multiple backup plans, sourcing localized raw materials, establishing strategic partnerships with original suppliers, and adjusting safety stock levels[46] - Risk of reliance on government subsidies: Government subsidies in non-recurring gains and losses accounted for 25.20% of net profit from January to June 2024, indicating significant reliance. Countermeasures include actively expanding core business, improving management, and ensuring core business profitability[46] - Exchange rate fluctuation risk: Some products are sold overseas and settled in foreign currencies, leading to exchange gains/losses from currency fluctuations. Countermeasures include actively monitoring exchange rate movements, seeking professional analysis, and utilizing forward foreign exchange contracts[46] - Risk of large inventory balance and impairment: As of June 30, 2024, inventory book value was 37.6266 million yuan, a 22.25% increase from year-end, posing impairment risk due to market changes. Countermeasures include implementing comprehensive supply chain information systems and optimizing production and procurement arrangements[46] - Risk of improper control by controlling shareholder and actual controller: Actual controller Zhu Xiangjun controls 51.72% of effective voting rights, potentially leveraging this position to adversely affect company operations. Countermeasures include establishing a sound corporate governance structure, improving rules and procedures, and strengthening internal control systems[46] - No significant changes in major risks occurred during this period[46] Part IV Significant Events I. Index of Significant Events During the reporting period, the company had litigation, arbitration, disclosed commitments, and restricted assets, but no external guarantees, loans, related party fund occupation, major related transactions, equity incentives, share repurchases, investigations, or significant contracts Index of Significant Events | Item | Yes or No | | :--- | :--- | | Litigation or arbitration matters | √Yes | | External guarantee matters | √No | | External loans provided | √No | | Occupation or transfer of company funds, assets, or other resources by shareholders or their related parties | √No | | Major related party transactions | √No | | Equity incentive plans, employee stock ownership plans, or other employee incentive measures | √No | | Share repurchase matters | √No | | Disclosed commitments | √Yes | | Assets seized, detained, frozen, mortgaged, or pledged | √Yes | | Matters under investigation or penalties | √No | | Dishonesty | √No | | Significant contracts that should be disclosed | √No | II. Details of Significant Events The company had no major litigation but faced 1.12 million yuan in cumulative lawsuits/arbitrations; disclosed commitments are being fulfilled, and restricted assets (performance bonds, frozen third-party funds, pledged patents) do not impact daily operations or ongoing development Litigation and Arbitration Matters During the Reporting Period (Unit: yuan) | Nature | Total Cumulative Amount (yuan) | Share of Period-End Net Assets (%) | | :--- | :--- | :--- | | Litigation or arbitration | 1,118,375.41 | 0.43% | - During the reporting period, the company's disclosed commitments were all being fulfilled normally, with no overdue or violated commitments[48] Assets Seized, Detained, Frozen, Mortgaged, or Pledged (Unit: yuan) | Asset Name | Asset Type | Type of Restricted Right | Share of Total Assets (%) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Performance bonds | Cash and Cash Equivalents | Frozen | 0.06% | Performance guarantee for business cooperation | | Third-party payment platform funds | Cash and Cash Equivalents | Frozen | 0.00% | E-commerce platform frozen business transactions | | Patent Rights | Non-current Assets | Pledged | 0.00% | Pledged as collateral for a loan from Bank of China International Financial Center Branch | - Performance bonds, frozen e-commerce platform funds, and pledged patent rights do not affect the company's normal cash flow or core business development, nor do they impact its going concern or management stability[50] Part V Share Changes and Financing I. Common Share Capital During the reporting period, the company's total share capital increased from 50.681 million to 70.9534 million shares due to the 2023 annual equity distribution (4 bonus shares for every 10), with controlling shareholder Zhu Xiangjun holding 43.7008% Common Share Capital Structure (Unit: shares) | Share Type | Beginning Balance (shares) | Beginning % | Current Period Change (shares) | Period-End Balance (shares) | Period-End % | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Unrestricted Shares | 15,874,000 | 31.32% | 9,905,600 | 25,779,600 | 36.33% | | Total Restricted Shares | 34,807,000 | 68.68% | 10,366,800 | 45,173,800 | 63.67% | | Total Share Capital | 50,681,000 | - | 20,272,400 | 70,953,400 | - | | Number of Common Shareholders | - | - | - | 2,811 | - | - The company's total share capital increased from 50,681,000 shares to 70,953,400 shares due to the 2023 annual equity distribution (4 bonus shares for every 10)[52] Shareholdings of Top Ten Shareholders or Those Holding 5% or More (Unit: shares) | No. | Shareholder Name | Shareholder Type | Beginning Shareholding (shares) | Shareholding Change (shares) | Period-End Shareholding (shares) | Period-End Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | 朱湘军 | Domestic Natural Person | 22,148,000 | 8,859,200 | 31,007,200 | 43.7008% | | 2 | 广州湘军一号投资合伙企业（有限合伙） | Domestic Non-State-Owned Legal Person | 3,000,000 | 1,200,000 | 4,200,000 | 5.9194% | | 3 | 朱湘基 | Domestic Natural Person | 2,645,000 | 1,058,000 | 3,703,000 | 5.2189% | - Zhu Xiangjun and Zhu Xiangji are brothers and parties acting in concert; Zhu Xiangjun is the executive partner of Guangzhou Xiangjun No. 1 and No. 2 Investment Partnerships[53] - Jianghai Securities Co., Ltd. and Kaiyuan Securities Co., Ltd., as strategic investors, had their strategically placed shares lifted from lock-up and listed on March 21, 2024[54] VII. Equity Distribution The company's 2023 annual equity distribution plan was completed during the reporting period, complying with the articles of association and relevant laws and regulations - The equity distribution plan for the reporting period complies with the company's articles of association and relevant laws and regulations[54] Part VI Changes in Directors, Supervisors, Senior Management, and Core Employees I. Directors, Supervisors, and Senior Management The company's board has 7 directors, the supervisory board has 3, and there are 3 senior executives; Zhu Xiangjun serves as Chairman, Peng Yongjian as Director and General Manager, and Dong Hao as Board Secretary and CFO, with no changes in their basic information or shareholdings during the period Basic Information of Directors, Supervisors, and Senior Management | Name | Position | Gender | Date of Birth (YYYY-MM) | Term of Office (YYYY-MM-DD - YYYY-MM-DD) | | :--- | :--- | :--- | :--- | :--- | | 朱湘军 | Chairman | Male | 1965 年 4 月 | 2023 年 9 月 5 日 - 2026 年 9 月 5 日 | | 彭永坚 | Director and General Manager | Male | 1966 年 11 月 | 2023 年 9 月 5 日 - 2026 年 9 月 5 日 | | 李利苹 | Director and Deputy General Manager | Female | 1980 年 11 月 | 2023 年 9 月 5 日 - 2026 年 9 月 5 日 | | 董浩 | Board Secretary and CFO | Male | 1974 年 5 月 | 2023 年 9 月 5 日 - 2026 年 9 月 5 日 | | 肖艳萍 | Chairman of Supervisory Board | Female | 1988 年 1 月 | 2023 年 9 月 5 日 - 2026 年 9 月 5 日 | - There are no related party relationships among directors, supervisors, senior management, or with the controlling shareholder and actual controller[55] Shareholdings of Directors, Supervisors, and Senior Management (Unit: shares) | Name | Position | Beginning Common Shares Held (shares) | Quantity Change (shares) | Period-End Common Shares Held (shares) | Period-End Common Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 朱湘军 | Chairman | 22,148,000 | 8,859,200 | 31,007,200 | 43.70% | | 彭永坚 | Director and General Manager | 1,502,000 | 600,800 | 2,102,800 | 2.96% | | 李利苹 | Director and Deputy General Manager | 1,371,000 | 548,400 | 1,919,400 | 2.71% | | 董浩 | Board Secretary and CFO | 200,000 | 80,000 | 280,000 | 0.39% | | 张结冰 | Supervisor | 335,000 | 134,000 | 469,000 | 0.66% | | Total | - | 25,556,000 | - | 35,778,400 | 50.42% | - During the reporting period, there were no changes in the Chairman, General Manager, Board Secretary, CFO, or independent directors[57] II. Employee Information As of the reporting period, the company and its subsidiaries had 472 employees, an increase of 6, with production staff being the largest group, followed by technical personnel, predominantly with bachelor's or associate degrees Basic Information of Employees (Company and Holding Subsidiaries) | By Job Nature | Beginning Headcount (persons) | Added This Period (persons) | Reduced This Period (persons) | Period-End Headcount (persons) | | :--- | :--- | :--- | :--- | :--- | | Management Personnel | 44 | 3 | 5 | 42 | | Technical Personnel | 144 | 3 | 10 | 137 | | Production Personnel | 151 | 38 | 26 | 163 | | Sales Personnel | 114 | 10 | 6 | 118 | | Financial Personnel | 13 | - | 1 | 12 | | Total Employees | 466 | 54 | 48 | 472 | | By Education Level | Beginning Headcount (persons) | Period-End Headcount (persons) | | :--- | :--- | :--- | | Doctorate | 0 | 0 | | Master's | 4 | 4 | | Bachelor's | 189 | 189 | | Associate's | 166 | 167 | | Below Associate's | 107 | 112 | | Total Employees | 466 | 472 | Part VII Financial Accounting Report I. Audit Report This semi-annual financial accounting report is unaudited - This semi-annual financial accounting report is unaudited[58] II. Financial Statements This section presents the company's 2024 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity, providing a comprehensive view of financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2024, consolidated assets totaled 317 million yuan, a 2.75% decrease from year-end, with cash decreasing while financial assets and inventory increased; total liabilities were 56.27 million yuan, down 3.98% Key Data from Consolidated Balance Sheet (Unit: yuan) | Item | 2024年6月30日 | 2023年12月31日 | | :--- | :--- | :--- | | Total Assets | 317,215,247.69 | 326,187,774.87 | | Total Liabilities | 56,266,955.42 | 58,599,815.40 | | Total Owners' Equity | 260,948,292.27 | 267,587,959.47 | | Cash and Cash Equivalents | 172,406,291.27 | 227,485,760.77 | | Trading Financial Assets | 42,000,000.00 | - | | Inventory | 37,626,566.68 | 30,779,069.26 | | Accounts Payable | 18,137,907.71 | 14,809,197.03 | Parent Company Balance Sheet As of June 30, 2024, parent company assets totaled 273 million yuan, a 19.20% decrease from year-end, with significant reductions in cash and dividends receivable, while financial assets and inventory increased; total liabilities were 29.38 million yuan, down 58.91% Key Data from Parent Company Balance Sheet (Unit: yuan) | Item | 2024年6月30日 | 2023年12月31日 | | :--- | :--- | :--- | | Total Assets | 272,563,044.67 | 337,301,730.22 | | Total Liabilities | 29,382,023.04 | 71,496,766.94 | | Total Owners' Equity | 243,181,021.63 | 265,804,963.28 | | Cash and Cash Equivalents | 143,489,292.98 | 217,319,797.78 | | Trading Financial Assets | 42,000,000.00 | - | | Dividends Receivable | 6,900,000.00 | 69,950,000.00 | | Inventory | 6,121,356.01 | 2,552,693.70 | | Accounts Payable | 9,850,610.73 | 51,046,576.59 | Consolidated Income Statement Consolidated operating revenue reached 115 million yuan, up 0.65%; net profit attributable to the parent company was 23.75 million yuan, a 47.90% increase, driven by improved gross margin and reduced financial expenses from exchange gains and interest income Key Data from Consolidated Income Statement (Unit: yuan) | Item | 2024年1-6月 | 2023年1-6月 | | :--- | :--- | :--- | | Total Operating Revenue | 114,936,204.22 | 114,194,387.01 | | Total Operating Cost | 96,714,001.96 | 100,120,643.92 | | Operating Profit | 26,296,699.46 | 17,581,246.04 | | Total Profit | 26,349,674.24 | 17,369,722.89 | | Net Profit | 23,754,693.30 | 16,061,734.10 | | Net Profit Attributable to Owners of Parent Company | 23,754,693.30 | 16,061,734.10 | | Basic EPS (yuan/share) | 0.33 | 0.30 | | Gross Margin | 51.90% | 46.15% | | Financial Expenses | -2,091,314.01 | -739,692.97 | | Other Income | 8,310,438.73 | 3,736,846.02 | Parent Company Income Statement Parent company operating revenue grew 28.84% to 69.24 million yuan, with net profit increasing 18.77% to 7.78 million yuan, driven by reduced financial expenses from higher interest income and increased government subsidies Key Data from Parent Company Income Statement (Unit: yuan) | Item | 2024年1-6月 | 2023年1-6月 | | :--- | :--- | :--- | | Operating Revenue | 69,236,316.28 | 53,732,148.40 | | Operating Cost | 48,877,556.63 | 34,160,164.64 | | Operating Profit | 8,396,525.25 | 6,921,244.58 | | Total Profit | 8,397,026.18 | 6,919,811.38 | | Net Profit | 7,784,658.35 | 6,554,665.38 | | Basic EPS (yuan/share) | 0.11 | 0.12 | | Financial Expenses | -1,654,807.95 | -816,259.60 | | Other Income | 5,620,844.27 | 2,745,348.06 | Consolidated Cash Flow Statement Operating cash flow increased by 139.08% to 18.69 million yuan; investment cash flow was -42.54 million yuan due to wealth management product purchases; financing cash flow was -31.36 million yuan primarily from dividend distribution Key Data from Consolidated Cash Flow Statement (Unit: yuan) | Item | 2024年1-6月 | 2023年1-6月 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 18,685,602.07 | 7,815,618.51 | | Net Cash Flow from Investing Activities | -42,535,665.83 | -1,589,105.06 | | Net Cash Flow from Financing Activities | -31,363,078.70 | -4,088,269.60 | | Net Increase in Cash and Cash Equivalents | -55,189,763.14 | 2,356,854.49 | | Period-End Cash and Cash Equivalents Balance | 172,191,507.55 | 69,740,839.12 | Parent Company Cash Flow Statement Parent company operating cash flow turned negative at -63.79 million yuan; investment cash flow was 20.80 million yuan, and financing cash flow was -30.96 million yuan Key Data from Parent Company Cash Flow Statement (Unit: yuan) | Item | 2024年1-6月 | 2023年1-6月 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -63,787,594.81 | 6,956,495.11 | | Net Cash Flow from Investing Activities | 20,800,821.20 | -190,845.90 | | Net Cash Flow from Financing Activities | -30,961,064.34 | -3,383,686.92 | | Net Increase in Cash and Cash Equivalents | -73,940,518.38 | 3,753,308.71 | | Period-End Cash and Cash Equivalents Balance | 143,277,097.93 | 57,581,639.50 | Consolidated Statement of Changes in Shareholders' Equity Consolidated shareholders' equity decreased by 6.64 million yuan; share capital increased by 20.27 million shares from capital reserve capitalization, while retained earnings decreased by 30.41 million yuan due to profit distribution Consolidated Statement of Changes in Shareholders' Equity (Unit: yuan) | Item | Share Capital (yuan) | Capital Reserve (yuan) | Other Comprehensive Income (yuan) | Surplus Reserve (yuan) | Retained Earnings (yuan) | Total Owners' Equity (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Prior Year-End Balance | 50,681,000.00 | 131,035,628.55 | -28,443.41 | 14,489,973.25 | 71,409,801.08 | 267,587,959.47 | | Current Period Change Amount | 20,272,400.00 | -20,272,400.00 | 14,239.50 | - | -6,653,906.70 | -6,639,667.20 | | Period-End Balance | 70,953,400.00 | 110,763,228.55 | -14,203.91 | 14,489,973.25 | 64,755,894.38 | 260,948,292.27 | - Total comprehensive income for the period was 23.77 million yuan, and profit distribution led to a 30.4086 million yuan decrease in retained earnings[73] Parent Company Statement of Changes in Shareholders' Equity Parent company shareholders' equity decreased by 22.62 million yuan; share capital increased from capital reserve capitalization, while retained earnings decreased by 30.41 million yuan due to profit distribution Parent Company Statement of Changes in Shareholders' Equity (Unit: yuan) | Item | Share Capital (yuan) | Capital Reserve (yuan) | Surplus Reserve (yuan) | Retained Earnings (yuan) | Total Owners' Equity (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Prior Year-End Balance | 50,681,000.00 | 130,564,178.56 | 14,489,973.25 | 70,069,811.47 | 265,804,963.28 | | Current Period Change Amount | 20,272,400.00 | -20,272,400.00 | - | -22,623,941.65 | -22,623,941.65 | | Period-End Balance | 70,953,400.00 | 110,291,778.56 | 14,489,973.25 | 47,445,869.82 | 243,181,021.63 | - Total comprehensive income for the period was 7.7847 million yuan, and profit distribution led to a 30.4086 million yuan decrease in retained earnings[78] III. Notes to Financial Statements This section details the basis of financial statement preparation, significant accounting policies and estimates, taxes, notes to consolidated financial statement items, financial instrument risks, related parties and transactions, share-based payments, commitments and contingencies, post-balance sheet events, other significant matters, and notes to parent company financial statement items, providing comprehensive context for financial data Index of Notes to Financial Statements This section indexes key notes to financial statements, covering changes in accounting policies/estimates, prior period corrections, seasonality, related party changes, consolidation scope, securities issuance, and profit distribution, noting profit distribution occurred during the period Index of Notes to Financial Statements | Item | Yes or No | | :--- | :--- | | Change in accounting policies from prior year's financial statements for semi-annual report | √No | | Change in accounting estimates from prior year's financial statements for semi-annual report | √No | | Prior period error correction | √No | | Seasonal or cyclical characteristics in business operations | √No | | Change in related parties with controlling relationships | √No | | Change in consolidation scope of consolidated financial statements | √No | | Securities issuance, repurchase, and repayment | √No | | Profit distribution to owners | √Yes | | Segment reporting disclosed according to accounting standards | √No | | Non-adjusting events between semi-annual balance sheet date and approval date of semi-annual financial report | √No | | Changes in contingent liabilities and assets after prior year-end balance sheet date | √No | | Changes in enterprise structure | √No | | Significant long-term assets transferred or sold | √No | | Significant changes in fixed assets and intangible assets | √No | | Significant R&D expenditures | √No | | Significant asset impairment losses | √No | | Provisions for liabilities | √No | - The company approved the 2023 annual equity distribution plan on April 25 and May 22, 2024, distributing a cash dividend of 6 yuan per 10 shares from retained earnings and transferring 4 bonus shares per 10 shares from capital reserves to all shareholders, totaling 30.4086 million yuan in cash dividends and 20.2724 million bonus shares[82] Notes to Financial Statement Items This section elaborates on the company's basic information, financial statement preparation basis, significant accounting policies and estimates, taxes, specific notes for consolidated financial statement items, financial instrument risks, related party transactions, share-based payments, commitments and contingencies, post-balance sheet events, other significant matters, and notes for parent company financial statement items - The company's main business activities include R&D in electronics, communication, and automatic control technology, electrical equipment manufacturing, and computer technology development and services, with Zhu Xiangjun as the actual controller[83] - Financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis[84][85] - The company's main taxes include VAT (13%, 6%), Urban Maintenance and Construction Tax (7%), Enterprise Income Tax (25%, 15%), Education Surcharge (3%), and Local Education Surcharge (2%)[193] - The company benefits from tax incentives such as immediate VAT refunds for software enterprises, high-tech enterprise income tax preferential rate (15%), and additional input VAT deductions for advanced manufacturing enterprises[195][196][197][198] - The company faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk), managing these through diversified investments, customer credit monitoring, cash flow forecasting, and forward foreign exchange contracts[321][322][323][324][328][329][330] - The company has no parent company, with Zhu Xiangjun as the ultimate controlling party; major subsidiaries include Guangzhou Video-Star Health Technology Co., Ltd., Guangzhou Video-Star Smart Technology Co., Ltd., VINE CONNECTED CORP., and Ganzhou Video-Star Smart Technology Co., Ltd.[332][315][316] - During the reporting period, the company had no related party transactions involving goods/services, entrusted management/contracting, leasing, guarantees, fund transfers, asset transfers, or debt restructuring[336][337][338][339][340][341] Key Management Personnel Compensation (Unit: yuan) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 2,093,199.76 | 1,276,482.21 | - During the reporting period, the company had no share-based payments, new significant commitments, or contingent events[345][346] Part VIII Reference Documents Reference Documents This section lists the semi-annual report's reference documents, including financial statements signed by key personnel, original audit reports (if any), and all publicly disclosed company documents and announcements, available at Guangzhou Video-Star Smart Co., Ltd.'s Board Secretary Office - Reference documents include financial statements bearing the signatures and seals of the company's head, chief accountant, and head of accounting department (accounting supervisor)[373] - Reference documents include original audit reports (if any) bearing the seal of the accounting firm and signatures and seals of certified public accountants[373] - Reference documents include originals of all company documents and announcements publicly disclosed on designated information disclosure platforms during the reporting period[373] - The documents are available at the Board Secretary's Office of Guangzhou Video-Star Smart Co., Ltd.[373]