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豪声电子(838701) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides general assurances, outlines significant risks, and defines key terms used throughout the report Important Notice The company's directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this report's content without objection, noting that this semi-annual report has not been audited by an accounting firm, and forward-looking statements regarding future plans do not constitute a substantive commitment - The company's directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the report's content, with no objections67 - This semi-annual report has not been audited by an accounting firm6 - Forward-looking statements regarding future plans in the report do not constitute a substantive commitment by the company to investors6 Significant Risk Warning The company is not at risk of delisting, but investors should pay attention to the significant risk factors analyzed in "Section III Accounting Data and Operating Performance" - The company is not at risk of delisting8 - Significant risk factors are detailed in "Section III Accounting Data and Operating Performance" under "XIV. Risks Faced by the Company and Countermeasures"8 Definitions This section provides definitions for common terms used in the report, including company names, subsidiaries, related parties, laws, regulations, institutional names, and financial reporting periods - "Company," "the Company," and "Haosheng Electronics" are defined as Zhejiang Haosheng Electronics Technology Co., Ltd9 - The reporting period refers to the first half of 2024, and the end of the reporting period is June 30, 20249 Company Profile This section provides basic information about the company, its contact details, disclosure information, enterprise details, registration changes, intermediary agencies, and voluntary disclosures Basic Information The company's stock abbreviation is Haosheng Electronics, stock code is 838701, and legal representative is Xu Ruigen Company Basic Information | Indicator | Content | | :----------------- | :----------------------------------------- | | Stock Abbreviation | Haosheng Electronics | | Stock Code | 838701 | | Company Full Name | Zhejiang Haosheng Electronics Technology Co., Ltd. | | Legal Representative | Xu Ruigen | Contact Information The company's Board Secretary is Yan Jin, and the office address is No. 8 Qiantang River Road, Huimin Street, Jiashan County, Jiaxing City, Zhejiang Province - Board Secretary: Yan Jin11 - Company Office Address: No. 8 Qiantang River Road, Huimin Street, Jiashan County, Jiaxing City, Zhejiang Province11 Information Disclosure and Document Availability The company's interim report is the 2024 semi-annual report, disclosed on the Beijing Stock Exchange website (www.bse.cn) and available at the Board Secretary's office - Company Interim Report Disclosure Website: www.bse.cn[12](index=12&type=chunk) - Company Interim Report Availability Location: Board Secretary's Office12 Enterprise Information The company was listed on the Beijing Stock Exchange on July 19, 2023, primarily engaged in R&D, production, and sales of micro-speakers/receivers and other electro-acoustic components and audio products, belonging to the computer, communication, and other electronic equipment manufacturing industry - Company Stock Exchange: Beijing Stock Exchange, Listing Date: July 19, 202313 - Industry Classification: C Manufacturing - C39 Computer, Communication and Other Electronic Equipment Manufacturing - C398 Electronic Components and Electronic Special Materials Manufacturing - C3984 Electro-acoustic Devices and Parts Manufacturing13 - Main Products and Services: R&D, production, and sales of micro-speakers/receivers and other electro-acoustic components and audio products13 - Total Ordinary Share Capital: 98,000,000 shares13 - Controlling Shareholder is Jiashan Ruiheng, actual controllers are Xu Ruigen, Chen Meilin, and their concerted parties Xu Ya, Zhang Yuan13 Registration Changes Registration changes for the company are not applicable during the reporting period Intermediary Agencies The company's sponsor for continuous supervision during the reporting period is Shenwan Hongyuan Securities Underwriting & Sponsorship Co., Ltd., with the supervision period extending to December 31, 2026 - Sponsor: Shenwan Hongyuan Securities Underwriting & Sponsorship Co., Ltd14 - Continuous Supervision Period: July 19, 2023, to December 31, 202614 Voluntary Disclosure The company has no voluntary disclosure matters during the reporting period Post-Reporting Period Updates The company has no updates after the reporting period Accounting Data and Operating Performance This section details key financial metrics, non-recurring gains/losses, business overview, operational review, financial analysis, and risk factors Key Accounting Data and Financial Indicators In the first half of 2024, the company's operating revenue increased by 26.61% year-on-year, and net profit attributable to shareholders surged by 725.13%, primarily due to asset disposal gains. Non-recurring net profit decreased by 89.55% year-on-year, mainly due to declining gross margin, increased credit impairment losses, and inventory write-downs. Solvency and operational efficiency indicators show a decrease in asset-liability ratio and improved current ratio, but net cash flow from operating activities turned negative 2024 First Half Key Financial Indicators | Indicator | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--------------------------------------------------------------------- | :------------------- | :---------------------- | :--------- | | Operating Revenue | 369,946,442.46 | 292,184,237.36 | 26.61 | | Gross Margin (%) | 10.62 | 14.29 | - | | Net Profit Attributable to Shareholders of Listed Company | 143,188,915.84 | 17,353,418.91 | 725.13 | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | 1,104,099.25 | 10,566,716.62 | -89.55 | | Weighted Average Return on Net Assets % (based on net profit attributable to shareholders) | 18.99 | 5.25 | - | | Weighted Average Return on Net Assets % (based on net profit attributable to shareholders after non-recurring gains and losses) | 0.15 | 3.20 | - | | Basic Earnings Per Share (yuan) | 1.46 | 0.24 | 508.33 | | Net Cash Flow from Operating Activities | -20,555,844.41 | 12,526,987.27 | -264.09 | | Total Assets | 1,118,991,470.98 | 1,121,116,900.24 | -0.19 | | Total Liabilities | 342,258,777.86 | 438,573,122.96 | -21.96 | | Net Assets Attributable to Shareholders of Listed Company | 776,732,693.12 | 682,543,777.28 | 13.80 | | Asset-Liability Ratio % (Consolidated) | 30.59 | 39.12 | - | | Current Ratio | 1.88 | 1.48 | - | | Accounts Receivable Turnover Ratio | 1.53 | 1.67 | - | | Inventory Turnover Ratio | 3.91 | 3.07 | - | - The significant increase in net profit is mainly due to the company completing the relocation and handover of its operating premises at No. 328 Huimin Avenue, Huimin Street, in the first quarter, recognizing a substantial asset disposal gain26 - Net profit after deducting non-recurring gains and losses decreased by 89.55% year-on-year, primarily due to a decrease in gross margin for micro electro-acoustic components, increased credit impairment losses from higher accounts receivable, increased period expenses, and increased inventory write-down losses2627 - Net cash flow from operating activities was -20.56 million yuan, a year-on-year decrease of 264.09%, mainly due to large corporate income tax payments and increased production costs181941 Non-Recurring Gains and Losses and Amounts During the reporting period, the company's net non-recurring gains and losses amounted to 142 million yuan, primarily from non-current asset disposal gains, significantly impacting net profit Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :------------------------------------------------------------------------------------------------------------------------------------------ | :------------- | | Gains or losses from disposal of non-current assets | 163,664,461.78 | | Government grants recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 553,300.00 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities, excluding effective hedging activities related to normal business operations | 2,206,220.98 | | Gains or losses from entrusted investment or asset management | 166,576.91 | | Other non-operating income and expenses apart from the above items | 596,269.16 | | Total Non-Recurring Gains and Losses | 167,186,828.83 | | Less: Income tax impact | 25,102,012.24 | | Net Non-Recurring Gains and Losses | 142,084,816.59 | Supplementary Financial Indicators The company has no supplementary financial indicators to disclose during the reporting period Changes in Accounting Policies, Accounting Estimates, or Significant Error Corrections During the reporting period, the company experienced changes in accounting policies, detailed in Section VII Financial Accounting Report / III. Notes to Financial Statements / (II) Notes to Financial Statement Items / III. (XXXI) Changes in Significant Accounting Policies and Accounting Estimates - The company had changes in accounting policies in the current period, with specific details in the notes to the financial statements23 Differences in Accounting Data under Domestic and Overseas Accounting Standards There are no differences in accounting data under domestic and overseas accounting standards for the company during the reporting period Business Overview The company primarily engages in R&D, production, and sales of micro electro-acoustic components and audio electro-acoustic products, with no significant changes in its business model during the reporting period. The company holds multiple 'Specialized, Refined, Unique, and Innovative' and 'High-tech Enterprise' certifications, demonstrating its professional capabilities and technological advantages in the electro-acoustic industry - The company operates in the electro-acoustic industry, with its main business being the R&D, production, and sales of micro electro-acoustic components and audio electro-acoustic products24 - The company's products are widely used in consumer electronics such as mobile phones, tablet computers, smartwatches, and laptops, as well as in automotive, yacht, and home consumer and entertainment products24 - During the reporting period, the company's business model remained unchanged, primarily generating revenue and profit through the production and sale of electro-acoustic components25 - The company has been recognized as a "Provincial/Municipal Specialized, Refined, Unique, and Innovative" enterprise and a "High-tech Enterprise," and possesses multiple certifications including the Zhejiang Haosheng Communication Electro-acoustic Technology Provincial High-tech Enterprise Research and Development Center25 Review of Operating Performance In the first half of 2024, the company's operating revenue increased by 26.61% year-on-year, benefiting from the consumer electronics industry's recovery. Net profit surged primarily due to asset disposal gains, while non-recurring net profit decreased due to declining gross margin, increased credit impairment, and inventory write-downs. The company continued to advance fundraising projects, increase R&D investment, and completed the 2023 equity distribution. The electro-acoustic industry market continues to grow, with AI technology adoption expected to bring broader development opportunities - In the first half of 2024, the company's operating revenue was 369.95 million yuan, a 26.61% year-on-year increase, mainly due to the recovery of the consumer electronics industry and easing downstream competition, with the company's price-for-volume strategy showing initial results26 - Net profit before non-recurring items was 143.19 million yuan, a 725.13% year-on-year increase, primarily because the company completed the relocation and handover of its operating premises at No. 328 Huimin Avenue, Huimin Street, in the first quarter, recognizing a substantial asset disposal gain26 - Net profit after deducting non-recurring gains and losses was 1.10 million yuan, a 89.55% year-on-year decrease, mainly due to a decrease in gross margin for micro electro-acoustic components, increased credit impairment losses from higher accounts receivable, increased period expenses, and increased inventory write-down losses2627 - The company's initial public offering raised 215.6 million yuan, and as of June 30, 2024, 101.53 million yuan of the raised funds had been used, accounting for 52.68% of the net proceeds, primarily for expansion projects and supplementing working capital27 - During the reporting period, the company obtained 1 authorized patent (invention patent), accumulating a total of 64 authorized patents (5 invention patents, 59 utility model patents), and passed IATF 16949:2016 management system certification27 - The company completed its 2023 annual equity distribution on July 11, 2024, distributing a total cash dividend of 49 million yuan (tax inclusive)27 - The global consumer electronics industry continues its recovery, with global smartphone shipments increasing by 6.5% year-on-year in the second quarter of 2024, and the market size is expected to grow at a CAGR of 7.63% from 2024 to 203229 - In the future, with global economic recovery and the widespread application of AI technology, the consumer electronics market is expected to usher in broader development opportunities29 Financial Analysis This section provides a detailed analysis of the company's asset-liability structure, operating performance, and cash flow. Significant changes in the asset-liability structure, such as monetary funds, notes receivable, and construction in progress, are primarily influenced by asset disposals, endorsement of bills, and reduced prepayments. Operating performance shows substantial growth in both operating revenue and net profit, though non-recurring net profit declined. Cash flow from operating activities turned negative, investment cash outflows increased, and financing cash outflows significantly decreased 1. Asset-Liability Structure Analysis At the end of the period, the company's total assets were 1.119 billion yuan, total liabilities 342 million yuan, and net assets 777 million yuan. Compared to the end of the previous year, total liabilities decreased by 21.96%, and net assets increased by 13.80%. Key changes include decreases in notes receivable, construction in progress, prepayments, notes payable, employee compensation payable, taxes payable, and non-current liabilities due within one year, alongside significant increases in other receivables, other payables, and undistributed profits Asset-Liability Structure Major Changes | Item | Period-End Amount (yuan) | Prior Year-End Amount (yuan) | Change (%) | | :--------------------------------- | :------------------- | :--------------------- | :--------- | | Total Assets | 1,118,991,470.98 | 1,121,116,900.24 | -0.19 | | Total Liabilities | 342,258,777.86 | 438,573,122.96 | -21.96 | | Net Assets Attributable to Shareholders | 776,732,693.12 | 682,543,777.28 | 13.80 | | Monetary Funds | 146,116,434.23 | 207,477,221.95 | -29.57 | | Notes Receivable | 43,474,007.86 | 65,598,552.51 | -33.73 | | Accounts Receivable | 236,954,101.21 | 197,866,796.64 | 19.75 | | Inventories | 84,874,737.28 | 72,017,897.06 | 17.85 | | Fixed Assets | 394,152,212.70 | 368,869,599.09 | 6.85 | | Construction in Progress | 24,806,963.05 | 45,840,773.51 | -45.88 | | Intangible Assets | 54,133,995.21 | 57,339,996.21 | -5.59 | | Notes Receivable Financing | 37,748,026.00 | 60,219,810.30 | -37.32 | | Prepayments | 1,606,658.89 | 9,318,104.54 | -82.76 | | Other Receivables | 33,363,384.64 | 1,410,073.07 | 2,266.07 | | Other Current Assets | 484,431.39 | 13,370,344.77 | -96.38 | | Notes Payable | 35,527,470.36 | 71,284,478.12 | -50.16 | | Employee Compensation Payable | 13,254,437.84 | 19,899,608.61 | -33.39 | | Taxes Payable | 12,537,151.85 | 29,507,228.63 | -57.51 | | Other Payables | 50,141,079.83 | 1,219,686.34 | 4,010.98 | | Non-Current Liabilities Due Within One Year | - | 81,450,527.80 | -100.00 | | Undistributed Profits | 366,560,634.91 | 272,371,719.07 | 34.58 | - The decrease in notes receivable and notes receivable financing is mainly due to an increase in the amount of bank acceptance bills endorsed and transferred in the current period32 - Other receivables significantly increased by 2,266.07%, mainly due to 31.87 million yuan in compensation receivables for relocation at period-end32 - Other payables significantly increased by 4,010.98%, mainly due to a 49 million yuan dividend payable for ordinary shares at period-end32 - Non-current liabilities due within one year decreased by 100%, mainly because the company completed the vacating and key handover of the remaining area at No. 328 Huimin Avenue, with corresponding liabilities transferred and recognized as asset disposal gains32 - Undistributed profits increased by 34.58%, mainly due to the recognition of a substantial asset disposal gain in the current period, leading to an increase in net profit attributable to the parent company32 2. Operating Performance Analysis During the reporting period, the company's operating revenue increased by 26.61% year-on-year, with operating profit and net profit growing by 993.96% and 725.13% respectively, primarily due to asset disposal gains. However, non-recurring net profit decreased by 89.55% year-on-year, indicating pressure on core business profitability, declining gross margin, and increased credit impairment and inventory write-down losses Profit Composition Major Changes | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--------------------------------- | :------------------- | :---------------------- | :--------- | | Operating Revenue | 369,946,442.46 | 292,184,237.36 | 26.61 | | Operating Cost | 330,674,602.75 | 250,426,511.09 | 32.04 | | Gross Margin | 10.62% | 14.29% | - | | Administrative Expenses | 19,621,149.98 | 14,234,679.64 | 37.84 | | Financial Expenses | -4,129,870.40 | -1,324,023.62 | 211.92 | | Credit Impairment Losses | -4,285,793.15 | -1,221,628.54 | 250.83 | | Asset Impairment Losses | -3,436,774.43 | -390,554.74 | 779.97 | | Asset Disposal Gains | 163,664,461.78 | 448,830.99 | 36,364.61 | | Operating Profit | 165,345,171.74 | 15,114,423.89 | 993.96 | | Net Profit | 143,188,915.84 | 17,353,418.91 | 725.13 | | Net Profit After Non-Recurring Gains and Losses | 1,104,099.25 | 10,566,716.62 | -89.55 | - Operating costs increased by 32.04%, mainly due to increased sales leading to a synchronous increase in production costs, as well as increased depreciation of new factory buildings and labor costs35 - Administrative expenses increased by 37.84%, mainly due to increased administrative labor costs and depreciation and amortization of new office buildings35 - Credit impairment losses increased by 250.83%, mainly due to higher bad debt provisions resulting from an increase in accounts receivable balance at period-end35 - Asset impairment losses increased by 779.97%, mainly due to increased inventory write-down provisions35 - Asset disposal gains significantly increased by 36,364.61%, mainly due to the completion of the relocation and handover of the production and operating premises at No. 328 Huimin Avenue, Huimin Street, recognizing a substantial asset disposal gain35 Revenue Composition by Product and Region | Category/Item | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Operating Revenue Change YoY (%) | Operating Cost Change YoY (%) | Gross Margin Change YoY | | :----------------- | :------------------- | :------------------ | :------- | :----------------------- | :---------------------- | :-------------------- | | By Product | | | | | | | | Micro Electro-acoustic Components | 307,133,129.39 | 286,744,482.88 | 6.64 | 31.21 | 34.21 | Decreased by 2.08 percentage points | | Audio Electro-acoustic Products | 59,096,490.56 | 43,024,230.44 | 27.20 | 5.96 | 17.96 | Decreased by 7.41 percentage points | | Other | 3,716,822.51 | 905,889.43 | 75.63 | 59.09 | 200.17 | Decreased by 11.45 percentage points | | By Region | | | | | | | | Domestic | 323,205,130.39 | 296,385,983.40 | 8.30 | 33.80 | 36.39 | Decreased by 1.73 percentage points | | International | 46,741,312.07 | 34,288,619.35 | 26.64 | -7.68 | 3.56 | Decreased by 7.96 percentage points | - Main business revenue increased by 26.35% year-on-year, mainly due to the recovery of the consumer electronics industry and the initial success of the company's price-for-volume strategy, with sales of both micro electro-acoustic products and audio products growing39 - Domestic sales revenue increased by 33.80%, while international sales revenue decreased by 7.68%, mainly affected by the recovery of the domestic consumer electronics industry and geopolitical conflicts and high inflation abroad39 3. Cash Flow Status During the reporting period, the company's net cash flow from operating activities was negative, cash outflow from investing activities significantly increased, and cash outflow from financing activities substantially decreased Cash Flow Status | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | Change (%) | | :--------------------------------- | :------------------- | :----------------- | :--------- | | Net Cash Flow from Operating Activities | -20,555,844.41 | 12,526,987.27 | -264.09 | | Net Cash Flow from Investing Activities | -36,245,290.85 | 44,681,582.07 | -181.12 | | Net Cash Flow from Financing Activities | - | -74,139,567.16 | -100.00 | - Net cash flow from operating activities decreased by 264.09%, mainly due to large income tax payments and increased production costs41 - Net cash flow from investing activities changed by -181.12%, mainly due to an increase in cash paid for investments in the current period41 - Net cash flow from financing activities decreased by 100%, mainly because there were no borrowings or debt repayments in the current period41 4. Investment in Wealth Management Products During the reporting period, the company invested a total of 169 million yuan in bank wealth management products, of which 38 million yuan was idle raised funds, with an outstanding balance of 38 million yuan at period-end, all without overdue unrecovered amounts Investment in Wealth Management Products | Wealth Management Product Type | Source of Funds | Amount Incurred (yuan) | Unmatured Balance (yuan) | | :--------------------------- | :-------------- | :------------------- | :------------------- | | Bank Wealth Management Product | Idle self-owned funds | 46,000,000.00 | 0.00 | | Bank Wealth Management Product | Idle self-owned funds | 5,000,000.00 | 0.00 | | Bank Wealth Management Product | Idle raised funds | 38,000,000.00 | 38,000,000.00 | | Bank Wealth Management Product | Idle raised funds | 40,000,000.00 | 0.00 | | Bank Wealth Management Product | Idle raised funds | 40,000,000.00 | 0.00 | | Total | | 169,000,000.00 | 38,000,000.00 | - The company has no single significant entrusted wealth management product, or low-safety, low-liquidity, high-risk entrusted wealth management products41 Analysis of Major Holding and Associate Companies The company's main holding subsidiary, Jiashan Huihao Electronics Co., Ltd., primarily processes, produces, and sells micro-speakers and receivers, achieving operating revenue of 56.10 million yuan and net profit of 0.13 million yuan during the reporting period. The associate company, Zhejiang Jiashan United Rural Commercial Bank Co., Ltd., mainly conducts banking business, with the company holding shares to support local economic development and gain investment returns Major Holding and Associate Companies Operating Performance | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :----------------------------------- | :----------- | :---------------------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Jiashan Huihao Electronics Co., Ltd. | Holding Subsidiary | Processing, production, and sales of micro-speakers, receivers, etc. | 3,000,000.00 | 14,803,923.65 | 4,976,007.49 | 56,097,606.18 | 126,147.83 | | Zhejiang Jiashan United Rural Commercial Bank Co., Ltd. | Associate Company | Absorbing public deposits, issuing short-term, medium-term, and long-term loans, and other banking businesses. | 200,000,000.00 | 4,436,158,549.77 | 464,162,119.00 | 120,783,086.16 | 26,792,402.95 | - The company's purpose in investing in Zhejiang Jiashan United Rural Commercial Bank Co., Ltd. is to support local economic development and obtain investment returns43 - During the reporting period, the company had no acquisitions or disposals of subsidiaries, and the scope of consolidation for the consolidated financial statements remained unchanged44 Information on Structured Entities Controlled by the Company The company has no controlled structured entities during the reporting period Explanation of Key Audit Matters The company has no explanation of key audit matters during the reporting period Corporate Social Responsibility The company highly values corporate social responsibility, operating with integrity, paying taxes lawfully, and safeguarding the legitimate rights and interests of shareholders, employees, suppliers, and customers. It has established a comprehensive employee training and welfare system and implemented various environmental protection measures to ensure pollutant discharge meets standards - The company strictly adheres to laws and regulations, improves its corporate governance structure and internal control system, actively fulfills information disclosure obligations, and protects the legitimate rights and interests of shareholders, especially small and medium shareholders44 - The company prioritizes employee rights protection, establishing a comprehensive training system and compensation and welfare system, paying social insurance for employees, and providing excellent accommodation45 - The company strengthens communication and cooperation with suppliers and customers, respects and protects their legitimate rights and interests, achieving win-win outcomes for all parties45 - The company is not in a heavily polluting industry; its pollutants mainly include small amounts of waste gas, domestic sewage, noise, and solid waste, and it takes corresponding measures to treat them, ensuring compliance with discharge standards46 Situations of Unprofitability or Accumulated Uncovered Losses During the Reporting Period The company was not unprofitable and had no accumulated uncovered losses during the reporting period Forecast of Operating Performance for January-September 2024 The company did not provide a forecast for its operating performance for January-September 2024 during the reporting period Risks Faced by the Company and Countermeasures The company faces multiple risks, including core technology leakage, intensified market competition, customer concentration, talent loss, accounts receivable bad debts, and lower-than-expected returns from fundraising projects. The company has implemented or plans to implement a series of countermeasures, such as strengthening technical confidentiality, enhancing R&D capabilities, expanding markets, improving incentive mechanisms, and intensifying accounts receivable collection, to mitigate risks and ensure sustainable development - Risk of core technology leakage: The company has established strict technical confidentiality systems, signed "Confidentiality and Non-Compete Agreements" with core technical personnel, and places high importance on intellectual property protection47 - Market competition risk: The company will continuously enhance R&D capabilities and production equipment levels, improve product technical content and added value, strengthen market marketing network construction, and flexibly adjust sales strategies49 - Customer concentration risk: Sales to the company's top five customers account for a relatively high proportion; the company will enhance promotion capabilities, acquire new customers, and strive to improve production management, design and development capabilities, and market responsiveness to stabilize existing customers49 - Talent loss risk: The company will further improve employee compensation incentives, promotion channels, career planning, and corporate culture incentive mechanisms to retain core talent49 - Risk of accounts receivable bad debts: At period-end, the book value of accounts receivable was 237 million yuan, accounting for 21.18% of total assets; the company will intensify collection efforts and assign target responsibilities to key personnel49 - Risk of lower-than-expected returns from fundraising projects: The company will increase marketing efforts, deeply explore sales potential, improve product market share through active marketing measures, and enhance product quality and brand awareness50 - No significant changes occurred in major risks during the current period50 Significant Events This section covers an overview and details of significant events, including related party transactions, asset acquisitions/disposals, external investments, commitments, and asset restrictions Overview of Significant Events During the reporting period, the company had significant related party transactions, shareholder-approved acquisitions/disposals of assets/external investments/business combinations, disclosed commitments, and assets subject to seizure/detention/freezing/mortgage/pledge - The company had significant related party transactions51 - The company had shareholder-approved acquisitions, disposals of assets, external investments, and business combinations during the reporting period51 - The company had disclosed commitments51 - The company had assets subject to seizure, detention, freezing, mortgage, or pledge51 Details of Significant Events This section details significant events during the reporting period, including no litigation or arbitration, no fund occupation by shareholders or related parties, anticipated routine related party transactions and creditor-debtor relationships, shareholder approval for using idle funds for wealth management and cash management, normal fulfillment of disclosed commitments, and pledged restrictions on some monetary funds and notes receivable (I) Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters in this reporting period52 (II) Occupation or Transfer of Company Funds, Assets, and Other Resources by Shareholders and Their Related Parties There was no occupation or transfer of company funds, assets, or other resources by shareholders or their related parties during the reporting period - There was no occupation or transfer of company funds, assets, or other resources by shareholders or their related parties in this reporting period52 (III) Significant Related Party Transactions During the Reporting Period The company anticipates total routine related party transactions of 2.2 million yuan in 2024, primarily involving the purchase of raw materials, fuel, power, acceptance of services, and other items. At period-end, there were monetary fund transactions with Zhejiang Jiashan United Rural Commercial Bank Co., Ltd. and accounts payable with Jiashan Luoxingge Junting Hotel Co., Ltd - The company anticipates routine related party transactions totaling 2.2 million yuan in 2024 with Jiashan Luoxingge Junting Hotel Co., Ltd., Zhejiang Jiashan Meiyuan Hotel Co., Ltd., Jiashan County Economic Development Zone (Huimin Street) Chamber of Commerce, Changzhou Qichang Import and Export Co., Ltd., and Zhejiang Jiashan United Rural Commercial Bank Co., Ltd52 Significant Routine Related Party Transactions Estimated vs. Actual Amounts | Specific Matter Type | Estimated Amount (yuan) | Actual Amount (yuan) | | :--------------------------- | :-------------------- | :------------------- | | Sales of products, goods, provision of services | 1,000,000.00 | 0.00 | | Other | 1,200,000.00 | 155,412.16 | Creditor-Debtor Transactions with Related Parties | Related Party | Account Item | Beginning Balance (yuan) | Amount Incurred in Current Period (yuan) | Ending Balance (yuan) | | :----------------------------------- | :----------- | :--------------------- | :------------------------------- | :------------------ | | Zhejiang Jiashan United Rural Commercial Bank Co., Ltd. | Monetary Funds | 891,058.10 | 473,766.74 | 1,364,824.84 | | Jiashan Luoxingge Junting Hotel Co., Ltd. | Accounts Payable | 42,876.42 | -8,358.19 | 34,518.23 | (IV) Acquisitions, Disposals of Assets, External Investments, and Business Combinations Approved by Shareholders' Meeting During the Reporting Period The company's shareholders' meeting approved the use of up to 200 million yuan of idle self-owned funds and up to 80 million yuan of idle raised funds for cash management, investing in low-risk, high-security, and highly liquid wealth management products to enhance capital utilization efficiency and investment returns - The company plans to use up to 200 million yuan of idle self-owned funds to purchase wealth management products, with the investment quota being revolving and single investment terms not exceeding 12 months5456 - The company plans to use up to 80 million yuan of idle raised funds for cash management, purchasing low-risk, high-security, and highly liquid wealth management products, with funds being revolving and proposed investment product terms not exceeding 12 months56 (V) Fulfillment of Commitments The company had no new commitments during the reporting period, and all previously disclosed commitments were fulfilled normally, with no breaches of commitment - The company had no new commitments, and previously disclosed commitments are detailed in the "Prospectus" disclosed on June 28, 202357 - During the reporting period, there were no significant changes in relevant commitments, and all committers fulfilled their commitments normally, with no breaches of commitment57 (VI) Assets Subject to Seizure, Detention, Freezing, Mortgage, or Pledge At period-end, the company had 29.83 million yuan in restricted assets, accounting for 2.66% of total assets, primarily pledged monetary funds and notes receivable for bank acceptance bill deposits, letter of credit deposits, and endorsed or discounted bills not derecognized, with no adverse impact on the company's continuous operations Restricted Assets | Asset Name | Asset Category | Type of Restriction | Book Value (yuan) | Percentage of Total Assets (%) | | :--------- | :------------- | :------------------ | :---------------- | :----------------------------- | | Monetary Funds | Current Assets | Pledge | 10,758,494.18 | 0.96 | | Notes Receivable | Current Assets | Pledge | 19,072,977.28 | 1.70 | | Total | - | - | 29,831,471.46 | 2.66 | - Asset restrictions are mainly due to pledges for the company's issuance of bank bills and application for bank loans, which are beneficial for the company's normal capital turnover and main business development, and do not adversely affect the company's continuous operations or management stability59 Share Changes and Financing This section covers common stock changes, changes in controlling shareholders, use of raised funds, preferred shares, bond financing, convertible bonds, equity distribution, and special voting rights arrangements Common Stock Capital Situation During the reporting period, the company's total share capital remained unchanged at 98,000,000 shares, but unrestricted shares increased and restricted shares decreased due to the lifting of sales restrictions on strategic investors' holdings. The top ten shareholders' equity remained stable, with the actual controllers and their concerted parties collectively controlling 60.82% of the company's shares Common Stock Capital Structure Changes | Share Nature | Beginning of Period Quantity (shares) | Beginning of Period Ratio (%) | Current Period Change (shares) | End of Period Quantity (shares) | End of Period Ratio (%) | | :------------------- | :---------------------------- | :-------------------- | :--------------------- | :-------------------- | :-------------------- | | Unrestricted Shares | 19,601,000 | 20.00 | 4,900,000 | 24,501,000 | 25.00 | | Restricted Shares | 78,399,000 | 80.00 | -4,900,000 | 73,499,000 | 75.00 | | Total Share Capital | 98,000,000 | - | 0 | 98,000,000 | - | - During the reporting period, the company applied to lift sales restrictions on 4,900,000 shares held by strategic investors, with a tradable date of March 15, 202461 Top 10 Shareholders or Shareholders Holding 5% or More | No. | Shareholder Name | Shareholder Nature | End of Period Shareholding (shares) | End of Period Shareholding Ratio (%) | | :-- | :----------------------------------- | :----------------- | :-------------------------- | :--------------------------- | | 1 | Jiashan Ruiheng Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 24,084,800 | 24.58 | | 2 | Xu Ruigen | Domestic Natural Person | 17,122,560 | 17.47 | | 3 | Chen Meilin | Domestic Natural Person | 11,680,640 | 11.92 | | 4 | Jiaxing Meihe Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 4,592,000 | 4.69 | | 5 | Zhang Yuan | Domestic Natural Person | 3,700,000 | 3.78 | | 6 | Xu Ya | Domestic Natural Person | 3,600,000 | 3.67 | | 7 | Jiaxing Meixing Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2,120,000 | 2.16 | | 8 | Employee Xu Ruigen | Domestic Natural Person | 2,100,000 | 2.14 | | 9 | Chen Qilin | Domestic Natural Person | 2,100,000 | 2.14 | | 10 | Chen Chunqiang | Domestic Natural Person | 1,400,000 | 1.43 | | Total | - | - | 72,500,000 | 73.98 | - The company's actual controllers, Xu Ruigen and Chen Meilin, directly and indirectly control 60.82% of the voting rights of the company65 Changes in Controlling Shareholder and Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period Issuance of Common Stock and Use of Raised Funds During the Reporting Period The company was listed on the Beijing Stock Exchange on July 19, 2023, with net proceeds from the initial public offering of 192.7 million yuan, primarily for expansion projects and supplementing working capital. As of June 30, 2024, 101.5 million yuan of the raised funds had been used, accounting for 52.68% of the net proceeds, with no changes in the use of raised funds - The company was listed on the Beijing Stock Exchange on July 19, 2023, with total proceeds from the initial public offering of 215.6 million yuan, and net proceeds of 192.7 million yuan after deducting issuance expenses63 - The raised funds are planned to be invested in the expansion project for an annual output of 35 million micro-receivers, 25 million micro-speakers, and 55 million micro-speaker integrated modules (Project 1) for 142.7 million yuan, and to supplement working capital (Project 2) for 50 million yuan63 - As of June 30, 2024, Project 1 had used 51.4754 million yuan of raised funds, and Project 2 had used 50.0505 million yuan, totaling 101.5260 million yuan used, accounting for 52.68% of the net raised funds63 - During the reporting period, the company did not change the use of raised funds63 Information on Preferred Shares Existing in the Current Period The company had no preferred shares existing in the current period during the reporting period Bond Financing Situation Existing up to the Approval Date of the Interim Report The company had no bond financing existing up to the approval date of the interim report during the reporting period Information on Convertible Bonds Existing in the Current Period The company had no convertible bonds existing in the current period during the reporting period Equity Distribution The company's 2023 annual equity distribution plan complied with the articles of association and relevant laws and regulations, completed on July 11, 2024, distributing a cash dividend of 5.00 yuan (tax inclusive) per 10 shares to all shareholders, totaling 49 million yuan - The company's 2023 annual equity distribution plan complies with the articles of association and relevant laws and regulations63 - The company completed its 2023 annual equity distribution on July 11, 2024, distributing a total cash dividend of 49 million yuan (tax inclusive)2797 Special Voting Rights Arrangement The company had no special voting rights arrangements during the reporting period Changes in Directors, Supervisors, Senior Management, and Core Employees This section details the composition and changes of the board, supervisory board, senior management, and employee structure Information on Directors, Supervisors, and Senior Management The company's board of directors consists of 9 directors, the supervisory board has 3 supervisors, and there are 3 senior management personnel. During the reporting period, the basic information and shareholdings of directors, supervisors, and senior management remained stable with no changes. The company's actual controllers, Xu Ruigen and Chen Meilin, and their concerted parties, have related party relationships with several directors, supervisors, and senior management - The company's board of directors has 9 members, the supervisory board has 3 members, and there are 3 senior management personnel65 - The company's actual controllers, Xu Ruigen and Chen Meilin, are the company's Chairman and General Manager, and Director, respectively, and have related party relationships with several directors, supervisors, senior management, and shareholders65 Partial Directors, Supervisors, and Senior Management Shareholding | Name | Position | End of Period Ordinary Shareholding (shares) | End of Period Ordinary Shareholding Ratio (%) | | :--------- | :------------------- | :----------------------------------- | :------------------------------------ | | Xu Ruigen | Chairman and General Manager | 17,122,560 | 17.47 | | Chen Meilin | Director | 11,680,640 | 11.92 | | Chen Chunqiang | Director | 1,400,000 | 1.43 | - During the reporting period, there were no changes in the company's Chairman, General Manager, Board Secretary, Chief Financial Officer, or Independent Directors67 Employee Information As of the end of the reporting period, the company and its controlled subsidiaries had a total of 1,281 employees, with production personnel accounting for the largest proportion. Employee education levels are primarily below college, with 3 PhDs, 0 Masters, 35 Bachelors, and 156 Associate Degrees Employee Basic Information (by Job Nature) | By Job Nature | Beginning of Period Headcount | New Hires in Current Period | Departures in Current Period | End of Period Headcount | | :----------------- | :-------------------- | :------------------ | :------------------- | :------------------ | | Production Personnel | 936 | 46 | | 982 | | Sales Personnel | 22 | 2 | | 24 | | Technical Personnel | 150 | | 7 | 143 | | Financial Personnel | 9 | | 1 | 8 | | Administrative Personnel | 126 | | 2 | 124 | | Total Employees | 1,243 | 48 | 10 | 1,281 | Employee Basic Information (by Education Level) | By Education Level | Beginning of Period Headcount | End of Period Headcount | | :----------------- | :-------------------- | :------------------ | | PhD | | 3 | | Master's | | 0 | | Bachelor's | | 35 | | Associate Degree | | 156 | | Below Associate Degree | | 1,087 | | Total Employees | 1,243 | 1,281 | Post-Reporting Period Updates The company has no updates after the reporting period Financial Accounting Report This section includes the audit report, financial statements (balance sheets, income statements, cash flow statements, and statements of changes in equity), and detailed notes to the financial statements Audit Report This semi-annual financial accounting report has not been audited - This financial accounting report has not been audited68 Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity for the first half of 2024, reflecting the financial position at period-end, operating results, and cash flow during the first half of the year - The consolidated balance sheet shows that as of June 30, 2024, the company's total assets were 1.119 billion yuan, total liabilities 342 million yuan, and owners' equity 777 million yuan71 - The consolidated income statement shows that from January to June 2024, the company's total operating revenue was 370 million yuan, and net profit was 143 million yuan78 - The consolidated cash flow statement shows that from January to June 2024, net cash flow from operating activities was -20.56 million yuan, net cash flow from investing activities was -36.25 million yuan, and net cash flow from financing activities was -74.14 million yuan84 (I) Consolidated Balance Sheet As of June 30, 2024, the company's consolidated total assets were 1.119 billion yuan, total liabilities 342 million yuan, and total owners' equity 777 million yuan. Compared to the end of 2023, total assets slightly decreased, total liabilities decreased, and owners' equity increased - As of June 30, 2024, consolidated total assets were 1,118,991,470.98 yuan, total liabilities 342,258,777.86 yuan, and total owners' equity 776,732,693.12 yuan71 (II) Parent Company Balance Sheet As of June 30, 2024, the parent company's total assets were 1.121 billion yuan, total liabilities 348 million yuan, and total owners' equity 774 million yuan. Compared to the end of 2023, parent company total assets slightly decreased, total liabilities decreased, and owners' equity increased - As of June 30, 2024, parent company total assets were 1,121,230,951.34 yuan, total liabilities 347,603,359.97 yuan, and total owners' equity 773,627,591.37 yuan76 (III) Consolidated Income Statement From January to June 2024, the company achieved total operating revenue of 370 million yuan, a 26.61% year-on-year increase; net profit was 143 million yuan, a 725.13% year-on-year increase. Operating profit was 165 million yuan, a 993.96% year-on-year increase, primarily influenced by asset disposal gains - From January to June 2024, total operating revenue was 369,946,442.46 yuan, a 26.61% year-on-year increase77 - From January to June 2024, net profit was 143,188,915.84 yuan, a 725.13% year-on-year increase78 - Asset disposal gains of 163,664,461.78 yuan had a significant positive impact on operating profit and net profit78 (IV) Parent Company Income Statement From January to June 2024, the parent company achieved operating revenue of 370 million yuan, a 26.61% year-on-year increase; net profit was 143 million yuan, a 742.88% year-on-year increase. The parent company's profit trend is consistent with the consolidated statements, primarily influenced by asset disposal gains - From January to June 2024, parent company operating revenue was 369,946,442.46 yuan, and net profit was 143,317,868.82 yuan81 - Parent company asset disposal gains of 164,009,071.96 yuan had a significant impact on total profit and net profit81 (V) Consolidated Cash Flow Statement From January to June 2024, the company's net cash flow from operating activities was -20.56 million yuan, net cash flow from investing activities was -36.25 million yuan, and net cash flow from financing activities was -74.14 million yuan. The net increase in cash and cash equivalents was -55.77 million yuan - Net cash flow from operating activities was -20,555,844.41 yuan, a year-on-year decrease of 264.09%84 - Net cash flow from investing activities was -36,245,290.85 yuan, mainly due to an increase in cash paid for investments84 - Net cash flow from financing activities was -74,139,567.16 yuan, mainly because there were no borrowings or debt repayments in the current period84 (VI) Parent Company Cash Flow Statement From January to June 2024, the parent company's net cash flow from operating activities was -19.83 million yuan, net cash flow from investing activities was -36.38 million yuan, and net cash flow from financing activities was -74.14 million yuan. The parent company's cash flow trend is consistent with the consolidated statements - Parent company net cash flow from operating activities was -19,827,323.75 yuan85 - Parent company net cash flow from investing activities was -36,381,090.85 yuan86 - Parent company net cash flow from financing activities was -74,139,567.16 yuan86 (VII) Consolidated Statement of Changes in Shareholders' Equity In the first half of 2024, the company's consolidated shareholders' equity increased by 94.19 million yuan, primarily from net profit attributable to parent company owners of 143 million yuan, alongside a 49 million yuan profit distribution - The total comprehensive income attributable to parent company owners for the current period was 143,188,915.84 yuan87 - Profit distribution to owners (or shareholders) for the current period was 49,000,000.00 yuan88 - Consolidated owners' equity totaled 776,732,693.12 yuan at period-end88 [(VIII) Parent Company Statem