Company Overview - The company's stock code is 301486 and it is listed on the Shenzhen Stock Exchange[6] - The company's legal representative is Chen Chaoxian[6] - The company's foreign name is Shenzhen Zesum Technology Co., Ltd[6] - The company's subsidiaries include Chun Sheng Electronics, Hong Kong Chun Sheng, We Sum, We Sum Vietnam, and Fuke Xima[4] - The company's main business involves functional device products for electronic devices, sold through cooperative manufacturing service providers[4] - The company's report period is from January 1, 2024, to June 30, 2024[4] Financial Performance - Revenue for the reporting period increased by 75.12% to RMB 438.18 million compared to the same period last year[10] - Net profit attributable to shareholders decreased by 5.19% to RMB 40.05 million[10] - Operating cash flow decreased by 13.30% to RMB 34.81 million[10] - Total assets increased by 10.65% to RMB 2.99 billion compared to the end of the previous year[10] - Basic earnings per share decreased by 29.55% to RMB 0.31[10] - Weighted average return on equity decreased by 3.87% to 1.59%[10] - The company's operating income increased by 75.12% to 438.18 million yuan, primarily due to the inclusion of revenue from newly acquired subsidiaries[54] - The company's R&D investment increased by 125.21% to 30.05 million yuan, driven by increased employee compensation, depreciation expenses, and R&D costs from newly acquired subsidiaries[54] - The company's game console parts business revenue decreased by 36.38% to 94.60 million yuan, mainly due to reduced demand from end customers[55] - The company's connector business revenue increased by 207.30% to 215.35 million yuan, with fiber optic connector revenue growing by 593.34% to 175.64 million yuan, driven by data center and computing network expansion[55] - The company's main business revenue for the first half of 2024 was 432.64 million yuan, an increase of 79.97% year-on-year[55] - Precision manufacturing and other businesses achieved revenue of 122.69 million yuan, a year-on-year increase of 467.27%, primarily due to the consolidation of Xike Industrial as a subsidiary in February 2024, contributing 116.64 million yuan in revenue[56] - The company's overall gross margin for the first half of 2024 was 34.29%, up 1.35 percentage points year-on-year, with connector gross margin rising significantly by 13.47 percentage points to 37.85%[56] - Game console components revenue decreased by 36.38% year-on-year to 94.60 million yuan, with gross margin dropping 5.75 percentage points to 32.50%[56] - Investment income reached 11.04 million yuan, accounting for 15.34% of total profit, mainly from large-denomination certificates of deposit and structured deposits[57] - Monetary funds decreased by 15.12 percentage points to 11.63% of total assets, while accounts receivable increased by 2.08 percentage points to 10.41% of total assets[59] - The company's overseas assets in Vietnam generated a net profit of 3.86 million yuan, with a net asset value of 20.68 million yuan, accounting for 0.80% of the company's net assets[60] - The company's investment amount in the reporting period reached 154.55 million yuan, a year-on-year increase of 102,933.33%[64] - Restricted monetary funds totaled 25.48 million yuan, primarily due to bank acceptance bill guarantees and other frozen deposits[63] - The company's financial assets decreased significantly from 579.81 million yuan at the beginning of the period to 306.91 million yuan at the end of the period, mainly due to the sale of 1.15 billion yuan worth of financial assets[61][62] - The company completed the acquisition of 52% equity in Shenzhen Xike Industrial Co., Ltd. for RMB 130 million using over-raised funds[66] - The company increased capital in Shenzhen Zhishang New Technology Development Co., Ltd. by RMB 20 million, representing a 100% increase[66] - The company increased capital in Shenzhen Zhishang Guangsu Technology Co., Ltd. by RMB 4.55 million, representing a 65% increase[66] - The total amount of financial assets measured at fair value at the end of the period was RMB 306.76 million[67] - The total amount of funds raised was RMB 1,689.25 million, with RMB 62.40 million cumulatively invested[69] - The company used RMB 108 million of idle raised funds (including over-raised funds) for cash management[69] - The company replaced pre-invested self-raised funds with raised funds amounting to RMB 370.94 million[70] - The company used RMB 13 million of over-raised funds to acquire 52% equity in Shenzhen Xike Industrial Co., Ltd.[70] - The total investment in the game console core component expansion project is RMB 40,085.95 million, with an investment progress of 49.94% as of the reporting period[72] - The electronic connector expansion project has a total investment of RMB 25,489.77 million, with an investment progress of 29.91%[72] - The 5G component expansion project has a total investment of RMB 21,729.9 million, with an investment progress of 35.62%[72] - The R&D center construction project has a total investment of RMB 15,912.21 million, with an investment progress of 29.08%[72] - The company used RMB 13,000 million of its over-raised funds to acquire a 52% stake in Shenzhen Xike Industrial Co., Ltd., with an investment progress of 33.59%[72] - The total net proceeds from the company's IPO were RMB 168,924.74 million, with over-raised funds amounting to RMB 38,706.91 million[73] - The company used RMB 370,936,081.39 of raised funds to replace pre-invested self-raised funds and issuance costs[74] - As of June 30, 2024, the company used RMB 98,900 million of idle raised funds for cash management, with the remaining funds kept in the company's raised funds account[74] - The company's foreign exchange hedging activities resulted in an actual profit of RMB 111,500 during the reporting period[79] - The company's export sales amounted to approximately 190 million yuan, accounting for 43% of the current period's operating revenue[88] - The company acquired 52% equity of Shenzhen Xike Industrial Co., Ltd. for 130 million yuan using part of the over-raised funds[86] - The company transferred 23% equity of We Sum Technology Co., Limited for 1.012 million USD, retaining 52% equity post-transaction[85] - Zhejiang Chunsheng Electronics Co., Ltd., a subsidiary, reported total assets of 625.2164 million yuan and net profit of 12.6872 million yuan[84] - Dongguan Fukexima Communication Technology Co., Ltd., a subsidiary, reported total assets of 189.0897 million yuan and net profit of 31.672 million yuan[84] - Shenzhen Xike Industrial Co., Ltd., a subsidiary, reported total assets of 281.648 million yuan and net profit of 18.1998 million yuan[84] Market and Industry Trends - The global gaming market revenue reached $184 billion in 2023, with a projected CAGR of 1.3% from 2021 to 2026[18] - China's connector market is expected to account for 30.9% of the global market in 2023, with sales of approximately $25.8 billion[19] - China's data center services market is projected to grow at a CAGR of 18.9% from 2022 to 2027, reaching RMB 307.5 billion by 2027[20] - The automation equipment market is driven by the integration of mechanical, electrical control, sensor, optical, information management, and industrial internet systems, with significant growth potential due to the acceleration of industrial intelligence and digital transformation[21] - The company's automation equipment business is positioned in the midstream of the industry chain, primarily producing manufacturing-related equipment, benefiting from the national policy push for intelligent manufacturing equipment development[21] Product and Technology - The company focuses on the R&D and manufacturing of precision electronic components, including game consoles, VR/AR devices, and optical communication devices, with a product portfolio centered around game console and VR/AR device components[22][23] - The company's products include game console components, fiber optic connectors, electronic connectors, and automation equipment, serving various industries such as consumer electronics, communication electronics, automotive electronics, and industrial automation[24] - The company's VR/AR device components, such as the precision positioning controller (Joy-stick), have achieved significant technological improvements, with a lifespan of over 20 million cycles and applications in VR/AR, drones, and remote medical fields[25] - The company's fiber optic connectors, including MPO/MTP fiber jumpers and MT ferrules, are critical components in high-speed data transmission, supporting 4G/5G communications and data center applications[27][29] - The company's subsidiary, Fukohshima, has developed and mass-produced MT/MPO ferrules with various core counts, including 2-core, 4-core, 12-core, 16-core, 24-core, 32-core, and 48-core, offering customization services for ultra-thin and ultra-short ferrules[29] - The company's precision manufacturing business has achieved significant technological advancements, particularly in automated appearance inspection and assembly line products[32] - The company's grinding and polishing equipment includes automatic curved surface polishing, metal polishing, and semiconductor polishing devices, with applications in consumer electronics, automotive, and semiconductor industries[33] - The company's product lines include FTTH, FTTA, and data center application series, with a focus on electronic connectors for various industries[31] - The company has developed hundreds of specifications of products, including professional audio connectors, automotive connectors, and general-purpose connectors, with a leading market position in professional audio connectors[32] - The company's automated equipment business, launched in 2022, includes automated appearance inspection and assembly line products, which have been sold externally, improving production efficiency and reducing labor costs[32] - The company's precision positioning controller has a lifespan of over 20 million cycles and has obtained patent authorization in China and Japan, with applications in VR/AR, drones, and remote medical fields[46] - The company's fiber optic connector business is growing rapidly, with its subsidiary Fuxu Xima being a high-tech enterprise that has mastered MT/MPO ferrule R&D, production, and innovation technologies[48] - The company's Vietnam subsidiary WESUM began operations in the second half of 2023, enhancing its service capabilities in the optical communication product sector[48] - The company's gaming console components have a first-mover advantage in the domestic market, with stable partnerships with Japanese companies like N Company and Sony[46] - The company's R&D system integrates product, production equipment, and mold development, significantly improving R&D and mass production response efficiency[44] - The company's precision positioning controller began mass production in 2020 and is used in fields requiring precise positioning and real-time remote control[46] - The company's fiber optic connector products are suitable for various application scenarios, contributing to its rapid business growth[48] - The company's gaming console components are expected to see greater growth potential with the development of downstream industries and technologies[47] Certifications and Recognition - The company holds multiple certifications, including ISO9001, ISO14001, IATF16949, IECQQC080000, ISO45001, ISO50001, and RBA, and has been recognized as a national high-tech enterprise and a "Little Giant" enterprise[23] - The company has obtained multiple international certifications, including ISO9001, ISO14001, and IATF16949, enhancing its market competitiveness[32] Strategic Goals and Commitments - The company aims to deepen cooperation with brand manufacturers by providing core products and solutions, striving to become an internationally competitive electronic component manufacturer and technical service provider[23] - The company plans to increase R&D investment to accelerate the conversion of R&D results and develop new products to enhance sales scale and profitability[114] - The company will implement cost management and strengthen cost control to improve profit margins[114] - The company will improve its cash dividend policy to focus on investor returns and rights protection[114] - The company has completed feasibility studies for fundraising projects, which are expected to enhance business capabilities, technical levels, and management efficiency[114] - The company commits to not interfering with management activities or encroaching on company interests[114] - The company will ensure that its IPO prospectus and other disclosure materials are free from false statements or omissions, and will compensate investors for any losses incurred due to such issues[115] - The company will link executive compensation and equity incentive plans to the implementation of measures to fill diluted immediate returns[115] - The company will use cash or assets to compensate investors if it fails to fulfill its commitments within the specified period[115] - The company commits to an annual cash dividend payout ratio of no less than 10% of the distributable net profit attributable to the parent company, provided there are no major investment plans or significant capital expenditures within the next 12 months[116] - The company's controlling shareholder and actual controller, Chen Chaoxian, has pledged to avoid any new business competition with the company, ensuring no direct or indirect involvement in competing activities[116] - The company's controlling shareholder and actual controller, along with other major shareholders, have committed to minimizing and regulating related-party transactions, ensuring fairness and compliance with legal and regulatory requirements[117] - The company has implemented measures to regulate and reduce related-party transactions, with penalties including withholding up to 50% of salaries and allowances for non-compliance[118] - The company has committed to compensating investors for any losses incurred due to false or misleading information in the IPO prospectus, with specific compensation details to be determined upon occurrence[119] - The company has disclosed historical equity holdings and confirmed the absence of any undisclosed equity disputes or improper benefits related to equity[119] - The company has confirmed that there were no non-operational fund occupancies by controlling shareholders or related parties during the reporting period[120] - The company reported no instances of illegal external guarantees during the reporting period[121] - The company's semi-annual financial report was not audited[121] - The company did not undergo any bankruptcy restructuring during the reporting period[121] - The company reported 3 non-major litigation cases during the reporting period, with a total involved amount of 1.9049 million yuan. Among these, 1 case is still under trial, and 2 cases have been concluded and are under enforcement[122] - The company engaged in daily-related transactions with Shenzhen Jujiao New Vision Technology Co., Ltd., involving a transaction amount of 2.98 million yuan, accounting for 3.08% of similar transactions[123] - The company's related transactions with Yueqing Xucheng Electronics Co., Ltd. amounted to 11.123 million yuan, accounting for 6.53% of similar transactions[123] - The company's related transactions with Shenzhen Jujiao New Vision Technology Co., Ltd. for purchasing goods amounted to 66.384 million yuan, accounting for 12.34% of similar transactions[124] - The company's related transactions with Shenzhen Niwo Network Technology Co., Ltd. for sales of goods amounted to 9.46 million yuan, accounting for 95.95% of similar transactions[124] - The total amount of related transactions during the reporting period was 87.265 million yuan[124] Corporate Governance and Shareholder Information - The company's total share capital is 128,680,995 shares, with 75% being restricted shares and 25% being unrestricted shares[138] - The company repurchased 748,900 shares, accounting for 0.5820% of the total share capital, with a total repurchase amount of RMB 29,988,964.00[140] - The repurchase price ceiling was adjusted from RMB 57.66 per share to RMB 57.26 per share due to the 2023 annual equity distribution[140] - The company plans to repurchase shares with a total amount between RMB 30 million and RMB 50 million, with a repurchase price not exceeding RMB 57.66 per share[139] - The company's restricted shares decreased by 1,657,981 shares, while unrestricted shares increased by the same amount[138] - Chen Chaoxian holds 23.94% of the company's shares, totaling 30,807,060 shares, all of which are restricted[142] - Shenzhen Xinzhi Shang Investment Enterprise holds 8.36% of the company's shares, totaling 10,752,000 shares, all of which are restricted[142] - Liu Dongsheng holds 6.10% of the company's shares, totaling 7,848,960 shares, all of which are restricted[142] - Ji Leqiang, Ji Lexian, and Ji Leyu each hold 5.37% of the company's shares, totaling 6,912,000 shares each, all of which are restricted[142] - Chen Hexian holds 2.63% of the company's shares, totaling 3,386,880 shares, all of which are restricted[142] - Tianfeng Tianrui Investment Co., Ltd. holds 2.26% of the company's shares, totaling 2,906,976 shares, all of which are restricted[142] - Li Yongliang holds 2.08% of the company's shares, totaling 2,674,418 shares, all of which are restricted[142] - Chen Chaoxian and Chen Hexian are brothers, with Chen Chaoxian directly holding 23.94% of the company's shares and indirectly holding 2.18%, while Chen Hexian directly holds 2.63% and indirectly holds 2.06%[143] - Ji Leyu, Ji Leqiang, and Ji Lexian are brothers, each directly holding 5.37% of the company's shares[143] - The company repurchased 748,900 shares, accounting for 0.5820% of the total shares, through a centralized bidding transaction as of June 30, 2024[147] - The company's shareholders, including Chen Chaoxian, have committed to not reducing their holdings during the lock-up period and will announce any planned reductions 3 trading days in advance[111] - Shareholders who violate the reduction commitment must transfer any gains from the sale of shares to the
致尚科技(301486) - 2024 Q2 - 季度财报