先惠技术(688155) - 2024 Q2 - 季度财报

Definitions This section provides definitions of key terms and abbreviations used throughout the report Company Profile and Key Financial Indicators The company reported a slight revenue decrease but significant net profit growth in H1 2024, driven by cost efficiency, high-margin overseas projects, and strong operating cash flow Company Overview This section provides the company's basic information, including its name, legal representative, addresses, website, and email - The company's full Chinese name is "Shanghai Xianhui Automation Technology Co., Ltd.", abbreviated as "Xianhui Technology", with Pan Yanqing as its legal representative[12][13] Key Accounting Data and Financial Indicators During the reporting period, the company's revenue slightly decreased by 1.21%, but net profit attributable to shareholders and non-recurring net profit significantly increased, driven by cost efficiency, high-margin overseas projects, and impairment reversals, with operating cash flow surging due to increased sales collection Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.172 billion yuan | 1.187 billion yuan | -1.21% | | Net Profit Attributable to Shareholders of the Listed Company | 129.57 million yuan | 5.73 million yuan | 2,161.89% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses | 119.28 million yuan | -4.69 million yuan | Not applicable | | Net Cash Flow from Operating Activities | 495.79 million yuan | 51.08 million yuan | 870.63% | | | Current Period-End | Prior Year-End | Change from Prior Year-End to Current Period-End (%) | | Net Assets Attributable to Shareholders of the Listed Company | 1.902 billion yuan | 1.178 billion yuan | 61.38% | | Total Assets | 5.015 billion yuan | 4.586 billion yuan | 9.37% | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 1.14 | 0.05 | 2,180.00% | | Weighted Average Return on Net Assets (%) | 8.96 | 0.50 | increased by 8.46 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 8.25 | -0.41 | increased by 8.66 percentage points | | R&D Expenditure as a Percentage of Operating Revenue (%) | 4.79 | 5.55 | decreased by 0.76 percentage points | - The company's significant net profit growth is primarily due to three factors: 1) continuous cost reduction and efficiency improvement, leading to higher main business profit margins; 2) substantial year-on-year increase in revenue recognition from high-margin overseas projects; and 3) reversal of a significant amount of impairment provisions due to collection of prior period accounts receivable[21] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 10.29 million yuan, primarily from government grants and fair value changes/disposal gains on financial assets Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (yuan) | | :--- | :--- | | Government Grants Recognized in Current Profit or Loss | 12,872,612.17 | | Gains and Losses from Changes in Fair Value and Disposal of Financial Assets and Liabilities | 1,356,619.61 | | Gains and Losses from Disposal of Non-Current Assets | 595,781.05 | | Other Non-Operating Income and Expenses | 372,428.11 | | Gains and Losses from Debt Restructuring | 15,617.60 | | Less: Income Tax Impact | 1,911,461.21 | | Less: Impact on Minority Interests (After Tax) | 3,007,212.28 | | Total | 10,294,385.05 | Management Discussion and Analysis This chapter analyzes the company's operations, highlighting its "intelligent manufacturing equipment + new energy battery components" dual-driven strategy, significant net profit growth from cost efficiency and high-margin overseas orders, continuous R&D investment, and improved financial health Industry and Main Business Overview The company's main business is R&D, production, and sales of intelligent manufacturing equipment, complemented by lithium battery module structural components, serving both new energy and traditional automotive sectors with a customized, production-on-demand model - The company has established a "intelligent manufacturing equipment + new energy battery components" dual-driven product strategy, providing intelligent automation equipment and solutions through the former, and lithium battery module structural components via its subsidiary Fujian Dongheng through the latter[24] - The company's intelligent manufacturing equipment business serves leading lithium battery manufacturers like CATL and Farasis Energy, as well as high-end automotive companies such as Volkswagen and BMW Brilliance, while its new energy power battery precision structural components business deeply collaborates with CATL-related clients[24] - The company operates on a "production based on sales orders, procurement based on production plans" model, providing customized non-standard equipment and system solutions to clients[31][33] - The downstream new energy vehicle market continues rapid growth, with production and sales reaching 9.587 million and 9.495 million units in 2023, respectively, representing YoY growth of 35.8% and 37.9%, and a market share of 31.6%, driving significant demand for power battery capacity expansion for the company[39][40] Core Technologies and R&D Progress The company's core technologies remain stable, encompassing testing, AGV, data, and intelligent manufacturing, with 56.14 million yuan in R&D investment this period, holding 25 invention patents, 211 utility model patents, and 139 software copyrights, and 37 ongoing R&D projects totaling 269 million yuan focused on advanced battery and motor assembly lines - The company's core technology system is built around testing technology, AGV technology, data technology, and intelligent manufacturing technology, applied across various automated production lines, demonstrating advanced capabilities particularly in new energy power battery testing and automotive chassis inspection[41][42][43][44][45] R&D Investment Status | R&D Investment Status | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 56,138,276.78 yuan | 65,820,098.15 yuan | -14.71% | | Total R&D Investment | 56,138,276.78 yuan | 65,820,098.15 yuan | -14.71% | | Total R&D Investment as a Percentage of Operating Revenue (%) | 4.79% | 5.55% | decreased by 0.76 percentage points | - As of the end of the reporting period, the company has 37 R&D projects in progress, with an estimated total investment of 269 million yuan, of which 56.14 million yuan has been invested in the current period, focusing on large cylindrical and prismatic battery PACK intelligent assembly lines, motor and electronic control intelligent assembly lines, and blade battery module production lines[52][71] R&D Personnel Status | R&D Personnel Status | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 473 | 516 | | R&D Personnel as a Percentage of Total Company Employees (%) | 19.48% | 15.90% | Analysis of Core Competitiveness The company's core competitiveness stems from its six key advantages: technology, project experience, key clients, product model, service, and product quality, supported by 265 patents, 139 software copyrights, extensive collaboration with global automotive and battery leaders, and a complementary hardware-software product model - Technological Advantage: Possesses 265 patents and 139 software copyrights, with technical standards meeting the requirements of globally renowned enterprises such as SAIC, Volkswagen, BMW, and CATL[75] - Project Experience and Key Client Advantage: Long-term cooperation with leading automotive companies has accumulated rich experience in mid-to-high-end projects, securing high-quality client resources including SAIC Volkswagen, FAW Group, BMW Brilliance, CATL, and Farasis Energy[75][76] - Product Model Advantage: Intelligent automation equipment (hardware) and industrial manufacturing data systems (software) complement each other, enhancing product intelligence and effectively enabling cross-selling[76] Discussion and Analysis of Operating Performance The company's operating performance significantly improved, with 1.17 billion yuan in revenue and 130 million yuan in net profit attributable to shareholders, a 2,161.89% YoY increase, driven by cost efficiency, optimized staffing, higher per capita output, increased overseas orders, and refined management - The company continuously implements a "cost reduction and efficiency improvement" management philosophy, effectively increasing per capita output and reducing expenses through optimized staffing, strengthened management, and enhanced production efficiency[77] - The company's gross margin improved year-on-year, primarily due to an increased proportion of overseas orders, integrated capacity resources, and intensified refined management[77] - R&D expenses decreased by 14.71% year-on-year, as the company concentrated R&D resources on core technologies, particularly in flexible manufacturing and testing within the new energy vehicle intelligent equipment sector[77] Risk Factors The company faces multiple risks, including core competitiveness risks (technology updates, leakage), operational risks (new energy vehicle industry fluctuations, market competition, high customer concentration), financial risks (accounts receivable bad debt, negative operating cash flow, gross margin decline, high inventory value, liquidity), and industry/macroeconomic risks - Core Competitiveness Risks: Rapid technological iteration poses a threat to competitiveness if R&D fails to keep pace with market demand, alongside the risk of technology leakage[79] - Operating Risks: Key operating risks include fluctuations in the downstream new energy vehicle industry, intensified domestic and international market competition, and high customer concentration (reliance on major clients like SAIC Volkswagen, BMW Brilliance, and CATL)[80][81] - Financial Risks: High balances of accounts receivable and contract assets pose bad debt risks; significant upfront project investments may lead to negative operating cash flow; gross margin is susceptible to decline due to multiple factors; and high inventory book value carries impairment risks[82] Analysis of Key Operating Performance This section details the company's financial status and operating results, noting a slight revenue decrease but improved gross margin due to lower costs, increased finance expenses from exchange losses, significant increases in cash from raised funds, and decreases in accounts receivable and short-term borrowings Key Operating Data | Item | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,172,165,390.93 yuan | 1,186,533,926.59 yuan | -1.21 | | Operating Cost | 840,791,173.94 yuan | 904,361,705.90 yuan | -7.03 | | Finance Expenses | 19,213,305.32 yuan | 13,465,292.63 yuan | 42.69 | | Net Cash Flow from Operating Activities | 495,787,283.17 yuan | 51,079,006.97 yuan | 870.63 | Balance Sheet Items | Balance Sheet Items | Current Period-End Balance | Prior Year-End Balance | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 906,500,255.86 yuan | 344,190,628.37 yuan | 163.37 | Primarily due to receipt of funds raised from private placement of shares | | Accounts Receivable | 635,536,368.24 yuan | 951,574,888.75 yuan | -33.21 | Primarily due to increased sales collection | | Contract Assets | 292,366,018.54 yuan | 529,771,805.64 yuan | -44.81 | Primarily due to increased sales collection | | Short-term Borrowings | 703,719,149.69 yuan | 1,015,778,059.35 yuan | -30.72 | Primarily due to early repayment of short-term borrowings in the current period | | Salaries and Wages Payable | 16,797,898.79 yuan | 68,674,104.65 yuan | -75.54 | Primarily due to payment of year-end bonuses accrued at prior year-end | Corporate Governance The company's corporate governance remained stable, with two shareholder meetings approving various proposals, a core technical personnel departure, a proposed interim cash dividend of 3.00 yuan per 10 shares, and adjustments to restricted stock and stock option incentive plans Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, Mr. Yang Jinjin, a core technical personnel, resigned for personal reasons and no longer holds any position in the company, leaving six core technical personnel as of period-end - Core technical personnel Yang Jinjin resigned on February 6, 2024, due to personal reasons[101] Profit Distribution Plan The company proposed a 2024 interim profit distribution plan to pay a cash dividend of 3.00 yuan (tax inclusive) per 10 shares, totaling an estimated 37.52 million yuan (tax inclusive) based on the total share capital as of June 30, 2024 Profit Distribution Plan | Profit Distribution Plan | Details | | :--- | :--- | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Cash Dividend per 10 Shares (yuan) (Tax Inclusive) | 3.00 | | Number of Shares Converted from Capital Reserve per 10 Shares (shares) | 0 | Equity Incentive Plan Status During the reporting period, the company adjusted its equity incentive plans, forfeiting 396,900 restricted shares from 2021 and 2022 plans and adjusting the exercise price and quantity of the 2023 stock option incentive plan - The company forfeited 89,600 restricted shares from the 2021 incentive plan and 307,300 restricted shares from the 2022 incentive plan that did not meet vesting conditions[104] - The company adjusted the exercise price of the 2023 stock option incentive plan to 38.36 yuan/share, with the number of initially granted options adjusted to 3,937,248 and reserved options to 420,000[104] Environmental and Social Responsibility The company prioritizes environmental protection and ESG, investing 1.21 million yuan in environmental efforts, not being a key pollutant, and fulfilling its responsibilities through clean energy, LED retrofits, waste management, and developing carbon-reducing new energy vehicle products Environmental Information The company has established environmental protection mechanisms, investing 1.21 million yuan in the reporting period, is not a key pollutant, and processes waste through qualified third parties, committing to environmental responsibility by developing carbon-reducing new energy vehicle products - The company has established environmental protection mechanisms, investing 1.21 million yuan in environmental funds during the reporting period[105] - The company is not classified as a key pollutant-discharging entity; its main production consumption is electricity, and waste materials, primarily production scraps, waste oil, and domestic garbage, are all handled in compliance with regulations[105] - The company's carbon reduction measures primarily involve R&D and production of new products that aid in carbon reduction, such as manufacturing equipment related to new energy vehicle power batteries and powertrains[107] Significant Matters This chapter discloses the company's significant commitments, related party transactions, material contracts, and utilization of raised funds, noting strict adherence to IPO, equity incentive, asset restructuring, and refinancing commitments, no material litigation or irregular guarantees, 473 million yuan in subsidiary guarantees, and planned investment of raised funds in R&D, factory construction, and working capital Fulfillment of Commitments During and continuing into the reporting period, the company, its actual controllers, shareholders, and related parties strictly fulfilled all commitments made during IPO, equity incentives, material asset restructuring, and refinancing, including share lock-ups, non-competition, related party transaction standardization, share price stabilization, and dilution compensation - The company and related parties strictly fulfilled commitments related to its initial public offering (IPO), including share lock-ups, avoidance of horizontal competition, standardization of related party transactions, and share price stabilization[109][110][111] - Performance commitments related to material asset restructuring (target company Fujian Dongheng's promised net profits for 2022-2024) are still within the fulfillment period[112][139] - Commitments regarding dilution compensation related to refinancing have been issued and are being fulfilled by the company's directors, senior management, and controlling shareholders[112][142][143] Material Contracts and Their Fulfillment During the reporting period, the company had no material trust, contracting, or leasing agreements, but provided multiple guarantees to wholly-owned subsidiaries, with a total guarantee balance of 473 million yuan as of period-end, representing 24.85% of net assets, all for subsidiaries with asset-liability ratios exceeding 70% Guarantee Status | Guarantee Status | Amount | | :--- | :--- | | Total Guarantees Issued to Subsidiaries During the Reporting Period | 187,743,300.80 yuan | | Total Guarantee Balance for Subsidiaries as of Period-End (B) | 472,658,993.70 yuan | | Total Guarantees (A+B) | 472,658,993.70 yuan | | Total Guarantees as a Percentage of Company Net Assets (%) | 24.85% | | Amount of Debt Guarantees Provided for Guaranteed Entities with Asset-Liability Ratio Exceeding 70% (D) | 472,658,993.70 yuan | Progress in Utilization of Raised Funds The company effectively utilized raised funds from its IPO and private placement, with 643 million yuan cumulatively invested from the IPO and 243 million yuan in over-raised funds fully utilized, while 138 million yuan of the 620 million yuan from private placement was invested in factory projects and working capital, alongside 376 million yuan in self-raised fund replacement and up to 500 million yuan in idle fund cash management Source of Raised Funds | Source of Raised Funds | Net Raised Funds (1) | Cumulative Investment as of Period-End (4) | Cumulative Investment Progress (%) (4)/(1) | | :--- | :--- | :--- | :--- | | Initial Public Offering (IPO) | 642,597,787.00 yuan | 643,018,294.34 yuan | 100.07% | | Private Placement of Shares | 619,672,384.67 yuan | 137,741,240.15 yuan | 22.23% | - The company used 376 million yuan of raised funds to replace self-raised funds previously invested in fundraising projects and pre-paid issuance expenses[157] - The company utilized up to 500 million yuan of temporarily idle raised funds for cash management, investing in highly secure, principal-guaranteed investment products[157] Share Capital Changes and Shareholder Information During the reporting period, the company's total share capital increased from 76.68 million to 125.05 million shares due to a private placement of 12.65 million restricted shares and a 0.4-share capital reserve capitalization per share, with 3,672 shareholders and stable top ten shareholder structure led by the actual controllers Share Capital Change Status During the reporting period, the company's total share capital underwent two main changes: an increase of 12,645,467 shares from a 2022 private placement, followed by a 0.4-share capital reserve capitalization per share, adding 35,728,641 shares, resulting in a final total of 125,050,244 shares - The company's total share capital increased from 76,676,136 shares to 125,050,244 shares[161] - The increase in share capital is attributed to: 1) the issuance of 12,645,467 new shares through a private placement; and 2) a capital reserve capitalization of 0.4 shares per share, totaling 35,728,641 shares[163] Shareholder Information As of the reporting period-end, the company had 3,672 common shareholders, with Wang Yinglin, Pan Yanqing, and Xi Yiqing as the top three, holding a significant combined stake, and Pan Yanqing and Wang Yinglin serving as controlling shareholders and actual controllers with a concerted action agreement with Xi Yiqing - As of the end of the reporting period, the company had a total of 3,672 common shareholders[166] Top Five Shareholders | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | Wang Yinglin | 27,123,764 | 21.69% | | Pan Yanqing | 13,561,883 | 10.84% | | Xi Yiqing | 13,561,881 | 10.84% | | Shenzhen Junsheng Fengshi Equity Investment Partnership (Limited Partnership) | 7,660,233 | 6.13% | | Lu Wei | 4,847,792 | 3.88% | - Pan Yanqing and Wang Yinglin are the company's controlling shareholders and actual controllers, and have a concerted action relationship with Xi Yiqing[169] Preferred Shares Related Information During the reporting period, the company had no preferred shares related information - The company has no preferred shares related information[175] Bonds Related Information During the reporting period, the company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds related information - The company has no bonds or convertible corporate bonds related information[176] Financial Report This chapter presents the unaudited H1 2024 financial statements and notes, showing 5.015 billion yuan in total assets, 1.902 billion yuan in equity attributable to the parent, 1.172 billion yuan in revenue, 130 million yuan in net profit, and 496 million yuan in strong operating cash flow, prepared under enterprise accounting standards Financial Statements As of June 30, 2024, the company reported 5.015 billion yuan in total assets, 2.732 billion yuan in total liabilities, and 1.902 billion yuan in equity attributable to the parent, with H1 2024 revenue of 1.172 billion yuan and net profit of 130 million yuan, a 2,161.89% YoY increase, alongside 496 million yuan in net operating cash flow Key Items from Consolidated Balance Sheet | Key Items from Consolidated Balance Sheet | June 30, 2024 (yuan) | December 31, 2023 (yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 906,500,255.86 | 344,190,628.37 | | Accounts Receivable | 635,536,368.24 | 951,574,888.75 | | Inventories | 665,906,306.12 | 741,141,098.95 | | Total Assets | 5,014,972,726.96 | 4,585,525,042.89 | | Short-term Borrowings | 703,719,149.69 | 1,015,778,059.35 | | Total Liabilities | 2,731,807,717.31 | 3,087,836,131.08 | | Equity Attributable to Owners of the Parent Company | 1,901,795,649.89 | 1,178,478,656.22 | | Total Owners' Equity | 2,283,165,009.65 | 1,497,688,911.81 | Key Items from Consolidated Income Statement | Key Items from Consolidated Income Statement | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,172,165,390.93 | 1,186,533,926.59 | | Total Operating Cost | 1,003,670,402.07 | 1,069,300,282.75 | | Total Profit | 216,606,384.15 | 60,999,166.22 | | Net Profit Attributable to Shareholders of the Parent Company | 129,572,749.96 | 5,728,513.41 | Key Items from Consolidated Cash Flow Statement | Key Items from Consolidated Cash Flow Statement | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 495,787,283.17 | 51,079,006.97 | | Net Cash Flow from Investing Activities | -332,693,351.46 | -427,028,240.70 | | Net Cash Flow from Financing Activities | 314,355,806.77 | 353,413,674.80 | | Net Increase in Cash and Cash Equivalents | 476,922,112.12 | -18,583,339.71 | Notes to Consolidated Financial Statements This section provides detailed notes on key consolidated financial statement items, including 907 million yuan in cash (with 119 million yuan restricted), 636 million yuan in accounts receivable, 292 million yuan in contract assets, 666 million yuan in inventories, 586 million yuan in fixed assets, 204 million yuan in construction in progress, 630 million yuan in goodwill, 704 million yuan in short-term borrowings, 639 million yuan in long-term borrowings, and revenue breakdown by business segment Asset Items | Asset Items | Period-End Balance (yuan) | | :--- | :--- | | Cash and Cash Equivalents | 906,500,255.86 | | Accounts Receivable | 635,536,368.24 | | Inventories | 665,906,306.12 | | Fixed Assets | 585,709,545.12 | | Construction in Progress | 204,076,239.11 | | Goodwill | 629,598,785.15 | Liability Items | Liability Items | Period-End Balance (yuan) | | :--- | :--- | | Short-term Borrowings | 703,719,149.69 | | Accounts Payable | 561,057,769.92 | | Contract Liabilities | 478,295,242.50 | | Long-term Borrowings | 639,328,573.35 | Operating Revenue Breakdown (Current Period) | Reporting Segment | Revenue (yuan) | Cost (yuan) | | :--- | :--- | :--- | | New Energy Power Battery Precision Structural Components | 676,296,920.65 | 516,036,149.19 | | New Energy Vehicle Intelligent Automation Equipment | 478,040,677.87 | 317,349,545.91 | | By Region - Domestic | 794,188,056.04 | 593,289,718.34 | | By Region - International | 377,977,334.89 | 247,501,455.60 | Changes in Consolidation Scope During the reporting period, there were no changes in the consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - There were no changes in the consolidation scope during the reporting period[440][441] Interests in Other Entities The company's enterprise group comprises several wholly-owned and controlled subsidiaries, with significant non-wholly owned subsidiaries including Shanghai Diti Intelligent System Co., Ltd. (53.55% stake), Shanghai Kunlun Jingce Intelligent Technology Co., Ltd. (51% stake), and Fujian Dongheng New Energy Group Co., Ltd. (51% stake), and the company disposed of its equity in associate Fujian Baocheng Precision Machinery Co., Ltd. during the period Significant Non-Wholly Owned Subsidiaries | Significant Non-Wholly Owned Subsidiaries | Shareholding Percentage (%) | Profit or Loss Attributable to Minority Shareholders for the Current Period (yuan) | Minority Interests Balance at Period-End (yuan) | | :--- | :--- | :--- | :--- | | Shanghai Diti Intelligent System Co., Ltd. | 46.45 | 416,242.21 | 14,096,100.80 | | Shanghai Kunlun Jingce Intelligent Technology Co., Ltd. | 49.00 | -1,158,505.47 | 1,173,994.17 | | Fujian Dongheng New Energy Group Co., Ltd. and its Subsidiaries | 49.00 | 62,838,536.22 | 366,099,264.79 | - During the reporting period, the company disposed of its equity in associate Fujian Baocheng Precision Machinery Co., Ltd.[448] Government Grants During the reporting period, total government grants recognized in current profit or loss amounted to 22.28 million yuan, with 21.53 million yuan being income-related, and the period-end deferred income balance was 59.03 million yuan, primarily asset-related grants for projects like new energy vehicle battery precision structural components Type of Government Grant | Type of Government Grant | Amount Incurred in Current Period (yuan) | | :--- | :--- | | Income-Related | 21,528,862.01 | | Asset-Related | 749,204.63 | | Total | 22,278,066.64 | - The period-end deferred income (government grants) balance was 59.03 million yuan, primarily consisting of asset-related government grants that will be recognized in profit or loss over the useful life of the related assets[451] Risks Related to Financial Instruments The company faces market risks (exchange rate, interest rate), credit risk, and liquidity risk, with 190 million yuan in Euro-related exchange rate exposure, 785 million yuan in floating-rate borrowings, high accounts receivable credit risk (top five clients account for 58.66%), and liquidity managed through cash flow monitoring and 1.927 billion yuan in unused bank credit lines - Market Risks: Primarily consist of exchange rate risk (exposure of 190 million yuan) and interest rate risk (floating-rate borrowings of 785 million yuan)[456][457] - Credit Risk: Primarily arises from accounts receivable and contract assets, with receivables and contract assets from the top five clients accounting for 58.66% of the total; the company manages this risk using an expected credit loss model[459] - Liquidity Risk: The company manages liquidity risk by monitoring cash flow and utilizing bank credit lines, with 1.927 billion yuan in unused credit lines at period-end[460] Other Significant Matters The company reports two business segments: equipment systems, contributing 488 million yuan in revenue, and precision structural components, contributing 685 million yuan in revenue, also disclosing subsidiary guarantees and an ongoing performance guarantee agreement with Fujian Dongheng Reporting Segments | Reporting Segments | Operating Revenue (yuan) | Total Assets (yuan) | | :--- | :--- | :--- | | Equipment Systems Segment | 488,054,688.30 | 3,801,968,887.53 | | Precision Structural Components Segment | 684,827,287.95 | 1,439,599,305.48 | - The company's performance guarantee agreement with Fujian Dongheng's original shareholders is still in effect, committing to net profits of no less than 150 million yuan, 160 million yuan, and 170 million yuan for 2022-2024 respectively, with Fujian Dongheng achieving 126 million yuan in net profit after deducting non-recurring gains and losses in H1 2024[482]