新余国科(300722) - 2024 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The board and management guarantee the report's accuracy, noting market, safety, raw material, and investment risks, with no planned dividends or capital reserve conversions - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[1] - The company specifically highlights market operation, production safety, raw material price increase, and project investment risks[2] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this half-year period[2] Table of Contents This section lists all chapters of the semi-annual report, covering important notices, company profile, management discussion, governance, ESG, significant matters, shareholding, preferred shares, bonds, and financial reports List of Documents for Reference This section lists documents available for inspection, including the original semi-annual report, signed financial statements, publicly disclosed company documents, and other reference materials, located at the securities affairs department - Reference documents include the original semi-annual report signed by the legal representative, signed and sealed financial statements, and original copies of publicly disclosed company documents and announcements[4] Definitions This section defines key abbreviations and professional terms used in the report, covering company and related party names, military and civilian product terms, and financial reporting periods - Defines the company's abbreviation 'Xinyu Guoke' and its related parties, such as 'Jiangxi Agricultural Development Group' and 'Military Industry Group'[5] - Explains professional terms including 'military products', 'civilian products', 'pyrotechnics', 'AWM' (Artificial Weather Modification), and related equipment and materials[5][6] - Clarifies the reporting period as January 1, 2024, to June 30, 2024[5] Section II Company Profile and Key Financial Indicators Company Profile This section provides basic company information, including stock details, legal representative, contact information, and confirms no changes to registered or office addresses Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xinyu Guoke | | Stock Code | 300722 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Yuan Yougen | - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period[10] Other Information This section notes changes in information disclosure and reference locations, and discloses an increase in registered capital from RMB 230.6304 million to RMB 276.75648 million - The company's semi-annual report is disclosed on the Shenzhen Stock Exchange website: http://www.szse.cn[11](index=11&type=chunk) - The company's registered capital increased from RMB 230.6304 million to RMB 276.75648 million[13] Key Accounting Data and Financial Indicators This section presents key accounting data, showing 27.07% revenue growth, 9.24% net profit growth, but a 67.80% decline in operating cash flow Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 219,650,528.90 | 172,860,433.35 | 27.07% | | Net Profit Attributable to Shareholders of Listed Company | 43,687,921.96 | 39,994,166.96 | 9.24% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 42,175,705.88 | 40,298,999.47 | 4.66% | | Net Cash Flow from Operating Activities | 8,078,578.24 | 25,090,826.81 | -67.80% | | Basic Earnings Per Share (RMB/share) | 0.16 | 0.14 | 14.29% | | Diluted Earnings Per Share (RMB/share) | 0.16 | 0.14 | 14.29% | | Weighted Average Return on Net Assets | 7.25% | 7.21% | 0.04% | Key Accounting Data and Financial Indicators (End of Current Reporting Period vs. End of Prior Year) | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 823,167,363.82 | 764,654,294.64 | 7.65% | | Net Assets Attributable to Shareholders of Listed Company | 595,577,102.90 | 586,567,177.75 | 1.54% | Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no differences in net profit or net assets between financial reports prepared under domestic and international accounting standards - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[15] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[16] Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses, totaling RMB 1,512,216.08, mainly from government subsidies and non-operating income, after tax and minority interest adjustments Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -29,389.39 | | Government subsidies recognized in current profit or loss | 1,746,476.85 | | Other non-operating income and expenses apart from the above | 22,211.44 | | Less: Income tax impact | 226,619.26 | | Minority interest impact (after tax) | 463.56 | | Total | 1,512,216.08 | - The company does not classify non-recurring gains and losses items as recurring gains and losses items[18] Section III Management Discussion and Analysis Company's Main Business Activities During the Reporting Period In H1 2024, the company achieved stable revenue and profit growth in both military and civilian sectors, driven by technological upgrades, innovation, safety, and digital economy expansion, with no major business changes Company's Key Work in the First Half of the Year H1 saw stable revenue and profit growth, with 38.19% military revenue increase, driven by RMB 5.118 million safety tech projects, 8.63% R&D investment growth, enhanced safety, and quality management Key Financial Data for H1 2024 | Indicator | Amount (RMB million) | Year-on-Year Change (RMB million) | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Operating Revenue | 219.6505 | 46.7901 | 27.07% | | Total Profit | 48.7920 | 3.5257 | 7.79% | | Main Business Revenue | 214.4383 | 44.7684 | 26.39% | | Military Product Operating Revenue | 143.5211 | 39.6609 | 38.19% | | Civilian Product Operating Revenue | 70.9172 | 5.1075 | 7.76% | - In H1, four safety technical transformation project contracts were signed, totaling over RMB 5.118 million, aimed at improving production efficiency and achieving human-machine isolation in hazardous processes[19] - H1 R&D expenditure was RMB 17.2571 million, a 8.63% year-on-year increase, accounting for 8.05% of main business revenue; 5 new utility model patents were added, bringing the total to 108 valid patents[19] Company's Main Business Activities During the Reporting Period The company specializes in R&D, production, and sales of pyrotechnics and related products for military and civilian sectors, including military pyrotechnics, AWM equipment, and expanding into smart meteorology and digital economy - The company's core business is the R&D, production, and sales of pyrotechnics and related products, developing dual-use technology industries[21] - Military products business is divided into two categories: Class I military products (requiring R&D and production licenses) and Class II military products (requiring manufacturing qualifications), also involving military trade products[21] - Civilian products business primarily includes the R&D, production, and sales of specialized artificial weather modification equipment, meteorological equipment, and related software, committed to new smart integrated digital industrialization businesses in meteorology, environment, and emergency fields[21] Main Products and Their Uses Military products include pyrotechnic components and devices for various armed forces; civilian products cover AWM explosives, equipment, meteorological observation tools, and extend into smart digital economy sectors - Military pyrotechnics include pyrotechnic components (primers, detonators, etc.) and pyrotechnic devices (thrusters, cutters, etc.), applied in army, navy, air force, rocket force, public security, and armed police equipment[22] - Civilian products business primarily engages in the R&D, production, and sales of artificial weather modification equipment and meteorological equipment, including hail suppression and rain enhancement rockets, flares, rocket launch systems, and meteorological observation and detection equipment and related software[22] - The company's products also extend to digital economy fields such as smart funeral services, smart factories, smart parks, smart water management, and smart meteorology[22] Main Business Model The company uses a direct sales model for military products, securing orders via conferences and tenders, with exports through trade companies; production follows military standards. Civilian products also use direct sales, obtaining orders via various procurement methods - Military product sales adopt a direct sales model, securing orders through national military product ordering conferences and tenders, with customers primarily central state-owned military industrial groups and local military industrial enterprises[24] - Military product production strictly adheres to national military standards, and raw material suppliers must undergo quality department assessment and military representative approval[24] - Civilian product sales also adopt a direct sales model, with procurement through single-source, competitive negotiation, and public tender methods; meteorological observation and detection equipment and software sales use market-based pricing[25] Company's Competitive Advantages and Disadvantages in the Industry The company boasts strong R&D, diverse products, and stable partnerships in military pyrotechnics and leading AWM technology, but faces disadvantages in military product scale and limited AWM rocket production capacity - Competitive advantages: long history in military pyrotechnics, rich product variety (over 400 types), strong R&D capabilities, and stable cooperation with major weapon equipment manufacturers[27] - Competitive advantages: relatively complete product range in artificial weather modification (over 100 types), offering one-stop service, with its self-destructing hail suppression and rain enhancement rockets being industry-leading[27] - Competitive disadvantages: military product operating scale lags behind central state-owned military enterprises, with insufficient military product capacity; licensed production capacity for artificial weather modification hail suppression and rain enhancement rockets is significantly lower than major competitors[27] Main Performance Drivers Performance growth is driven by optimized military production, increased market share, higher civilian rocket sales due to extreme weather and national strategies, and improved efficiency from production line technical upgrades - In military products, optimized production organization, improved efficiency, active pursuit of market share, and strengthened sales[28] - In civilian products, increased extreme weather and the implementation of national major strategies drove upgrades and updates of artificial weather modification equipment, leading to increased rocket sales[28] - Production line technical transformation improved inherent safety, production efficiency, and reduced labor intensity[28] Major Industry Policies and Their Impact Defense industry policies fostered military business; AWM policies boosted related operations; digital economy policies positively impacted smart industries, providing new growth drivers - National defense science and technology industry policies, such as the 'Regulations on Military Equipment Testing and Appraisal' and 'Interim Regulations on Supervision and Management of Military Equipment Procurement Contracts', effectively promoted the development of the company's military product business[29] - Artificial weather modification policies, such as the 'Outline for High-Quality Meteorological Development (2022-2035)' and the 'Action Plan for Artificial Weather Modification 'Rain-Seeding' Disaster Reduction (2023-2025)', actively promoted the development of the company's AWM business[29][30][31] - Digital economy policies, such as the 'Implementation Plan for Digital Economy Promoting Common Prosperity' and the 'Three-Year Action Plan for 'Data Elements x'', positively impacted the company's smart industries like smart funeral services, smart factories, and smart meteorology, providing new economic growth points[32] Analysis of Core Competencies Core competencies include strong R&D with RMB 17.2571 million investment and 108 patents, comprehensive product range, prominent industry position in military pyrotechnics and AWM, and excellence in industrialization-informatization integration - R&D investment of RMB 17.2571 million, accounting for 8.05% of main business revenue; possesses 108 valid patents (10 invention patents), 199 computer software copyrights, and a high-caliber R&D team[33] - Comprehensive product range, with over 400 types of military pyrotechnics and over 100 types of AWM equipment, covering all military branches and the entire AWM operation process[34] - Prominent industry position, with high recognition and influence in military pyrotechnics, and leading production capacity and market share in artificial weather modification nationwide[35] - Significant advantages in deep integration of industrialization and informatization, improving traditional products and developing new ones through information technology, enhancing inherent safety production and product technical levels[36] Analysis of Main Business H1 operating revenue grew 27.07% to RMB 219.6505 million, with military revenue up 38.19%; operating costs rose 43.72%, reducing gross margin, and operating cash flow fell 67.80% due to cash flow changes Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 219,650,528.90 | 172,860,433.35 | 27.07% | | Operating Costs | 125,778,370.73 | 87,518,336.73 | 43.72% | | Selling Expenses | 4,101,953.82 | 5,174,714.50 | -20.73% | | Administrative Expenses | 21,397,829.25 | 18,466,646.24 | 15.87% | | Financial Expenses | -918,393.38 | -705,074.27 | -30.25% | | R&D Investment | 17,257,071.46 | 15,886,099.53 | 8.63% | | Net Cash Flow from Operating Activities | 8,078,578.24 | 25,090,826.81 | -67.80% | | Net Cash Flow from Financing Activities | -37,450,906.20 | -862,557.30 | -4,241.85% | Breakdown by Product or Service | Product or Service | Operating Revenue (RMB) | Operating Costs (RMB) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Costs | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Military Products | 143,521,107.90 | 86,897,552.14 | 39.45% | 38.19% | 67.83% | -10.70% | | Civilian Products | 70,917,237.19 | 34,253,121.48 | 51.70% | 7.76% | 4.13% | 1.69% | - Net cash flow from operating activities decreased by 67.80% year-on-year, primarily due to a RMB 13.8511 million year-on-year decrease in operating cash inflows and a RMB 3.1611 million year-on-year increase in operating cash outflows[37] Analysis of Non-Core Business This section analyzes non-core business impact on profit, noting negative investment and asset impairment, significant credit impairment increase, and positive contribution from government subsidies Non-Core Business Profit and Loss | Item | Amount (RMB) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | -46,274.30 | -0.09% | No | | Asset Impairment | -20,843.70 | -0.04% | No | | Non-Operating Income | 22,211.44 | 0.05% | No | | Non-Operating Expenses | 29,389.39 | 0.06% | No | | Credit Impairment | -3,496,229.88 | -7.17% | No | | Other Income | 1,746,476.85 | 3.58% | No | - Credit impairment losses increased by 6,740.61% year-on-year, primarily due to a year-on-year increase in accrued credit impairment losses for accounts receivable[37] Analysis of Assets and Liabilities Total assets grew 7.65%; cash decreased, accounts receivable rose 10.65%, inventories and construction in progress increased. Liabilities saw significant growth in accounts payable and taxes payable, with a slight decrease in contract liabilities Changes in Asset and Liability Composition (End of Current Reporting Period vs. End of Prior Year) | Item | End of Current Reporting Period Amount (RMB) | Proportion of Total Assets | End of Prior Year Amount (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 164,542,987.86 | 19.99% | 200,743,438.91 | 26.25% | -6.26% | | Accounts Receivable | 237,859,892.73 | 28.90% | 139,573,358.38 | 18.25% | 10.65% | | Inventories | 121,824,286.47 | 14.80% | 104,543,644.39 | 13.67% | 1.13% | | Fixed Assets | 187,746,411.29 | 22.81% | 193,690,244.52 | 25.33% | -2.52% | | Construction in Progress | 10,242,869.00 | 1.24% | 6,131,820.98 | 0.80% | 0.44% | | Accounts Payable | 85,991,740.22 | 10.45% | 38,849,959.88 | 5.08% | 5.37% | | Contract Liabilities | 71,649,950.26 | 8.70% | 74,925,289.44 | 9.80% | -1.10% | | Taxes Payable | 10,628,749.55 | 1.29% | 5,072,033.62 | 0.66% | 0.63% | - There were no asset rights restrictions at the end of the reporting period[43] Analysis of Investment Status Total investment was RMB 5.3082 million, down 11.71%; no significant equity, non-equity, fair value financial asset changes, raised fund use, entrusted wealth management, derivative, or entrusted loan activities occurred Comparison of Investment Amounts During the Reporting Period | Indicator | Investment Amount in Reporting Period (RMB) | Investment Amount in Prior Year Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment Amount | 5,308,246.90 | 6,012,243.32 | -11.71% | - The company had no use of raised funds during the reporting period[45] - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[46][47] Significant Asset and Equity Sales The company did not engage in any sales of significant assets or major equity during the reporting period - The company did not sell significant assets during the reporting period[48] - The company did not sell major equity during the reporting period[49] Analysis of Major Holding and Participating Companies This section analyzes major subsidiaries: Guoke Tezhuang saw significant revenue and net profit growth, while Nanjing Guoke experienced year-on-year declines Operating Performance of Major Subsidiaries | Company Name | Company Type | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinyu Guoke Special Equipment Co., Ltd. | Subsidiary | 55,709,663.86 | 132,890,305.54 | 114,752,924.40 | 29,954,616.87 | 3,655,273.80 | 3,637,619.23 | | Nanjing Guoke Software Co., Ltd. | Subsidiary | 2,000,000.00 | 9,134,019.59 | 3,187,875.35 | 392,799.75 | -1,721,071.52 | -1,721,251.58 | - Guoke Tezhuang's H1 operating revenue increased by 48.75% year-on-year, and net profit increased by 673.35% year-on-year[49] - Nanjing Guoke's H1 operating revenue decreased by 79.45% year-on-year, and net profit decreased by 28.92% year-on-year[50] Risks Faced by the Company and Countermeasures The company faces market, safety, raw material price, and project investment risks, responding with cost control, high-value product development, enhanced safety, price monitoring, and accelerated innovation and market promotion - Market change risk: military products face price reduction pressure from downstream customers, affecting sales revenue and profit[51] - Safety risk: the production, testing, storage, and transportation of pyrotechnics and related products have inherent hazardous properties, potentially leading to accidental safety incidents[52] - Raw material price increase risk: major raw materials, non-ferrous metals and chemical materials, face significant price increase risks[53] - Project investment risk: the input-output of the artificial weather modification equipment expansion project differs from expected benefits[54] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period This section records investor engagement activities, covering discussions on military product sales, customers, capacity, competitive advantages, orders, M&A, profit decline, and civilian market outlook - On January 26, 2024, the company hosted on-site research by institutions such as ICBC Credit Suisse and Invesco Great Wall Fund, discussing military product sales, customers, and future capacity[55] - On April 22, 2024, the company communicated via phone with institutions such as China Universal Asset Management and AVIC Fund, discussing the breakdown of 2023 operating revenue by product and demand structure, and the company's competitive advantages[56] - On June 27, 2024, the company hosted on-site research by institutions such as Changjiang Securities and Orient Asset Management, discussing major military product customers, foreign trade export processes, and the outlook for the civilian artificial weather modification market[56] Implementation of 'Dual Improvement in Quality and Returns' Action Plan The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan during the reporting period - The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[57] Section IV Corporate Governance Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held its 2024 first extraordinary general meeting and 2023 annual general meeting, approving related-party transactions, annual reports, financial statements, profit distribution, and Articles of Association amendments Shareholder Meetings During the Reporting Period | Meeting Session | Meeting Type | Investor Participation Ratio | Date of Meeting | Disclosure Date | Meeting Resolutions | | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 First Extraordinary General Meeting | Extraordinary General Meeting | 4.74% | February 23, 2024 | February 23, 2024 | Approved the "Proposal on Estimated Daily Related-Party Transactions for 2024" | | 2023 Annual General Meeting | Annual General Meeting | 70.08% | May 24, 2024 | May 24, 2024 | Approved 2023 Board of Directors'/Supervisory Board's Work Report, Financial Final Accounts, Profit Distribution and Capital Reserve Conversion to Share Capital Pre-plan, Revision of "Articles of Association", etc. | - No preferred shareholders with restored voting rights requested to convene an extraordinary general meeting during the reporting period[58] Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[58] Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for this half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[59] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[59] Section V Environmental and Social Responsibility Significant Environmental Issues The company and its subsidiaries are key pollutant-discharging units, adhering to environmental standards with valid permits, employing various treatment measures, and achieving compliant emissions; H1 environmental investment was RMB 0.564 million, with no penalties, and carbon emissions reduced via boiler upgrades - The company and its subsidiaries are designated key pollutant-discharging units by environmental protection authorities, holding valid pollutant discharge permits effective until July 15, 2028[60] Main Pollutant Emission Status (Xinyu Guoke) | Pollutant Type | Pollutant Name | Emission Method | Number of Emission Outlets | Emission Concentration/Intensity | Applicable Pollutant Emission Standard | Total Emissions | Approved Total Emissions | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wastewater | COD | Irregular intermittent discharge | 1 | 21.83mg/L | "Integrated Wastewater Discharge Standard" | 0.43 tons | 3.99t/a | None | | Wastewater | Ammonia Nitrogen | Irregular intermittent discharge | 1 | 0.86mg/L | "Integrated Wastewater Discharge Standard" | 0.017 tons | 0.22t/a | None | | Atmosphere | Sulfur Dioxide | Regular continuous discharge | 1 | 31.83mg/m3 | "Boiler Air Pollutant Emission Standard" | 0.53 tons | 7.13t/a | None | | Atmosphere | Nitrogen Oxides | Regular continuous discharge | 1 | 261mg/m3 | "Boiler Air Pollutant Emission Standard" | 4.37 tons | 10.94t/a | None | - In the first half of 2024, the company invested approximately RMB 0.564 million in environmental governance and protection, paid RMB 0.0086 million in environmental protection tax, and received no administrative penalties for environmental issues during the reporting period[63] - The company implemented boiler technical upgrades using rice husks instead of coal fuel and strict energy management systems to reduce energy consumption and carbon emissions[63] Social Responsibility Status As a provincial state-owned listed company, Xinyu Guoke actively fulfills social responsibilities, promoting rural revitalization, securing project funds for villages, and caring for the elderly, demonstrating a positive corporate image - The company actively engaged with Huangxi Village in Jieshui Township, Xinyu City, and Longjingshang Village in Nanbu Village Committee, Guanchao Town, Xinyu City, continuously carrying out rural revitalization and new rural construction assistance work[64] - Guided Huangxi Village Committee to secure a RMB 0.3 million landscape guardrail project and a RMB 0.3 million new rural construction project, and completed 150 mu of camellia oil tree planting[64] - Guided Nanbu Village Committee to secure a RMB 0.3 million post-relocation support project for large and medium-sized reservoir immigrants and a RMB 0.37625 million road hardening project for Longjingshang Village[64] - The company showed great care and concern for the living conditions of elderly residents in the assisted villages' elderly care homes, conducting visits and慰问 activities during the Spring Festival and Dragon Boat Festival[64] Section VI Significant Matters Commitments The company reported no fulfilled or overdue unfulfilled commitments from its actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period - The company reported no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled during the reporting period or overdue and unfulfilled as of the end of the reporting period[66] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties The company reported no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - The company reported no non-operating occupation of listed company funds by the controlling shareholder or other related parties during the reporting period[66] Illegal External Guarantees The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[66] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[66] Board of Directors' and Supervisory Board's Explanation on 'Non-Standard Audit Report' for the Current Reporting Period There was no non-standard audit report for the company during the reporting period, thus no related explanation - There was no non-standard audit report for the company during the reporting period[66] Board of Directors' Explanation on 'Non-Standard Audit Report' for the Prior Year There was no non-standard audit report for the prior year for the company during the reporting period, thus no related explanation - There was no non-standard audit report for the prior year for the company during the reporting period[66] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[66] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[66] Penalties and Rectification Status The company was banned for 2 years from military procurement due to collusive bidding and has implemented rectification measures including compliance, sales training, and diversifying sales channels - The company was banned from participating in all military material engineering service procurement activities for 2 years due to collusive bidding[67] - Rectification measures include strengthening compliance management, training sales personnel, expanding non-military direct procurement businesses, and developing other sales channels[67] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period[68] Significant Related-Party Transactions The company had daily related-party transactions, mainly RMB 35.2 million material purchases from military enterprise M, within approved limits; no other significant related-party transactions like asset/equity deals or joint investments occurred Related-Party Transactions Related to Daily Operations (Purchase of Goods) | Related Party | Related-Party Transaction Content | Related-Party Transaction Amount (RMB million) | Approved Transaction Limit (RMB million) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Military Enterprise M | Materials | 35.20 | 35.20 | No | - The company disclosed the 'Announcement on Estimated Daily Related-Party Transactions for 2024' on February 5, 2024, and the related-party transaction amount during the reporting period was within the approved limit[70] - The company had no asset or equity acquisitions, sales, joint external investments, related-party creditor-debtor relationships, or dealings with affiliated finance companies during the reporting period[71][72][73][74][75][76] Significant Contracts and Their Performance The company had no entrustment, contracting, leasing, or significant guarantee matters; no specific daily operational significant contract details were disclosed, and no other major contracts existed - The company had no entrustment, contracting, or leasing situations during the reporting period[77][78][79][80] - The company had no significant guarantee situations during the reporting period[81] - The company had no other significant contracts during the reporting period[83] Explanation of Other Significant Matters This section discloses the completion of Articles of Association amendments, industrial and commercial registration changes, 2023 annual equity distribution, and progress on board and supervisory board re-elections - Amendments to the company's Articles of Association and industrial and commercial change registration have been completed, and a new business license has been obtained[84] - The company's 2023 annual equity distribution has been completed[84] - Proposals for the re-election of the board of directors and supervisory board have been approved, and the fourth-term employee supervisor has been elected[84] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[85] Section VII Share Changes and Shareholder Information Share Change Status Due to the 2023 equity distribution, total share capital increased from 230,630,400 to 276,756,480 shares, impacting net assets per share and basic earnings per share Share Change Status | Indicator | Quantity Before This Change (shares) | Proportion | Increase/Decrease in This Change (capital reserve conversion to shares) | Quantity After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Unlimited Shares | 230,630,400 | 100.00% | 46,126,080 | 276,756,480 | 100.00% | | Total Shares | 230,630,400 | 100.00% | 46,126,080 | 276,756,480 | 100.00% | - The reason for the share change was the company's implementation of the 2023 annual equity distribution, converting capital reserves into share capital at a rate of 2 shares for every 10 shares held by all shareholders[87] - After the share change, net assets per share decreased from RMB 2.58 to RMB 2.15, and basic earnings per share decreased from RMB 0.19 to RMB 0.16[88] Securities Issuance and Listing Status The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[88] Number of Shareholders and Shareholding Status At period-end, common shareholders totaled 25,897; the top two shareholders, Jiangxi Provincial Military Industry Holding Group and Jiangxi Dacheng State-owned Assets Management Group, held 37.60% and 27.73% respectively - The total number of common shareholders at the end of the reporting period was 25,897[89] Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Change in Shareholding During Reporting Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Jiangxi Provincial Military Industry Holding Group Co., Ltd. | State-owned Legal Person | 37.60% | 104,069,417.00 | 17,344,903.00 | | Jiangxi Dacheng State-owned Assets Management Group Co., Ltd. | State-owned Legal Person | 27.73% | 76,754,811.00 | 12,792,468.00 | | Xinyu Kexin Investment Management Center (Limited Partnership) | Domestic Non-State-owned Legal Person | 2.60% | 7,204,919.00 | 126,020.00 | | Xinyu Guohui Investment Management Center (Limited Partnership) | Domestic Non-State-owned Legal Person | 1.25% | 3,446,753.00 | 182,959.00 | | Jiangxi Steel Wire Factory Co., Ltd. | State-owned Legal Person | 0.90% | 2,498,494.00 | 416,416.00 | - Major shareholder Jiangxi Dacheng State-owned Assets Management Group Co., Ltd. holds all shares of the company's controlling shareholder, Military Industry Group, and also all shares of Jiangxi Steel Wire Factory[90] Cumulative Pledged Shares of the Company's Controlling Shareholder or First Largest Shareholder and Their Concerted Parties Reaching 80% of Their Held Shares The cumulative pledged shares of the controlling shareholder or first largest shareholder and their concerted parties did not reach 80% of their held shares - The cumulative pledged shares of the company's controlling shareholder or first largest shareholder and their concerted parties did not reach 80% of their held shares[92] Changes in Shareholdings of Directors, Supervisors, and Senior Management Shareholdings of some directors and senior management increased due to capital reserve conversion, with minor reductions by others; Chairman Yuan Yougen's holdings increased by 207,186 shares, while Director Liu Aiping's increased by 86,265 and decreased by 10,000 shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Yuan Yougen | Chairman | 1,035,932 | 207,186 | 0 | 1,243,118 | | Liu Aiping | Director, General Manager | 441,323 | 86,265 | 10,000 | 517,588 | | Yan Jicheng | Director, Board Secretary | 309,264 | 59,853 | 10,000 | 359,117 | | He Guangming | Deputy General Manager | 426,696 | 85,339 | 0 | 512,035 | | Total | -- | 2,213,215 | 438,643 | 20,000 | 2,631,858 | Changes in Controlling Shareholder or Actual Controller Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[92] - The company's actual controller did not change during the reporting period[92] Section VIII Preferred Shares Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[93] Section IX Bonds Bonds The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[94] Section X Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[95] Financial Statements This section presents the company's H1 2024 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet As of June 30, 2024, consolidated total assets were RMB 823.17 million (up 7.65%), liabilities RMB 226.95 million (up 28.18%), with significant increases in accounts receivable and construction in progress Key Items of Consolidated Balance Sheet (Period-End Balance) | Item | Period-End Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 164,542,987.86 | 200,743,438.91 | | Notes Receivable | 37,624,612.31 | 58,641,062.14 | | Accounts Receivable | 237,859,892.73 | 139,573,358.38 | | Inventories | 121,824,286.47 | 104,543,644.39 | | Fixed Assets | 187,746,411.29 | 193,690,244.52 | | Construction in Progress | 10,242,869.00 | 6,131,820.98 | | Accounts Payable | 85,991,740.22 | 38,849,959.88 | | Contract Liabilities | 71,649,950.26 | 74,925,289.44 | | Share Capital | 276,756,480.00 | 230,630,400.00 | | Total Owners' Equity Attributable to Parent Company | 595,577,102.90 | 586,567,177.75 | - Accounts receivable period-end balance significantly increased by approximately 70.42% compared to the beginning of the period[96] - Accounts payable period-end balance significantly increased by approximately 121.35% compared to the beginning of the period[97] Parent Company Balance Sheet As of June 30, 2024, parent company total assets were RMB 846.24 million (up 8.36%), liabilities RMB 269.66 million (up 27.24%), with significant growth in accounts receivable and accounts payable Key Items of Parent Company Balance Sheet (Period-End Balance) | Item | Period-End Balance (RMB) | Beginning of Period Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 159,058,345.99 | 193,519,064.17 | | Accounts Receivable | 231,261,459.99 | 133,060,058.38 | | Inventories | 109,325,330.20 | 88,720,581.70 | | Fixed Assets | 152,815,529.39 | 157,543,158.18 | | Construction in Progress | 10,242,869.00 | 6,131,820.98 | | Accounts Payable | 133,402,856.38 | 78,237,437.72 | | Contract Liabilities | 71,602,780.44 | 74,708,208.13 | | Share Capital | 276,756,480.00 | 230,630,400.00 | | Total Owners' Equity | 576,579,467.96 | 568,988,833.66 | - Parent company accounts receivable period-end balance increased by approximately 73.79% compared to the beginning of the period[100] - Parent company accounts payable period-end balance increased by approximately 70.51% compared to the beginning of the period[101] Consolidated Income Statement H1 2024 total operating revenue reached RMB 219.65 million (up 27.07%), net profit RMB 43.34 million (up 9.09%); operating, administrative, and R&D costs rose, with negative financial expenses due to increased interest income Key Items of Consolidated Income Statement (Current Period vs. Prior Period) | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 219,650,528.90 | 172,860,433.35 | | Total Operating Costs | 169,034,489.63 | 127,427,663.60 | | Operating Profit | 48,799,168.24 | 46,469,645.83 | | Total Profit | 48,791,990.29 | 45,266,308.52 | | Net Profit | 43,343,671.64 | 39,727,131.32 | | Net Profit Attributable to Parent Company Shareholders | 43,687,921.96 | 39,994,166.96 | | Basic Earnings Per Share | 0.16 | 0.14 | | Diluted Earnings Per Share | 0.16 | 0.14 | - Operating costs increased by 43.72% year-on-year, primarily due to a corresponding increase in costs with the company's sales volume growth during the reporting period[103] - Financial expenses were -RMB 918,393.38, primarily due to a year-on-year increase in bank deposit interest income[103] Parent Company Income Statement H1 2024 parent company operating revenue reached RMB 218.94 million (up 27.55%), net profit RMB 42.39 million (up 4.00%); operating, administrative, and R&D costs rose, with negative financial expenses due to increased interest income Key Items of Parent Company Income Statement (Current Period vs. Prior Period) | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 218,944,964.35 | 171,660,382.66 | | Operating Costs | 133,759,306.27 | 92,297,555.16 | | Operating Profit | 47,827,133.94 | 47,499,718.27 | | Total Profit | 47,819,955.99 | 46,296,673.70 | | Net Profit | 42,389,471.97 | 40,760,508.43 | - Parent company operating costs increased by 44.93% year-on-year[106] - Parent company financial expenses were -RMB 908,627.35, primarily due to increased interest income[106] Consolidated Cash Flow Statement H1 2024 operating cash flow was RMB 8.08 million (down 67.80%); investing cash flow was -RMB 6.83 million; financing cash flow was -RMB 37.45 million due to increased dividend payments, resulting in a -RMB 36.20 million net increase in cash and equivalents Key Items of Consolidated Cash Flow Statement (Current Period vs. Prior Period) | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 8,078,578.24 | 25,090,826.81 | | Net Cash Flow from Investing Activities | -6,828,123.09 | -7,763,118.14 | | Net Cash Flow from Financing Activities | -37,450,906.20 | -862,557.30 | | Net Increase in Cash and Cash Equivalents | -36,200,451.05 | 16,465,151.37 | - Net cash flow from operating activities decreased by 67.80% year-on-year, primarily due to a RMB 13.8511 million year-on-year decrease in operating cash inflows and a RMB 3.1611 million year-on-year increase in operating cash outflows[37] - Net cash flow from financing activities decreased by 4,241.85% year-on-year, primarily due to the company paying RMB 36.9009 million in dividends during the current reporting period[37][38] Parent Company Cash Flow Statement H1 2024 parent company operating cash flow was RMB 9.76 million (down 52.65%); investing cash flow was -RMB 6.90 million; financing cash flow was -RMB 37.32 million due to increased dividend payments, resulting in a -RMB 34.46 million net increase in cash and equivalents Key Items of Parent Company Cash Flow Statement (Current Period vs. Prior Period) | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 9,760,213.36 | 20,613,110.03 | | Net Cash Flow from Investing Activities | -6,904,067.54 | -6,464,238.02 | | Net Cash Flow from Financing Activities | -37,316,864.00 | -596,664.00 | | Net Increase in Cash and Cash Equivalents | -34,460,718.18 | 13,552,208.01 | - Parent company net cash flow from operating activities decreased by 52.65% year-on-year[111] - Parent company net cash flow from financing activities significantly decreased, primarily due to RMB 36.9009 million in dividend payments during the current period[111] Consolidated Statement of Changes in Owners' Equity This section details consolidated owners' equity changes; period-end total equity was RMB 596.21 million, with share capital increasing by RMB 46.13 million from capital reserve conversion, and retained earnings fluctuating due to net profit and distributions Changes in Consolidated Owners' Equity (Current Period Amounts) | Item | Share Capital (RMB) | Capital Reserves (RMB) | Special Reserves (RMB) | Surplus Reserves (RMB) | Retained Earnings (RMB) | Total Owners' Equity Attributable to Parent Company (RMB) | Minority Interests (RMB) | Total Owners' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at End of Prior Year | 230,630,400.00 | 53,779,268.78 | 12,128,378.68 | 47,892,933.63 | 242,136,196.66 | 586,567,177.75 | 981,825.40 | 587,549,003.15 | | III. Amount of Increase/Decrease in Current Period | 46,126,080.00 | -46,126,080.00 | 2,222,867.19 | 0.00 | 6,787,057.96 | 9,009,925.15 | -344,250.32 | 8,665,674.83 | | IV. Balance at End of Current Period | 276,756,480.00 | 7,653,188.78 | 14,351,245.87 | 47,892,933.63 | 248,923,254.62 | 595,577,102.90 | 637,575.08 | 596,214,677.98 | - Share capital increased by RMB 46,126,080.00 due to capital reserve conversion to share capital, with a corresponding decrease of RMB 46,126,080.00 in capital reserves[113] - Retained earnings increased by RMB 6,787,057.96 in the current period, primarily influenced by net profit and profit distribution[113] Parent Company Statement of Changes in Owners' Equity This section details parent company owners' equity changes; period-end total equity was RMB 576.58 million, with share capital increasing by RMB 46.13 million from capital reserve conversion, and retained earnings fluctuating due to net profit and distributions Changes in Parent Company Owners' Equity (Current Period Amounts) | Item | Share Capital (RMB) | Capital Reserves (RMB) | Special Reserves (RMB) | Surplus Reserves (RMB) | Retained Earnings (RMB) | Total Owners' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at End of Prior Year | 230,630,400.00 | 53,779,268.78 | 12,004,608.41 | 47,894,774.98 | 224,679,781.49 | 568,988,833.66 | | III. Amount of Increase/Decrease in Current Period | 46,126,080.00 | -46,126,080.00 | 2,102,026.33 | 0.00 | 5,488,607.97 | 7,590,634.30 | | IV. Balance at End of Current Period | 276,756,480.00 | 7,653,188.78 | 14,106,634.74 | 47,894,774.98 | 230,168,389.46 | 576,579,467.96 | - Share capital increased by RMB 46,126,080.00 due to capital reserve conversion to share capital, with a corresponding decrease of RMB 46,126,080.00 in capital reserves[119] - Retained earnings increased by RMB 5,488,607.97 in the current period, primarily influenced by net profit and profit distribution[119] Company Basic Information The company, listed on Shenzhen Stock Exchange on November 10, 2017, has a share capital and registered capital of RMB 276,756,480.00 as of June 30, 2024, primarily engaging in R&D, production, and sales of military and civilian pyrotechnics - The company has been listed on the Shenzhen Stock Exchange since November 10, 2017[124] - As of June 30, 2024, the company's share capital and registered capital were both RMB 276,756,480.00[124] - The company's main business is the R&D, production, and sales of pyrotechnics and related products, conducting both military and civilian businesses, and committed to developing dual-use technology industries[125] Basis of Financial Statement Preparation Financial statements are prepared on a going concern basis, adhering to 'Enterprise Accounting Standards' and company policies; a 12-month going concern assessment found no adverse matters - The company's financial statements are prepared on a going concern basis, in accordance with the 'Enterprise Accounting Standards' issued by the Ministry of Finance and other regulations[126] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability[127] Significant Accounting Policies and Estimates This section details significant accounting policies and estimates, including financial instrument classification, expected credit loss, inventory valuation, asset depreciation/amortization, revenue recognition, government subsidies, and safety production expenses - The company's financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[142] - The company adopts a simplified approach for receivables, always measuring loss provisions based on expected credit losses over the entire lifetime[145] - Inventories are measured at the lower of cost and net realizable value, with inventory impairment provisions recognized when net realizable value is below cost[154] - Fixed assets are depreciated using the straight-line method, and intangible assets (with finite useful lives) are amortized using the straight-line method[165][171] - Revenue is recognized when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[185] - Government subsidies are classified into asset-related and income-related, recognized as deferred income or directly in profit or loss, respectively[187] - The company accrues safety production expenses in accordance with the 'Administrative Measures for the Accrual and Use of Enterprise Safety Production Expenses', recognized in relevant product costs or current profit or loss, and simultaneously recorded in the 'Special Reserve' account[193] Taxation This section lists applicable tax types and rates, including VAT, Urban Maintenance Tax, Enterprise Income Tax, and education surcharges; the company benefits from VAT exemptions for military products, software VAT refunds, and a 15% high-tech enterprise income tax rate Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Sales Amount | 3%, 6%, 13% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 1%, 7% | | Enterprise Income Tax | Taxable Income | 15%, 20% | | Education Surcharge | Amount of Turnover Tax Payable | 3% | | Local Education Surcharge | Amount of Turnover Tax Payable | 2% | - The company enjoys VAT exemption policy for military product sales[197] - The company and its subsidiaries Guoke Tezhuang and Nanjing Guoke are recognized as high-tech enterprises, enjoying a 15% Enterprise Income Tax rate[197] - Subsidiary Guoke Meteorology qualifies as a small-profit enterprise, enjoying the policy of calculating taxable income at 25% and paying Enterprise Income Tax at a 20% rate[198] Notes to Consolidated Financial Statement Items This section provides detailed notes for consolidated financial statement items, including cash, receivables, inventories, fixed assets, construction in progress, payables, share capital, reserves, retained earnings, revenue, costs, expenses, and government subsidies, explaining balances and changes - Cash and cash equivalents period-end balance was RMB 164,542,987.86, a 18.03% decrease from the beginning of the period[199] - Accounts receivable period-end balance was RMB 237,859,892.73, a 70.42% increase from the beginning of the period, primarily due to an increase in accounts receivable for which bad debt provisions were accrued by portfolio[206] - Inventories period-end book value was RMB 121,824,286.47, a 16.53% increase from the beginning of the period, primarily composed of raw materials, work-in-progress, and finished goods[233] - Construction in progress period-end balance was RMB 10,242,869.00, a 67.04% increase from the beginning of the period, primarily including the special equipment production line project and the tubular pyrotechnics automated production line[252][253] - Accounts payable period-end balance was RMB 85,991,740.22, a 121.35% increase from the beginning of the period[273] - Share capital increased by RMB 46,126,080.00 due to capital reserve conversion to share capital, with a period-end balance of RMB 276,756,480.00[292] R&D Expenses This section discloses R&D expenses totaling RMB 17,257,071.46, fully expensed in current profit or loss, primarily comprising employee compensation, direct materials, and other costs Composition of R&D Expenses | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 8,103,991.48 | 7,803,329.51 | | Direct Materials | 5,908,969.23 | 5,180,187.69 | | Other Expenses | 3,244,110.75 | 2,902,582.33 | | Total | 17,257,071.46 | 15,886,099.53 | | Of which: Expensed R&D Expenditure | 17,257,071.46 | 15,886,099.53 | - All R&D expenses for the current period were expensed, with no R&D projects meeting capitalization criteria[322][323] Changes in Consolidation Scope The company had no changes in consolidation scope during the reporting period due to business combinations, reverse acquisitions, or subsidiary disposals - The company had no business combinations not involving entities under common control during the reporting period[324] - The company had no business combinations involving entities under common control during the reporting period[328] - There were no transactions or events