BAOSHENG SCI(SH:600973)2024-08-30 09:40Financial Performance - The company's operating revenue for the first half of 2024 was CNY 22,352,028,002.68, representing a 0.50% increase compared to CNY 22,241,710,914.09 in the same period last year[11]. - The net profit attributable to shareholders of the listed company decreased by 68.94% to CNY 18,657,756.71 from CNY 60,070,468.78 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was CNY 4,635,830.47, down 91.54% from CNY 54,789,717.49 in the previous year[12]. - The basic earnings per share decreased by 68.18% to CNY 0.014 from CNY 0.044 in the same period last year[12]. - The weighted average return on net assets was 0.50%, a decrease of 1.10 percentage points compared to 1.60% in the previous year[12]. - The net cash flow from operating activities was negative at CNY -991,449,049.71, compared to CNY -708,272,790.86 in the same period last year[11]. - The company reported a net profit of ¥142.01 million from Jiangsu Baosheng Precision Conductor Co., Ltd., with total assets of ¥202,346.56 million[38]. - The company’s subsidiary Dongguan Rixin Conduction Technology Co., Ltd. reported a net profit of ¥2,908.05 million, with total assets of ¥75,446.15 million[38]. - The company’s subsidiary Baosheng (Shandong) Cable Co., Ltd. generated a net profit of ¥1,081.08 million, with total assets of ¥65,593.10 million[38]. Assets and Liabilities - The company's total assets increased by 3.64% to CNY 23,209,309,358.23 from CNY 22,394,127,212.99 at the end of the previous year[12]. - The total liabilities reached ¥18,226,526,484.24, compared to ¥17,420,675,458.98 at the end of 2023, indicating an increase of about 4.63%[106]. - Current assets totaled ¥16,089,851,895.10, up from ¥15,138,685,294.32, representing a growth of approximately 6.29%[104]. - The company's cash and cash equivalents decreased to ¥3,713,037,866.78 from ¥3,755,268,538.46, a decline of about 1.13%[104]. - Accounts receivable increased significantly to ¥7,074,694,531.60 from ¥5,727,367,856.69, marking an increase of approximately 23.54%[104]. - Inventory decreased to ¥3,121,450,959.69 from ¥3,432,321,057.47, reflecting a decline of about 9.06%[104]. - Short-term borrowings rose to ¥9,408,000,126.23 from ¥8,333,895,061.63, an increase of approximately 12.91%[105]. - Long-term borrowings increased to ¥3,839,791,002.45 from ¥2,992,652,370.91, representing a growth of about 28.36%[106]. - The total equity attributable to shareholders reached ¥3,761,830,256.09, slightly up from ¥3,753,309,229.35, indicating a growth of approximately 0.23%[106]. Market and Industry Trends - The wire and cable industry in China is expected to reach a market size of 1.20 trillion RMB in 2023, up from 1.17 trillion RMB in 2022[16]. - The market share of leading companies in the wire and cable industry increased from 7.39% in 2017 to 15.44% in 2022, indicating a trend towards market concentration[16]. - The company operates in a highly competitive wire and cable industry, with significant reliance on copper and aluminum, which account for over 70% of total costs[15]. - The renewable energy sector, particularly wind and solar, is experiencing rapid growth, supported by government policies aimed at achieving carbon neutrality by 2060[19]. - The wire and cable industry is closely linked to the development of downstream sectors such as power, communication, and new energy, which directly influences market demand[16]. - The company anticipates continued growth in the wire and cable market due to increasing investments in smart grid and ultra-high voltage network construction[17]. - The industry is undergoing structural adjustments, with a trend towards consolidation among leading enterprises, enhancing their competitive advantages[17]. Environmental Management - The company reported a total of 1 wastewater discharge point with a COD discharge of 48 mg/L, which is below the standard limit of 500 mg/L[45]. - The company generated a total of 2,561.36 tons of waste cable material, which was disposed of through qualified units[46]. - The company is classified as a key pollutant discharge unit, focusing on water and air environmental risks[43]. - The company has implemented various pollution control facilities, including a waste gas purification device with a processing capacity of 10,000 m³/h, operational since July 2023[53]. - The company operates a hazardous waste purification device with a capacity of 12,000 m³/h, which has been in operation since February 2022[54]. - The company has established a hazardous waste warehouse with an area of 180 square meters, operational since 2018[54]. - The company has a total nitrogen emission limit of 45 mg/m³, in compliance with the established pollution discharge standards[52]. - The company has a total phosphorus emission limit of 4 mg/m³, adhering to the pollution discharge standards[52]. - The company has a total copper emission limit of 2 mg/m³, in line with the pollution discharge standards[52]. - The company has a five-day biochemical oxygen demand limit of 230 mg/m³, complying with the pollution discharge standards[52]. Legal and Compliance - The company has committed to avoiding any competition with the listed company's main business during the control period, ensuring no conflicts of interest arise[71]. - The company will manage related transactions with the listed company according to market principles, ensuring fairness and transparency[72]. - The commitments made by the company and its controlling enterprises are long-term and effective, with no specified expiration date[73]. - The company has initiated four lawsuits against Hengda related to commercial disputes, with a total claim amount of RMB 61,253.90 million[78]. - Three of the lawsuits have been adjudicated, all supporting the company's claims, while one is still under review[78]. - The company faced regulatory warnings due to insufficient disclosure regarding major litigation, leading to a warning for the former chairman[81]. - The company plans to enhance legal compliance training and conduct quarterly training for directors and senior management to improve their responsibilities[81]. Research and Development - Research and development expenses increased to ¥356,631,022.16 in the first half of 2024, up from ¥341,841,931.76 in the previous year, marking a growth of about 4.3%[112]. - The company secured 19 patents in the first half of 2024, including 5 invention patents, and received government funding of ¥621.91 million from 26 project applications[29]. - The company has expanded its product range to over 1,000 varieties and 100,000 models, enhancing its system integration capabilities[27]. - The company is actively pursuing technological upgrades and expansions to enhance its production capabilities and environmental compliance[60]. Shareholder and Capital Management - The company did not distribute profits or increase capital reserves, with no dividends or stock bonuses declared for the year[41]. - The company raised a total of CNY 50,000,000 from a specific stock issuance, with a net amount of CNY 48,916,080 after deducting issuance costs[88]. - The total number of ordinary shareholders as of the report date is 46,055, with no changes in the total number of shares and capital structure during the reporting period[99]. - The largest shareholder, Baosheng Group Co., Ltd., holds 437,406,433 shares, accounting for 31.90% of the total shares[99]. - The company has not experienced any changes in the shareholding structure of the top ten shareholders during the reporting period[100]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[128]. - The company aims to improve shareholder returns through strategic investments and potential mergers and acquisitions in the upcoming quarters[137].