宏英智能(001266) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section presents essential notices, the report's table of contents, and key definitions Company Profile and Key Financial Indicators This section outlines the company's profile and presents its key financial performance indicators Company Profile Shanghai Hongying Intelligent Technology Co., Ltd. (001266) is a Shenzhen-listed company specializing in intelligent control technology | Item | Information | | :--- | :--- | | Stock Abbreviation | Hongying Intelligent | | Stock Code | 001266 | | Listing Exchange | Shenzhen Stock Exchange | | Company Name | Shanghai Hongying Intelligent Technology Co., Ltd. | | Legal Representative | Zhang Huahong | Key Accounting Data and Financial Indicators Operating revenue grew 61.72% YoY, but net profit attributable to shareholders sharply declined 81.07%, with total assets up 19.33% and net assets down 2.67% | Key Financial Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 353,118,018.06 | 218,345,390.12 | 61.72% | | Net Profit Attributable to Shareholders (RMB) | 2,793,534.02 | 14,759,963.39 | -81.07% | | Net Profit Excluding Non-recurring Items (RMB) | -3,427,922.46 | 4,596,846.68 | -174.57% | | Net Cash Flow from Operating Activities (RMB) | -129,407,183.29 | -138,069,393.12 | 6.27% | | Basic Earnings Per Share (RMB/share) | 0.03 | 0.1400 | -78.57% | | Weighted Average Return on Net Assets | 0.28% | 1.42% | -1.14% | | Total Assets (RMB) | 1,398,280,916.19 | (End of Prior Year) 1,171,751,448.39 | 19.33% | | Net Assets Attributable to Shareholders (RMB) | 977,243,203.82 | (End of Prior Year) 1,004,063,432.34 | -2.67% | Non-recurring Gains and Losses and Amounts Total non-recurring gains and losses amounted to RMB 6.22 million, primarily from government subsidies and fair value changes in financial assets/liabilities | Item | Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit/loss | 3,936,873.40 | | Fair value changes from financial assets and liabilities held by non-financial enterprises | 3,648,206.80 | | Other non-operating income and expenses | 539.91 | | Less: Income tax impact | 1,358,163.63 | | Less: Impact on minority interests (after tax) | 6,000.00 | | Total | 6,221,456.48 | Management Discussion and Analysis This section provides a comprehensive analysis of the company's operations, financial condition, and future outlook Principal Businesses Engaged in During the Reporting Period The company's main businesses cover intelligent control, new energy, and three-electric systems, adopting a direct sales pre-installation model with flexible production and IPD-driven R&D - The company's business is divided into three major segments: intelligent control, new energy, and three-electric systems, primarily applied in construction machinery, agricultural machinery, and port machinery[15] - Driven by national "dual carbon" goals, the penetration rate of electrified and intelligent products has significantly increased, especially in mining and port scenarios, while domestic construction machinery products are rapidly growing in international markets due to cost-effectiveness[15] Main Business Segments and Products | Business Segment | Main Product Category | Main Products | | :--- | :--- | :--- | | Intelligent Control Segment | Display & Control, Operation, Sensing, Signal Transmission | Displays, controllers, joysticks, sensors, cable reels, etc. | | | Electrical Control Cabinet Assemblies, Operator Console Assemblies | Low-voltage electrical control cabinets, crane operator consoles, etc. | | New Energy Segment | Energy Storage Systems, Charging Piles | Large-scale energy storage power stations, industrial/commercial energy storage, DC/AC charging piles, etc. | | Three-Electric System Segment | Three-Electric System Products | Power battery PACKs, electric drive systems, electronic control units, etc. | Core Competitiveness Analysis Core strengths include one-stop solutions, continuous R&D, technology integration, efficient response, intelligent electrical control, and extensive industry experience - The company provides comprehensive intelligent one-stop system solutions to clients, covering full-lifecycle support from design, development, and production to after-sales service[29] - As a national 'Specialized, Refined, Unique, and New' 'Little Giant' enterprise, the company emphasizes independent R&D, possessing proprietary intellectual property rights in its main products and key technologies[30] - The company adopts the IPD (Integrated Product Development) management model and implements a 'Three-Fast System' (fast response, fast decision-making, fast implementation) to quickly meet customer demands[32] Main Business Analysis H1 2024 revenue grew 61.72% driven by new energy, but higher cost growth reduced profitability; new energy is now 51.43% of revenue but has a lower 14.83% gross margin Key Financial Data Year-over-Year Changes | Item | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 353,118,018.06 | 218,345,390.12 | 61.72% | Primarily due to increased new energy segment business | | Operating Cost | 272,255,399.58 | 146,782,820.22 | 85.48% | Primarily due to increased new energy segment business | | Administrative Expenses | 25,442,846.88 | 19,186,596.88 | 32.61% | Primarily due to increased personnel and facility costs in the new energy segment | | Financial Expenses | 856,614.20 | -496,637.71 | 272.48% | Primarily due to interest expenses from current period borrowings | | Net Cash Flow from Investing Activities | -104,606,256.17 | -14,714,293.50 | -610.80% | Primarily due to increased investment in construction-in-progress and power station projects | | Net Cash Flow from Financing Activities | 116,628,205.23 | -18,354,065.43 | 735.44% | Primarily due to new loans obtained by the company | Operating Revenue Composition (by Industry) | Industry | Current Period Amount (RMB) | % of Operating Revenue | Prior Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | New Energy | 181,619,213.08 | 51.43% | - | - | - | | Industrial Automatic Control System Device Manufacturing | 171,284,208.65 | 48.51% | 218,345,390.12 | 100.00% | -21.55% | Operating Revenue Composition (by Product) | Product | Current Period Amount (RMB) | % of Operating Revenue | Prior Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | New Energy | 181,619,213.08 | 51.43% | - | - | - | | Intelligent Electronic Control Products | 146,624,873.41 | 41.52% | 189,809,031.24 | 86.93% | -22.75% | | Intelligent Electronic Control Assemblies | 15,553,885.04 | 4.40% | 28,386,425.47 | 13.00% | -45.21% | Gross Margin by Industry | Industry Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | New Energy | 181,619,213.08 | 154,680,993.60 | 14.83% | - | | Industrial Automatic Control System Device Manufacturing | 171,284,208.65 | 117,574,405.98 | 31.36% | -1.41% | Non-Core Business Analysis Non-core businesses significantly impacted total profit, with investment income and other income being key contributors, while credit impairment losses were the largest source of loss | Item | Amount (RMB) | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 2,936,523.32 | 982.10% | Primarily from wealth management, futures, and other investments | | Other Income | 3,945,428.91 | 1,319.52% | Primarily from tax refunds and government subsidies | | Credit Impairment Losses | -11,059,993.99 | -3,698.94% | Primarily impairment of accounts receivable | | Asset Impairment | -691,610.54 | -231.30% | Primarily inventory impairment provisions | Analysis of Assets and Liabilities Asset structure changed significantly: accounts receivable rose to 24.60% and construction-in-progress to 8.67%, reflecting new energy and facility investments, supported by new short-term and long-term borrowings Significant Changes in Asset and Liability Composition | Item | Amount at End of Current Period (RMB) | % of Total Assets | Amount at End of Prior Year (RMB) | % of Total Assets | % Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 343,923,289.19 | 24.60% | 146,003,483.52 | 12.46% | 12.14% | | Construction-in-Progress | 121,223,655.62 | 8.67% | 48,545,178.41 | 4.14% | 4.53% | | Short-term Borrowings | 50,000,000.00 | 3.58% | 0.00 | 0.00% | 3.58% | | Long-term Borrowings | 100,000,000.00 | 7.15% | 0.00 | 0.00% | 7.15% | Investment Analysis Investment increased 181.16% to RMB 38.8 million, with RMB 89.89 million of raised funds utilized, leaving RMB 392.59 million unused, and some fundraising projects are expected to be completed by the end of 2024 - Total investment during the reporting period was RMB 38.8 million, an increase of 181.16% from RMB 13.8 million in the prior year period[45] Overall Utilization of Raised Funds (RMB '0,000) | Net Raised Funds | Used in Current Period | Accumulated Usage | Unused Funds | Purpose of Unused Funds | | :--- | :--- | :--- | :--- | :--- | | 60,531.35 | 8,989.38 | 21,272.47 | 39,258.88 | Held in dedicated raised funds accounts | - Fundraising projects 'Intelligent Electrical Control System and Product Expansion Project' and 'R&D Center Construction Project' have experienced construction delays due to external environmental factors and are expected to be completed by the end of 2024[51] Analysis of Major Holding and Participating Companies New subsidiaries were established across China and Singapore for new energy and intelligent electronic control, with Shanghai Hongying New Energy Technology Co., Ltd. being a key revenue and profit contributor Financial Performance of Major Subsidiaries (RMB) | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Hongying Automation Technology Co., Ltd. | 391,440,712.35 | 51,082,836.24 | 26,947,237.95 | 3,032,773.26 | 2,954,947.35 | | Shanghai Hongying New Energy Technology Co., Ltd. | 213,049,104.24 | 62,269,516.78 | 175,814,048.90 | 17,459,782.53 | 12,234,189.40 | | Nengshen (Guangdong) New Energy Co., Ltd. | 31,806,192.79 | -3,442,475.44 | 20,593,851.35 | -2,771,547.60 | -1,934,159.66 | - During the reporting period, several new subsidiaries were established to comprehensively expand into new energy project development, construction, operation, and intelligent electronic control product sales, including HYTOP TECH PTE. LTD. in Singapore for corporate management and investment[56] Risks Faced by the Company and Countermeasures The company faces risks from intensified competition and reduced demand in construction machinery, rapid technological iteration, and market uncertainties and competition in its new energy business - Market Competition Risk: The construction machinery industry faces intense competition, leading to generally lower product profit margins and reduced market demand, which may impact the company's operations and profitability[57] - Technology Iteration Risk: The company operates in a rapidly evolving technological industry, and failure to accurately grasp technological trends or achieve expected R&D outcomes poses a risk of technological obsolescence[58] - New Business Underperformance Risk: While the new energy business has broad prospects, it faces market uncertainties, technological upgrades, intensified industry competition, and policy changes, which may affect its expected development goals[59] Corporate Governance This section details the company's corporate governance structure, including shareholder meetings, personnel changes, profit distribution, and equity incentive plans Information on Annual and Extraordinary General Meetings Held During the Reporting Period The company held three shareholder meetings, including two extraordinary and one annual general meeting, with investor participation rates consistently above 67% | Meeting Session | Meeting Type | Investor Participation Rate | Date Held | | :--- | :--- | :--- | :--- | | First Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 67.98% | January 16, 2024 | | Second Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 69.09% | February 23, 2024 | | 2023 Annual General Meeting | Annual General Meeting | 68.23% | May 23, 2024 | Changes in the Company's Directors, Supervisors, and Senior Management On February 23, 2024, the company completed the re-election of its Board and Supervisory Board, with some members departing due to term expiration and new members being elected - On February 23, 2024, company director Liu Chunsong, independent director Shi Guifeng, and supervisors Wang Daozhen and Tu Huaifang departed due to term expiration[62] - On the same day, through re-election, Zhu Guidai was elected as a director, Zhu Xifeng as an independent director, and Cui Wei and Zhang Yi as supervisors[62] Profit Distribution and Capital Reserve to Share Capital Conversion in the Current Reporting Period The company plans no profit distribution for H1 2024, meaning no cash dividends, bonus shares, or capital reserve conversions to share capital - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period[63] Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company implemented a 2023 equity incentive plan but cancelled and repurchased some options and restricted shares in July 2024 due to unmet 2023 performance targets - In 2023, the company initially granted 1.947 million stock options and 600,000 restricted shares to incentive recipients[65][66][67] - Due to not meeting the 2023 company-level performance targets, the company cancelled a total of 860,400 stock options and repurchased and cancelled a total of 246,240 restricted shares in July 2024[67] Environmental and Social Responsibility This section outlines the company's commitment and actions regarding environmental protection and social responsibility initiatives Significant Environmental Issues The company and its subsidiaries were not classified as key polluting units by environmental authorities and received no administrative penalties for environmental issues - The company and its subsidiaries are not classified as key polluting units and received no environmental administrative penalties during the reporting period[68] Social Responsibility The company actively fulfills social responsibilities through robust governance, shareholder rights, cash dividends, renewable energy, employee welfare, fair partnerships, and public welfare activities - On June 21, 2024, the company implemented its 2023 annual profit distribution plan, distributing a cash dividend of RMB 2.0 (tax inclusive) per 10 shares, totaling RMB 20,607,200.00[70] - The company actively invests in photovoltaic and energy storage and other renewable energy sectors, promoting energy transition[71] - The company organizes employee participation in charitable blood donation and agricultural product poverty alleviation projects, fulfilling its social responsibilities[75] Significant Matters This section covers significant events including the fulfillment of commitments, major contracts, and other important corporate actions during the reporting period Fulfillment of Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period, and Unfulfilled Commitments as of the End of the Reporting Period Commitments made by some directors and supervisors regarding related-party transactions during the IPO were fulfilled on February 23, 2024 - Commitments made by some of the company's directors, supervisors, and senior management regarding the standardization and reduction of related-party transactions have been fulfilled[76] Major Contracts and Their Performance The company provided a RMB 500 million guarantee for a subsidiary, invested RMB 384 million in wealth management, and its controlling subsidiary signed a RMB 1.5 billion wind power project agreement Significant Guarantees (RMB '0,000) | Guaranteed Party | Guarantee Limit | Actual Guaranteed Amount | | :--- | :--- | :--- | | Shanghai Hongying New Energy Technology Co., Ltd. | 50,000 | 13,600 | Entrusted Wealth Management (RMB '0,000) | Specific Type | Source of Funds | Amount Incurred | | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 2,400 | | Bank Wealth Management Products | Raised Funds | 36,000 | | Total | | 38,400 | - The company's controlling grandchild company, Hongzhijie Energy Technology (Shanghai) Co., Ltd., signed an agreement with Ruanan County People's Government to invest in and construct a 200MW wind power project with a total investment of RMB 1.5 billion[91][92] Explanation of Other Significant Matters The company completed its share repurchase plan (380,000 shares for RMB 11.1 million) for future employee incentives and adjusted its 2023 equity incentive plan due to unmet performance targets - The company completed its share repurchase plan, cumulatively repurchasing 380,000 shares, accounting for 0.37% of total share capital, for a total of RMB 11,104,568.00, with all repurchases fully executed[98] - Due to not meeting the 2023 annual performance targets, the company cancelled and repurchased a portion of the stock options and restricted shares from the 2023 equity incentive plan in July 2024[95][96] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes The company's total share capital remained unchanged at 103,416,000 shares, having completed a share repurchase of 380,000 shares (0.33%) for future employee incentives - During the reporting period, the company's total share capital and share structure remained unchanged, with a total of 103,416,000 shares[100][101] Share Repurchase Implementation Status | Proposed Repurchase Amount (RMB '0,000) | Repurchase Period | Repurchase Purpose | Shares Repurchased (shares) | | :--- | :--- | :--- | :--- | | 1,000 - 1,500 | 2023/11/24 - 2024/11/23 | Employee stock ownership plan or equity incentive | 380,000 | Number of Shareholders and Shareholding Information As of period-end, the company had 21,216 common shareholders; the top four shareholders are acting in concert, holding over 65%, and the company's repurchase account is among the top ten Top Ten Shareholders' Shareholding Information | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Zhang Huahong | Domestic Natural Person | 23.36% | 24,161,760 | | Zeng Hongying | Domestic Natural Person | 17.52% | 18,121,320 | | Zeng Hui | Domestic Natural Person | 17.52% | 18,121,320 | | Shanghai Yuehao Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.90% | 7,140,000 | | Sany Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.14% | 2,213,000 | - Shareholders Zhang Huahong, Zeng Hongying, Zeng Hui, and Shanghai Yuehao Enterprise Management Partnership (Limited Partnership) are related shareholders and parties acting in concert[103] - The company's dedicated repurchase securities account holds 380,000 shares, representing 0.37% of shareholding, and is among the top ten shareholders[104] Preferred Shares Information This section confirms that the company had no preferred shares during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[108] Bonds Information This section confirms that the company had no bond-related activities during the reporting period Bonds Information During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[109] Financial Report This section presents the company's financial statements, including balance sheet, income statement, and cash flow statement, along with detailed notes Financial Statements As of June 30, 2024, total assets were RMB 1.398 billion, liabilities RMB 419 million, H1 revenue RMB 353 million, net profit RMB 1.788 million, with operating and investing cash outflows and financing cash inflow, ending cash at RMB 546 million Consolidated Balance Sheet Total assets reached RMB 1.398 billion (19.33% increase), with current assets of RMB 1.104 billion; total liabilities significantly increased to RMB 419 million due to new borrowings; equity decreased 2.67% to RMB 977 million Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | Period-end Balance | Period-start Balance | | :--- | :--- | :--- | | Total Current Assets | 1,103,881,601.73 | 968,251,473.45 | | Cash and Bank Balances | 548,419,445.59 | 665,674,679.82 | | Accounts Receivable | 343,923,289.19 | 146,003,483.52 | | Inventories | 126,402,567.36 | 106,804,078.80 | | Total Non-current Assets | 294,399,314.46 | 203,499,974.94 | | Construction-in-Progress | 121,223,655.62 | 48,545,178.41 | | Total Assets | 1,398,280,916.19 | 1,171,751,448.39 | | Total Current Liabilities | 303,681,053.19 | 149,574,861.48 | | Short-term Borrowings | 50,000,000.00 | - | | Accounts Payable | 148,386,358.33 | 72,404,674.03 | | Total Non-current Liabilities | 115,492,149.64 | 19,828,440.98 | | Long-term Borrowings | 100,000,000.00 | - | | Total Liabilities | 419,173,202.83 | 169,403,302.46 | | Total Owners' Equity | 979,107,713.36 | 1,002,348,145.93 | Consolidated Income Statement H1 2024 total operating revenue was RMB 353 million (61.72% YoY increase), but total operating costs surged 85.48% to RMB 349 million, leading to an operating loss and an 81.07% decline in net profit attributable to the parent to RMB 2.7935 million Key Items from Consolidated Income Statement (Unit: RMB) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | I. Total Operating Revenue | 353,118,018.06 | 218,345,390.12 | | II. Total Operating Costs | 348,603,383.76 | 209,794,310.73 | | Including: Operating Cost | 272,255,399.58 | 146,782,820.22 | | Research and Development Expenses | 34,299,553.92 | 30,746,175.37 | | Credit Impairment Losses | -11,059,993.99 | -6,740,567.77 | | III. Operating Profit | -299,544.01 | 13,323,056.64 | | IV. Total Profit | -299,004.10 | 13,326,494.15 | | V. Net Profit | 1,788,329.96 | 14,748,014.52 | | Net Profit Attributable to Parent Company Shareholders | 2,793,534.02 | 14,759,963.39 | Consolidated Cash Flow Statement Net cash flow from operating activities was a RMB 129 million outflow, investing activities a RMB 105 million net outflow, and financing activities a RMB 117 million net inflow, resulting in a RMB 117 million net decrease in cash and cash equivalents Key Items from Consolidated Cash Flow Statement (Unit: RMB) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -129,407,183.29 | -138,069,393.12 | | Net Cash Flow from Investing Activities | -104,606,256.17 | -14,714,293.50 | | Cash Paid for Acquisition of Long-term Assets | 97,733,921.89 | 25,326,172.54 | | Cash Paid for Investments | 1,304,000,000.00 | 1,863,400,000.00 | | Cash Received from Disposal of Investments | 1,299,000,000.00 | 1,868,000,000.00 | | Net Cash Flow from Financing Activities | 116,628,205.23 | -18,354,065.43 | | Cash Received from Borrowings | 150,000,000.00 | 0.00 | | Cash Paid for Dividends, Profit Distribution, or Interest Payments | 20,263,278.66 | 20,563,200.00 | | Net Increase in Cash and Cash Equivalents | -117,385,234.23 | -171,137,752.05 | | Cash and Cash Equivalents at End of Period | 545,614,245.59 | 570,786,011.24 | Notes to Consolidated Financial Statements Notes detail a 133% increase in accounts receivable (new energy clients), a 149% surge in construction-in-progress (new facilities, energy projects), new RMB 50 million short-term and RMB 100 million long-term borrowings, and an 11.56% rise in R&D expenses - Accounts receivable balance at period-end was RMB 364 million, a significant increase from RMB 156 million at period-start, with the top two customers accounting for 80.24% of the total[209][210][215] - Construction-in-progress balance at period-end was RMB 121 million, a 149.71% increase from RMB 48.55 million at period-start, with the 'Hongying Intelligent Songjiang Jiuting Town Industrial Park Production Building Construction' project accounting for RMB 102 million[247][249] - The company incurred new short-term borrowings of RMB 50 million and long-term borrowings of RMB 100 million[266][279] - Total R&D expenses were RMB 34.3 million, an 11.56% year-over-year increase, with employee compensation being the largest component at RMB 26.16 million[295]