时代电气(03898) - 2024 - 中期财报

Glossary This section provides definitions of key terms used throughout the report Company Profile and Key Financial Indicators This section outlines the company's fundamental information and presents its key financial performance metrics Company Overview CRRC Times Electric Co., Ltd. (CRRC Times Electric) is a dual-listed company on the Shanghai STAR Market (688187) and the Hong Kong Stock Exchange Main Board (3898), with Li Donglin as its legal representative - The company is dual-listed on the Shanghai Stock Exchange STAR Market and the Hong Kong Stock Exchange Main Board[20] Key Accounting Data and Financial Indicators During the reporting period, the company achieved operating revenue of 10.284 billion yuan, a 19.99% year-on-year increase, with net profit attributable to parent company shareholders reaching 1.507 billion yuan, up 30.56%, and net cash flow from operating activities turning positive at 0.670 billion yuan, while basic earnings per share grew 32.10% to 1.07 yuan Key Accounting Data for H1 2024 | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,283,733,393 yuan | 8,570,210,633 yuan | 19.99% | | Net Profit Attributable to Listed Company Shareholders | 1,506,841,018 yuan | 1,154,168,154 yuan | 30.56% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) | 1,158,683,608 yuan | 928,692,585 yuan | 24.77% | | Net Cash Flow from Operating Activities | 670,363,515 yuan | -468,059,212 yuan | N/A | Key Financial Indicators for H1 2024 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 1.07 | 0.81 | +32.10% | | Weighted Average Return on Net Assets (%) | 3.93 | 3.28 | increase of 0.65 percentage points | | R&D Investment as % of Operating Revenue (%) | 9.47 | 9.97 | decrease of 0.50 percentage points | - Net profit attributable to parent company shareholders increased by 30.56% year-on-year, primarily due to increased operating profit driven by revenue growth[25] - Net cash flow from operating activities significantly improved year-on-year, mainly due to increased cash received from sales of goods and provision of services[25] Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 0.348 billion yuan, primarily from government subsidies recognized in current profit or loss, totaling 0.360 billion yuan Non-recurring Gains and Losses Items for H1 2024 | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 359,866,247 | | Fair value changes and disposal gains/losses of financial assets/liabilities | 56,608,780 | | Other non-operating income and expenses | 6,082,662 | | Disposal gains/losses of non-current assets | 2,958,532 | | Total | 348,157,410 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial condition, and future outlook Industry and Principal Business Overview The company, a leading traction converter system supplier in China's rail transit industry, focuses on R&D, design, manufacturing, and sales of rail transit equipment, while actively expanding into new industries like power semiconductors and new energy vehicle electric drive systems, benefiting from national 'Transportation Power' and 'Dual Carbon' strategies - The company's principal business is rail transit equipment, with active expansion into new industries such as power semiconductors, industrial converters, new energy vehicle electric drives, sensors, and marine engineering equipment, forming a 'device + system + complete machine' industrial structure[28] - National 'Transportation Power' and 'Dual Carbon' strategies provide significant development opportunities for the company's rail transit and new energy equipment industries[30][31][32] Core Technologies and R&D Progress The company possesses multiple core technologies in electric drive, semiconductor, and industrial converter fields, with continuous R&D innovation, completing CR450 EMU key system development and achieving a breakthrough in 4500V press-pack product cosmic ray resistance technology in H1 2024, with total R&D investment of 0.974 billion yuan, accounting for 9.47% of operating revenue - The company holds 13 major categories of core technologies, including electrical systems, converter and control, power semiconductors, and new energy vehicle electric drive systems, protected by 3,540 valid patents[33] - In the rail transit sector, the company completed the development of CR450 EMU traction network key systems, achieving internationally leading technical indicators[46] - In new industries, a breakthrough was achieved in 4500V press-pack product cosmic ray resistance technology, reaching international advanced levels, and 1200V automotive-grade SiC module development was completed[47] R&D Investment for H1 2024 | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Total R&D Investment (yuan) | 973,793,695 | 854,577,771 | 13.95% | | Total R&D Investment as % of Operating Revenue (%) | 9.47 | 9.97 | decrease of 0.50 percentage points | Analysis of Core Competencies The company's core competencies include leading market position, innovation-driven technological capabilities, high-reliability quality and service, full-产业链协同 advantages, and industry-leading talent, maintaining leadership in high-speed rail and locomotive traction converter systems, and achieving top market share in urban rail traction systems for twelve consecutive years, with emerging businesses also ranking among the top - Market Position: High-speed rail and locomotive traction converter system products have led the domestic market for consecutive years, and urban rail traction converter systems have held the top domestic market share for twelve consecutive years from 2012 to 2023[76] - Emerging Business Breakthroughs: Passenger vehicle power module installations ranked among the top two in the industry in H1 (market share 13.4%), photovoltaic inverters entered the top five domestically, and new energy vehicle electric drive system installations ranked among the top nine domestically[77] - Technological Innovation: Possesses 6 national-level technology innovation platforms, with 3,540 patents granted, and has led or participated in formulating 50 international standards and 174 domestic standards[79] - Industrial Synergy: A complete industrial chain structure of 'devices + equipment and systems + complete machines and engineering' has been formed[82] Discussion and Analysis of Operations In H1 2024, the company achieved steady development by adhering to its 'concentric diversification' strategy, with rail transit benefiting from increased passenger volume and stable market share as national railway EMU tenders exceeded last year's total, while emerging equipment businesses saw full operation in power semiconductors, steady capacity increase and overseas exports in new energy passenger vehicle electric drives, and new orders for industrial converters and marine engineering equipment - Rail Transit: National Railway Group's EMU tender volume exceeded last year's total, with the company's market share remaining stable, and new orders for urban rail traction systems continuing to lead the industry[87] - Power Semiconductors: Existing production lines are operating at full capacity, Yixing Phase 3 project is expected to commence production in H2 2024, and medium-low voltage device capacity continues to increase[88] - New Energy Passenger Vehicle Electric Drives: Completed the national '1+N' four major production base layout, with steady capacity increase, supporting Hozon and SAIC-GM-Wuling to achieve approximately 40,000 units in overseas exports[88] - Industrial Converters: Delivery of photovoltaic inverters and wind power converters accelerated, with most products successfully shortlisted in annual centralized procurement by central state-owned power generation groups[89] Risk Factors The company faces primary risks including core competency, operational, financial, industry, and macroeconomic environment risks, specifically manifested in R&D uncertainties, complex overseas operating environments, exchange rate fluctuations, intensified competition in the new energy market, and international trade protectionism - Core Competency Risk: Technological R&D involves uncertainties, potentially leading to new product development failures or inability to generate expected returns[90] - Operational Risk: International political disputes and supply chain tensions increase the company's overseas operational risks[92] - Financial Risk: Increased international operations may lead to foreign currency asset losses or increased costs due to exchange rate fluctuations[93] - Industry Risk: The new energy vehicle component market faces intensifying price competition and shortened technology upgrade cycles[94] Key Operating Performance During the reporting period, the company's operating revenue increased by 19.99% year-on-year, primarily driven by a 30.87% growth in rail transit equipment business, while emerging equipment business grew 9.21% overall, with power semiconductor devices and marine engineering equipment showing strong growth of 26.63% and 18.61% respectively, despite a 47.01% decline in sensor devices, and total assets expanded by 16% due to increased construction in progress and accounts receivable Analysis of Principal Business The company's rail transit equipment business revenue reached 6.139 billion yuan, a 30.87% year-on-year increase, with communication signal systems growing most rapidly at 131.47%, while emerging equipment business revenue was 4.094 billion yuan, up 9.21%, showing differentiated performance with power semiconductor devices growing 26.63% and sensor devices declining 47.01% Revenue by Business Segment for H1 2024 (Unit: Billion Yuan) | Revenue Segment | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Rail Transit Equipment Business | 6.139 | 4.691 | 30.87 | | Of which: Rail Transit Electrical Equipment | 4.947 | 3.885 | 27.33 | | Rail Engineering Machinery | 0.557 | 0.482 | 15.57 | | Communication Signal Systems | 0.416 | 0.180 | 131.47 | | Emerging Equipment Business | 4.094 | 3.749 | 9.21 | | Of which: Power Semiconductor Devices | 1.747 | 1.380 | 26.63 | | Conductive Devices | 0.136 | 0.257 | -47.01 | | New Energy Vehicle Electric Drive Systems | 0.903 | 0.833 | 8.23 | | Industrial Converters | 0.903 | 0.937 | -3.58 | | Marine Engineering Equipment | 0.405 | 0.342 | 18.61 | | Total | 10.284 | 8.570 | 19.99 | - Net cash flow from investing activities significantly decreased by 4496.47% year-on-year, primarily due to a decrease in cash received from investment recoveries[97][98] - Net cash flow from financing activities significantly increased by 11787.63% year-on-year, primarily due to an increase in cash received from minority shareholder investments in subsidiaries[97][98] Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets reached 61.936 billion yuan, a 16.0% increase from the beginning of the year, primarily driven by increases in monetary funds, accounts receivable, and construction in progress, with construction in progress significantly rising 153.50% due to increased investment in production lines, while other payables grew 146.21% mainly due to declared but unpaid cash dividends Key Balance Sheet Items Variation | Item Name | Amount at Period-End (yuan) | Change from Prior Year-End (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Monetary Funds | 10,788,369,571 | 36.51% | Cash received from minority shareholder investments in subsidiaries | | Accounts Receivable | 12,653,604,811 | 31.32% | Increase in accounts receivable due to revenue growth | | Construction in Progress | 3,197,950,382 | 153.50% | Increase in investment in production lines under construction | | Other Payables | 2,819,948,208 | 146.21% | Declared but unpaid cash dividends | Significant Asset and Equity Disposals During the reporting period, the company's controlling subsidiary, Zhuzhou CRRC Times Semiconductor Co., Ltd., completed a capital increase and share expansion, introducing 26 strategic investors and an employee stock ownership platform, raising 4.328 billion yuan, after which the company's equity stake in Times Semiconductor changed from 96.17% to 77.78%, remaining the controlling shareholder - Controlling subsidiary CRRC Times Semiconductor completed a capital increase and share expansion, introducing strategic investors and an employee stock ownership platform, with a capital increase of 4.328 billion yuan; after the increase, the company's shareholding decreased to 77.78%, remaining the controlling shareholder[105] Corporate Governance This section details the company's governance structure, including changes in its board, supervisors, and senior management Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, the company's board and senior management underwent several changes, with Mr. Shang Jing resigning as General Manager and being elected Vice Chairman, and Mr. Xu Shaolong appointed General Manager and elected Executive Director, alongside other departures and appointments of non-executive directors, deputy general managers, CFOs, and core technical personnel due to work adjustments - Mr. Shang Jing resigned as General Manager and was elected Vice Chairman and Executive Director[114][115] - Mr. Xu Shaolong was appointed as the company's General Manager and elected Executive Director[115] Repurchase, Sale or Redemption of the Company's Listed Securities In January 2024, the company repurchased and cancelled 4,696,800 H shares on the Hong Kong Stock Exchange for a total consideration of approximately 98.56 million HKD, aiming to enhance net asset value per share and earnings per share H-share Repurchase Details for January 2024 | Repurchase Month | Number of H Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2024 | 4,696,800 | 21.8 | 19.64 | 98,558,789.24 | Environmental and Social Responsibility This section outlines the company's commitments and actions regarding environmental protection and social welfare Environmental Information The company established environmental protection mechanisms, investing 3.96 million yuan in environmental funds during the reporting period, with its key subsidiary Zhuzhou CRRC Times Semiconductor Co., Ltd., a major pollutant emitter, achieving compliant discharge of wastewater, exhaust gas, and noise, and lawful disposal of hazardous waste, while actively implementing carbon reduction measures through R&D of energy-saving products and use of clean energy - Environmental protection funds of 3.96 million yuan were invested during the reporting period[130] - Zhuzhou CRRC Times Semiconductor Co., Ltd., a major subsidiary and key pollutant-emitting entity, processed 897.95 tons of hazardous waste in H1 2024[129][132] - The company reduces carbon emissions through developing energy-saving new products (e.g., SiC traction systems, hydrogen energy catenary work vehicles), utilizing clean energy (e.g., adding 3MW of rooftop photovoltaics, purchasing green electricity), and promoting energy-saving technological upgrades[139][140] Significant Matters This section covers major events and transactions impacting the company, including guarantees and fundraising activities Significant Guarantees During the reporting period, the company provided no external guarantees, with guarantees to subsidiaries amounting to 36.14 million yuan, and the total outstanding guarantee balance for subsidiaries at period-end was 0.262 billion yuan, representing 0.71% of the company's net assets, including 0.226 billion yuan for guaranteed entities with a debt-to-asset ratio exceeding 70% Total Company Guarantees | Item | Amount (yuan) | | :--- | :--- | | Total Guarantees (A+B) | 262,217,410.39 | | Total Guarantees as % of Company's Net Assets (%) | 0.71 | | Debt Guarantees Provided for Guaranteed Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 226,075,000.00 | Explanation of Progress in Use of Raised Funds The company's net proceeds from its initial public offering amounted to 7.555 billion yuan, with a committed investment of 7.443 billion yuan, and as of the end of the reporting period, 5.450 billion yuan has been cumulatively invested, representing 73.22% of the total, while temporarily idle raised funds not exceeding 3.2 billion yuan were used for cash management during the period Overall Use of Raised Funds | Item | Amount (yuan) | | :--- | :--- | | Net Proceeds from Issuance (after deducting expenses) | 7,555,057,430 | | Total Committed Investment | 7,443,212,046 | | Cumulative Investment as of Period-End | 5,449,575,035 | | Cumulative Investment Progress (%) | 73.22 | - The company utilized temporarily idle raised funds not exceeding 3.2 billion yuan for cash management, with a cash management balance of 1.66 billion yuan as of the end of the reporting period[226] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Capital Changes During the reporting period, the company repurchased and cancelled 4,696,800 H shares on the Hong Kong Stock Exchange in January 2024, reducing its total share capital from 1,416,236,912 shares to 1,411,540,112 shares - During the reporting period, the company's total shares decreased by 4,696,800 due to the repurchase and cancellation of H shares, resulting in a total share capital of 1,411,540,112 shares after the change[231][232] Shareholder Information As of the end of the reporting period, the company had 16,516 common shareholders, with its top two shareholders being CRRC Zhuzhou Institute Co., Ltd. (holding 41.87%) and HKSCC NOMINEES LIMITED (holding 38.35%), and the controlling shareholder CRRC Zhuzhou Institute voluntarily extended the lock-up period for its 590 million restricted shares by 12 months until September 6, 2025 Top Ten Shareholders' Holdings (As of June 30, 2024) | Shareholder Name | Shares Held at Period-End | Proportion (%) | Share Nature | | :--- | :--- | :--- | :--- | | CRRC Zhuzhou Institute Co., Ltd. | 591,000,716 | 41.87 | State-owned Legal Entity | | HKSCC NOMINEES LIMITED | 541,316,466 | 38.35 | Overseas Legal Entity | | Hong Kong Securities Clearing Company Limited | 26,498,358 | 1.88 | Overseas Legal Entity | | Huaxia SSE STAR Market 50 ETF | 20,052,422 | 1.42 | Unknown | | CRRC Zhuzhou Locomotive Co., Ltd. | 10,000,000 | 0.71 | State-owned Legal Entity | - The controlling shareholder, CRRC Zhuzhou Institute, voluntarily committed to extending the lock-up period for its 589,585,699 initial public offering restricted shares by 12 months, until September 6, 2025[216] Preferred Shares Information During the reporting period, the company had no preferred shares information Preferred Shares Information During the reporting period, the company had no preferred shares information - Not applicable[245] Bonds Information During the reporting period, the company had no information regarding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds Bonds Information During the reporting period, the company had no information regarding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - Not applicable[246] Financial Report This section presents the company's unaudited financial statements and related notes for the reporting period Financial Statements This semi-annual financial report is unaudited; as of June 30, 2024, the company's total assets were 61.936 billion yuan, with equity attributable to parent company owners at 39.519 billion yuan, and for H1 2024, total operating revenue reached 10.284 billion yuan, with net profit attributable to parent company shareholders at 1.507 billion yuan Key Consolidated Balance Sheet Data (June 30, 2024) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 61,936,184,997 | | Total Liabilities | 19,395,527,401 | | Total Equity Attributable to Parent Company Owners | 39,518,775,875 | | Total Owners' Equity | 42,540,657,596 | Key Consolidated Income Statement Data (January-June 2024) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 10,283,733,393 | | Operating Profit | 1,702,661,203 | | Total Profit | 1,708,743,865 | | Net Profit Attributable to Parent Company Shareholders | 1,506,841,018 | Notes to Financial Statements The financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards, and during the reporting period, new regulations including 'Interpretation No. 17 of Accounting Standards for Business Enterprises' were implemented, primarily involving the retrospective adjustment of guarantee-type quality assurance expenses from 'selling expenses' to 'cost of sales', with corresponding adjustments made to current and comparable period financial statement data - During the reporting period, new regulations including 'Interpretation No. 17 of Accounting Standards for Business Enterprises' were implemented, and the presentation of guarantee-type quality assurance expenses was retrospectively adjusted from 'selling expenses' to 'operating costs'[411][414]