锦富技术(300128) - 2018 Q1 - 季度财报

Important Notice This section outlines the company's commitment to the accuracy and completeness of the quarterly report, affirmed by its governing bodies Board of Directors' Statement The company's Board of Directors, Supervisory Board, and senior management affirm the truthfulness and completeness of this quarterly report, with all directors present for its review - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal liability for its content[5] - All company directors personally attended the Board meeting to review this quarterly report[6] - The company's head, chief accountant, and head of accounting department declare that the financial statements in the quarterly report are true, accurate, and complete[7] Company Profile This section presents key financial data, significant risks, and shareholder information for the reporting period Key Accounting Data and Financial Indicators In Q1 2018, total operating revenue grew 6.82% to CNY 678.63 million, and net profit attributable to shareholders increased 50.73% to CNY 4.02 million, despite a 22.54% decline in non-recurring net profit and a CNY 129.44 million net cash outflow from operating activities Key Financial Indicators for Q1 2018 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (CNY) | 678,626,202.08 | 635,311,118.18 | 6.82% | | Net Profit Attributable to Shareholders (CNY) | 4,018,441.24 | 2,666,043.28 | 50.73% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (CNY) | 2,137,039.34 | 2,759,057.25 | -22.54% | | Net Cash Flow from Operating Activities (CNY) | -129,440,176.80 | -80,770,778.43 | -60.26% | | Basic Earnings Per Share (CNY/share) | 0.0048 | 0.0032 | 50.00% | | Total Assets (CNY) | 4,050,160,282.01 | 3,919,511,947.72 | 3.33% | | Net Assets Attributable to Shareholders (CNY) | 2,044,330,430.13 | 2,034,674,700.82 | 0.47% | Non-Recurring Gains and Losses for Q1 2018 | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 546,286.90 | | Government Grants Included in Current Profit/Loss | 1,949,317.57 | | Other Non-Operating Income and Expenses | 272,927.12 | | Less: Income Tax Impact | 660,491.92 | | Less: Impact on Minority Interests (After Tax) | 226,637.77 | | Total | 1,881,401.90 | Significant Risk Warnings The company faces multiple risks including industry cyclicality, customer concentration, and declining gross margins in core electronic components, along with technology and market expansion risks in new automation and big data businesses, and performance and goodwill impairment risks from acquisitions - Traditional electronic component manufacturing faces risks from industry cyclical fluctuations, customer concentration, declining gross margins, and accounts receivable collection[13] - New business expansions, including automation equipment manufacturing, intelligent systems, and big data (including IDC), face risks related to technological advancement and market development[13] - Acquisitions of Maizhi Technology and Nantong Qiyun carry risks of new business expansion falling short of expectations, performance decline, goodwill impairment, and market development shortfalls[13] - The photovoltaic industry business faces market risks due to changes in national support and subsidy policies[13] Shareholder Information As of the reporting period end, the company had 26,415 common shareholders, with top holders Fu Guoping, Yang Xiaowei, and Li Ji holding 17.07%, 9.58%, and 7.20% respectively, all with high pledge ratios, and some restricted shares were released during the period - As of the end of the reporting period, the company had 26,415 common shareholders[17] Top 5 Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | Fu Guoping | 17.07% | 143,676,557 | Pledged 105,093,200 | | Yang Xiaowei | 9.58% | 80,657,589 | Pledged 70,650,000 | | Li Ji | 7.20% | 60,630,989 | Pledged 55,119,081 | | Shanghai Ruiwei Investment Management Co., Ltd. | 4.23% | 35,617,730 | Pledged 35,000,000 | | Huang Yafu | 3.46% | 29,126,903 | Pledged 29,121,373 | - Restricted shares held by shareholders Huang Yafu and Chen Qixiang from non-public issuance were released on January 8, 2018, totaling 14,556,539 shares[20] Significant Matters This section details significant changes in financial data, business developments, progress on key initiatives, and the fulfillment of commitments Significant Changes in Financial Data and Reasons During the reporting period, sales expenses and financial expenses increased by 32.84% and 59.62% respectively due to sales team expansion and increased financing, while operating profit surged 108.71% from revenue growth, and cash outflow for fixed asset acquisition dramatically rose 1795.88% for IDC projects and plant investments Key Balance Sheet Changes | Item | Change | Reason for Change | | :--- | :--- | :--- | | Notes Receivable | 65.77% | Increase in customers settling via notes this period | | Prepayments | 37.24% | Increase in prepaid material costs | | Short-term Borrowings | 36.75% | Increased domestic sales proportion and higher working capital demand | | Taxes Payable | -73.73% | Payment of prior year's Q4 taxes this period | Key Income Statement Changes | Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Selling Expenses | 32.84% | Expanded sales team and increased marketing efforts this period | | Financial Expenses | 59.62% | Increased financing interest and fees compared to prior year | | Investment Income | -489.81% | Increased losses from associates accounted for by equity method this period | | Asset Disposal Gains | 10931.03% | Increased gains from fixed asset disposals this period | | Operating Profit | 108.71% | Increased operating revenue this period | Key Cash Flow Statement Changes | Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Net Cash Received from Disposal of Fixed Assets, etc. | 3465.23% | Collection of prior year's asset disposal proceeds this period | | Cash Paid for Acquisition of Fixed Assets, etc. | 1795.88% | Increased investment in Nantong Qiyun IDC project and Suzhou Jiufu plant this period | | Cash Received from Borrowings | 145.85% | Increase in short-term borrowings this period | Business Review and Outlook This period's performance improved due to the recovery of traditional optoelectronic display and backlight module businesses, profit contributions from intelligent systems and big data, and Maizhi Technology's turnaround, with strategic focus on traditional business strengthening, new technology R&D, and talent optimization, while top five customer concentration decreased to 53.04% - Performance improvement this period is attributed to: 1) recovery in customer orders and improved optoelectronic display film, electronic functional components, and backlight module businesses; 2) profit contribution from intelligent systems and big data (including IDC value-added services); and 3) subsidiary Maizhi Technology achieving profitability[24] - The company is collaborating with JD.com's offline operators to provide technical support and big data services for their smart new retail stores, with demonstration stores now in the installation and debugging phase[27] - As of March 31, 2018, the company held 212 patents (85 of which are invention patents) and 15 software copyrights, with ongoing R&D projects including automation equipment, ultra-thin displays, and intelligent systems[29][30][31] - During the reporting period, sales to the top five customers accounted for 53.04% of total revenue, a decrease from 60.27% in the prior year[34][35] - Key risks faced by the company include market competition, economic cyclical fluctuations, integration of acquired companies, changes in photovoltaic policies, declining gross margins, customer concentration, new business development, and accounts receivable collection[37][38][39][40][41][42][43][44][45] Progress of Significant Matters During the reporting period, significant progress was made, including partial debt repayment in Maizhi Automation's lawsuit against Detong Electric, reducing the outstanding balance to CNY 16.64 million, CNY 144.66 million in sales revenue from strategic cooperation with Yingli Energy, installation and debugging of smart retail demonstration stores with JD.com, and completion of stock purchases for the second employee stock ownership plan - In the lawsuit by subsidiary Maizhi Automation against Detong Electric for overdue payments, the latter has repaid CNY 17.90 million, reducing the outstanding balance to CNY 16,640,937.91, with the case awaiting trial[49][50][51] Strategic Agreement Progress | Counterparty | Progress | | :--- | :--- | | CNBM Junxin Technology Co., Ltd. | Accumulated photovoltaic business sales revenue of CNY 13.17 million | | Yingli Energy (China) Co., Ltd. | Accumulated photovoltaic business sales revenue of CNY 144.66 million | | Fengtai County People's Government | Subsidiary registered and initial factory renovation completed | | Beijing Zhihui Chengxun Information Technology Co., Ltd. | Cooperative JD Home smart retail demonstration stores are in installation and debugging phase | - The company's second employee stock ownership plan has purchased 18,640,254 shares, representing 2.2148% of total share capital, with a lock-up period until January 15, 2019[53] Fulfillment of Commitments During the reporting period, all commitments made by the company and related parties, including controlling shareholders, actual controllers, and reorganization counterparties, regarding asset restructuring and IPOs, such as avoiding horizontal competition, regulating related-party transactions, and share lock-ups, were strictly fulfilled without overdue non-performance - Commitments made by transaction counterparties Huang Yafu and Chen Qixiang during asset restructuring, concerning reduction and regulation of related-party transactions, avoidance of horizontal competition, and share lock-ups, are being strictly fulfilled[54] - Commitments made by the controlling shareholder and actual controller during the initial public offering, regarding avoidance of horizontal competition and assuming potential tax and social security payment liabilities, are being strictly fulfilled[55][56] - The controlling shareholder and actual controller's commitment to compensate for losses in the second employee stock ownership plan is being strictly fulfilled throughout the plan's duration[56] Execution of Cash Dividend Policy The company's 2017 profit distribution plan, proposing a cash dividend of CNY 0.10 (tax inclusive) per 10 shares and a capital reserve transfer of 3 shares per 10 shares, was approved by the shareholders' meeting, ensuring compliance with articles of association and protecting shareholder rights - The company's 2017 profit distribution plan proposes a cash dividend of CNY 0.10 (tax inclusive) per 10 shares and a capital reserve transfer of 3 shares per 10 shares, based on a total share capital of 841,627,240 shares[57] - This profit distribution plan was approved by the company's 2017 Annual Shareholders' Meeting, with its formulation and execution complying with the Articles of Association, ensuring complete decision-making procedures and protecting the legitimate rights of minority shareholders[57][58] Financial Statements This section provides a summary of the company's consolidated financial statements and audit status Summary of Consolidated Financial Statements As of March 31, 2018, consolidated total assets were CNY 4.05 billion, up 3.33% from the beginning of the period, with total liabilities at CNY 1.88 billion; Q1 2018 saw total operating revenue of CNY 678.63 million and net profit attributable to parent of CNY 4.02 million, with net cash outflow from operating activities of CNY 129.44 million Consolidated Balance Sheet Summary (As of March 31, 2018) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 4,050,160,282.01 | 3,919,511,947.72 | | Total Liabilities | 1,883,500,434.17 | 1,761,995,869.39 | | Total Equity Attributable to Parent Company Owners | 2,044,330,430.13 | 2,034,674,700.82 | Consolidated Income Statement Summary (Q1 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 678,626,202.08 | 635,311,118.18 | | Operating Profit | 4,722,749.09 | 2,262,823.94 | | Total Profit | 4,995,676.21 | 2,143,707.55 | | Net Profit Attributable to Parent Company Owners | 4,018,441.24 | 2,666,043.28 | Consolidated Cash Flow Statement Summary (Q1 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -129,440,176.80 | -80,770,778.43 | | Net Cash Flow from Investing Activities | -49,564,929.97 | -33,728,053.88 | | Net Cash Flow from Financing Activities | 154,916,956.95 | -116,285,057.98 | | Net Increase in Cash and Cash Equivalents | -27,227,700.39 | -232,308,413.87 | Audit Report The company's Q1 2018 report is unaudited - The company's first quarterly report is unaudited[86]