禾望电气(603063) - 2025 Q2 - 季度财报

Glossary This section defines key terms and abbreviations used throughout the report Company Profile and Key Financial Indicators This section provides the company's basic information and a summary of its key financial performance and indicators for the reporting period Company Basic Information This chapter provides the company's basic business registration information, including its Chinese and English names, legal representative, contact details, registered and office addresses, and information disclosure channels - The company's Chinese abbreviation is "Hewang Electric", with stock code 603063, listed on the Shanghai Stock Exchange[16][20] Key Accounting Data and Financial Indicators During the reporting period, the company achieved strong performance growth, with operating revenue increasing by 36.39% and net profit attributable to shareholders significantly rising by 56.79%, though net cash flow from operating activities was negative and decreased further year-on-year Key Accounting Data | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,884,298,987.92 CNY | 1,381,585,948.70 CNY | 36.39% | | Net Profit Attributable to Shareholders | 242,684,207.42 CNY | 154,780,229.51 CNY | 56.79% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 228,471,287.16 CNY | 163,066,095.45 CNY | 40.11% | | Net Cash Flow from Operating Activities | -172,755,953.88 CNY | -96,054,902.88 CNY | -79.85% | | Total Assets (End of Reporting Period) | 8,750,840,347.72 CNY | 7,950,716,228.10 CNY (End of Prior Year) | 10.06% | | Net Assets Attributable to Shareholders (End of Reporting Period) | 4,765,163,998.11 CNY | 4,301,600,979.34 CNY (End of Prior Year) | 10.78% | Key Financial Indicators | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.54 | 0.35 | 54.29% | | Diluted Earnings Per Share (CNY/share) | 0.54 | 0.35 | 54.29% | | Weighted Average Return on Net Assets (%) | 5.29% | 3.89% | Increased by 1.40 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | 4.98% | 4.10% | Increased by 0.88 percentage points | - During the reporting period, total non-recurring gains and losses amounted to CNY 14,212,920.26, primarily from fair value changes in financial assets and liabilities held by non-financial enterprises[24][25] Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, business operations, core competencies, and financial performance during the reporting period Industry and Main Business Overview The company specializes in power conversion, with core businesses in new energy power control and industrial drive, benefiting from the "Dual Carbon" strategy and expanding its product portfolio in high-growth new energy sectors - The company specializes in power conversion, with core businesses including new energy power control and industrial drive, widely applied in wind power, photovoltaic power, energy storage systems, and hydrogen production power supplies[30][32] Industry Indicators (H1 2025) | Industry Indicators (H1 2025) | Newly Grid-connected Capacity | Cumulative Grid-connected Capacity | Year-on-year Growth (Cumulative) | | :--- | :--- | :--- | :--- | | National Wind Power | 5,139 ten thousand kW | 573 million kW | 22.7% | | National Photovoltaic Power | 212 million kW | Approximately 1.1 billion kW | 54.1% | - The company offers a diverse product line, covering high-growth areas such as wind power (converters, main control systems), photovoltaic power (string and centralized inverters), energy storage (energy storage converters, EMS), hydrogen energy (IGBT hydrogen production power supplies), and electrical drive (various series of frequency converters)[35][42][44][45] Discussion and Analysis of Operations During the reporting period, the company achieved significant revenue and net profit growth, primarily driven by new energy power control, while industrial drive and international businesses also showed robust performance and improved gross margins Financial Indicators | Financial Indicators | Amount in Reporting Period | Year-on-year Growth | | :--- | :--- | :--- | | Operating Revenue | 1.884 billion CNY | 36.39% | | Net Profit Attributable to Parent Company | 0.243 billion CNY | 56.79% | Main Business Revenue and Gross Margin by Product/Region | By Product/Region | Main Business Revenue | Revenue YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | New Energy Power Control Business | 1.524 billion CNY | +44.97% | 32.46% | -3.23% | | Industrial Drive Business | 0.226 billion CNY | +11.50% | 47.71% | +8.26% | | Other | 0.095 billion CNY | -10.92% | 54.25% | -5.20% | | Domestic | 1.697 billion CNY | +34.19% | 33.78% | -3.59% | | International | 0.148 billion CNY | +54.46% | 54.65% | +6.82% | Analysis of Core Competencies The company's core competencies are built upon its leading brand, strong R&D capabilities, robust quality control, extensive marketing and service network, and a stable management team - The company was awarded the national "Manufacturing Single Champion Product" title for its offshore wind power converters and received the world's first DNV grid-forming converter certificate in 2023, demonstrating significant technological leadership[56][57] - The company possesses strong R&D capabilities with a team of 764 R&D engineers and five major R&D and manufacturing bases in Shenzhen, Suzhou, and other locations; as of June 30, 2025, it had accumulated 821 authorized patents, including 146 invention patents[59] - The company has established a comprehensive quality control system (ISO9001 and other certifications) and an extensive marketing and service network covering six major regions nationwide and over 30 service bases globally[62][63] Analysis of Key Operating Performance The company's key financial accounts reflect business expansion, with significant increases in revenue, costs, and financial expenses, while operating cash flow deteriorated due to increased payments for goods and services Key Financial Account Changes | Account | Current Period Amount | Prior Period Amount | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,884,298,987.92 CNY | 1,381,585,948.70 CNY | 36.39 | Increase in new energy power control business revenue | | Operating Cost | 1,193,551,990.52 CNY | 848,977,434.68 CNY | 40.59 | Increase in costs due to revenue growth | | Financial Expenses | 19,063,645.59 CNY | 11,550,003.90 CNY | 65.05 | Increase in borrowings and interest expenses | | Net Cash Flow from Operating Activities | -172,755,953.88 CNY | -96,054,902.88 CNY | -79.85 | Increase in cash paid for goods and services | | Net Cash Flow from Financing Activities | 370,679,320.07 CNY | 147,926,085.96 CNY | 150.58 | Increase in cash received from investments | - The balance sheet indicates that receivables financing (due to increased bank acceptance bills) increased by 33.63% year-on-year, short-term borrowings (due to increased credit borrowings) increased by 166.67%, and contract liabilities (due to increased advances from customers) increased by 69.04%, reflecting changes in working capital driven by business expansion[66] Risk Analysis The company faces risks including industry policy changes, product price and gross margin declines due to market competition, increased accounts receivable and potential bad debt losses, and changes in tax preferential policies - The company faces industry policy risks, as the development and growth of the new energy power generation sector depend on national policy planning and incentives, and policy adjustments may impact market demand[75] - Increased market competition and maturing product technologies may lead to risks of declining product prices and gross margins[76] - As business expands, the scale of accounts receivable increases, posing risks of bad debt losses and decreased turnover rates[77] - The company benefits from tax incentives for high-tech enterprises; future policy changes or failure to meet eligibility criteria could adversely affect operating performance[78] Corporate Governance, Environment and Society This section covers the company's profit distribution plan, equity incentive programs, and other related governance matters Profit Distribution Plan The company's board of directors resolved not to distribute profits or convert capital reserves into share capital for the first half of 2025 - The 2025 semi-annual profit distribution plan is: no distribution, no capital reserve conversion[87] Equity Incentive Plan This chapter outlines the implementation progress of the company's 2023 stock option incentive plan, including the cancellation of certain stock options due to employee departures, performance shortfalls, and expiration of exercise periods - During the reporting period, the company made several adjustments to its 2023 stock option incentive plan, collectively canceling a portion of stock options due to reasons such as incentive object departures, individual performance assessment results, and the expiration of the first exercise period[88][89] Significant Matters This section details the fulfillment of commitments, significant related party transactions, and major guarantees during the reporting period Fulfillment of Commitments During the reporting period, the company's actual controller, shareholders, and other related parties strictly fulfilled all commitments made during the initial public offering, including those concerning horizontal competition, related party transactions, and share reductions - The company's actual controller and shareholders strictly fulfilled all commitments made during the initial public offering within the reporting period, including those to avoid horizontal competition and regulate related party transactions[92] Significant Related Party Transactions During the reporting period, the company signed a supplementary agreement with related party Wanhe Tiannuo for a lease contract, adding a rent-free period, and engaged in routine operating transactions with Ov Electric Co., Ltd. totaling approximately CNY 3.088 million - The company signed a Supplementary Lease Agreement with related party Wanhe Tiannuo, adding a rent-free period from August 30, 2021, to December 31, 2024[95][96] - During the reporting period, the company engaged in routine operating related party transactions with Ov Electric Co., Ltd., with purchases totaling approximately CNY 2.522 million and sales approximately CNY 0.566 million[98][99] Significant Guarantees As of the end of the reporting period, the company's total guarantees amounted to CNY 5.84 billion, representing 122.56% of its net assets, primarily for subsidiaries and a portion for entities with asset-liability ratios exceeding 70% Total Guarantee Status | Total Guarantee Status | Amount (ten thousand CNY) | | :--- | :--- | | Total Guarantees (A+B) | 584,006.55 | | Guarantees to Subsidiaries (B) | 573,373.23 | | External Guarantees (A) | 10,633.32 | | Ratio of Total Guarantees to Company's Net Assets (%) | 122.56% | | Guarantees Provided to Entities with Asset-Liability Ratio Exceeding 70% (D) | 534,006.55 | Share Capital Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure during the reporting period Share Capital Changes During the reporting period, the company's total share capital increased from 444.0053 million shares to 454.5721 million shares due to the exercise of stock options from the 2021 and 2023 incentive plans, adding 10.5667 million unrestricted tradable shares - Due to the exercise of stock options from the 2021 and 2023 equity incentive plans, the company's total share capital increased by 10,566,725 shares during the reporting period, all of which are unrestricted tradable shares[105][106][107] Shareholder Information As of the end of the reporting period, the company had 26,905 common shareholders, with Shenzhen Pingqi Technology Co., Ltd. as the largest shareholder at 19.14%, followed by Hong Kong Securities Clearing Company Limited at 2.97% - As of the end of the reporting period, the company had a total of 26,905 shareholders[108] Top Five Shareholders | Top Five Shareholders | Shares Held at Period End (ten thousand shares) | Proportion (%) | | :--- | :--- | :--- | | Shenzhen Pingqi Technology Co., Ltd. | 8,701.94 | 19.14 | | Hong Kong Securities Clearing Company Limited | 1,348.52 | 2.97 | | Sheng Xiaojun | 936.68 | 2.06 | | Guotai Value Advantage Mixed Securities Investment Fund (LOF) | 565.11 | 1.24 | | Zhou Dangsheng | 446.04 | 0.98 | Bond-related Information This section confirms the absence of outstanding corporate bonds or convertible corporate bonds during the reporting period Corporate Bonds and Other Debt Financing Instruments During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments - The company has no corporate bonds or non-financial enterprise debt financing instruments[117] Convertible Corporate Bonds During the reporting period, the company had no outstanding convertible corporate bonds - The company has no convertible corporate bonds[117] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and notes on significant accounting policies Financial Statements This section includes the company's unaudited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 Consolidated Balance Sheet As of June 30, 2025, the company's total assets were CNY 8.751 billion, total liabilities CNY 3.881 billion, and net assets attributable to the parent company CNY 4.765 billion, reflecting growth from the beginning of the period | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 8,750,840,347.72 CNY | 7,950,716,228.10 CNY | | Total Liabilities | 3,880,789,558.99 CNY | 3,548,650,770.36 CNY | | Net Assets Attributable to Parent Company Owners | 4,765,163,998.11 CNY | 4,301,600,979.34 CNY | Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of CNY 1.884 billion, a 36.39% increase, with total profit reaching CNY 271.6 million and net profit attributable to parent company shareholders at CNY 242.68 million | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Operating Revenue | 1,884,298,987.92 CNY | 1,381,585,948.70 CNY | | Total Profit | 271,602,115.11 CNY | 182,964,931.89 CNY | | Net Profit Attributable to Parent Company Shareholders | 242,684,207.42 CNY | 154,780,229.51 CNY | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was negative CNY 173 million, investment activities negative CNY 26.7 million, while financing activities generated positive CNY 371 million, with cash and cash equivalents at CNY 1.135 billion at period end | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -172,755,953.88 CNY | -96,054,902.88 CNY | | Net Cash Flow from Investing Activities | -26,656,995.95 CNY | -130,220,790.54 CNY | | Net Cash Flow from Financing Activities | 370,679,320.07 CNY | 147,926,085.96 CNY | | Cash and Cash Equivalents at Period End | 1,134,710,338.04 CNY | 736,547,979.49 CNY | Significant Accounting Policies and Estimates This chapter details the basis of financial statement preparation, adherence to accounting standards, and key accounting policies including financial instrument classification, revenue recognition principles, R&D capitalization, and asset impairment testing methods - Financial statements are prepared on a going concern basis and comply with the requirements of Enterprise Accounting Standards[153][156] - Revenue recognition follows new revenue standards, with revenue recognized when the customer obtains control of the related goods or services; domestic sales are recognized upon customer sign-off or acceptance, while international sales are recognized upon completion of export customs declaration and receipt of bill of lading[214][217] - The company applies the expected credit loss model to accrue bad debt provisions for receivables, categorizing them into different portfolios based on credit risk characteristics such as aging[172][176] Notes to Consolidated Financial Statement Items This chapter provides detailed notes and explanations for major items in the consolidated financial statements, including the composition, aging analysis, impairment provisions, and reasons for changes in cash, accounts receivable, inventories, fixed assets, borrowings, and accounts payable