海能达(002583) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and all senior executives guarantee the truthfulness, accuracy, and completeness of this semi-annual report, assuming legal responsibility, with future plans and performance forecasts not constituting substantive commitments, and no profit distribution planned for this period - Company management ensures the truthfulness, accuracy, and completeness of the report content[5] - The company plans no cash dividends, bonus shares, or capital increase from capital reserves[7] Definitions This section defines key terms used in the report, covering company entities, reporting period, specific communication industry technical standards (e.g., PDT, TETRA, DMR), business models (e.g., converged public-private networks, EMS), and major subsidiary names - The reporting period is defined as January 1, 2025, to June 30, 2025[15] - Detailed explanations are provided for core technical and business terms such as professional communication, converged public-private networks, LTE, 5G, PDT, TETRA, and DMR[15] Company Profile and Key Financial Indicators Company Profile Hytera Communications Corporation Limited (stock code: 002583) is a company listed on the Shenzhen Stock Exchange, with Chen Qingzhou as its legal representative, specializing in the professional communication sector Basic Company Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Hytera | | Stock Code | 002583 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Chen Qingzhou | Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue decreased by 17.50% year-on-year, and net profit attributable to shareholders decreased by 42.37%, while net cash flow from operating activities significantly increased by 525.66%, with total assets and net assets showing slight growth from the end of the previous year Key Financial Indicators for H1 2025 | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 2,259,104,655.12 | 2,738,347,806.51 | -17.50% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 93,581,832.60 | 162,388,501.23 | -42.37% | | Net Cash Flow from Operating Activities (CNY) | 239,390,007.78 | 38,261,703.76 | 525.66% | | Basic Earnings Per Share (CNY/share) | 0.0515 | 0.0893 | -42.33% | | Weighted Average Return on Net Assets | 3.81% | 2.73% | 1.08% | | Indicator | End of Current Reporting Period | End of Prior Year | Year-on-Year Change | | Total Assets (CNY) | 11,849,597,255.43 | 11,182,033,509.52 | 5.97% | | Net Assets Attributable to Shareholders of Listed Company (CNY) | 2,520,683,400.71 | 2,386,659,384.58 | 5.62% | Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 14.47 million CNY, primarily from government grants (13.58 million CNY) and other non-operating income and expenses, contributing to the current net profit Non-recurring Gains and Losses Items | Item | Amount (CNY) | | :--- | :--- | | Government Grants | 13,578,936.67 | | Gains/Losses from Changes in Fair Value of Financial Assets/Liabilities | 1,687,993.55 | | Net Non-operating Income and Expenses | -739,834.62 | | Total | 14,474,364.24 | Management Discussion and Analysis Principal Businesses The company, a leader in professional communication, offers products and solutions including narrowband digital trunking, converged public-private networks, and intelligent command and dispatch, strategically advancing "AI Professional Networks" and increasing investment in AI and converged communication businesses - The company strategically proposed the "AI Professional Network" development concept, integrating AI capabilities into scenario-based solutions to empower public safety, government emergency response, transportation, energy, and industrial and commercial sectors[31][65] - The company's business is divided into three main parts: core product solutions, industry solutions, and sales services, forming a full range of product layouts from narrowband to broadband, from terminals to systems, and from critical voice to audio-video convergence[33][64][69] - EMS intelligent manufacturing business is one of the company's key development directions, focusing on new energy and automotive electronics, robotics, communication, and server industries, providing supporting services to well-known car manufacturers such as Tesla, Zeekr, and Xpeng[62][63] Core Products and Solutions The company's core product lines span narrowband digital trunking, rapidly growing converged public-private network products, and intelligent command and dispatch solutions, with new product launches and technology upgrades across all lines, particularly in converged communication and EMS - Narrowband Business: Continuously improving product models, launching new products for industries like railway and power, and expanding SDR trunking integrated base station frequency bands to reduce user network construction costs[34][35] - Converged Public-Private Network Business: Continuously deepening its layout, enhancing MCX and PoC platform capabilities at the platform level, and launching multiple multi-mode terminals integrating PDT, public network, and Beidou satellite communication at the terminal level[38][39] - Intelligent Command and Dispatch: Innovatively adopting a "domestic large model + industry small model" dual-mode architecture, strengthening AI analysis and decision-making capabilities, and deeply integrating with various terminal forms such as robots and drones[44][45] - EMS Business: Deepening cooperation with global leading power battery manufacturers and domestic top new energy vehicle companies, expanding customers in robotics and server/computing power fields, and achieving mass production delivery of AI terminal applications[62][63] Industry Solutions Leveraging AI and low-altitude economy trends, the company provides scenario-based solutions for global public safety, emergency response, transportation, energy, and industrial sectors, earning multiple international awards for its innovative solutions - The company first proposed the "AI Professional Network" concept, integrating AI capabilities into scenario-based solutions across various industries to enhance application efficiency[65] - The company's solutions are widely applied in critical industries such as public safety, government emergency response, transportation, and energy, successfully providing services to large energy companies like Saudi Aramco and Sinopec[65][66][67] - During the reporting period, the company's solutions received multiple domestic and international awards, with MCX solutions winning ICCAs awards for four consecutive years, demonstrating strong global competitiveness[68] Analysis of Core Competencies The company's core competencies include comprehensive communication solutions, a global marketing network, international R&D platforms, extensive core technology reserves, advanced intelligent manufacturing, and effective talent development, supported by a global sales network, over 40% R&D staff, 3,428 patent applications, and the world's largest professional communication product manufacturing base - Technology and Products: Possesses a full range of product layouts and comprehensive converged communication solution capabilities, from narrowband to broadband, from terminals to systems, and from critical voice to audio-video convergence[71][72] - Global Network: Has over 90 branches worldwide, with sales and service networks covering more than 120 countries and regions, and has established national-level communication public safety networks for over 30 countries[73] - R&D and Innovation: Operates multiple R&D centers globally, with R&D personnel accounting for over 40% As of June 30, 2025, it has cumulatively applied for 3,428 patents, with 2,169 authorized[74][76] - Intelligent Manufacturing: Owns the global scale's largest professional communication product production base and leverages high-end manufacturing capabilities to provide one-stop EMS services for industries such as new energy, robotics, and servers[77][78] Analysis of Principal Business In H1 2025, the company's operating revenue declined by 17.50% to 2.259 billion CNY and net profit by 42.37% to 93.58 million CNY due to overseas project delays and EMS business decline, despite a 5.18 percentage point increase in gross margin and a significant reduction in financial expenses from exchange gains H1 2025 Performance Overview | Indicator | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 2.259 billion CNY | -17.50% | | Net Profit Attributable to Shareholders of Listed Company | 93.58 million CNY | -42.37% | | Comprehensive Gross Margin | - | Increased by 5.18 percentage points | | Financial Expenses | -39.70 million CNY | -158.75% (decrease of 107 million CNY) | | Selling and R&D Expenses | - | Increased by 8.03% | - Primary reasons for performance decline: delays in delivery of some overseas projects and year-on-year decrease in EMS business revenue[81] Operating Revenue Composition (by Product) | Product Category | Revenue (billion CNY) | Revenue Share | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Terminals | 1.002 | 44.36% | -21.02% | | Systems | 0.957 | 42.37% | +15.16% | | OEM and Others | 0.300 | 13.27% | -53.03% | Operating Revenue Composition (by Region) | Region Category | Revenue (billion CNY) | Revenue Share | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Domestic Sales | 1.102 | 48.77% | -21.18% | | Overseas Sales | 1.157 | 51.23% | -13.66% | Analysis of Assets and Liabilities As of the end of the reporting period, total assets reached 11.85 billion CNY, a 5.97% increase from the prior year-end, driven by higher cash and inventories and lower accounts receivable, while liabilities saw increases in short-term borrowings and contract liabilities, with significant overseas assets held through acquired subsidiaries Key Balance Sheet Item Changes | Item | Period-end Amount (billion CNY) | Share of Total Assets | Change from Prior Year-end | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1.627 | 13.73% | +3.60% | | Accounts Receivable | 2.211 | 18.66% | -3.07% | | Inventories | 2.105 | 17.76% | +3.23% | | Short-term Borrowings | 2.052 | 17.31% | +1.35% | | Contract Liabilities | 0.669 | 5.65% | +1.33% | - The company holds three significant overseas assets: HMF in Germany, Teltronic in Spain, and Norsat in Canada, all wholly-owned acquired subsidiaries, collectively accounting for over 33% of the company's net assets[101] - As of the end of the reporting period, 1.816 billion CNY of the company's assets were restricted, primarily as collateral, pledges, and guarantees for bank loans and letters of guarantee[105] Analysis of Major Holding and Participating Companies During the reporting period, the company's major subsidiaries, including Hebifei Tianhai Electronic Information System Co., Ltd. and Teltronic Corporation, S.L.U., contributed significant operating revenue and net profit, with several subsidiaries achieving profitability H1 Performance of Selected Major Subsidiaries | Company Name | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | | Hebifei Tianhai Electronic Information System Co., Ltd. | 143,480,524.79 | -23,435,385.89 | | Shenzhen Anzhijie Technology Co., Ltd. | 26,893,260.91 | 12,165,885.02 | | Teltronic Corporation, S.L.U. | 245,211,268.25 | 20,318,567.81 | | HMF Smart Solutions GmbH | 141,120,928.46 | -14,375,683.97 | - During the reporting period, the company deregistered a Nigerian subsidiary that had no actual operations, with minimal impact on overall operating performance[126] Risks and Countermeasures The company faces significant risks including ongoing litigation with Motorola, supply chain shortages, intensified industry competition, exchange rate fluctuations, and intellectual property infringement, which it addresses through legal defense, localization of materials, technological innovation, financial hedging, and enhanced internal confidentiality - Litigation Risk: The company is involved in a series of significant lawsuits with Motorola in the United States, Germany, and Australia, concerning trade secrets, copyright, and patent infringement, and is actively defending itself[127] - Supply Chain Risk: Facing risks from tariff policy changes and discontinuation or price increases of some historical material models, the company is responding through material stocking and domestic substitution[128] - Competition Risk: The narrowband industry is consolidating towards leading players, while converged public-private network upgrades attract new entrants, and the company is addressing competition by strengthening narrowband business and technological innovation[129] - Exchange Rate Risk: High proportion of overseas revenue means exchange rate fluctuations significantly impact operations, and the company will hedge and mitigate risks through various methods[130] Corporate Governance, Environment, and Society Implementation of Equity Incentive Plan During the reporting period, the company's 2021 stock option incentive plan concluded, with 40,000 shares exercised by one incentive recipient and 60,000 unexercised stock options cancelled upon expiration of the second exercise period for the reserved grant - The 2021 stock option incentive plan has concluded, with 40,000 shares exercised and 60,000 expired unexercised options cancelled during the reporting period[143][144] Social Responsibility Performance The company actively fulfilled its social responsibilities by participating in multiple emergency relief and public event support activities, including earthquake relief in Tibet, communication assurance for the 9th Asian Winter Games, and sponsoring the International Rescue Challenge, while also deepening school-enterprise cooperation and providing communication support for the China Pavilion at Expo 2025 Osaka - Emergency Relief: Provided urgent assistance to the Dingri County earthquake in Tibet, completing search and rescue for 407 trapped individuals within 36 hours; quadruped robots aided emergency rescue for Shaanxi Coal[146][148] - Major Event Support: Provided low-temperature resistant communication equipment and system support for the 9th Harbin Asian Winter Games; supplied public network intercom systems for the China Pavilion at Expo 2025 Osaka, Japan[147][151] - Industry and Social Contribution: Title sponsored the 2025 Blue Sky Rescue International Rescue Challenge and signed a school-enterprise cooperation agreement with Nanjing No. 39 Middle School to jointly build a science popularization base[149][150] Significant Matters Litigation Matters The company continues to face significant litigation with Motorola, including US trade secret and copyright infringement, multi-country patent infringement, and antitrust cases, with the US trade secret and copyright case returning to the first-instance court after appeal, and a settlement reached with the US Department of Justice for a potential payment of 0 to 60 million USD, constituting significant contingent liabilities - US Trade Secret and Copyright Infringement Case: After the second-instance judgment, the case has been remanded to the first-instance court, awaiting trial; as of now, the company has cumulatively paid approximately 66.55 million USD in compensation and deposited 37 million USD into an escrow account[159][186] - US Department of Justice Allegations: The company has reached a settlement agreement with the US Department of Justice, agreeing to pay 0 to 60 million USD, with a potential additional payment to Motorola, the specific amount to be determined by subsequent proceedings[160][187] - H-Series Product Non-Infringement Lawsuit: The US Seventh Circuit Court of Appeals has stayed the district court's product sales ban and fines against the company, with both parties currently proceeding with the appellate judicial process[160] Significant Contracts and Their Performance During the reporting period, the company provided significant guarantees for its subsidiaries totaling 650 million CNY in approved limits, with an actual outstanding balance of 628.39 million CNY at period-end, and also received third-party guarantees with an outstanding balance of 60 million CNY Overview of Company Guarantees (million CNY) | Guarantee Type | Approved Limit During Reporting Period | Actual Guarantee Balance at Period-end | | :--- | :--- | :--- | | Guarantees for Subsidiaries | 650.00 | 628.39 | | Guarantees by Subsidiaries for Other Subsidiaries | 0 | 215.92 | | Guarantees by Company and Subsidiaries for External Parties | 0 | 60.00 | | Total Guarantees | 650.00 | 904.31 | - As of the end of the reporting period, the company's total actual guarantee amount accounted for 35.88% of its net assets[179] Significant Matters of Subsidiaries In July 2025, the company's board approved the transfer of 100% equity in its wholly-owned subsidiary Teltronic, S.A.U. by Teltronic Corporation, S.L.U. for 75.5 million EUR, a transaction expected to generate approximately 80 million CNY in pre-tax profit, which has now been completed - Subsequent to the reporting period, the company sold its wholly-owned grandchild company Teltronic, S.A.U. for 75.5 million EUR, with an estimated pre-tax gain of approximately 80 million CNY[191] Changes in Share Capital and Shareholder Information Changes in Share Capital During the reporting period, the company's total share capital increased by 40,000 shares to 1,818,619,381 shares from 1,818,579,381 shares, all of which are unrestricted tradable shares, due to the exercise of stock options from the 2021 equity incentive plan's reserved portion - During the reporting period, the company's total share capital increased by 40,000 shares due to stock option exercise[195] Shareholder Numbers and Shareholding As of the end of the reporting period, the company had 290,474 common shareholders, with the actual controller Chen Qingzhou holding 39.20% as the largest shareholder, and the top ten shareholders primarily including Hong Kong Securities Clearing Company Limited and various index funds, in addition to the actual controller and spouse Top Five Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Chen Qingzhou | 39.20% | 712,900,884 | | Weng Limin | 0.97% | 17,600,000 | | Hong Kong Securities Clearing Company Limited | 0.77% | 13,968,112 | | Southern CSI 1000 ETF | 0.55% | 10,078,492 | | China AMC CSI 1000 ETF | 0.33% | 5,937,949 | - Actual controller Chen Qingzhou and his spouse Weng Limin are parties acting in concert[198] Financial Report Financial Statements This section presents the company's unaudited consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity - The company's semi-annual financial report is unaudited[206] - Consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity are provided[207] Notes to Financial Statements The notes to the financial statements detail the company's basic information, basis of preparation, significant accounting policies and estimates, and provide comprehensive explanations for major items in the consolidated financial statements, including cash, accounts receivable, inventories, fixed assets, intangible assets, borrowings, and estimated liabilities, also disclosing related party relationships and transactions, share-based payments, contingent liabilities, and subsequent events - Detailed disclosure of the company's accounting policies, such as revenue recognition, impairment of financial instruments, and capitalization of research and development expenditures[245][363][387] - Detailed notes and analysis are provided for each major account in the consolidated financial statements, such as restricted cash and cash equivalents, aging of accounts receivable and allowance for doubtful accounts, and composition of inventories and provision for impairment[445][461][504] - Disclosed that the estimated liability arising from pending litigation with Motorola is 3.78 billion CNY[614][617] Other Submitted Data Investor Relations Activities During the reporting period, the company conducted three investor relations activities, engaging with institutions including Changjiang Securities, Morgan Stanley, and Harvest Fund, primarily discussing company fundamentals, business outlook, litigation progress, AI professional networks, and satellite communication - In February and May 2025, the company communicated with various institutional and individual investors through on-site research and online exchanges[817] - Key topics discussed included: company performance, overseas business development, litigation status, AI professional networks, satellite communication, EMS business, and low-altitude economy layout[817]