Financial Performance - For the six months ended June 30, 2022, the total sales revenue was approximately RMB 726,193,000, representing an increase of about 0.9% compared to RMB 719,430,000 for the same period in 2021[14]. - The gross profit for the same period was approximately RMB 78,695,000, a decrease of about 14.0% from RMB 91,466,000 in the previous year[14]. - The profit attributable to shareholders decreased to approximately RMB 11,537,000 from RMB 17,622,000 in the previous year[17]. - The company reported a pre-tax profit of RMB 16,518 thousand, down from RMB 25,556 thousand in the previous year, reflecting a decrease of approximately 35.5%[61]. - Net profit for the period was RMB 11,537 thousand, compared to RMB 17,622 thousand in 2021, marking a decline of around 34.6%[61]. - Total comprehensive income for the period was RMB 11,345 thousand, down from RMB 17,764 thousand, representing a decrease of approximately 36.1%[64]. - Basic and diluted earnings per share for the period were RMB 0.0181, down from RMB 0.0277 in the previous year, reflecting a decrease of approximately 34.5%[61]. Expenses and Costs - Research and development expenses amounted to approximately RMB 34,190,000, compared to RMB 29,523,000 in the previous year, impacting the gross profit margin[11][14]. - The increase in sales expenses to RMB 50,069,000 was primarily due to rising transportation, packaging, and labor costs, reflecting a 28.1% increase from the previous year[14]. - The cost of goods sold for the period was RMB 647,498 thousand, slightly up from RMB 627,964 thousand in the previous year, indicating a rise in operational costs[78]. Assets and Liabilities - As of June 30, 2022, total equity was approximately RMB 792,031,000, with current assets of about RMB 1,005,314,000[18]. - The company's total assets as of June 30, 2022, were RMB 1,005,314 thousand, a decrease from RMB 1,061,593 thousand at the end of 2021[66]. - Current liabilities decreased to RMB 831,860 thousand from RMB 998,194 thousand, indicating a reduction of about 16.7%[66]. - The company's net current assets improved to RMB 173,454 thousand, compared to RMB 63,399 thousand in the previous year, showing a significant increase[66]. - Accounts payable and accrued expenses totaled RMB 395,759 thousand, a decrease of 36.5% from RMB 623,411 thousand as of December 31, 2021[95]. - Contract liabilities decreased significantly to RMB 522 thousand from RMB 61,404 thousand year-over-year, indicating a substantial reduction in deferred revenue[95]. Cash Flow - For the six months ended June 30, 2022, the net cash flow from operating activities was RMB (81,316) thousand, a decrease from RMB 52,450 thousand in the same period of 2021[71]. - The net cash flow from investing activities was RMB (89,254) thousand, compared to RMB (58,399) thousand in the prior year, indicating increased investment outflows[71]. - The net cash flow from financing activities significantly increased to RMB 186,554 thousand from RMB 6,640 thousand year-over-year, reflecting a strong financing position[71]. - The total cash and cash equivalents at the end of the period rose to RMB 59,277 thousand, up from RMB 53,608 thousand at the end of 2021[71]. - The company reported a net increase in cash and cash equivalents of RMB 15,984 thousand for the period, compared to a minimal increase of RMB 691 thousand in the previous year[71]. Strategic Plans and Operations - The company plans to enhance automation and improve production processes to increase efficiency and maintain competitive advantages[11]. - The company is considering establishing factories closer to major clients to provide faster and more efficient services[11]. - The group plans to establish a wholly-owned subsidiary in Mexico to produce and sell automotive parts molds and components in the Americas market[32]. - The group intends to set up a wholly-owned subsidiary in Serbia to expand into the European market[32]. - The management aims to enhance product quality and expand the customer base by leveraging expertise in mold and plastic parts production[28]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[46]. - The board of directors approved the financial statements on August 31, 2022, ensuring compliance with regulatory requirements[98]. - The company has implemented a non-competition agreement with 株式會社友成機工 to clearly delineate business operations and avoid future competition[53]. Shareholder Information - The company reported a significant shareholder structure, with 株式會社友成機工 holding 36.65% of the shares, and Superview International Investment Limited holding 17.42%[40][41]. - As of June 30, 2022, the company did not purchase, sell, or redeem any of its listed shares[47]. - The company has not granted any rights to directors for purchasing shares as of June 30, 2022[44]. Risk Management - The group has not implemented any foreign currency hedging policies to mitigate exchange rate risks but is considering it for significant risks[24]. - The company has a financial risk management policy in place to ensure all payables are settled within the payment terms, which range from 30 to 120 days[97]. - The company continues to monitor its financial position closely to adapt to market conditions and maintain liquidity[99].
YUSEI(00096) - 2022 - 中期财报