ETERN(SH:600105)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,841,213,576.80, a decrease of 6.03% compared to ¥1,959,294,057.63 in the same period last year [22]. - The net profit attributable to shareholders of the listed company was ¥30,387,931.65, down 76.13% from ¥127,309,504.26 in the previous year [22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥24,369,345.90, an increase of 120.52% compared to ¥11,051,005.04 in the same period last year [22]. - The net cash flow from operating activities was -¥500,288,466.27, showing a slight improvement from -¥512,911,868.82 in the previous year [22]. - The net assets attributable to shareholders at the end of the reporting period were ¥2,797,964,946.91, a decrease of 1.38% from ¥2,837,244,344.88 at the end of the previous year [22]. - Total assets at the end of the reporting period were ¥7,521,072,386.58, an increase of 1.11% compared to ¥7,438,308,376.74 at the end of the previous year [22]. - Basic earnings per share decreased by 76.09% to CNY 0.022 compared to the same period last year [23]. - The net profit attributable to shareholders decreased by CNY 96.92 million, primarily due to the absence of significant equity transfer transactions that occurred in the previous year [23]. - The weighted average return on net assets decreased by 3.51 percentage points to 1.07% compared to the same period last year [23]. - The company reported a 112.50% increase in basic earnings per share after deducting non-recurring gains and losses, reaching CNY 0.017 [23]. Business Segments and Market Trends - Automotive wiring harness business revenue reached CNY 750 million, a year-on-year increase of 29.95%, with a net profit of CNY 18.05 million, up 12.61% [24]. - The company actively adjusted its sales structure, reducing unprofitable orders and increasing efforts in non-operator and overseas market expansion, leading to a growth in operating profit [24]. - The domestic telecommunications industry saw an 8.3% revenue growth, with fixed asset investment increasing by 24.6% year-on-year [37]. - As of June 2022, the total number of 5G package users reached 928 million, with fixed broadband access users totaling 563 million, a net increase of 27.05 million from the previous year [37]. - In the first half of 2022, domestic passenger car production and sales reached 10.43 million and 10.35 million units, respectively, representing year-on-year growth of 6% and 3.4% [73]. - The domestic new energy vehicle market saw production and sales of 2.661 million and 2.6 million units in the first half of 2022, both showing a year-on-year increase of 120% [73]. - The wire and cable industry in China has a market size exceeding 1 trillion yuan, with a production volume of approximately 54.8 million kilometers in 2021, reflecting a year-on-year growth of 4.5% [62]. - The total sales revenue of related products in the wire and cable industry reached 1,115.4 billion yuan in 2021, up 3.6% year-on-year [62]. Strategic Initiatives and Investments - The company’s strategic focus includes the integration of optical communication products and big data applications, enhancing its competitive edge in the industry [30]. - The company plans to invest in high-end submarine cable projects to enhance its capabilities in marine cable business [54]. - The company is actively developing high-end products and increasing R&D investment to meet customer needs and achieve annual sales and profit targets [54]. - The company is exploring new business opportunities in the Latin American market, particularly in Mexico and Panama, while also conducting market research in Europe [94]. - The company plans to raise a total of up to 1,005 million RMB through a private placement of shares, which will be used for high-end submarine and land cable projects, 5G core optical chip development, and repaying bank loans [181]. - The investment for the high-end submarine and land cable construction project in the Tongzhou Bay demonstration area is planned at 1.25 billion RMB, with project registration completed but progress slowed due to the pandemic [182]. Research and Development - Research and development expenses were ¥69,573,742.00, down 12.84% from ¥79,818,946.43 in the previous year, indicating a focus on successful market conversion of new technologies [108]. - The company is focusing on the R&D and industrialization of laser chips and AWG chips to enhance core technology control and product capabilities [131]. - The company has made significant advancements in high-temperature superconductors, achieving important progress in key application areas [92]. - The company completed the delivery of the first batch of high-temperature superconducting tapes for controlled nuclear fusion reactors, marking significant progress in this application area [105]. Environmental and Social Responsibility - The company is committed to environmental protection, adhering to national and local regulations, and has implemented measures to reduce waste emissions [152]. - The company has established a comprehensive environmental monitoring system, ensuring that all pollutants are discharged within the standards set by GB/T31962-2015, with COD at 500 mg/L and ammonia nitrogen at 45 mg/L [156]. - The company has been recognized as a national "Green Factory" by the Ministry of Industry and Information Technology in October 2018, and has continued to promote green manufacturing initiatives across its subsidiaries [157]. - The company has implemented measures to reduce carbon emissions, advocating for energy conservation and environmental protection, aiming for "zero accidents, zero injuries, and zero pollution" in its operations [158]. Corporate Governance and Shareholder Matters - The company held its 2021 Annual General Meeting on May 20, 2022, with a total of 492,536,512 shares represented, accounting for 34.91% of the total voting shares [138]. - The company approved several resolutions, including the adjustment of the non-public offering plan and the feasibility analysis report for the use of raised funds [136]. - The first extraordinary general meeting of 2022 was held on June 10, 2022, with 412,159,717 shares represented, which is 29.2093% of the total voting shares [140]. - The company did not distribute dividends or increase capital reserves for the year 2021, with no shares or cash dividends declared [145][148]. - The company announced the election of new board members and management, including the appointment of Lu Qinghai as the new general manager [144]. Risk Management - The company faces risks from unstable raw material supply and price increases, with a reliance on imports for high-end optical communication chips, which could impact production costs [131]. - The company is committed to improving management systems and talent incentives to mitigate risks associated with the commercialization of superconducting materials [134].