AURORA(SH:600666)2023-08-25 16:00Company Address and Contact Information - The company's registered address was changed to Harbin Songbei District Zhigu Avenue 288, Shenzhen (Harbin) Industrial Park, Science and Innovation Headquarters, Building 3, Area A, Block 2, 5th Floor in April 2023[20] - The company's office address is located at 489 Jubao 2nd Road, Songbei District, Harbin, with a postal code of 150000[21] - The company's website and email for investor relations are www.aurora-sapphire.cn and zhengquan@aurora-sapphire.cn respectively[21] - The company's registered address was previously located in Chongqing Shapingba District Tianxingqiao 21 before moving to Harbin in April 2019[20] Financial Performance - Revenue for the reporting period was RMB 124.96 million, a decrease of 59.82% compared to the same period last year[26] - Net profit attributable to shareholders of the listed company was RMB -179.96 million, with a reduction in loss of RMB 119.35 million compared to the same period last year[27] - Net cash flow from operating activities was RMB -183.11 million, a decrease of RMB 189.09 million compared to the same period last year[28] - Total assets decreased by RMB 721.88 million compared to the end of the previous year, primarily due to debt repayment during the restructuring process[28] - Basic earnings per share improved to RMB -0.0219, an increase of RMB 0.0432 compared to the same period last year[27] - Revenue for the first half of 2023 was RMB 124.96 million, a decrease of 59.82% year-over-year[44] - Net loss attributable to shareholders was RMB 60.61 million, a reduction of RMB 119.35 million compared to the same period last year[44] - Revenue decreased by 59.82% to 1.25 billion yuan compared to the same period last year, primarily due to a decline in sales of sapphire products and single crystal furnaces[46] - Operating costs decreased by 60.51% to 1.15 billion yuan, in line with the reduction in revenue[46] - R&D expenses decreased by 75.29% to 83.77 million yuan, mainly due to reduced R&D investment[46] - Net cash flow from operating activities decreased by 3,163.73% to -1.83 billion yuan, primarily due to the repayment of previous debts and reduced revenue[47] - Net cash flow from financing activities increased significantly to 919.63 million yuan, mainly due to the receipt of restructuring investment funds[47] - Monetary funds increased by 3,436.45% to 692.20 million yuan, driven by the receipt of restructuring investment funds[50] - Short-term loans decreased by 94.69% to 12.97 million yuan, as the restructuring manager repaid company debts[50] - Other receivables decreased by 81.15% to 343.72 million yuan, as the restructuring manager paid part of the restructuring investment funds and repaid company debts[51] - Capital reserve decreased by 53.12% to 1.36 billion yuan, due to the conversion of capital reserve into share capital as per the restructuring plan[51] - Total assets increased by 202.68% to 2.29 billion yuan, primarily due to the conversion of capital reserve into share capital as per the restructuring plan[51] - The company's total assets decreased from RMB 34.62 billion as of December 31, 2022, to RMB 27.40 billion as of June 30, 2023[137][139] - The company's total liabilities decreased from RMB 17.05 billion as of December 31, 2022, to RMB 10.45 billion as of June 30, 2023[139] - The company's monetary funds increased significantly from RMB 19.57 million as of December 31, 2022, to RMB 692.20 million as of June 30, 2023[137] - The company's accounts receivable decreased slightly from RMB 144.16 million as of December 31, 2022, to RMB 142.51 million as of June 30, 2023[137] - The company's inventory increased from RMB 380.63 million as of December 31, 2022, to RMB 405.05 million as of June 30, 2023[137] - The company's short-term borrowings decreased significantly from RMB 244.25 million as of December 31, 2022, to RMB 12.97 million as of June 30, 2023[139] - The company's other payables decreased from RMB 404.14 million as of December 31, 2022, to RMB 110.98 million as of June 30, 2023[139] - The company's equity attributable to owners of the parent company decreased from RMB 1.74 billion as of December 31, 2022, to RMB 1.68 billion as of June 30, 2023[139] - The company's development expenditure increased from RMB 3.05 million as of December 31, 2022, to RMB 12.67 million as of June 30, 2023[138] - The company's estimated liabilities decreased from RMB 506.82 million as of December 31, 2022, to RMB 456.30 million as of June 30, 2023[139] - Total assets decreased to 6,558,843,296.90 yuan from 6,943,549,493.46 yuan compared to the previous period[144] - Net profit for the period was -61,612,365.27 yuan, a significant improvement from -179,387,695.94 yuan in the same period last year[148] - Operating income for the first half of 2023 was 124,962,857.70 yuan, down from 311,036,840.48 yuan in the same period last year[147] - Total liabilities decreased to 61,649,052.03 yuan from 428,510,024.19 yuan compared to the previous period[145] - Basic earnings per share (EPS) for the period was -0.0219 yuan, an improvement from -0.0651 yuan in the same period last year[149] - Total equity increased slightly to 6,497,194,244.87 yuan from 6,515,039,469.27 yuan compared to the previous period[145] - Research and development expenses decreased to 8,377,353.55 yuan from 33,903,995.59 yuan in the same period last year[147] - Total current assets decreased to 1,691,001,870.23 yuan from 2,134,959,445.49 yuan compared to the previous period[144] - Total non-current assets increased to 4,867,841,426.67 yuan from 4,808,590,047.97 yuan compared to the previous period[144] - Total operating costs decreased to 164,845,692.64 yuan from 456,012,464.61 yuan in the same period last year[147] - Revenue from sales of goods and services in 2023 H1 was RMB 38,463,223.04, a significant decrease from RMB 226,939,775.22 in 2022 H1[154] - Net cash flow from operating activities in 2023 H1 was negative RMB 183,111,590.76, compared to positive RMB 5,976,753.40 in 2022 H1[155] - Net cash flow from investing activities in 2023 H1 was negative RMB 62,251,609.03, compared to negative RMB 5,089,412.86 in 2022 H1[156] - Net cash flow from financing activities in 2023 H1 was positive RMB 919,627,102.63, compared to negative RMB 13,029.69 in 2022 H1[156] - Total cash and cash equivalents at the end of 2023 H1 were RMB 686,106,428.67, up from RMB 3,838,227.42 in 2022 H1[156] - Net profit in 2023 H1 was negative RMB 17,845,224.40, an improvement from negative RMB 34,155,003.45 in 2022 H1[152] - Basic earnings per share in 2023 H1 were negative RMB 0.0065, compared to negative RMB 0.0124 in 2022 H1[153] - Total comprehensive income in 2023 H1 was negative RMB 17,845,224.40, an improvement from negative RMB 34,155,003.45 in 2022 H1[153] - Credit impairment losses in 2023 H1 were RMB 14,954,347.65, compared to negative RMB 3,516,556.68 in 2022 H1[152] - Administrative expenses in 2023 H1 were RMB 12,368,985.45, a significant increase from RMB 4,239,405.62 in 2022 H1[151] - Total cash outflow from operating activities was RMB 196,976,311.71, an increase of 301.07%[159] - Net cash flow from operating activities was negative RMB 179,273,489.42, an increase of 9.04%[159] - Total cash outflow from investing activities was RMB 62,318,054.16[159] - Net cash flow from investing activities was negative RMB 62,318,054.16[159] - Total cash inflow from financing activities was RMB 884,008,891.63[159] - Net cash flow from financing activities was RMB 884,008,891.63[159] - Net increase in cash and cash equivalents was RMB 642,417,348.05, an increase of 9.04%[159] - Ending balance of cash and cash equivalents was RMB 642,417,412.42, an increase of 163.26%[159] - Total comprehensive income for the period was negative RMB 60,613,928.68[161] - Total owner's equity decreased by RMB 61,612,365.27[161] - The company's total comprehensive income for the period decreased by RMB 179,964,376.49, with a corresponding increase in other comprehensive income of RMB 179,387,695.94[169] - The company's total owner's equity at the end of the period was RMB 2,232,709,860.35, with a decrease of RMB 179,964,376.49 in comprehensive income[170] - The company's total owner's equity at the beginning of the period was RMB 6,515,039,469.27, with a total comprehensive income increase of RMB 17,845,224.40 during the period[174] - The company's capital reserve increased by RMB 1,536,186,603.00 due to the conversion of capital reserve into share capital[174] - Total share capital increased to 2,763,512,843 shares as of June 30, 2023, following a capital reserve to share capital conversion[178] - Comprehensive income for the period amounted to 34,155,003.42, contributing to the increase in retained earnings[175] - The company's registered capital is 2,763,512,843 yuan, reflecting the capital reserve to share capital conversion[178] Company Leadership and Governance - The company's legal representative is Jiang Yang[18] - The company's Board Secretary is Le Ying, with contact information including phone number 0451-51076628 and fax 0451-87185718[19] - The company elected new board members and independent directors during the 2023 first extraordinary general meeting[72] - The company appointed new senior management, including a new chairman, general manager, and financial director[73] Company Operations and Products - The company's main products include sapphire crystal rods, sapphire wafers, and LED filaments, with applications in LED substrates and consumer electronics[34] - The company's sapphire products and single crystal furnace sales declined, leading to the overall revenue decrease[27] - Blue sapphire crystal growth equipment and small-sized sapphire crystal rod sales revenue decreased significantly year-over-year[36] - 4-inch sapphire wafer sales volume decreased slightly, with a significant drop in sales price[36] - LED lighting product exports from China decreased by approximately 5% in the first half of 2023[37] - Mini-LED market size is projected to reach USD 5.3 billion by 2025, with a CAGR of over 85%[38] - Global Micro-LED display market is expected to grow at a CAGR of 70.4% from 2023 to 2028[38] - The company has passed ISO9001, ISO14001, ISO45001, and IATF16949:2016 management system certifications[39] - The company focuses on R&D investment and talent acquisition to enhance product competitiveness[42] - The company operates in the electronic components manufacturing industry, focusing on optoelectronic devices and other electronic devices[179] - The company's main business includes the R&D, production, and sales of sapphire crystal materials and related equipment[180] - The company has 11 subsidiaries included in the consolidated financial statements for the first half of 2023[181] - The financial statements are prepared in accordance with the Chinese Accounting Standards and relevant regulations[182] - The company has entered the restructuring plan execution phase after the court approved the restructuring plans for both the company and its subsidiary, significantly improving its financial condition and operational sustainability[183][184] - Through bankruptcy restructuring, the company has reduced its debt, alleviating future repayment pressure and resolving supplier arrears and shareholder litigation, ensuring smooth future supply chain operations[184] - The company has received RMB 884 million in restructuring investment funds, which have been partially used for daily operations, fixed asset updates, and R&D investments, improving cash flow conditions[184] - The company sold 100% equity of Jiangxi Xinhang Technology Co., Ltd., a low-efficiency asset, to optimize its industrial structure and enhance future profitability[184] - The company expects the sapphire product market to gradually recover in the second half of 2023, leveraging its extensive experience and intellectual property in sapphire material processing to strengthen profitability[185] - The company has appropriately included the operating results and cash flows of newly added subsidiaries from the beginning of the period to the merger date in the consolidated financial statements[196] - The company classifies joint arrangements into joint operations and joint ventures, and uses the equity method to account for investments in joint ventures[197] - For joint operations, the company recognizes its share of jointly held assets and liabilities, as well as revenues and expenses[197] - The company only recognizes the portion of profits and losses attributable to other participants in joint operations when transferring assets to or from joint operations[198] - Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and have minimal risk of value changes[199] - Foreign currency transactions are initially recorded at the spot exchange rate on the transaction date[200] - Monetary items in foreign currency are translated at the spot exchange rate on the balance sheet date, with exchange differences recognized in profit or loss[200] - Non-monetary items measured at historical cost in foreign currency are translated at the spot exchange rate on the transaction date[200] - Non-monetary items measured at fair value in foreign currency are translated at the spot exchange rate on the fair value determination date[200] - Foreign currency financial statements are translated using the spot exchange rate on the balance sheet date for assets and liabilities, and the transaction date for income and expenses[200] Subsidiaries and Investments - Established four wholly-owned subsidiaries: Beijing Zhisuanli (registered on February 23, 2023, with a registered capital of 30 million RMB), Shanghai Suanli Ronghe (registered on February 22, 2023, with a registered capital of 10 million RMB), Shenzhen Zhisuanli (registered on May 8, 2023, with a registered capital of 30 million RMB), and Harbin Zhigui (registered on February 24, 2023, with a registered capital of 30 million RMB)[54] - Sold 100% equity of Jiangxi Xinhang Technology Co., Ltd. to Hainan Zangse Investment Co., Ltd., with the shareholder change registration completed on April 18, 2023[57] - Auruode Limited's total assets: 1,681,439,151.39 RMB, net assets: 888,544,799.55 RMB, operating income: 227,165,412.72 RMB, and net profit attributable to the parent company: 2,127,590.13 RMB[58] - Qiuguang Optoelectronics' total assets: 663,276,845.05 RMB, net assets: 162,165,503.12 RMB, operating income: 57,942,636.55 RMB, and net profit attributable to the parent company: -30,738,146.85 RMB[58] - Qiusuo Company's total assets: 372,472,549.51 RMB, net assets: 130,922,885.18 RMB, operating income: 72,174,518.19 RMB, and net profit attributable to the parent company: -4,784,194.72 RMB[59] - Liuxia Optoelectronics' total assets: 61,139,208.08 RMB, net assets: 40,687,208.44 RMB, operating income: 17,062,763.88 RMB, and net profit attributable to the parent company: -2,037,625.71 RMB[59] Market and Industry Trends - Facing intensified market competition in the LED chip industry, with potential risks of further price declines for main products[61] - Increased financial risks due to rising accounts receivable and potential bad debt risks[62] - Accounts receivable at the end of the period amounted to RMB 142 million, with a risk of bad debt losses if unrecoverable[63] - Inventory value at the end of the reporting period was RMB 405 million, with an inventory impairment provision ratio of 18.91%[63] - The company has frozen assets, including bank accounts, real estate, and subsidiary equity, due to historical debt disputes, though these have not significantly impacted operations[64] - The company is involved in several litigation cases and is actively seeking resolutions with creditors[65] Environmental and Social Responsibility - The company is not listed as a key pollutant discharge unit by environmental protection authorities and adheres to environmental laws and regulations, focusing on green operations and technological innovation to reduce emissions[77] - The company has implemented measures to reduce carbon emissions, including equipment upgrades and energy-saving initiatives, aligning with national carbon neutrality goals[79] - No environmental penalties were incurred during the reporting period, and the company has strengthened environmental management