NJEC(SH:600699)2023-08-21 16:00Financial Performance - The company's operating revenue for the first half of 2023 reached approximately RMB 27 billion, representing a year-on-year increase of 17.86%[15]. - The net profit attributable to shareholders was approximately RMB 475 million, a significant turnaround from a loss of RMB 105 million in the same period last year[15]. - The net profit after deducting non-recurring gains and losses was approximately RMB 396 million, showing a remarkable increase of 384.53% year-on-year[15]. - The net cash flow from operating activities was approximately RMB 1.61 billion, up 455.98% compared to the same period last year[15]. - The gross profit margin for the main business was approximately 13.44%, an increase of 2.47 percentage points year-on-year[17]. - The automotive electronics business achieved revenue of approximately RMB 8.3 billion, a year-on-year growth of about 24%[17]. - The automotive safety business generated revenue of approximately RMB 18.7 billion, reflecting a year-on-year increase of about 15%[17]. - The weighted average return on net assets increased by 4.70 percentage points to 3.77%[16]. - The company’s total assets at the end of the reporting period were approximately RMB 56 billion, a 3.51% increase from the end of the previous year[15]. New Orders and Market Position - The company secured new orders with a total lifecycle value of approximately RMB 42.2 billion, with over RMB 30 billion related to new energy vehicles, accounting for over 70%[18]. - New orders for the automotive electronics business amounted to approximately 21.6 billion CNY, with over 30 billion CNY in new orders related to new energy vehicles, accounting for over 70%[24]. - The company’s market share in China for passenger vehicles reached 53.1%, with a year-on-year increase of 22.4% in sales for domestic brands[20]. Research and Development - R&D expenses totaled ¥1,123,954,672.29, accounting for 6.61% of operating revenue, indicating a strong commitment to innovation[37]. - The company is advancing the development of new technologies, including smart driving domain controllers and high-voltage fast-charging power electronics for new energy vehicles[25]. - The company has established a strategic partnership with Horizon Robotics to promote product development in advanced driver assistance systems and autonomous driving[25]. Environmental Compliance - The company’s domestic key pollutant discharge units complied with national and local emission standards and obtained necessary discharge permits[60]. - The company reported actual emissions of 3.2383 tons for the first half of the year, which is significantly below the permitted discharge limit of 6.1238 tons per year[61]. - The company has implemented various pollution control facilities, including RTO and RCO systems, which are operating effectively[62]. - The company has established an environmental risk management system to enhance environmental supervision and management[67]. - The company has achieved a reduction in carbon emissions through projects such as green electricity procurement and photovoltaic power generation[69]. Financial Management and Capital Structure - The operating cost increased to ¥23,389,617,807.24, up 14.58% compared to the previous year, primarily due to revenue growth and improved production efficiency[30]. - Financial expenses rose significantly by 189.18% to ¥425,035,959.16, influenced by exchange rate fluctuations and rising interest rates[30]. - The company plans to enhance its global capacity optimization, focusing on the Chinese market, with the new automotive safety base in Hefei expected to produce 4 million steering wheels and 10 million airbags annually upon completion[27]. - The company is actively managing working capital, resulting in a decrease in the turnover days of working capital[39]. Related Party Transactions and Governance - The company committed to not engaging in any business that competes with its main operations during its tenure as the largest shareholder of Deheng Co., ensuring the interests of Deheng Co. and its shareholders are protected[73]. - The company guarantees the independence of personnel, assets, finances, institutions, and operations for the listed company[74]. - The company will not seek preferential treatment in business cooperation or transactions with Deheng Co. due to its controlling shareholder status[74]. - The company has established a commitment to avoid unnecessary related transactions with Deheng Co. unless absolutely necessary[74]. - The company emphasizes the importance of adhering to legal and regulatory requirements in related party transactions to protect shareholder interests[75]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 101,055[89]. - The largest shareholder, Junsheng Group Co., Ltd., holds 34.85% of the shares, with 476,840,782 shares[90]. - The company’s share capital structure remained unchanged during the reporting period[88]. - The company’s net asset per share will be enhanced, while earnings per share may be diluted in the short term due to the issuance of new shares[88]. Taxation and Compliance - The company has received high-tech enterprise certificates for three subsidiaries, allowing them to be taxed at a reduced corporate income tax rate of 15% from 2021 to 2023[197]. - The company operates in various countries with differing VAT rates, including 3%, 6%, 9%, and 13% in China, and up to 34% in Brazil for corporate income tax[193][194]. - The company has a structured approach to tax compliance, with various tax rates applicable across its subsidiaries in different countries[196]. Financial Instruments and Risk Management - The company applies expected credit loss accounting for impairment on financial assets measured at amortized cost and contract assets[133]. - The company assesses expected credit losses based on the longest contract term facing credit risk, including renewal options[134]. - The group measures loss provisions equivalent to expected credit losses over the entire lifetime for receivables and contract assets, based on historical credit loss experience[135].