YAPP(603013)2023-08-24 16:00Financial Reporting and Compliance - The financial report is based on the actual transactions and events, prepared in accordance with the accounting standards issued by the Ministry of Finance[12]. - The company guarantees the authenticity, accuracy, and completeness of the semi-annual report[4]. - The report has not been audited, and the responsible persons have declared the financial report's integrity[6]. - The company confirmed that there are no non-operating fund occupations by controlling shareholders or other related parties[9]. - The company has not violated decision-making procedures for providing guarantees[9]. - The company did not establish a profit distribution plan or a capital reserve transfer plan for the reporting period[7]. - The financial statements are prepared on a going concern basis, with the accounting year running from January 1 to December 31[13]. Financial Assets and Liabilities - The company has classified its financial assets based on the business model and cash flow characteristics[20]. - The company classifies financial liabilities primarily at amortized cost, using the effective interest method for subsequent measurement[21]. - Financial assets are derecognized when the transfer meets the conditions for derecognition, with the difference between the carrying amount and the consideration received recognized in profit or loss[21]. - The fair value of financial assets and liabilities is determined using market prices, with a preference for Level 1 inputs when available[22]. - The company recognizes expected credit losses based on the original effective interest rate, considering all reasonable and supportable information[22]. - If the credit risk of a financial instrument has significantly increased since initial recognition, the company measures the loss provision based on the expected credit losses over the entire lifetime of the instrument[22]. - The company does not offset financial assets and liabilities unless specific criteria are met, including having a legally enforceable right to offset[22]. - Financial instruments classified as financial liabilities incur interest, dividends, gains, or losses recognized in profit or loss[22]. - The company will derecognize financial liabilities when the current obligations are fully or partially discharged[21]. - The company uses valuation techniques that are appropriate in the circumstances to measure fair value when market prices are not available[22]. - Financial liabilities are recognized at fair value when they are designated as such at initial recognition, with changes in fair value recognized in profit or loss[21]. Credit Risk Management - The company adopts a simplified model for expected credit losses on receivables, measuring loss provisions based on the expected credit losses over the entire duration of the financial instruments[24]. - For financial instruments where credit risk has not significantly increased since initial recognition, the company measures loss provisions based on expected credit losses over the next 12 months[25]. - The company categorizes receivables into different groups based on credit risk characteristics to estimate expected credit losses on a collective basis[25]. - For receivables with significant financing components, the company also uses the simplified model to measure loss provisions based on expected credit losses over the entire duration[24]. - The company assesses whether the credit risk of financial instruments has significantly increased since initial recognition at each balance sheet date[25]. - The company assumes that financial instruments with low credit risk have not experienced a significant increase in credit risk since initial recognition[25]. - The company applies different accounting treatments for financial instruments based on their credit risk stages: Stage 1, Stage 2, and Stage 3[25]. - The company considers all reasonable and supportable information, including forward-looking information, to estimate expected credit losses[25]. - The company has a policy to recognize loss provisions for receivables that are individually assessed for credit risk, such as those in dispute or litigation[25]. - The company prepares an aging schedule for accounts receivable to calculate expected credit losses based on historical credit loss experience and current conditions[25]. Market and Industry Performance - In the first half of 2023, global automotive sales are expected to reach 40.47 million units, a 21% increase compared to 2022[34]. - In China, new energy vehicle production and sales reached 3.788 million and 3.747 million units respectively, with year-on-year growth of 42.4% and 44.1%[34]. - The company's revenue increased by 3.15% year-on-year, while net profit attributable to shareholders grew by 7.99%, aligning with industry trends[38]. - The company ranks first in the Chinese passenger vehicle fuel system market and third globally[34]. - The global automotive thermal management product market is experiencing significant growth due to rising demands from hybrid, electric, and hydrogen vehicles[34]. - In the first half of 2023, China's GDP grew by 5.5%, contributing to a recovery in the automotive industry after a transitional period in Q1[80]. - In the first half of 2023, China's automobile production and sales reached 13.248 million and 13.239 million units, respectively, representing year-on-year growth of 9.3% and 9.8%[82]. - Passenger car production and sales were 11.281 million and 11.268 million units, with year-on-year increases of 8.1% and 8.8%[82]. Company Operations and Strategy - The company has established deep partnerships with major commercial vehicle manufacturers, including FAW Liberation and Chery Wanda, for hydrogen systems[36]. - The company has developed a lightweight composite battery pack cover that reduces overall weight and enhances electric vehicle range, securing multiple customer projects[36]. - The company is actively seeking mergers and acquisitions that align with its strategic development direction and enhance its technological capabilities[36]. - The company’s hydrogen storage systems have achieved industry-leading performance metrics, including high-pressure bottle testing certifications[36]. - The company has established 25 production bases globally, with 9 located overseas, facilitating rapid response to customer needs[39]. - The company focuses on the research, development, manufacturing, and sales of energy storage systems and thermal management systems, with major clients including Volkswagen, Audi, General Motors, and BYD[74]. - The company implements a "sales-driven production" model, ensuring timely supply based on customer orders[75]. - The company has established long-term stable relationships with suppliers, ensuring a reliable procurement process[75]. - The company is actively expanding into new markets and developing new products, ensuring that new products are launched as planned[81]. - The company has adopted refined management practices to enhance operational efficiency and reduce costs[81]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[199]. Financial Position and Assets - The company's cash and cash equivalents at the end of the reporting period amounted to ¥1,557,956,978.33, representing 24.30% of total assets, an increase of 15.89% compared to the previous year[56]. - Accounts receivable totaled ¥1,054,502,432.82, accounting for 16.45% of total assets, which is a decrease of 5.78% from the previous year[56]. - Inventory reached ¥1,109,843,538.55, making up 17.31% of total assets, with a growth of 5.27% year-over-year[56]. - The company's total overseas assets were ¥2,483,229,594.95, representing 38.73% of total assets[58]. - The company's fixed assets were valued at ¥1,228,278,812.18, which is 19.16% of total assets, reflecting a decrease of 5.76% compared to the previous year[56]. - The company's short-term borrowings stood at ¥55,412,769.75, accounting for 0.86% of total assets, down by 12.67% from the previous year[56]. - The company's contract liabilities increased by 16.53% to ¥51,289,064.49, representing 0.80% of total assets[56]. - The company reported a non-operating income of ¥7,493,257.96 from government subsidies closely related to its normal business operations[60]. - The company’s total liabilities included short-term borrowings and contract liabilities, indicating a strategic focus on managing debt levels effectively[56]. - The company plans to continue expanding its overseas asset base, which currently constitutes a significant portion of its total assets[58]. Tax and Regulatory Compliance - The company has been recognized as a high-tech enterprise again in December 2020, applicable to a corporate income tax rate of 15.00% for three years[1]. - Subsidiary Wuhu Yaqi was re-certified as a high-tech enterprise in September 2021, also applicable to a 15.00% corporate income tax rate for three years[1]. - The company’s subsidiaries enjoy various tax incentives, including a 15.00% corporate income tax rate for certain entities under specific conditions[1]. - The company reported a significant increase in deferred income tax assets and liabilities, indicating a strategic focus on tax management[109]. - The company confirmed the recognition of government grants as deferred income, which will be amortized over the useful life of the related assets[107]. Lease and Asset Management - The company has adopted a systematic approach to account for lease liabilities and right-of-use assets, ensuring compliance with accounting standards[112]. - The company has chosen not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, streamlining its accounting processes[112]. - The company will recognize rental income from operating leases on a straight-line basis over the lease term, including any rent-free periods[114]. - The company has capitalized initial direct costs related to operating leases, which will be amortized over the lease term[114]. - The company has established criteria for classifying leases as finance or operating leases, focusing on the transfer of risks and rewards[112]. - The company will adjust the carrying amount of right-of-use assets in response to lease modifications, ensuring accurate financial reporting[112]. - The company has implemented a systematic method for recognizing interest income during the lease term, enhancing revenue predictability[114]. - The company is actively managing its lease agreements to optimize financial performance and compliance with accounting regulations[112].