Hexing(SH:603556)2020-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,275,767,438.94, a decrease of 7.17% compared to the same period last year[15]. - The net profit attributable to shareholders of the listed company was CNY 239,643,124.26, down 14.62% year-on-year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 187,775,178.23, a decline of 22.87% compared to the previous year[15]. - The net cash flow from operating activities was CNY 148,119,449.66, which is a decrease of 6.99% from the same period last year[15]. - Basic earnings per share decreased by 14.04% to CNY 0.49 compared to the same period last year[16]. - Diluted earnings per share also decreased by 14.04% to CNY 0.49 compared to the same period last year[16]. - The weighted average return on equity fell to 4.78%, a decrease of 0.91 percentage points from the previous year[16]. - The company reported a total comprehensive income of CNY 198,014,842.31 for the first half of 2020, compared to CNY 290,857,546.88 in the previous year, reflecting a decrease of 31.9%[77]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,867,511,366.00, an increase of 1.20% compared to the end of the previous year[15]. - The net assets attributable to shareholders at the end of the reporting period were CNY 5,143,740,570.92, down 1.56% from the end of the previous year[15]. - The company's total liabilities increased to CNY 1,462,128,380.04, up from CNY 1,137,008,754.46, indicating a growth of 28.5%[74]. - Total equity decreased to CNY 5,145,990,276.89 from CNY 5,202,064,710.73, a reduction of 1.1%[74]. - The total current assets amounted to RMB 5,887,040,218.35, an increase from RMB 5,305,560,419.23 at the end of 2019, representing a growth of approximately 10.9%[68]. Inventory and Receivables - Inventory increased by 38.57% to CNY 517,775,109.27, indicating a rise in material stockpiling[23]. - The accounts receivable reported at ¥1,068,209,652.08, showing a decrease of ¥966,083.35 compared to previous standards[56]. - The total accounts receivable at the end of the period was RMB 1,171,541,935.82, with a provision for bad debts amounting to RMB 103,332,283.74, which is approximately 8.8% of the total accounts receivable[197]. - The aging analysis for receivables within 1 year shows a balance of CNY 978,072,389.24 with a provision of CNY 34,232,524.12 at a 3.5% loss rate[200]. Research and Development - The company increased its R&D investment, with R&D expenses amounting to CNY 112,299,663.03, a slight increase of 0.85% compared to the previous year[30]. - The company is focused on developing new technologies and products in the utility sector, leveraging a global R&D team to shorten product development cycles and improve integration capabilities[42]. - The company is investing in R&D for new smart grid technologies, with a budget allocation of 86,765,701.56 RMB for the current fiscal year[100]. Market and Strategic Initiatives - The company is focusing on smart electricity and distribution businesses, with a range of products including smart meters and solutions for microgrid applications[19]. - The company is implementing localization strategies in overseas markets to mitigate trade protection risks and enhance social responsibility[40]. - The company plans to expand its market presence in renewable energy technology and energy management services, aiming for a 15% growth in these sectors over the next fiscal year[102]. Risk Management - The company has detailed the risks it faces in the report, urging investors to pay attention[4]. - The company faces market risks due to the COVID-19 pandemic, with global trade expected to shrink by 13% to 32%[40]. - The company is exposed to exchange rate risks due to operations in over 90 countries, with multiple currencies involved in transactions[40]. - The company plans to strengthen cash management in overseas subsidiaries to mitigate foreign exchange risks[41]. Corporate Governance and Compliance - The company has not disclosed any significant environmental violations and complies with national and local environmental standards[54]. - The company has no significant litigation or arbitration matters during the reporting period[47]. - The company has not provided any guarantees to shareholders or related parties during the reporting period[51]. Accounting and Financial Reporting - The new revenue recognition standard was adopted starting January 1, 2020, aligning revenue recognition with the transfer of goods or services to customers[55]. - There were no significant changes in accounting policies or estimates compared to the previous accounting period[54]. - The company’s financial statements comply with the enterprise accounting standards, ensuring transparency and accuracy in reporting[108].