Kersen(SH:603626)2023-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 1,283,830,931.03, a decrease of 17.20% compared to the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 69,208,929.53, a decline of 437.19% year-on-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 75,488,568.34, a decrease of 569.87% compared to the previous year[21]. - The net cash flow from operating activities was CNY 279,511,567.08, down 34.36% from the same period last year[21]. - Basic earnings per share for the reporting period was -0.1242 CNY, a decrease of 437.50% compared to the same period last year[22]. - Diluted earnings per share for the reporting period was -0.1242 CNY, reflecting a 437.50% decline year-over-year[22]. - The weighted average return on equity decreased by 2.93 percentage points to -2.25% compared to the previous year[22]. - The company reported a total of 6,279,638.81 CNY in non-recurring gains after tax adjustments[24]. - The company reported a net cash flow from operating activities of approximately ¥279.51 million, down 34.36% compared to the previous year[40]. - The net profit for the first half of 2023 was a loss of CNY 69,208,929.53, compared to a profit of CNY 20,525,374.11 in the same period of 2022, indicating a significant decline[117]. Assets and Liabilities - The net assets attributable to shareholders of the listed company at the end of the reporting period were CNY 3,037,542,951.11, a decrease of 2.15% from the end of the previous year[21]. - Total assets at the end of the reporting period were CNY 5,361,416,340.38, down 5.92% from the end of the previous year[21]. - The company's total liabilities as of June 30, 2023, were CNY 1,848,459,848.32, compared to CNY 2,056,101,647.35 at the end of 2022[114]. - Total equity increased to CNY 3,115,850,764.32 as of June 30, 2023, from CNY 3,103,465,356.20 at the end of 2022, showing a growth of 0.8%[114]. - Total liabilities decreased to ¥2,323,873,389.27 from ¥2,594,682,812.38, a decrease of approximately 10.43%[110]. - Current liabilities totaled ¥1,728,975,510.47, down from ¥1,943,445,653.62, indicating a decline of about 11.03%[109]. Research and Development - The company has over 260 authorized patents, including more than 60 invention patents, indicating strong R&D capabilities[29]. - The company has implemented a "machine replacement" strategy to enhance automation and improve production efficiency[32]. - Research and development expenses for the first half of 2023 were CNY 78,170,872.07, up from CNY 72,190,782.99 in the same period of 2022, reflecting a 8.7% increase[116]. - The company has allocated 2,262.15 million RMB for new technology research and development initiatives aimed at improving operational efficiency[136]. Environmental Compliance - The company has established wastewater treatment facilities using Fenton + A/O and MBR membrane processes to ensure compliance with discharge standards[64]. - The company has a valid pollution discharge permit for Kunshan Yuancheng Electronics valid from December 23, 2022, to December 22, 2027[66]. - The company has achieved compliance in various pollutants, including COD levels at 1.169 mg/L and SS at 0.117 mg/L, both below the regulatory limits[62]. - The company has reported no exceedances in pollutant discharge limits across its facilities[62]. - The company strictly complies with national and local environmental laws and regulations, regularly commissioning third-party testing organizations for "three wastes" monitoring, with all results meeting standards[69]. - There were no administrative penalties due to environmental issues during the reporting period[70]. Corporate Governance - The report has not been audited, and all directors attended the board meeting[6]. - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for this reporting period[4]. - There were significant changes in the board and management, with several key personnel resigning and new appointments made[57]. - The financial report was approved by the board on August 28, 2023, reflecting the company's adherence to accounting standards[153]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months[156]. Market Position and Strategy - The company provides precision metal and plastic structural components for major clients including Apple, Huawei, and Amazon, focusing on high-quality manufacturing processes[28]. - The company is positioned in the precision metal manufacturing industry, which is experiencing increasing demand for high-precision and high-quality components[26]. - The company is actively developing new products for existing clients, with new orders already secured, indicating a focus on high-volume products[37]. - The company has established a new production base in Vietnam to enhance capacity utilization, with equipment primarily relocated from domestic facilities[37]. - The company is expanding its product range to include precision components for various industries, which is expected to create new growth points[34]. Financial Commitments and Transactions - The company has pledged assets worth ¥400 million as collateral for a loan from a bank, indicating ongoing financial commitments[45]. - The company reported a total of 135 million RMB in expected related party transactions for external collaboration services, with an actual amount of 18,974,636.84 RMB, accounting for 2.66% of similar transactions[83]. - The company anticipates 10 million RMB in expected related party transactions for sales of products, with an actual amount of 825,597.57 RMB, representing 0.06% of similar transactions[83]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 69 million RMB, which accounts for 2.27% of the company's net assets[89]. Shareholder Information - The total number of ordinary shareholders was 35,445[97]. - The top ten shareholders held a total of 139,932,561 shares, representing 25.22% of the total shares[99]. - The largest shareholder, Xu Jingen, holds 139,932,561 shares, with 93,600,000 shares pledged[99]. - The total number of shares after the repurchase and cancellation was 554,879,690, down from 557,408,840[92]. - The company repurchased and canceled 2,529,150 restricted shares held by 37 incentive recipients due to unmet conditions of the 2019 stock incentive plan[94]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the semi-annual report[5]. - The company faces customer concentration risk due to reliance on major clients in the consumer electronics sector, which may impact performance if client relationships change[50]. - The consumer electronics industry is experiencing a decline in shipment volumes, leading to potential revenue volatility for the company[50]. - The company is exposed to exchange rate fluctuations, which could impact its financial results, especially with the potential appreciation of the RMB[52]. - The company is focusing on enhancing its risk management strategies to improve overall financial stability[131].