Lettall Electronic(SH:603629)2020-08-17 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 661,647,671.42, a decrease of 9.12% compared to CNY 728,065,399.21 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2020 was CNY 20,617,329.47, down 48.66% from CNY 40,157,490.68 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 19,537,170.72, a decrease of 48.60% compared to CNY 38,013,431.39 in the same period last year[18]. - The basic earnings per share for the first half of 2020 was CNY 0.21, down 47.50% from CNY 0.40 in the previous year[21]. - The total assets at the end of the reporting period were CNY 1,870,799,296.88, a decrease of 6.36% from CNY 1,997,929,473.83 at the end of the previous year[18]. - The net cash flow from operating activities was CNY -30,271,562.95, compared to CNY -109,441,938.48 in the same period last year[18]. - The weighted average return on net assets was 2.08%, a decrease of 2.07 percentage points from 4.15% in the previous year[21]. - The comprehensive gross profit margin for the company's products was 14.33%, down 4.78 percentage points from 19.11% in the same period last year[40]. - The net profit of the company saw a significant decline, primarily due to the impact of the pandemic on operations[40]. Operational Highlights - The company has an annual production capacity of over 20 million precision metal structural components for LCD TVs[27]. - The company is the largest single customer of Baosteel for black electrical products, with an annual procurement volume exceeding 90,000 tons[34]. - The company has established long-term and stable cooperative relationships with major TV brands such as Hisense and TCL[35]. - The company has developed and mass-produced new materials for LCD TV structural components, enhancing its technological advantage[36]. - The overall market for the TV industry remains stable, but the COVID-19 pandemic has significantly impacted operations[31]. - The company employs a direct sales model, primarily focusing on domestic sales while some products are exported[29]. - The company adheres to strict quality management standards, ensuring high product quality through advanced testing equipment[36]. Cash Flow and Investments - The net cash flow from operating activities was negative at approximately -109.44 million, indicating challenges in cash generation[42]. - The company reported a significant increase in prepayments, which rose by 73.93% to approximately 54.28 million, mainly due to increased prepayments for light wood materials[42]. - The company made equity investments totaling approximately 61.57 million, a 207.85% increase compared to the same period last year[49]. - The company’s long-term equity investment increased to approximately 9.89 million, primarily due to an investment in Wuxi Yourong Microelectronics[42]. - The company reported cash and cash equivalents of approximately ¥247.8 million as of June 30, 2020, an increase from ¥204.5 million at the end of 2019, representing a growth of 21.2%[159]. - The company received CNY 4,606,233.30 in investment income during the first half of 2020, compared to CNY 411,883.56 in the same period of 2019[188]. Shareholder and Equity Information - The actual controllers hold 67.64% of the company's shares, posing potential risks related to decision-making influence[60]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period[67]. - The company’s stock lock-up period for major shareholders is set to extend if the stock price does not meet the required thresholds[75]. - The company will repurchase shares to stabilize stock prices, with a total repurchase fund not exceeding the total amount raised from the IPO[80]. - The company commits to not transferring or entrusting the management of its shares for 36 months post-IPO, ensuring stability in shareholding[71]. - The company’s major shareholders include Shao Shuwei with 48.4 million shares and Shao Qiuping with 12 million shares, both subject to a 36-month lock-up period[150]. Risk Factors - The company faces risks from high customer concentration, with over 50% of sales coming from the top five clients[57]. - The company is exposed to raw material price fluctuations, with over 70% of costs attributed to metals like galvanized steel and aluminum[57]. - The company anticipates challenges from the evolving LCD TV market and emerging display technologies like OLED and laser TVs[64]. Compliance and Governance - The company continues to employ Tianjian Accounting Firm as its auditor for the 2020 fiscal year, with the appointment approved at the 2019 annual general meeting[129]. - There are no significant lawsuits or arbitration matters reported during the reporting period[129]. - The integrity status of the company and its major shareholders remains good during the reporting period[129]. - The company has established measures to规范 and reduce related party transactions, ensuring independence in production, supply, and sales systems[126]. Environmental Commitment - The company emphasizes its commitment to environmental protection, utilizing eco-friendly production processes and having no major pollution incidents[139]. - The company has not reported any significant environmental incidents or pollution accidents during the reporting period[139].