Lettall Electronic(SH:603629)2022-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥855,496,503.04, representing a 5.74% increase compared to ¥809,069,810.79 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was ¥31,611,938.40, a 24.09% increase from ¥25,475,178.37 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥15,995,069.54, showing a decrease of 8.82% compared to ¥17,541,926.26 in the same period last year[24]. - The net cash flow from operating activities was ¥9,750,547.86, which is a 10.84% increase from ¥8,797,064.19 in the previous year[24]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,589,461,872.79, a slight increase of 0.78% from ¥1,577,092,607.89 at the end of the previous year[24]. - The total assets at the end of the reporting period were ¥2,861,687,744.91, reflecting a decrease of 8.77% from ¥3,136,694,923.27 at the end of the previous year[24]. - Basic earnings per share decreased by 32.00% to CNY 0.17 compared to the same period last year[25]. - Diluted earnings per share also decreased by 32.00% to CNY 0.17 compared to the same period last year[25]. - The weighted average return on equity fell by 0.51 percentage points to 1.98%[25]. - The basic earnings per share after deducting non-recurring gains and losses decreased by 47.06% to CNY 0.09 compared to the same period last year[25]. Market Conditions - The domestic TV market saw a retail volume decline of 6.2% to 16.72 million units in the first half of 2022[37]. - The retail value of the TV market decreased by 10.5% to CNY 53.1 billion, marking the first instance of both volume and price declines[37]. - Future growth in the TV industry is expected to rely on technological innovations such as 8K and OLED technology[37]. - The company acknowledges risks associated with the LCD TV market, including potential slowdowns in market growth and increased international trade friction, which could lead to a decrease in demand for precision metal components[78]. - New display technologies such as OLED and laser TVs may reduce the application of precision metal components, posing a competitive risk if these technologies achieve breakthroughs in cost control and market promotion[78]. Production and Operations - The company maintains a leading position in the manufacturing of precision metal components for LCD TVs, with an annual processing capacity of nearly 100,000 tons of steel and over 25 million metal backplates[37]. - The sales volume of precision metal structural parts was 8.78 million units, a decrease of 4.29% year-on-year, with an average selling price of 72.28 yuan, an increase of 13.11% year-on-year[48]. - The company has 23 precision stamping production lines for LCD TV metal structural parts, with an annual production capacity exceeding 25 million units[38]. - The gross profit margin for precision metal stamping structural parts was 15.81%, an increase of 0.47 percentage points year-on-year[49]. - The average unit cost for precision metal stamping structural parts was 60.85 yuan, an increase of 12.49% year-on-year[49]. Research and Development - Research and development expenses increased due to investments in R&D equipment and the consolidation of a wholly-owned subsidiary's R&D expenses[52]. - The company has a strong technical engineering center and mold design department, leading to rapid response in new product development[42]. - The company has established a complete R&D system, enabling it to participate deeply in customer new product development[42]. Cash Flow and Investments - The company's cash and cash equivalents decreased by 32.71% to ¥474,434,960.89 from ¥705,042,716.30 year-on-year, primarily due to investments and repayments related to fundraising projects[54]. - The company reported a significant increase in prepayments, which rose by 45.98% to ¥59,614,923.02, compared to ¥40,836,569.96 in the previous year[54]. - The company sold a 3.33% stake in its subsidiary Wuxi Yourong for ¥10 million, generating an investment income of ¥7.69 million[61]. - The company established a new subsidiary, Nanguiboshang, with a registered capital of ¥10 million, focusing on emerging energy technology research and development[62]. - The company invested ¥5 million in Shanghai Hualing Medical Technology Co., increasing its stake to 4.06%[62]. Shareholder and Equity Information - The total share capital increased from 100 million shares to 182 million shares due to a private placement and a capital reserve conversion[26]. - The company distributed cash dividends of RMB 22,490,000, amounting to RMB 1.73 per share, along with a stock bonus of 4 shares for every 10 shares held[172]. - The proportion of limited sale shares increased to 23.08%, totaling 42,000,000 shares after the capital reserve conversion[172]. - The number of unrestricted circulating shares rose to 140,000,000, representing 76.92% of the total shares[172]. - The company has committed to ensuring that all newly issued shares will not be transferable for six months post-issuance[171]. Environmental Compliance - The company and its subsidiaries are not classified as key pollutant discharge units by local environmental protection departments, ensuring compliance with national and local environmental regulations[92]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[94]. - The company has obtained ISO 14001 environmental management system certification, demonstrating its commitment to environmental protection[96]. - The company has implemented environmentally friendly production processes to minimize pollution and has taken necessary measures to treat major pollutants[95]. - The company has not reported any significant environmental violations or accidents during the reporting period, adhering to relevant environmental laws and regulations[95]. Risks and Challenges - The company faces risks due to a concentrated customer base, with over 50% of sales coming from the top five clients[69]. - Raw material price fluctuations pose a risk, particularly with the significant cost contribution from galvanized steel plates and aluminum profiles[70]. - Seasonal sales fluctuations are expected, with higher sales typically occurring in the second half of the year, especially in Q4[72]. - Accounts receivable amounted to 532.47 million CNY, representing 18.61% of total assets, with 96.72% of receivables aged within one year[73]. - Inventory value stood at 448.24 million CNY, which could impact cash flow and inventory depreciation if not managed properly[74]. Corporate Governance - The actual controllers hold 51.70% of the company's shares, which may lead to potential risks in decision-making processes[71]. - The company has committed to avoiding competition with its controlling shareholders, ensuring long-term stability and shareholder interests[146]. - The board will actively engage with minority shareholders to gather feedback and address concerns regarding profit distribution[142]. - The company has established a comprehensive independent production, supply, and sales system, ensuring independence from related parties in various aspects[150]. - The company has committed to linking executive compensation to the execution of measures to compensate for any dilution of immediate returns[154].