KEBODA(SH:603786)2020-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,237,370,422.50, a decrease of 9.74% compared to CNY 1,370,822,031.79 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 208,618,207.94, down by 0.96% from CNY 210,648,797.13 year-on-year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 175,334,578.31, a decrease of 13.72% compared to CNY 203,216,630.37 in the previous year[17]. - The total profit for the period was CNY 268 million, down 2.72% year-on-year, while the net profit attributable to shareholders was CNY 208 million, a decline of 0.96%[35]. - The company's revenue decreased by 9.74% year-on-year, primarily due to the impact of the COVID-19 pandemic, with overseas revenue experiencing a significant decline[18]. - Basic earnings per share decreased by 10.89% year-on-year, mainly due to the increase in total share capital after the public issuance of 40.1 million shares on October 15, 2019[18]. - The diluted earnings per share also decreased by 10.89% year-on-year, reflecting the same factors as basic earnings per share[18]. - The weighted average return on equity decreased by 4.89 percentage points to 6.24%[18]. - The return on assets, excluding non-recurring gains and losses, decreased by 5.5 percentage points to 5.24%[18]. Cash Flow and Assets - The net cash flow from operating activities was CNY 205,050,753.75, an increase of 43.61% from CNY 142,778,415.06 in the same period last year[17]. - Cash flow from operating activities increased by 43.61% to CNY 205 million, driven by higher cash receipts from sales[37]. - The total assets at the end of the reporting period were CNY 3,775,113,714.94, a decrease of 4.03% from CNY 3,933,784,136.45 at the end of the previous year[17]. - The company's cash and cash equivalents increased to approximately CNY 277 million, up from CNY 227 million, representing a growth of about 22%[92]. - The total current liabilities decreased significantly to approximately CNY 301 million, down from CNY 522 million, indicating a reduction of about 42%[93]. - The accounts receivable stood at approximately CNY 708 million, a decrease from CNY 786 million, reflecting a decline of about 10%[92]. - The company reported a total of CNY 649 million in inventory, slightly up from CNY 643 million, showing a marginal increase of about 1%[92]. - The long-term equity investments were valued at approximately CNY 193 million, a slight decrease from CNY 196 million, indicating a decline of about 2%[92]. Strategic Developments - The company has established strategic partnerships with 8 out of the top 10 global automotive semiconductor companies, enhancing its supply chain resources[30]. - The company has developed automotive electronic products that meet the AUTOSAR standard and have passed the SPICE Level 2 audit, demonstrating its advanced R&D capabilities[28]. - The domestic automotive market showed signs of recovery, with production and sales reaching historical highs in June 2020, despite a year-on-year decline of 16.8% and 16.9% in the first half of the year[26]. - The company secured 47 new projects from major clients including Volkswagen, General Motors, and Ford, with an expected total lifetime sales volume exceeding 40 million units[32]. - As of June 30, 2020, there were 121 ongoing projects, with an anticipated total lifetime sales volume of over 230 million units[32]. - The company is actively expanding its market presence and collaborating with domestic research institutions and technology companies to enhance product competitiveness[34]. Research and Development - Research and development expenses increased by 20.96% to CNY 94 million, reflecting a focus on innovation[37]. - Research and development expenses rose to CNY 94,018,126.36, an increase of 20.9% compared to CNY 77,726,370.88 in the previous year[99]. - The company appointed new executives, including Zhu Yingchun as the financial head and assistant to the president, and Qiu Xiaorong as vice president[88]. Risks and Challenges - The company faced risks from the COVID-19 pandemic, which severely impacted automotive sales, production, and supply chains in the first half of 2020[48]. - The company highlighted macroeconomic conditions and policy changes as potential risks affecting the automotive market and parts industry[48]. - The company has significant exposure to foreign exchange risks due to overseas procurement and sales, primarily in euros and US dollars[48]. Shareholder and Governance Matters - The company did not propose any profit distribution or capital reserve transfer plan for the half-year period[50]. - The company held a shareholders' meeting on May 15, 2020, which complied with legal regulations and was deemed valid[49]. - The company has ongoing commitments from its actual controllers and shareholders, ensuring adherence to promised obligations[51]. - The company has committed to a 36-month lock-up period for major shareholders, during which they will not transfer or manage their shares[53]. - Major shareholders are restricted from reducing their holdings below the initial offering price for 24 months after the lock-up period ends[54]. - The company has not engaged in any direct or indirect competition with other enterprises controlled by major shareholders[56]. - The company will avoid related party transactions and ensure that any unavoidable transactions are conducted at fair market prices[56]. - The company has established a commitment to comply with regulations regarding share transfers during their tenure and for six months post-termination[55]. Accounting and Compliance - The company implemented the new revenue recognition standards starting January 1, 2020, which is not expected to significantly impact net profit, total assets, or net assets[78]. - The company has not reported any significant accounting errors that require retrospective restatement during the reporting period[78]. - The company’s accounting policies are in accordance with the enterprise accounting standards, ensuring accurate reflection of financial status and results[134]. - The company’s accounting period runs from January 1 to December 31 each year, with a 12-month operating cycle[135]. - The company has established specific accounting treatments for mergers and acquisitions, differentiating between same-control and non-same-control mergers[136]. Financial Liabilities and Assets - The total amount of guarantees provided by the company, excluding those to subsidiaries, was zero[75]. - The company provided a guarantee of 50 million RMB to its subsidiary during the reporting period[75]. - The expected amount of related party transactions for 2020 is 4 million RMB with Wenzhou Huake Industrial Development Co., Ltd., accounting for 87.25% of similar business[70]. - The company has incurred 1.2 million RMB in related party transactions with Shanghai Diesel Engine Co., Ltd. as of June 30, 2020[70]. - The company reported a total of 10.939 million RMB in related party transactions during the reporting period[71]. Future Commitments and Responsibilities - The company will actively compensate investors for direct economic losses caused by any false statements or omissions in the prospectus, including stock investment losses and related fees[58]. - The company commits to repurchase all newly issued shares if the prospectus is found to contain significant misstatements or omissions, with a repurchase price based on the issuance price adjusted for market factors[58]. - The company will publicly explain any failure to fulfill commitments and apologize to shareholders and the public[59]. - The company will prepare a share repurchase plan within 5 working days if required by regulatory authorities[58]. - The company is committed to ensuring the accuracy and completeness of the prospectus and will bear legal responsibility for any inaccuracies[59].