永创智能(603901) - 2021 Q2 - 季度财报

Glossary This section provides definitions of key terms used in the report Company Profile and Key Financial Indicators This chapter provides the company's basic information, contact details, and core financial data for the first half of 2021, highlighting strong revenue and net profit growth Company Basic Information This section provides the company's basic information, including its Chinese and English names, legal representative, contact details, and official disclosure channels - The company's full name is "Hangzhou Yongchuang Intelligent Equipment Co., Ltd.", stock abbreviation is "Yongchuang Intelligent", and stock code is "603901"[15][19] Key Accounting Data and Financial Indicators During the reporting period, the company achieved strong financial performance with significant growth in revenue and net profit, though operating cash flow decreased due to increased inventory Key Accounting Data | Key Accounting Data | This Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.24 billion Yuan | 772 million Yuan | 60.59% | | Net Profit Attributable to Shareholders of Listed Company | 133 million Yuan | 86 million Yuan | 54.67% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 130 million Yuan | 66 million Yuan | 97.65% | | Net Cash Flow from Operating Activities | 10.29 million Yuan | 36.77 million Yuan | -72.02% | | Basic Earnings Per Share (Yuan/share) | 0.30 | 0.20 | 50.00% | | Weighted Average Return on Net Assets (%) | 8.10% | 5.79% | Increased by 2.31 percentage points | | | End of This Reporting Period | End of Prior Year | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 2.024 billion Yuan | 1.531 billion Yuan | 32.22% | | Total Assets | 4.184 billion Yuan | 3.749 billion Yuan | 11.60% | - Total non-recurring gains and losses for the reporting period amounted to 2.44 million Yuan, primarily including government subsidies of 5.41 million Yuan and non-current asset disposal losses of 8.27 million Yuan[24][25] Management Discussion and Analysis In the first half of 2021, the company experienced rapid business growth driven by strong downstream demand, continuous R&D investment, and strategic market expansion Industry and Main Business Overview The company's main business involves R&D, production, and sales of packaging equipment, materials, and intelligent software systems, providing comprehensive smart packaging solutions - The company offers a complete product system including standard standalone equipment, intelligent packaging production lines, packaging materials (PP/PET strapping, PE stretch film), and the "Yongchuang Intelligent DMC Platform" software system[27] - In the first half of 2021, strong growth in downstream consumer goods industries, led by food, increased demand for high-speed, intelligent, and flexible packaging equipment, driving the company's rapid business development[29] Analysis of Core Competencies The company's core competencies lie in its strong R&D and design capabilities, comprehensive product system integration, and extensive brand influence with a stable client base - The company is a National Torch Program Key High-tech Enterprise, possessing 9 national/provincial level scientific innovation platforms including a "National Certified Enterprise Technology Center," with a leading number of authorized patents in the industry[30] - The company's product system is comprehensive, covering 40 product categories and over 400 specifications, demonstrating significant system integration advantages in providing intelligent, unmanned packaging production lines for industries like beer, dairy, and liquor[31] - The company boasts high-quality and diversified client resources, including leading consumer goods enterprises such as Yili, Mengniu, Snow Beer, Budweiser Beer, Tsingtao Beer, Haier, and Gree[32] Discussion and Analysis of Operations During the reporting period, the company made positive progress in R&D, market expansion, production, industrial diversification, internal management, and customer service - R&D: Continuous investment in new aseptic and ultra-clean intelligent packaging production lines for liquid foods like dairy and beverages, and completion of production management system development[33] - Industrial Expansion: Acquired 74.63% equity in Zhejiang Longwen Precision Equipment Co., Ltd., extending products to metal packaging can manufacturing equipment and completing the industrial layout in liquid packaging equipment[34] - Production: Actively advancing the "Annual Production of 40,000 Sets of Packaging Equipment Project" to alleviate capacity bottlenecks[33] Analysis of Key Operating Performance The company's main business experienced robust growth, leading to significant increases in revenue and costs, while strategic investments in inventory and projects also rose Key Operating Data | Subject | Current Period (billion Yuan) | Prior Year Period (billion Yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.24 | 0.77 | 60.59 | | Operating Cost | 0.83 | 0.51 | 64.13 | | Selling Expenses | 0.09 | 0.06 | 32.35 | | Administrative Expenses | 0.07 | 0.05 | 48.40 | | R&D Expenses | 0.07 | 0.05 | 45.53 | | Net Cash Flow from Operating Activities | 0.01 | 0.04 | -72.02 | Key Balance Sheet Items | Project Name | Current Period End (billion Yuan) | Prior Year End (billion Yuan) | Change Ratio (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Inventory | 1.59 | 1.31 | 21.13 | Goods shipped but not yet accepted and increased raw material stocking | | Construction in Progress | 0.04 | 0.00 | 1,005.06 | Investment in fundraising projects and expansion projects | | Intangible Assets | 0.23 | 0.17 | 39.61 | Acquisition of Zhejiang Longwen and purchase of land use rights | | Capital Reserve | 0.91 | 0.41 | 121.99 | Conversion of convertible corporate bonds into shares | - External Equity Investments: Acquired 74.63% equity in Zhejiang Longwen Precision Equipment Co., Ltd. and increased capital to gain control of Hunan Boya Intelligent Equipment Co., Ltd., thereby completing the company's layout in food and beverage packaging production equipment and liquor brewing automation equipment, respectively[42][44] - The company faces multiple risks including macroeconomic fluctuations, market competition, raw material price volatility, export business, and post-merger management[48] Corporate Governance This chapter outlines the company's corporate governance during the reporting period, including shareholder meeting resolutions, changes in senior management, and the conclusion of the employee stock ownership plan Shareholder Meeting Information The company held its 2020 Annual General Meeting on May 18, 2021, where all 11 proposals were reviewed and approved - All proposals at the 2020 Annual General Meeting were approved, and relevant resolutions were announced on May 19, 2021[50][54] Changes in Directors, Supervisors, and Senior Management During the reporting period, there was a change in the company's senior management, with Mr. Huang Xingpeng appointed as the new Chief Financial Officer Senior Management Changes | Name | Position Held | Change Type | | :--- | :--- | :--- | | Zhang Caiqin | Chief Financial Officer | Resigned | | Huang Xingpeng | Chief Financial Officer | Appointed | Profit Distribution or Capital Reserve Conversion Plan The company does not plan to distribute profits or convert capital reserves into share capital for the first half of 2021 - The 2021 half-year profit distribution plan is: no dividends, no capital reserve conversion[56] Equity Incentive and Employee Stock Ownership Plans The company's first employee stock ownership plan, initiated in 2016, concluded in June 2021 with the full sale of all shares held - The company's first employee stock ownership plan's 4,811,622 shares were fully sold via block trade on June 29, 2021[59] Environmental and Social Responsibility This chapter details the company's environmental responsibility, confirming it is not a key polluting entity and adheres strictly to environmental regulations without incidents Environmental Information The company is not classified as a key polluting entity and maintains robust environmental measures, with no environmental penalties or incidents during the reporting period - The company is not listed as a key polluting entity by environmental protection authorities, and there were no illegal emissions or environmental accidents during the reporting period[62] Significant Matters This chapter discloses significant matters during the reporting period, including the fulfillment of commitments, absence of major litigation, and proper disclosure of related party transactions Fulfillment of Commitments During the reporting period, the company's actual controllers, shareholders, and senior management strictly fulfilled all commitments made during public offerings and refinancing - The company's actual controllers, Lü Jie and Luo Bangyi, continue to fulfill their long-term commitments regarding avoiding horizontal competition and regulating related party transactions made since May 29, 2015[65][66] - The company's directors and senior management continue to fulfill their commitments regarding filling diluted immediate returns, including not harming company interests and restricting job-related consumption, made during the 2017 non-public offering and 2019 convertible bond issuance[68][69][71] Significant Related Party Transactions All related party transactions related to daily operations were estimated and disclosed as required, with no significant asset acquisition or disposal related transactions - The company's estimated daily related party transactions for 2021 were disclosed in temporary announcement (2021-024)[73] Share Changes and Shareholder Information This chapter details the company's share capital changes and shareholder structure, primarily due to the conversion of convertible bonds, increasing total share capital Share Capital Changes During the reporting period, the company's total share capital increased from approximately 439 million shares to 488 million shares due to the conversion of convertible bonds Share Capital Changes | Share Type | Before This Change (shares) | Increase/Decrease in This Change (shares) | After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 8,376,704 | 0 | 8,376,704 | | II. Unrestricted Tradable Shares | 431,030,709 | +49,093,398 | 480,124,107 | | III. Total Shares | 439,407,413 | +49,093,398 | 488,500,811 | - The increase in total shares is due to the conversion of convertible corporate bonds into common shares during the reporting period[78] Shareholder Information As of the end of the reporting period, the company had 14,673 common shareholders, with the actual controllers holding over 44% of the shares - As of the end of the reporting period, the company had 14,673 common shareholders[79] Top Ten Shareholders | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | Lü Jie | 171,600,000 | 35.13 | | Luo Bangyi | 44,680,000 | 9.15 | | Hangzhou Kangchuang Investment Co., Ltd. | 27,233,700 | 5.57 | | Xingquan Hetai Mixed Securities Investment Fund | 8,128,660 | 1.66 | | Fuguo Low Carbon Environmental Protection Mixed Securities Investment Fund | 7,402,127 | 1.52 | - Shareholders Lü Jie and Luo Bangyi are a married couple and jointly the actual controllers of the company. Hangzhou Kangchuang Investment Co., Ltd. is controlled by Luo Bangyi[82] Preferred Shares Information This chapter states that the company has no preferred shares - The company had no preferred shares during the reporting period[86] Bonds Information This chapter primarily discloses the status of the company's convertible bonds, "Yongchuang Convertible Bonds," which were fully redeemed and delisted during the reporting period Convertible Bonds Information The company's "Yongchuang Convertible Bonds" underwent significant changes during the reporting period, with most bonds converted into shares and the remainder redeemed Convertible Corporate Bonds | Convertible Corporate Bond Name | Before This Change (Yuan) | Converted to Shares (Yuan) | Redeemed (Yuan) | After This Change (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Yongchuang Convertible Bonds | 511,980,000 | -506,668,000 | -5,312,000 | 0 | - During the reporting period, the "Yongchuang Convertible Bonds" conversion amount was 506,668,000 Yuan, resulting in 49,093,398 shares converted[92] - As of June 28, 2021, the company had early redeemed all unconverted "Yongchuang Convertible Bonds," and the bond was delisted from that date[96] Financial Report This chapter presents the unaudited financial report for the first half of 2021, including key financial statements, accounting policies, and notes on significant items and transactions Financial Statements This section includes the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the reporting period Consolidated Balance Sheet | Project | June 30, 2021 (Yuan) | December 31, 2020 (Yuan) | | :--- | :--- | :--- | | Total Assets | 4,183,653,703.06 | 3,748,713,207.88 | | Inventory | 1,591,716,401.41 | 1,314,013,246.95 | | Total Liabilities | 2,109,761,748.92 | 2,196,291,688.74 | | Contract Liabilities | 626,058,384.71 | 584,126,119.63 | | Total Owners' Equity | 2,073,891,954.14 | 1,552,421,519.14 | | Owners' Equity Attributable to Parent Company | 2,024,405,587.88 | 1,531,124,111.09 | Consolidated Income Statement | Project | First Half of 2021 (Yuan) | First Half of 2020 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,240,277,964.43 | 772,346,469.05 | | Total Operating Costs | 1,078,306,881.57 | 684,971,124.10 | | R&D Expenses | 67,551,393.03 | 46,419,050.98 | | Operating Profit | 161,443,751.14 | 102,630,673.70 | | Total Profit | 152,759,694.31 | 101,077,213.88 | | Net Profit | 131,642,978.38 | 87,145,796.04 | | Net Profit Attributable to Parent Company Shareholders | 132,747,692.29 | 85,824,251.72 | Consolidated Cash Flow Statement | Project | First Half of 2021 (Yuan) | First Half of 2020 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 10,288,387.26 | 36,767,041.51 | | Net Cash Flow from Investing Activities | -208,788,511.49 | -106,086,461.52 | | Net Cash Flow from Financing Activities | 25,303,397.36 | -308,890,690.74 | | Net Increase in Cash and Cash Equivalents | -174,278,705.98 | -377,664,471.79 | Changes in Significant Accounting Policies and Estimates The company adopted the revised Lease Accounting Standards (New Lease Standard) from January 1, 2021, with no significant changes in accounting estimates during the period - The company adopted the new lease standard from January 1, 2021, and retrospectively adjusted the opening balances of relevant financial statement items for the first adoption date based on transition provisions, without adjusting comparable period information[234][235] Taxation The company's main taxes include VAT and corporate income tax, with various subsidiaries enjoying preferential tax rates as high-tech enterprises or small and micro-enterprises - The parent company and several subsidiaries, including Guangdong Qinggong Machinery No. 2 Intelligent Equipment Co., Ltd., Foshan Chuangzhaobao Intelligent Packaging Equipment Co., Ltd., and Xiamen Yusheng Packaging Machinery Co., Ltd., are recognized as high-tech enterprises and enjoy a 15% corporate income tax preferential rate[237][239][240][241] - Some subsidiaries qualify as small and micro-enterprises and enjoy inclusive tax reduction policies[242] Notes to Consolidated Financial Statements This section provides detailed explanations for key items in the consolidated financial statements, including inventory, construction in progress, goodwill, and revenue/cost analysis Inventory | Project | Book Value at Period End (Yuan) | Book Value at Period Start (Yuan) | | :--- | :--- | :--- | | Raw Materials | 278,621,018.52 | 212,890,220.30 | | Work in Progress | 452,559,278.92 | 343,041,762.79 | | Finished Goods | 857,195,216.91 | 755,512,977.48 | | Total | 1,591,716,401.41 | 1,314,013,246.95 | Construction in Progress | Project Name | Budget (thousand Yuan) | Balance at Period End (Yuan) | | :--- | :--- | :--- | | Intelligent Packaging Equipment Expansion Project | 361,345.00 | 3,931,002.63 | | Annual Production of 10,000 Packaging Machines Project | 49,500.00 | 11,392,533.84 | | Annual Production of 40,000 Sets of Packaging Equipment Project | 305,270.00 | 9,686,132.24 | | Factory Building Targeted Construction Project | 89,687.50 | 8,969,166.00 | Goodwill - New goodwill of 30.60 million Yuan was recognized this period due to the acquisition of Zhejiang Longwen Precision Equipment Co., Ltd[320] - After impairment testing on the goodwill of Guangdong Qinggong Machinery No. 2 Intelligent Equipment Co., Ltd., a goodwill impairment loss of 2.75 million Yuan was recognized this period[321][323] Operating Revenue and Operating Costs | Project | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Main Business Revenue | 1,231,489,132.84 | 761,960,187.92 | | Of which: Packaging Equipment and Accessories | 1,106,893,614.01 | - | | Packaging Materials | 124,595,518.83 | - | | Main Business Cost | 829,431,553.44 | 503,058,616.50 | Changes in Consolidation Scope During the reporting period, the company expanded its consolidation scope by acquiring Zhejiang Longwen Precision Equipment Co., Ltd. and increasing its stake in Hunan Boya Intelligent Equipment Co., Ltd - This period saw a non-same-entity business combination, with the company acquiring 74.63% equity in Zhejiang Longwen Precision Equipment Co., Ltd. for 96.70 million Yuan in cash, with the acquisition date being April 2021[436][437] - The company acquired 80% equity in Hunan Boya Intelligent Equipment Co., Ltd. through capital increase and included it in the consolidation scope[445] Related Parties and Related Party Transactions The company's ultimate control is held by Mr. and Mrs. Lü Jie and Luo Bangyi, with various related party transactions for sales, purchases, and leases disclosed - The company's ultimate controlling parties are Mr. and Mrs. Lü Jie and Luo Bangyi, who collectively hold over 50% of the company's shares directly and indirectly[469] Related Party Transactions | Related Party Transaction Content | Related Party | Amount in Current Period (Yuan) | | :--- | :--- | :--- | | Sale of Goods | Youngsun Pack B.V. | 10,737,016.34 | | Lease (Lessee) | Guangdong Qinggong Machinery No. 2 Factory Co., Ltd. | 1,704,761.90 | | Lease (Lessee) | Luo Bangyi | 174,399.05 | - Total remuneration paid to key management personnel during the reporting period was 1.67 million Yuan[476] Share-based Payments The company implemented a restricted stock incentive plan in 2020, granting 8.38 million restricted shares at 3.58 Yuan/share, with related expenses recognized - The company's 2020 restricted stock incentive plan granted shares at 3.58 Yuan/share, setting performance assessment targets for phased vesting over 2020-2022[483] - The total expense recognized for equity-settled share-based payments in this period was 8,736,692.64 Yuan[486] Commitments and Contingencies As of the end of the reporting period, the company had two significant committed fundraising investment projects and no material contingent matters requiring disclosure Committed Fundraising Investment Projects | Project Name | Total Investment (thousand Yuan) | Committed Fundraising Investment (thousand Yuan) | Cumulative Investment as of Period End (thousand Yuan) | | :--- | :--- | :--- | :--- | | Intelligent Packaging Equipment Expansion Project | 595,980.00 | 305,409.40 | 38,628.10 | | Annual Production of 40,000 Sets of Packaging Equipment Project | 358,555.00 | 358,555.00 | 233,627.40 | Events After the Balance Sheet Date Subsequent to the reporting period, the company completed the acquisition payment for Zhejiang Longwen and proposed a new restricted stock incentive plan - On August 9, 2021, the company launched a new restricted stock incentive plan draft, proposing to grant 2.27 million shares at 3.58 Yuan/share, with performance assessment targets set for 2021-2024[492][493] Supplementary Information This section provides supplementary details including non-recurring gains and losses, return on net assets, and earnings per share, highlighting the impact of non-operating items Non-recurring Gains and Losses | Project | Amount (Yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | -8,264,992.30 | | Government grants recognized in current profit or loss | 5,414,456.52 | | Gains and losses from entrusted investments or asset management | 3,067,294.83 | | Total | 2,439,674.75 | Net Assets Return and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (Yuan/share) | Diluted Earnings Per Share (Yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 8.10 | 0.30 | 0.30 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 7.95 | 0.30 | 0.30 |