佛塑科技(000973) - 2022 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions The company's board, supervisors, and senior management ensure report accuracy, with no plans for cash dividends or capital increase from reserves for the period - The company's Board of Directors, Supervisory Committee, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report and assume corresponding legal responsibilities For the reporting period, the company plans no cash dividends, bonus shares, or capital increase from capital reserves[4][5] Company Profile and Key Financial Indicators This chapter presents the company's core financial data, showing a 7.71% revenue growth and 2.55% net profit increase, but a 103.61% decline in operating cash flow due to increased raw material reserves and accounts receivable Key Financial Indicators for H1 2022 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,266,750,149.15 | 1,176,060,560.86 | 7.71% | | Net Profit Attributable to Shareholders (CNY) | 68,318,773.08 | 66,622,144.90 | 2.55% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (CNY) | 60,936,365.95 | 60,275,975.66 | 1.10% | | Net Cash Flow from Operating Activities (CNY) | -3,690,984.09 | 102,129,912.41 | -103.61% | | Basic Earnings Per Share (CNY/share) | 0.0706 | 0.0689 | 2.47% | | Weighted Average Return on Net Assets | 2.72% | 2.75% | Decrease of 0.03 percentage points | | Total Assets (CNY) | 4,234,101,875.14 | 3,967,799,736.24 | 6.71% (End of period vs. end of prior year) | | Net Assets Attributable to Shareholders (CNY) | 2,513,180,661.33 | 2,480,994,930.28 | 1.30% (End of period vs. end of prior year) | Non-Recurring Gains and Losses for H1 2022 | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 247,494.77 | Primarily gains/losses from disposal of fixed assets | | Government Grants Included in Current Profit/Loss | 7,530,548.59 | Primarily special funds for SME development, logistics enterprise support funds, etc | | Fair Value Changes and Investment Income from Transactional Financial Assets | 3,208,678.04 | Primarily income from bank wealth management products and fair value changes | | Other Non-Operating Income and Expenses | 94,877.93 | - | | Gains/Losses from Debt Restructuring | -30,000.00 | - | | Less: Income Tax Impact | 1,461,476.17 | - | | Less: Impact on Minority Interests (After Tax) | 2,207,716.03 | - | | Total | 7,382,407.13 | - | Management Discussion and Analysis Principal Business and Operating Model The company's main business involves the production and sale of advanced polymer new materials, categorized into dialysis, optoelectronic, and barrier materials, primarily operating on a make-to-order basis with no significant changes in business or operating model during the period Main Product Categories and Applications | Product Category | Main Products and Applications | | :--- | :--- | | Dialysis Materials | Microporous breathable film, non-porous moisture-permeable waterproof functional film, etc., applied in feminine and infant hygiene, medical protection, outdoor apparel, and other fields | | Optoelectronic Materials | Polarizing film, roughened electrical film, high-temperature resistant capacitor film, etc., applied in LCD displays, ultra-high voltage power transmission and transformation, new energy vehicles, and other fields | | Barrier Materials | Composite plastic woven materials, high-barrier nylon film, heat-shrinkable tobacco film, etc., applied in modern agriculture, construction waterproofing, high-end consumer goods, and other fields | - The company adopts a marketing model focused on developing end-customers, combining online and offline platforms, and primarily uses a make-to-order production model[28] Core Competitiveness Analysis As a national technology innovation demonstration enterprise, the company possesses multiple provincial-level technology innovation platforms, has led or participated in developing 39 national and industry standards, and holds 252 authorized patents, with technology innovation and industry standing as its core competencies - The company is a National Torch Program Key High-Tech Enterprise, a National Technology Innovation Demonstration Enterprise, and was selected for the State-owned Assets Supervision and Administration Commission's (SASAC) 'Science and Technology Reform Demonstration Enterprise' list[30][31] - As of the end of the reporting period, the company had accumulated 252 authorized patents, including 97 invention patents, and had led or participated in developing 39 national and industry standards[30] Main Business Analysis In H1 2022, operating revenue grew by 7.71%, with optoelectronic materials and logistics services showing significant growth, while dialysis materials declined, and operating cash flow experienced a substantial outflow due to increased raw material reserves and accounts receivable Key Financial Data Year-over-Year Changes | Item | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,266,750,149.15 | 1,176,060,560.86 | 7.71% | - | | Net Cash Flow from Operating Activities | -3,690,984.09 | 102,129,912.41 | -103.61% | Increase in raw material reserves and accounts receivable | | Net Cash Flow from Investing Activities | -47,647,875.46 | -81,065,626.33 | 41.22% | Increase in net cash flow from purchasing wealth management products | | Net Cash Flow from Financing Activities | 135,568,781.68 | -75,674,536.35 | 279.15% | Adjustment of financing structure, increase in borrowings | Main Business by Segment | Segment | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | YoY Operating Revenue Change | YoY Operating Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dialysis Materials | 180,133,604.28 | 148,040,894.83 | 17.82% | -10.25% | -9.56% | -0.63% | | Optoelectronic Materials | 280,381,232.81 | 164,020,571.10 | 41.50% | 14.06% | -1.37% | 9.15% | | Barrier Materials | 525,766,365.13 | 448,047,696.31 | 14.78% | 1.87% | 6.05% | -3.36% | | Logistics Services | 92,298,902.99 | 79,655,373.76 | 13.70% | 71.07% | 93.07% | -9.83% | Non-Core Business Analysis Non-core businesses significantly impacted total profit, with sustainable investment income primarily from equity-accountable long-term equity investments, while non-sustainable asset impairments mainly stemmed from inventory write-downs and bad debt provisions Composition of Non-Core Business | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 14,588,603.59 | 14.54% | Primarily investment income from long-term equity investments accounted for using the equity method | Yes | | Gains/Losses from Fair Value Changes | 754,080.78 | 0.75% | Primarily gains from fair value changes of transactional financial assets | No | | Asset Impairment | 11,378,275.15 | 11.34% | Primarily inventory write-down provisions and bad debt provisions recognized in the current period | No | Assets and Liabilities Analysis As of the end of the reporting period, total assets increased by 6.71% from the prior year-end, with increases in monetary funds, accounts receivable, and inventory, while both short-term and long-term borrowings significantly grew, reflecting adjustments in the company's financing structure - The company's total assets increased by 6.71% compared to the end of the prior year, with the proportion of short-term and long-term borrowings to total assets increasing by 2.21 and 2.02 percentage points, respectively[43][44] Investment Analysis During the reporting period, the company's investment amount significantly decreased by 77.20%, with ongoing major non-equity investments primarily in Weida Optoelectronics' polarizer Phase III project and new plant facilities, both self-funded and in early stages, alongside a CNY 243 million investment in bank wealth management products Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Amount Invested in Current Period (CNY) | Cumulative Actual Investment Amount (CNY) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | | Weida Optoelectronics Polarizer Phase III Project | Self-built | 110,150.94 | 217,698.10 | Own funds | | New Plant and Supporting Facilities Project | Self-built | 927,159.35 | 927,159.35 | Own funds | - During the reporting period, the company used its own funds to purchase bank wealth management products, with a transaction amount of CNY 243 million and an outstanding balance of CNY 191 million[101] Analysis of Major Holding and Associate Companies Holding subsidiaries Weida Optoelectronics and Easda Capacitor Materials are key profit contributors, while associate company DuPont Hongji Film's net profit significantly declined by 66.61% due to weakened market demand, and another associate, Jinhui High-Tech, continues to incur losses, leading to a cumulative impairment provision of CNY 245 million Operating Performance of Major Subsidiaries and Associate Companies (Unit: CNY 10,000) | Company Name | Type | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Foshan Weida Optoelectronic Materials Co., Ltd | Subsidiary | 12,687.58 | 3,844.20 | 3,308.16 | | Foshan Easda Capacitor Materials Co., Ltd | Subsidiary | 6,527.97 | 1,283.69 | 1,157.38 | | Foshan DuPont Hongji Film Co., Ltd | Associate Company | 36,008.84 | 1,811.06 | 2,112.40 | | Foshan Jinhui High-Tech Optoelectronic Materials Co., Ltd | Associate Company | 38.52 | -1,634.41 | -1,620.06 | - Associate company Foshan DuPont Hongji Film Co., Ltd. reported a net profit of CNY 21.124 million for the period, a 66.61% year-over-year decrease, primarily due to weakened product market demand[56] - Due to the continuous losses of associate company Jinhui, the company has cumulatively recognized an impairment provision of CNY 244.6962 million for its long-term equity investment in the entity[57] Risks and Countermeasures The company faces four main risks: domestic and international economic fluctuations, intensified market competition, raw material price volatility, and exchange rate fluctuations, which it plans to address through technological innovation, market expansion, inventory optimization, cost control, and financial instruments - The company has identified four major risks: - Domestic and International Economic Volatility Risk: Economic growth pressure may impact the company's operations - Intensified Market Competition Risk: Fierce competition in high-end product segments necessitates increased R&D investment - Raw Material Price Fluctuation Risk: High volatility in bulk raw material prices like polyethylene and polypropylene affects profitability - Exchange Rate Fluctuation Risk: Import and export businesses face price or exchange loss risks due to currency fluctuations[58][59] Corporate Governance During the reporting period, the company held two shareholder meetings, including one annual and one extraordinary general meeting, saw Director Wang Li's departure due to work reasons, and implemented no profit distribution, capital reserve capitalization, or equity incentive plans - One annual general meeting and one extraordinary general meeting were held during the reporting period[62] - Director Wang Li resigned from his directorship on March 23, 2022, due to work reasons[63] - There were no profit distributions, capital reserve capitalization, equity incentives, or employee stock ownership plans during this reporting period[64] Environmental and Social Responsibility The company and its Hongji branch are key pollutant emitters, with no exceedances reported for SO2, NOx, and non-methane total hydrocarbons, while actively pursuing green development through emission reduction initiatives and fulfilling social responsibilities by prioritizing safety, employee welfare, and contributing to epidemic prevention efforts - The company's Hongji branch is designated as a key pollutant-discharging entity, with boiler exhaust and organic waste gas as primary pollutants, and no exceedances were reported during the period[67] - To reduce carbon emissions, the company upgraded waste gas treatment facilities, promoted cleaner production audits, conducted ISO system certifications, and planned photovoltaic power generation projects, achieving cumulative energy savings of 768 tons of standard coal in H1 2022[71][72][73] - Regarding social responsibility, the company actively participated in epidemic prevention and control, producing 2,313 tons of protective clothing raw materials from January to June 2022, sufficient for 19.08 million protective products, and organized 430 volunteer service person-times[78] Significant Matters This chapter discloses significant matters, including ongoing entrusted loan disputes with Guangzhou Huagong Baichuan, where one case was terminated due to lack of executable assets, and approximately CNY 43.6565 million in routine related-party transactions, alongside holding subsidiary Weida Optoelectronics' application for Beijing Stock Exchange listing and plans for a CNY 499 million polarizer Phase III project - Two entrusted loan dispute cases between the company and Guangzhou Huagong Baichuan are still in execution, with one case involving a principal of CNY 65.8 million terminated by the court due to the absence of other executable assets from Huagong Baichuan, though the company reserves the right to apply for resumption of execution[85][86] - During the reporting period, the company engaged in routine related-party transactions totaling CNY 43.6565 million, primarily involving sales of products, provision of management services, and leasing of factory buildings to associate company DuPont Hongji, with transaction amounts not exceeding the annual estimated limits[87][88] - Holding subsidiary Foshan Weida Optoelectronic Materials Co., Ltd.'s application for listing on the Beijing Stock Exchange has been officially accepted, and it plans to invest CNY 498.8844 million in the construction of its polarizer Phase III project[103][105] Share Changes and Shareholder Information During the reporting period, the company's total share capital remained unchanged at 967,423,171 shares, with the vast majority being unrestricted shares, and Guangdong Guangxin Holdings Group Co., Ltd. holding 26.75% as the largest shareholder among 74,454 common shareholders - The company's total share capital remained unchanged during the reporting period, totaling 967,423,171 shares[109] Top Two Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period End | | :--- | :--- | :--- | :--- | | Guangdong Guangxin Holdings Group Co., Ltd | State-owned Legal Person | 26.75% | 258,760,512 | | Central Huijin Asset Management Co., Ltd | State-owned Legal Person | 1.43% | 13,856,300 | Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[118] Bonds Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[120] Financial Report Financial Statements This section includes the company's unaudited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing growth in total assets and revenue but a net outflow in operating cash flow and increases in both long-term and short-term borrowings - Unaudited consolidated and parent company balance sheets as of June 30, 2022, and consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for H1 2022 are provided[122] Significant Accounting Policies and Estimates This chapter details the company's significant accounting policies and estimates, adhering to Chinese Enterprise Accounting Standards, covering financial instrument classification using the expected credit loss model, revenue recognition upon customer control transfer, inventory valuation at weighted average cost and lower of cost or net realizable value, and long-term equity investment accounting based on control level - Revenue Recognition: Revenue is recognized when performance obligations in the contract are satisfied, specifically when the customer obtains control of the related goods[252] - Impairment of Financial Assets: The expected credit loss model is applied, measuring loss provisions for financial assets at different stages based on expected credit losses over 12 months or the entire lifetime[196] - Inventory Valuation: Issued inventory is accounted for using the weighted-average method, and measured at the lower of cost or net realizable value at period-end[208] Notes to Consolidated Financial Statement Items This chapter provides detailed notes on key consolidated financial statement items, including accounts receivable with a book balance of CNY 452 million and a bad debt provision of CNY 116 million, inventory with a book value of CNY 513 million and a write-down provision of CNY 32.54 million, and goodwill with an original book value of CNY 47.01 million and accumulated impairment of CNY 24.08 million, alongside short-term and long-term borrowings of CNY 387 million and CNY 412 million respectively - Accounts receivable had an end-of-period book balance of CNY 452 million, with a bad debt provision of CNY 116 million, resulting in a book value of CNY 336 million[293] - Inventory had an end-of-period book balance of CNY 545 million, with an inventory write-down provision of CNY 32.54 million, resulting in a book value of CNY 513 million[336] - Goodwill had an original book value of CNY 47.0056 million, with an end-of-period impairment provision balance of CNY 24.0802 million[387][389] Interests in Other Entities This chapter discloses the company's subsidiaries, joint ventures, and associates, including 12 consolidated subsidiaries, with Foshan Weida Optoelectronic Materials Co., Ltd. being a significant non-wholly owned subsidiary, and several entities like Foshan DuPont Hongji Film Co., Ltd. accounted for using the equity method - The company has 12 subsidiaries (including sub-subsidiaries) included in the scope of consolidation, including Foshan Weida Optoelectronic Materials Co., Ltd. (51.22% owned) and Guangdong Hejie International Supply Chain Co., Ltd. (55% owned)[553] - Significant associate Foshan DuPont Hongji Film Co., Ltd. (49% owned) achieved a net profit of CNY 21.124 million in the current reporting period[562][565] Related Parties and Related Party Transactions Guangdong Guangxin Holdings Group Co., Ltd. is the controlling shareholder with a 26.75% stake, and during the period, the company engaged in various routine related-party transactions, primarily sales of products and provision of services to associate Foshan DuPont Hongji Film Co., Ltd. - The controlling shareholder is Guangdong Guangxin Holdings Group Co., Ltd., with a shareholding ratio of 26.75%[594] Key Related Party Transactions (Current Period) | Related Party | Related Party Transaction Content | Amount (CNY) | | :--- | :--- | :--- | | Foshan DuPont Hongji Film Co., Ltd | Sales of Products | 33,754,971.77 | | Foshan DuPont Hongji Film Co., Ltd | Provision of Management Services | 2,386,020.65 | | Foshan DuPont Hongji Film Co., Ltd | Lease of Houses and Buildings | 6,050,024.97 | Supplementary Information This chapter provides a detailed statement of non-recurring gains and losses, along with supplementary financial indicators such as return on net assets and earnings per share, showing total non-recurring gains and losses of CNY 7.3824 million and a weighted average return on net assets of 2.42% after deducting non-recurring items - Total non-recurring gains and losses for the current period amounted to CNY 7,382,407.13, primarily comprising government grants and gains from transactional financial assets[698][699] Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (CNY/share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 2.72% | 0.0706 | | Net Profit Attributable to Common Shareholders of the Company (Excluding Non-Recurring Items) | 2.42% | 0.0630 |