Xingmin ITS(SZ:002355)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was approximately ¥429.94 million, a decrease of 1.75% compared to the same period last year[20]. - The net profit attributable to shareholders was approximately -¥122.77 million, an improvement of 27.11% year-over-year[20]. - The net cash flow from operating activities was approximately ¥3.51 million, a significant decline of 97.14% compared to the previous year[20]. - The total assets at the end of the reporting period were approximately ¥2.46 billion, down 4.78% from the end of the previous year[20]. - The net assets attributable to shareholders decreased to approximately ¥1.27 billion, reflecting an 8.76% decline compared to the previous year[20]. - Basic and diluted earnings per share were both -¥0.1978, showing a 27.12% improvement from -¥0.2714 in the same period last year[20]. - Operating revenue for the reporting period was CNY 429,935,383.93, a decrease of 1.75% compared to CNY 437,607,318.40 in the same period last year[36]. - The cost of goods sold decreased by 3.69% to CNY 447,155,686.77 from CNY 464,301,825.94[36]. - Research and development expenses dropped significantly by 54.57% to CNY 3,838,226.15 from CNY 8,449,531.72[37]. - The gross profit margin for the transportation equipment manufacturing sector improved by 4.19% despite a 5.08% decrease in revenue[40]. - Revenue from intelligent driving services increased by 18.50% to CNY 27,712,334.28, contributing 6.45% to total revenue[39]. - The overseas revenue segment saw a significant increase of 51.19%, reaching CNY 97,844,397.17 compared to CNY 64,716,614.09 last year[39]. - The company reported a substantial increase in income tax expenses by 288.29% to CNY 12,828,769.69, attributed to reversals of price and bad debt provisions[36]. - The company reported a total revenue of 73,143,997 CNY from its Tangshan subsidiary, with a net loss of 15,685,245 CNY, representing a significant decline in profitability[54]. - The Qian Ning subsidiary generated a revenue of 55,164,065 CNY, incurring a net loss of 17,062,275 CNY, indicating challenges in the steel wheel segment[54]. - The Jiuwu subsidiary, focused on intelligent driving design and services, reported a revenue of 27,712,334 CNY, with a net loss of 6,251,561 CNY, reflecting ongoing investment in technology[54]. - The Wuhan subsidiary achieved a revenue of 10,245,888 CNY, with a net profit of 3,861,178 CNY, showcasing a positive performance in vehicle-mounted terminal production[54]. - The company reported a total comprehensive loss of CNY 124,602,852.60 for the first half of 2023, an improvement from a loss of CNY 170,051,133.67 in the same period of 2022[145]. - The net profit for the first half of 2023 was -73,365,770.76 CNY, compared to -97,133,120.87 CNY in the same period of 2022, showing an improvement of approximately 24.5%[148]. - Operating profit for the first half of 2023 was -64,791,926.11 CNY, an improvement from -91,744,133.64 CNY in the first half of 2022, reflecting a reduction in losses by about 29.4%[148]. Risk Management - The company has detailed the major risks it will face in the future and the corresponding countermeasures in the report[5]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, urging investors to be aware of investment risks[5]. - The company faces macroeconomic risks that could adversely affect production and operations, particularly in the automotive industry[55]. - Fluctuations in raw material prices, especially steel, pose a significant risk to the company's cost structure and gross margins[55]. - The company plans to enhance its risk management by optimizing product structure and improving internal management to mitigate economic uncertainties[56]. Environmental Compliance - The company is classified as a key pollutant discharge unit, adhering to various environmental protection standards and regulations[65]. - The company successfully obtained the Hebei Province discharge permit in December 2018 and the national version discharge permit in December 2019[66]. - The environmental monitoring report indicated that particulate matter emissions met the secondary standard limits of the Comprehensive Emission Standard for Air Pollutants (GB16297-1996) and wastewater discharge met the tertiary limits of the Comprehensive Discharge Standard for Wastewater (GB8978-1996)[66]. - The company has established a standardized hazardous waste temporary storage facility and entrusted qualified units for safe disposal of hazardous waste[66]. - The company reported that the total particulate matter emissions met the total control indicators as of December 2016[67]. - The wastewater treatment station has a discharge concentration of COD at 500 mg/L and ammonia nitrogen at 45 mg/L, complying with the regional wastewater discharge standards[68]. - The company operates 25 organized and non-organized emission outlets for waste gas, with a maximum allowable concentration of volatile organic compounds at 50 mg/m³[68]. - The company has implemented a series of environmental protection measures, including the installation of light-oxygen catalytic towers and acid mist treatment towers in the painting workshop[69]. - The company’s waste gas monitoring facilities have been operating normally since April 2021, with all pollution indicators within the standard range[69]. - The company has a total of 1 wastewater discharge outlet that directly discharges into the municipal sewage treatment plant after internal treatment[69]. - The company has entrusted qualified units for the disposal of hazardous waste, including waste hydrochloric acid and waste mineral oil[69]. - The company generated hazardous waste totaling 30.625 tons in the first half of 2023, including 10.1 tons of paint sludge and 14.67 tons of sludge[72]. - The company disposed of 25.585 tons of hazardous waste during the same period, with 12.07 tons of sludge and 8.1 tons of paint sludge being the largest components[72]. - The company has established a comprehensive wastewater treatment facility that processes wastewater through multiple stages, ensuring compliance with discharge standards[71]. - The company has implemented online monitoring for wastewater treatment, tracking five key indicators including COD and pH levels[75]. - The company has transitioned to using water-based paints in its coating workshop since April 2021, significantly reducing VOC emissions[75]. - The company has signed disposal agreements with third-party hazardous waste disposal units to ensure compliance with environmental regulations[74]. - The company has conducted soil monitoring, with all 17 indicators meeting standards, as part of its environmental compliance efforts[75]. - The company has developed emergency response plans for environmental incidents, which are regularly practiced and updated[76]. - The company has received recognition from local environmental authorities for its pollution control measures and compliance with regulations[74]. - The company has established four hazardous waste storage facilities, ensuring proper management and control of hazardous materials[76]. - The company invested CNY 257,200 in environmental governance and paid environmental protection tax of CNY 6,591.2 during the reporting period[78]. - The company achieved a score of 91 in the second quarter environmental management assessment, receiving an A rating, with all identified non-compliance issues rectified by August 10, 2022[79]. - The company has established four hazardous waste storage facilities and signed disposal agreements with two environmental technology companies for hazardous waste management[80]. - The company has implemented online monitoring for wastewater and air emissions, with all pollution indicators under 24-hour supervision by the ecological department[83]. - The company has switched to solar power since June 13, 2022, achieving an average daily solar power generation of 13,000 kWh, meeting its production and office electricity needs[85]. - The company has conducted regular environmental monitoring, including air and wastewater, ensuring compliance with national emission standards[84]. - The company has updated its environmental leadership structure and set ecological environment goals at three levels (company, department, workshop) to enhance environmental management[83]. - The company has completed a clean production audit, meeting pollution discharge control indicators and reduction targets, receiving approval from the local ecological environment bureau[85]. - The company organized hazardous waste management training and emergency drills on July 20, 2022, to enhance operational safety[79]. - The company has committed to publicizing real-time pollution source discharge values through an LED display at the factory entrance to ensure social supervision[81]. Corporate Governance - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[91]. - There were no significant litigation or arbitration matters during the reporting period[95]. - The company has maintained good contract performance with suppliers and customers, ensuring the protection of their rights[89]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[99]. - The half-year financial report has not been audited[93]. - The company has no major related party transactions during the reporting period[104]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[94]. - The company has not disclosed any major penalties or rectification situations during the reporting period[97]. - The company has conducted regular health check-ups for employees to ensure their well-being and satisfaction[89]. Shareholder Information - The total number of shares is 620,570,400, with 99.45% being unrestricted shares[120]. - The total number of common shareholders at the end of the reporting period is 44,189[122]. - Sichuan Shengbang Chuangheng holds 18.67% of shares, totaling 115,848,000 shares, with 52,000,000 shares pledged[122]. - Qingdao Fengqi Environmental New Energy Technology holds 6.45% of shares, totaling 40,000,000 shares, with 40,000,000 shares pledged[122]. - The top ten unrestricted common shareholders include Sichuan Shengbang, Qingdao Fengqi, and Wanji Fund, with holdings of 115,848,000, 40,000,000, and 15,213,276 shares respectively[123]. - No changes occurred in the shareholding of directors, supervisors, and senior management during the reporting period[124]. - There were no changes in the controlling shareholder or actual controller during the reporting period[125]. - The company did not issue any preferred shares during the reporting period[128]. - The financial statements are prepared in RMB, with the unit being yuan[134]. Accounting Policies - The company’s financial statements are prepared based on the accrual basis of accounting, in accordance with the relevant accounting standards[175]. - The company follows the accounting standards and ensures that financial statements reflect its financial position, operating results, and cash flows accurately[181]. - The company assesses inventory impairment based on the lower of cost and net realizable value, considering factors such as marketability and obsolescence[179]. - The company conducts annual goodwill impairment tests, estimating future cash flows and selecting appropriate discount rates[180]. - Depreciation and amortization are calculated using the straight-line method over the useful life of investment properties, fixed assets, and intangible assets[180]. - Deferred tax assets are recognized for unused tax losses to the extent that it is probable that future taxable profits will be available[180]. - The company incurs costs related to mergers and acquisitions, which are recognized in the current period's profit or loss[185]. - For business combinations under common control, the initial investment cost is based on the carrying amount of the net assets of the acquired entity[184]. - Non-common control business combinations require the purchase price to be measured at fair value, with any excess recognized as goodwill[186]. - The company regularly reviews the useful life of its assets to adjust depreciation and amortization expenses as necessary[180]. - The company uses RMB as its functional currency for accounting purposes[183]. - The company includes all subsidiaries in the consolidated financial statements, including controlled entities and structured entities[189]. - The accounting policies and reporting periods of subsidiaries are aligned with the parent company for accurate consolidation[189]. - Internal transactions between the parent and subsidiaries are eliminated in the consolidated financial statements[189]. - The company recognizes investment income from the sale of long-term equity investments based on the difference between sale proceeds and book value[191]. - For loss of control over subsidiaries, the remaining equity is measured at fair value, with the difference recognized as investment income[191]. - Joint arrangements are classified as joint operations or joint ventures based on rights and obligations, with specific accounting treatments for each[193]. - Cash and cash equivalents are defined as cash on hand and deposits readily available for payment[195]. - Foreign currency transactions are recorded at the exchange rate on the transaction date, with monetary items revalued at the balance sheet date[197]. - Financial assets are classified based on the business model and cash flow characteristics, with initial recognition at fair value[199]. - The company manages financial assets primarily to receive contractual cash flows, with specific accounting for amortized cost financial assets[199]. - The company manages financial assets measured at fair value with changes recognized in other comprehensive income, targeting both cash flow collection and sales[200]. - Financial assets primarily include receivables financing and other debt investments, with those maturing within one year classified as current non-current assets[200]. - The company designates certain non-trading equity investments as financial assets measured at fair value with changes recognized in other comprehensive income, with dividend income recognized in current profit or loss[200]. - Cumulative gains or losses previously recognized in other comprehensive income are transferred to retained earnings upon derecognition of the financial asset[200]. - Financial assets not classified as amortized cost or fair value through other comprehensive income are categorized as financial assets measured at fair value with changes recognized in profit or loss[200]. - The company classifies trading financial assets as those measured at fair value with changes recognized in profit or loss[200]. - Certain financial assets are designated at initial recognition to eliminate or significantly reduce accounting mismatches[200].