康力电梯(002367) - 2023 Q2 - 季度财报

Item 1. Important Notice, Table of Contents and Definitions This section provides essential disclaimers, defines key terms, and outlines the report structure Important Notice The company's management assures the report's accuracy and completeness, with no plans for cash dividends or bonus shares for the first half of 2023 - Management guarantees the report's truthfulness, accuracy, and completeness, assuming legal responsibility[6] - The company plans no cash dividends, bonus shares, or capital increase from provident fund for the first half of 2023[7] Definitions This chapter defines key terms used throughout the report, such as "Kangli Elevator," "CSRC," and "Reporting Period," providing a foundational understanding of the content Item 2. Company Profile and Key Financial Indicators This section introduces Kangli Elevator's basic information and presents its key financial performance metrics for the reporting period I. Company Profile Kangli Elevator Co., Ltd. (stock code: 002367) is listed on the Shenzhen Stock Exchange, with Wang Youlin as its legal representative, and contact information remains unchanged Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Kangli Elevator | | Stock Code | 002367 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Wang Youlin | IV. Key Accounting Data and Financial Indicators In the first half of 2023, the company's revenue slightly decreased by 2.43% to 2.28 billion RMB, while net profit attributable to shareholders surged by 82.72% to 229.60 million RMB, and net cash flow from operating activities dramatically improved by 4,226.59% to 357.39 million RMB, indicating significant profitability and cash flow improvement Key Financial Data for H1 2023 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 2,281,658,150.48 | 2,338,390,007.13 | -2.43% | | Net Profit Attributable to Shareholders (RMB) | 229,603,358.75 | 125,661,925.02 | 82.72% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses) (RMB) | 192,966,083.91 | 105,745,103.01 | 82.48% | | Net Cash Flow from Operating Activities (RMB) | 357,391,924.75 | -8,660,706.70 | 4,226.59% | | Basic Earnings Per Share (RMB/share) | 0.2918 | 0.1596 | 82.83% | | Weighted Average Return on Net Assets | 6.95% | 3.90% | 3.05% | VI. Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 36.64 million RMB during the reporting period, primarily from gains on financial assets and government subsidies Non-recurring Gains and Losses Items | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | -193,802.41 | - | | Government subsidies | 5,106,884.00 | - | | Fair value changes and investment income from transactional financial assets/liabilities | 40,446,308.85 | Primarily income from wealth management products and fair value changes of other non-current financial assets | | Other non-operating income and expenses | -2,021,260.15 | - | | Total | 36,637,274.84 | - | Item 3. Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial condition, and strategic initiatives during the reporting period I. Company's Main Businesses During the Reporting Period Despite a slight revenue decrease, the company achieved significant net profit growth in H1 2023, driven by increased vertical elevator sales, improved gross margins from lower raw material costs, and strong overseas business expansion - The company's main business involves R&D, production, sales, installation, and maintenance services for elevators, escalators, and moving walks, forming an integrated operation model focused on complete machine production, supported by key component manufacturing and aftermarket services[39] H1 2023 Operating Results | Indicator | Amount (million RMB) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 2281.66 | -2.43% | | Net Profit Attributable to Parent | 229.60 | +82.72% | | Net Profit Attributable to Parent (Excluding Non-recurring) | 192.97 | +82.48% | | Asset-Liability Ratio | 54.57% | - | | Weighted Average Return on Net Assets | 6.95% | +3.05 percentage points | - As of June 30, 2023, the company holds 8.08 billion RMB in effective orders, with an additional 2.25 billion RMB in winning bids awaiting deposit confirmation, ensuring ample order reserves[50][52] - Overseas market expansion yielded results, with overseas business revenue reaching 155.18 million RMB in the first half, a 32.40% year-on-year increase[57] II. Analysis of Core Competencies The company's core strengths include its customer-centric approach, integrated R&D, comprehensive sales and service network, intelligent manufacturing capabilities, and growing brand influence, recognized globally and nationally - The company has been listed among the "Global Elevator Manufacturers Top 10" for seven consecutive years, and in 2023, with a brand value of 13.69 billion RMB, it became the only Chinese elevator brand on the "China's 500 Most Valuable Brands" list[71][78][80] - The company has established a nationwide marketing and after-sales service network and actively expands into overseas markets, with products exported to over 100 countries and regions worldwide[76] - The company possesses mature intelligent manufacturing capabilities and, relying on its complete self-production advantage for components, can quickly respond to customer demands and maintain cost competitiveness[77] III. Analysis of Main Business In H1 2023, main business revenue slightly declined by 3.01% to 2.24 billion RMB, but gross margin improved by 5.53 percentage points to 28.20% due to lower raw material costs and increased efficiency, with strong growth in elevator sales and overseas revenue Main Business Revenue and Gross Margin by Product | Product Type | Operating Revenue (RMB) | YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Elevators | 1,530,910,146.81 | 44.89% | 30.86% | +5.70% | | Escalators | 215,611,985.13 | -72.46% | 22.48% | +1.09% | | Installation and Maintenance | 396,809,659.70 | 14.98% | 23.52% | +0.59% | Main Business Revenue and Gross Margin by Region | Region | Operating Revenue (RMB) | YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | East China | 790,457,804.95 | 1.41% | 29.64% | +5.30% | | Central-South China | 578,746,248.49 | -13.18% | 23.85% | +4.74% | | Overseas | 155,176,303.99 | 32.40% | 37.24% | +12.06% | - The primary reasons for the gross margin increase are: 1. A 15%-20% year-on-year decrease in major raw material prices; 2. Increased elevator production and revenue, which reduced unit labor costs[93][94] - The significant decline in escalator revenue is mainly due to the long and fluctuating execution cycles of rail transit projects; as of the end of the reporting period, the company holds approximately 2.2 billion RMB in rail transit elevator and escalator project orders, ensuring revenue for the next three years[95][97] V. Analysis of Assets and Liabilities As of June 30, 2023, total assets increased by 7.47% to 7.24 billion RMB, with total liabilities at 3.95 billion RMB and an asset-liability ratio of 54.57%, maintaining a stable financial structure Major Balance Sheet Item Changes | Item | End of Current Period (RMB) | End of Prior Year (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 7,244,204,382.88 | 6,740,898,383.27 | +7.47% | | Net Assets Attributable to Shareholders | 3,280,907,932.06 | 3,220,153,340.47 | +1.89% | - As of the end of the reporting period, the company's financial assets measured at fair value totaled 652 million RMB, primarily including wealth management products and equity investments[109] - Restricted assets at period-end mainly include bank acceptance bill margin deposits of 94.99 million RMB and pledged notes receivable of 2.53 million RMB[109] VI. Analysis of Investment Status The company established a new wholly-owned subsidiary, Kangli New Energy Development (Suzhou) Co., Ltd., with a 5 million RMB registered capital for distributed rooftop photovoltaic power stations, and continued its strategic cornerstone investment in Jinmao Services (00816.HK) to support new elevator business - The company established a new wholly-owned subsidiary, Kangli New Energy Development (Suzhou) Co., Ltd., with an investment of 5 million RMB, to develop distributed photovoltaic power station business, with the first 0.4MW project already connected to the grid[114] - The company, as a cornerstone investor, subscribed for shares in Jinmao Services (00816.HK), investing 79.83 million RMB; this strategic investment has helped the company win the strategic centralized procurement project for elevators and escalators from China Jinmao[118] VIII. Analysis of Major Holding and Participating Companies During the reporting period, Suzhou Xinda Elevator & Escalator Components Co., Ltd. and Chengdu Kangli Elevator Co., Ltd. were key profit contributors, while Guangdong Kangli Elevator Co., Ltd. incurred a loss, and Kangli New Energy Development (Suzhou) Co., Ltd. was newly established for the new energy sector Operating Performance of Major Subsidiaries (Unit: million RMB) | Company Name | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | | Suzhou Xinda Elevator & Escalator Components Co., Ltd. | 338.94 | 2.52 | 4.48 | | Chengdu Kangli Elevator Co., Ltd. | 339.09 | 13.16 | 9.92 | | Guangdong Kangli Elevator Co., Ltd. | 28.99 | -5.09 | -3.76 | - During the reporting period, the company invested in and established Kangli New Energy Development (Suzhou) Co., Ltd. as the asset entity for its distributed rooftop photovoltaic power station project[131] X. Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, intense competition, raw material price volatility, real estate adjustments impacting accounts receivable, and product quality, addressed by optimizing business structure, enhancing innovation, and strengthening risk management - Major Risks: - Macroeconomic risk: Downstream real estate industry prosperity affects product demand - Increased industry competition risk: Intense market competition may lead to performance decline - Raw material price fluctuation risk: Price fluctuations of major raw materials like steel affect gross margin - Accounts receivable risk: Liquidity crunch of downstream customers may lead to collection difficulties; net accounts receivable at period-end reached 1.50 billion RMB, accounting for 20.69% of total assets - Product quality risk: High safety management requirements for special equipment[135][136][137][140][141] - Countermeasures: - Optimize business structure, increase investment in the aftermarket, and create a second growth curve - Flexibly adjust procurement policies and pricing strategies, and improve supplier management system - Implement normalized high-pressure management for accounts receivable, strengthen customer credit assessment and collection process control - Build a scientific and rigorous quality management system, and strengthen full-process quality control[135][138][140][141] Item 4. Corporate Governance This section details the company's corporate governance structure, including shareholder meetings, changes in key personnel, and the implementation of equity incentive and employee stock ownership plans I. Information on Annual and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held two shareholder meetings, approving the 2022 annual report and related proposals, and completing the re-election of the board and supervisory board II. Changes in Directors, Supervisors, and Senior Management Due to the expiration of the fifth board's term, independent director Ma Jianping resigned, Geng Chengxuan was elected as a new independent director, and Meng Qingdong was appointed Chief Engineer of the Technology Center IV. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentive Measures The company continued its 2020 stock option incentive plan, completing the exercise of the second vesting period for initial grants and the first vesting period for reserved grants, while its first and second employee stock ownership plans remained active, with the latter impacting H1 2023 pre-tax profit by 0.21 million RMB - The second vesting period of the 2020 stock option incentive plan's initial grant was completed, with 4,602,000 options exercised at an exercise price of 6.38 RMB/share[157] - The first vesting period of the 2020 stock option incentive plan's reserved grant concluded, with 58 incentive recipients exercising 586,500 options[156] - The amortization cost of the second employee stock ownership plan impacted the 2023 first half pre-tax profit by 0.21 million RMB[161] Item 5. Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and social responsibility, including pollution control measures, carbon reduction initiatives, and green factory certifications I. Significant Environmental Issues The company is not a key polluting entity, had no environmental penalties, and effectively manages pollution while actively pursuing carbon reduction through solar power and heat recovery, earning provincial green factory status and seeking national recognition - The company is not classified as a key polluting entity and received no environmental administrative penalties during the reporting period[167] - The company actively promotes energy conservation and emission reduction, planning to build a 5MW photovoltaic power station with the first phase already connected to the grid, and implementing waste heat recovery modifications, showing significant energy-saving effects[174] - The company has been awarded the provincial "Green Factory" title and is currently applying for the national "Green Factory" designation[174] Item 6. Significant Matters This section covers significant events, including ongoing litigation related to overdue wealth management products, a strategic related-party investment in a digital economy fund, and major contract performance VIII. Litigation Matters The company had no major litigation during the reporting period, but three ongoing cases involve 179 million RMB in overdue wealth management products, with varying stages of legal proceedings, including awaiting criminal case disposition, second-instance judgment, and asset recovery Major Pending Litigation Cases | Litigation Content | Amount Involved (million RMB) | Progress | | :--- | :--- | :--- | | Liangzhuo Asset Stable and Far-reaching Bill Investment Fund overdue | 110 | Case is under execution, awaiting disposition of related criminal cases | | Datong Yangming No. 18 Phase I Asset Management Plan overdue | 30 | Company won in first instance, defendant appealed, awaiting second instance judgment | | Shanghai Hualing Asset Private Equity Wealth Management Product overdue | 39 | Hualing Asset suspected of fundraising fraud, principal perpetrator sentenced, awaiting asset disposal and fund return | XI. Significant Related Party Transactions The company had no significant daily related-party transactions, but made a 40 million RMB initial investment in the Junzhuo Digital Economy Industry Fund, a strategic move for its IoT business - The company invested up to 200 million RMB to participate in the second phase of the IoT investment fund (Junzhuo Digital Economy Industry Fund), with an initial contribution of 40 million RMB completed by the end of the period[208] XII. Significant Contracts and Their Performance The company had no major trust, contracting, leasing, or guarantee matters, but faced overdue private wealth management products with significant impairment provisions, while successfully executing multiple large elevator and escalator procurement contracts with Chengdu Rail Transit Group totaling over 1.1 billion RMB - The company has several overdue and unrecovered trust and other wealth management products, totaling 179 million RMB, with impairment provisions of 162 million RMB recognized[217][220] - The company signed equipment procurement and installation contracts for 7 sections with Chengdu Rail Transit Group, totaling 1.14 billion RMB, all of which have received deposits and are being executed normally[228] Item 7. Changes in Shares and Shareholder Information This section details changes in the company's share capital, including increases due to equity incentive exercises, and provides an overview of shareholder structure and major shareholders I. Changes in Shareholding The company's total share capital increased from 798,002,177 to 798,239,187 shares due to the exercise of stock options from the 2020 equity incentive plan, also affecting restricted and unrestricted share structures - During the reporting period, the company's total share capital increased by 237,010 shares due to the exercise of equity incentives[237][238] III. Number of Shareholders and Shareholding Information As of the reporting period end, the company had 31,765 common shareholders, with the actual controller Wang Youlin holding 44.92%, and the first employee stock ownership plan holding 3.77%, while Hong Kong Securities Clearing Company increased its stake to 2.46% Top Ten Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-End | | :--- | :--- | :--- | :--- | | Wang Youlin | Domestic Natural Person | 44.92% | 358,591,306 | | Kangli Elevator Co., Ltd. - First Employee Stock Ownership Plan | Other | 3.77% | 30,084,286 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 2.46% | 19,669,345 | | Zhu Meijuan | Domestic Natural Person | 2.16% | 17,280,000 | | Shanghai Shouchang Private Equity Fund Management Co., Ltd. - Guiyuan Shouchang Tengfei No. 5 | Other | 0.69% | 5,470,627 | - Actual controller Mr. Wang Youlin and the fourth largest shareholder Ms. Zhu Meijuan are parties acting in concert[250] Item 8. Information on Preferred Shares This section confirms whether the company has issued any preferred shares Preferred Shares The company had no preferred shares during the reporting period Item 9. Information on Bonds This section confirms whether the company has any outstanding bonds Bonds The company had no bond-related matters during the reporting period Item 10. Financial Report This section presents the company's unaudited financial statements for the first half of 2023, including balance sheets, income statements, cash flow statements, and notes to the financial statements I. Audit Report The company's 2023 semi-annual financial report is unaudited II. Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2023, comprehensively reflecting its financial position, operating results, and cash flows Consolidated Balance Sheet Summary (June 30, 2023) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 7,244,204,382.88 | | Total Current Assets | 5,387,152,000.42 | | Total Non-current Assets | 1,857,052,382.46 | | Total Liabilities | 3,953,101,450.51 | | Total Current Liabilities | 3,897,049,407.37 | | Total Non-current Liabilities | 56,052,043.14 | | Total Owners' Equity | 3,291,102,932.37 | | Total Owners' Equity Attributable to Parent Company | 3,280,907,932.06 | Consolidated Income Statement Summary (H1 2023) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 2,281,658,150.48 | | Total Operating Costs | 2,050,872,883.35 | | Operating Profit | 252,001,894.29 | | Total Profit | 249,656,712.37 | | Net Profit | 229,599,927.53 | | Net Profit Attributable to Parent Company Shareholders | 229,603,358.75 | VII. Notes to Consolidated Financial Statements This chapter provides detailed explanations of consolidated financial statement items, highlighting accounts receivable of 1.66 billion RMB (with 332 million RMB impairment), inventory of 1.29 billion RMB, and contract liabilities of 1.50 billion RMB, indicating strong future revenue - Accounts receivable balance at period-end is 1.66 billion RMB, with impairment provisions of 332 million RMB, resulting in a book value of 1.32 billion RMB[545] - Inventory book value at period-end is 1.29 billion RMB, of which goods in transit account for 910 million RMB[593] - Contract liabilities at period-end are 1.50 billion RMB, a significant increase from 1.16 billion RMB at the beginning of the period, indicating increased customer prepayments and secured future revenue[691] Operating Revenue by Product Type | Product Type | Revenue Amount (RMB) | | :--- | :--- | | Elevators | 1,530,910,146.81 | | Escalators | 215,611,985.13 | | Components | 101,790,436.10 | | Installation and Maintenance | 396,809,659.70 | XVIII. Supplementary Information This chapter provides supplementary financial details, including non-recurring gains and losses, return on net assets, and earnings per share, with non-recurring net gains of 36.64 million RMB primarily from financial asset fair value changes and government subsidies Net Assets Return and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (RMB/share) | Diluted Earnings Per Share (RMB/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 6.95% | 0.2918 | 0.2910 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Gains/Losses) | 5.84% | 0.2452 | 0.2445 |