ECHOM(SZ:002420)2023-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥1,109,621,471.61, a decrease of 17.69% compared to ¥1,348,058,746.62 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was a loss of ¥1,150,642.76, representing a decline of 104.62% from a profit of ¥24,903,792.46 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥18,314,443.97, a decrease of 426.61% compared to a profit of ¥5,607,465.23 in the same period last year[16]. - The basic earnings per share were -¥0.0029, a decline of 104.67% from ¥0.0621 in the same period last year[16]. - The diluted earnings per share were also -¥0.0029, reflecting the same decline of 104.67% compared to ¥0.0621 in the previous year[16]. - The weighted average return on net assets was -0.16%, down from 3.53% in the same period last year, indicating a significant decrease in profitability[16]. - The total revenue for the reporting period was ¥1,109,621,471.61, a decrease of 17.69% compared to ¥1,348,058,746.62 in the same period last year[42]. - Revenue from the home appliance sector was ¥412,857,862.16, accounting for 37.21% of total revenue, down 32.20% year-on-year[43]. - Revenue from the automotive sector increased by 29.71% to ¥298,203,639.49, representing 26.87% of total revenue[43]. - The company reported a net profit of 398 million for the first half of 2023, reflecting a decrease of 2.04% compared to the same period last year[156]. Cash Flow and Assets - The net cash flow from operating activities was ¥53,665,656.98, an increase of 2.18% from ¥52,520,345.68 in the previous year[16]. - The total assets at the end of the reporting period were ¥2,074,460,471.33, a decrease of 0.68% from ¥2,088,601,058.90 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company were ¥683,433,790.33, a slight decrease of 0.17% from ¥684,584,433.09 at the end of the previous year[16]. - The net increase in cash and cash equivalents was ¥90,348,652.48, a significant increase of 1,197.92% from ¥6,961,012.09 in the previous year[42]. - Cash and cash equivalents were reported at CNY 102,425,804.81, an increase from CNY 40,917,663.20 at the beginning of the year[136]. - The total cash and cash equivalents at the end of the first half of 2023 amounted to CNY 151,699,692.57, an increase from CNY 102,469,084.97 at the end of the first half of 2022[149]. Market and Industry Insights - In the first half of 2023, China's power battery production reached 293.6 GWh, a year-on-year increase of 36.8%, while sales totaled 256.5 GWh, up 17.5% year-on-year[25]. - The domestic market for automotive thermal management is projected to exceed 40 billion yuan by 2025, with the battery thermal management market expected to reach 20 billion yuan[25]. - In 2022, China's new energy vehicle production was 7.06 million units, achieving a penetration rate of 26%, three years ahead of the 2025 target[26]. - The overall retail sales of China's home appliance market increased by 4.4% year-on-year in the first half of 2023[28]. - The color TV market in China saw a sales volume of 14.67 million units in the first half of 2023, a year-on-year decline of 12.2%, with sales revenue reaching 48.7 billion yuan[28]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[4]. - The company has established deep cooperation with industry leaders such as BYD, focusing on mass production of dual-color, automotive lighting, and precision injection products[30]. - The company is actively pursuing new customer relationships to mitigate the impact of declining sales in certain new energy vehicle segments[30]. - The company has implemented 14 automation cost-reduction projects to enhance production efficiency and product quality[34]. - The company aims to improve operational efficiency and enhance shareholder value through strategic initiatives[155]. - The company plans to expand its market presence and invest in new product development in the upcoming quarters[155]. Risks and Challenges - The company faces risks from macroeconomic fluctuations and potential impacts on product demand due to international trade uncertainties[56]. - There are challenges in technology research and development, particularly in meeting diverse product demands in the appliance and automotive sectors[57]. - The company is exposed to risks from raw material price fluctuations, particularly due to the volatility of crude oil prices[59]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance structure to protect the rights of shareholders and creditors[72]. - The company held three shareholder meetings during the reporting period, ensuring compliance with legal and regulatory requirements[73]. - The company has implemented a complete labor contract system and adheres to national labor laws and regulations[74]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[71]. - The financial report for the first half of 2023 has not been audited[130]. Shareholder Information - The company reported a total of 38,225 common shareholders at the end of the reporting period[117]. - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., holds 25.98% of the total shares, amounting to 104,198,900 shares[118]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[120][122]. - The total number of shares held by the top 10 unrestricted shareholders includes significant holdings by both domestic and foreign investors[118]. Financial Instruments and Accounting Policies - The financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position as of June 30, 2023[175]. - The company recognizes the difference between the disposal price and the net asset share of the subsidiary in the consolidated financial statements as an adjustment to capital reserves or retained earnings[186]. - Financial instruments are initially recognized at fair value, with transaction costs directly expensed for those measured at fair value through profit or loss[199].