Morn(SZ:002451)2022-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥540,764,557.43, representing an increase of 18.83% compared to ¥455,077,975.11 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥5,176,260.10, up 24.45% from ¥4,159,260.22 year-on-year[22]. - The net profit after deducting non-recurring gains and losses decreased by 41.56%, amounting to ¥265,200.94 compared to ¥453,781.26 in the previous year[22]. - The cash flow from operating activities showed a significant decline, with a net outflow of ¥89,606,427.40, worsening by 313.33% from a net outflow of ¥21,678,973.72 in the same period last year[22]. - Basic earnings per share increased by 24.21% to ¥0.0118 from ¥0.0095 in the same period last year[22]. - The company's total revenue for the reporting period was ¥540,764,557.43, representing an increase of 18.83% compared to ¥455,077,975.11 in the previous year[52]. - The company's net profit attributable to shareholders decreased by 41.56% to ¥265,200.94, largely due to reduced order volumes and revenue declines in the parent company[54]. - The company achieved a net increase in cash and cash equivalents of ¥36,928,274.36, a 258.68% improvement, primarily due to increased bank loans in the cable sector[52]. - The company reported a total comprehensive income of ¥10,010,307.07 for the first half of 2022, compared to ¥4,253,386.09 in the same period of 2021, indicating a significant increase[158]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,542,909,357.91, an increase of 9.41% from ¥1,410,181,865.06 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 2.09%, totaling ¥729,021,875.67 compared to ¥744,573,305.34 at the end of the previous year[22]. - Total liabilities amounted to CNY 714,511,816.65, up from CNY 574,123,276.91, which is an increase of approximately 24.5%[151]. - The company's total current assets reached CNY 1,015,270,555.71, up from CNY 873,091,181.21 at the start of the year, indicating a growth of about 16.3%[149]. - The company's inventory as of June 30, 2022, was CNY 181,519,499.64, compared to CNY 145,567,467.47 at the beginning of the year, marking an increase of around 24.7%[149]. - Short-term borrowings increased to CNY 410,000,000.00 from CNY 354,050,454.17, reflecting a rise of approximately 15.8%[150]. Market and Industry Context - The company operates in the wire and cable industry, which is the second largest supporting industry in China's machinery sector, with steady annual growth in overall industry output value[30]. - In the first half of 2022, national power investment reached 215.8 billion yuan, a year-on-year increase of 14.0%, with solar power investment surging by 283.6% to 63.1 billion yuan[31]. - The installed capacity of national power generation reached approximately 2.44 billion kilowatts, growing by 8.1% year-on-year, with wind and solar power capacities increasing by 17.2% and 25.8%, respectively[31]. - The company operates in the electrical machinery and equipment manufacturing industry, benefiting from favorable new energy policies[76]. - The company’s performance was positively impacted by the sustained growth in the downstream industry of electromagnetic wire[76]. Subsidiary Performance - The company’s subsidiary, Jiangsu Xunda Electric, achieved a revenue of 300 million CNY, a significant increase of 124% year-on-year, contributing over 50% to the company's total revenue[41][47]. - Jiangsu Xunda Electric is entering the mid-to-high-end electromagnetic wire market, offering over 100 products for sectors like new energy vehicles and nuclear power[37]. - The total assets of Jiangsu Xunda Electric are approximately 329.9 million yuan, with net assets of about 202.8 million yuan[75]. Research and Development - Research and development expenses increased by 50.35% to ¥7,795,648.92, reflecting the company's commitment to enhancing its R&D capabilities[52]. - The company aims to achieve technological breakthroughs in green energy product lines, particularly in electric motors for new energy vehicles and wind power[37]. - The company has established a comprehensive product R&D and quality management system, recognized as a Shanghai Enterprise Technology Center[48]. Risk Management - The company has outlined various risks and corresponding countermeasures in the report, ensuring transparency regarding potential challenges[4]. - The company faces risks from raw material price fluctuations, particularly copper, which has a high cost proportion in its cable and electromagnetic wire segments[78]. - The cable industry in China has a low concentration with a CR10 of approximately 18%, leading to intense competition and potential impacts on profitability[78]. - The company has established internal control and audit mechanisms to enhance risk identification and prevention in its commercial factoring business[80]. Corporate Governance - The company has not reported any significant changes in accounting policies compared to the previous reporting period[74]. - The company has not reported any significant changes in its board or management personnel during the reporting period[88]. - The financial statements were approved by the board of directors on August 23, 2022[198]. Shareholder Information - The controlling shareholder, Mr. Wen Zehong, has pledged 45 million shares, accounting for 26.8% of his holdings and 10.25% of the company's total share capital[124]. - The largest shareholder, Mr. Wen Zehong, holds 38.23% of the shares, totaling 167,896,000 ordinary shares[136]. - The total number of ordinary shares at the end of the reporting period was 49,803,000[136]. Future Outlook - The company plans to continue reducing losses in its financial sector while expanding its core business in special cables and enhancing market competitiveness[54]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[159].