JQH(SZ:002885)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥794,877,672.49, representing a 41.23% increase compared to ¥562,814,677.31 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 86.37% to ¥4,288,508.76 from ¥31,469,903.43 year-on-year[19]. - The net cash flow from operating activities was negative at ¥101,302,463.24, a decline of 267.52% compared to ¥60,470,165.47 in the previous year[19]. - The total assets at the end of the reporting period increased by 7.87% to ¥1,756,801,916.76 from ¥1,628,676,179.23 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company decreased by 0.61% to ¥797,610,548.05 from ¥802,472,560.88 at the end of the previous year[19]. - The basic earnings per share dropped by 86.38% to ¥0.0238 from ¥0.1748 in the same period last year[19]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of ¥4,476,706.91 compared to a profit of ¥24,710,883.00 in the previous year, marking a decrease of 118.12%[19]. - The weighted average return on net assets fell to 0.53% from 3.96% year-on-year, a decrease of 3.43 percentage points[19]. - The company reported a total revenue of 8,765,215.67 million CNY for the first half of 2021[24]. - The revenue from electronic components accounted for 97.66% of total revenue, amounting to ¥776,265,084.23, with a year-on-year growth of 41.94%[46]. - The company reported a net increase in cash and cash equivalents of -¥107,294,306.53, a significant increase of 1,024.27% compared to -¥9,543,493.61 in the previous year[47]. - The company reported a total comprehensive income of CNY 14,124,262.52 for the current period, which includes a profit distribution of CNY -6,296,285.56 to shareholders[159]. Operational Highlights - The company focuses on the electronic manufacturing industry, providing solutions for magnetic components and power products[27]. - The company has developed new products in the smart power category, which is part of its customized power solutions[27]. - The company emphasizes the importance of high-frequency technology in electronic transformers to meet the demands of miniaturization in electronic products[32]. - The company adheres to a business philosophy focused on improving the quality of life through advanced electronic products[27]. - The company has accumulated 30 invention patents, 138 utility model patents, and 41 design patents, showcasing strong R&D capabilities[38]. - The company maintains long-term stable partnerships with several Fortune 500 companies, ensuring a steady order flow and growth potential[40]. - The company emphasizes technological innovation as a core driver for business upgrades, focusing on market demand in product development[37]. - The company has established a two-integration management system to enhance product quality and market competitiveness[41]. - The company has implemented an information technology platform, integrating various management systems to improve operational efficiency and decision-making[41]. - The company has developed a design platform for automotive-grade electromagnetic components and various structural models for electromagnetic components[38]. Market and Industry Outlook - The global demand for electronic transformers is expected to reach approximately 16.6 billion units by 2024, with a market size of about 63.3 billion CNY[32]. - China's cumulative installed capacity for photovoltaic power generation is projected to reach 805.2 GW by 2025, with a compound annual growth rate of 26.9% from 2021 to 2025[33]. - The company is positioned to benefit from the growing demand in the new energy vehicle sector, with sales expected to reach 5.3 million units by 2025[34]. - The 5G industry is projected to create an economic output of 13.2 trillion USD globally by 2035, significantly contributing to various sectors[35]. Financial Risks and Challenges - The company faces market risks due to industry competition and potential fluctuations in customer orders, which could impact market share and profitability[64]. - Major raw material price fluctuations, particularly for copper and silicon steel, pose risks to production costs and gross margins[64]. - The company is exposed to exchange rate fluctuations, which can affect export pricing competitiveness and result in exchange losses[65]. - Rising labor costs in the technology and labor-intensive industry may lead to increased operating costs and potential profit declines if revenue growth slows[65]. - The company plans to expand its overseas market presence, particularly in Southeast Asia, Europe, and North America, but faces uncertainties related to local political and economic conditions[65]. Shareholder and Equity Information - The company plans to repurchase shares with a total fund not exceeding RMB 40 million and not less than RMB 20 million, with a maximum price of RMB 18.65 per share[106]. - As of June 30, 2021, the company has repurchased a total of 106,000 shares, approximately 0.059% of the total share capital, with a total transaction amount of RMB 1,265,112[107]. - The company’s executives have locked 75% of their shares as per regulations, ensuring stability in shareholding[105]. - The total number of common shareholders at the end of the reporting period is 21.561 million[109]. - The largest shareholder, Zhang Lipin, holds 19.93% of the shares, totaling 35,874,799 shares[111]. - The total number of unrestricted shares increased from 98,977,506 (54.99%) to 118,413,013 (65.79%) after an increase of 19,435,507 shares[104]. Compliance and Governance - The half-year financial report was not audited, indicating that the financial results are unaudited[80]. - The company has no significant litigation or arbitration matters during the reporting period[83]. - The integrity status of the company and its controlling shareholders is good, with no unfulfilled legal obligations or significant overdue debts[84]. - The company has engaged in wealth management with a total amount of 30 million CNY in bank financial products, with no overdue amounts[97]. - The company has no major guarantees or other significant contracts during the reporting period[96][99]. - The financial statements were approved by the board of directors on August 26, 2021[166]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial position accurately[171]. Accounting Policies and Practices - The company’s accounting policies include specific methods for inventory valuation and recognition of revenue, tailored to its operational characteristics[170]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[177]. - The company recognizes foreign exchange differences in profit or loss unless related to capitalizable assets[189]. - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[192].