亚世光电(002952) - 2020 Q2 - 季度财报

Section 1. Important Notice, Table of Contents, and Definitions This section contains important notices, the report's table of contents, and key definitions Section 2. Company Profile and Key Financial Indicators This section presents the company's profile and a summary of its key financial performance indicators IV. Key Accounting Data and Financial Indicators H1 2020 operating revenue decreased by 8.35%, while net profit attributable to shareholders increased by 22.03% primarily due to non-recurring gains, with operating cash flow down 65.34% | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 214,394,569.60 | 233,931,187.87 | -8.35% | | Net Profit Attributable to Shareholders (Yuan) | 52,967,891.90 | 43,404,196.42 | 22.03% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (Yuan) | 32,539,586.58 | 40,455,638.59 | -19.57% | | Net Cash Flow from Operating Activities (Yuan) | 13,544,983.85 | 39,084,101.44 | -65.34% | | Basic Earnings Per Share (Yuan/share) | 0.3223 | 0.4423 | -27.13% | | Weighted Average Return on Net Assets | 6.46% | 7.67% | -1.21% | | Total Assets (Yuan) | 956,880,819.43 | 917,316,296.30 | 4.31% | VI. Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 20.43 million Yuan, significantly contributing to net profit growth, primarily from government subsidies and wealth management income | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Government Subsidies Included in Current Profit/Loss | 12,077,429.74 | - | | Gains/Losses from Entrusted Investments or Asset Management | 12,880,595.71 | Bank wealth management product income and structured deposit income | | Fair Value Change Gains/Losses from Derivative Financial Instruments | -829,182.30 | Exchange gains/losses from forward foreign exchange contracts | | Other Non-Operating Income and Expenses | -96,538.76 | - | | Total | 20,428,305.32 | -- | Section 3. Company Business Overview This section provides an overview of the company's core business, operating model, and key competitive advantages I. Main Businesses Engaged in by the Company During the Reporting Period The company's main business is customized LCD display devices for non-consumer electronics, operating under a 'small batch, multi-variety' and 'production-to-order' model - The company's main business is customized LCD display devices, focusing on niche markets such as industrial control instrumentation, communication terminals, medical equipment, and automotive displays, characterized by small-batch, multi-variety operations[34] - The company adopts an "order-to-production" model, with raw material procurement, production scheduling, and product delivery based on customer orders, and a buy-out sales model[36][39] III. Analysis of Core Competencies Core competencies include a stable talent team, strong global customer base, 86 domestic patents, and comprehensive quality and ERP-driven management systems - The company possesses a stable and professional management and technical talent team, with core members having long-term experience in the industry[41] - Significant customer resource advantage, with products covering over 20 countries and regions, serving as a supplier to internationally renowned enterprises such as Samsung, Omron, and GIGASET[42] - As a high-tech enterprise, the company adheres to independent innovation, having obtained 86 domestic patents (including 12 invention patents) as of the end of the reporting period[44] - In terms of management, the company has a comprehensive quality management system (certified with ISO9000, ISO14000, ISO/TS16949) and informatized full-process management implemented through an ERP system[44] Section 4. Management Discussion and Analysis This section provides a detailed discussion and analysis of the company's operational performance, financial position, and investment activities I. Overview H1 2020 saw operating revenue of 214 million Yuan (-8.35% YoY) and net profit of 52.97 million Yuan (+22.03% YoY), primarily due to increased government subsidies and cash management income | Indicator | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 214 million Yuan | -8.35% | | Net Profit Attributable to Shareholders | 52.97 million Yuan | +22.03% | | R&D Investment | 7.415 million Yuan | -5.77% | - The primary reasons for net profit growth were increased government subsidies received by the company and higher cash management income from temporarily idle funds[50] II. Analysis of Main Business Main business revenue decreased by 8.35%, driven by a 16.76% decline in international sales, despite a 41.81% increase in domestic revenue, while financial expenses rose | Region | Operating Revenue (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Domestic | 47,609,712.00 | 41.81% | | International | 166,784,857.60 | -16.76% | - The significant increase in domestic operating revenue was due to some southern orders shifting to the company, as the Liaoning region was less affected by the pandemic[59] - Financial expenses increased by 56.32% year-on-year, primarily due to increased USD to RMB exchange gains, although interest income decreased due to a reduction in USD fixed deposit balances[51] III. Analysis of Non-Operating Activities Non-operating activities significantly boosted profit, with investment income at 13.12 million Yuan (21.11% of total profit) and government subsidies at 12.08 million Yuan (19.44% of total profit) | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 13,117,962.91 | 21.11% | Mainly bank structured deposit interest, wealth management product income, etc | | Other Income | 12,077,429.74 | 19.44% | Government subsidies received in current period | | Fair Value Change Gains/Losses | -1,066,549.50 | -1.72% | Exchange losses from purchasing forward foreign exchange products | IV. Analysis of Assets and Liabilities Total assets reached 957 million Yuan (+4.31% YoY), with other current assets comprising 58.01% of the stable asset structure, and inventory increased due to raw material stockpiling - Inventory increased compared to the beginning of the period, primarily due to the company increasing raw material stockpiles during the pandemic, along with an increase in work-in-progress[40] - As of the end of the reporting period, 6.518 million Yuan in bank acceptance bills were pledged by the company, used for payment to suppliers after splitting[68] V. Analysis of Investment Status The company established a new subsidiary, engaged in derivative investments for currency hedging with a 1.07 million Yuan loss, and progressed fundraising projects with 38.74 million Yuan cumulatively invested - The company established a wholly-owned subsidiary, 'Shanghai Crystal Information Technology Co., Ltd.', with a registered capital of 0.2 million Yuan, engaged in technology development and services in the information technology sector[73] Derivative Investment Summary | Derivative Investment Type | Initial Investment Amount (Million Yuan) | End-of-Period Investment Amount (Million Yuan) | Actual Gain/Loss During Period (Million Yuan) | | :--- | :--- | :--- | :--- | | Forward Foreign Exchange Settlement/Sale | 125.7552 | 62.7969 | -1.0665 | - Total raised funds amounted to 418.21 million Yuan, with 38.74 million Yuan cumulatively utilized as of the end of the reporting period, primarily for the construction of industrial control and automotive LCD display production lines, optoelectronic display component production lines, and R&D center projects[82][83] X. Risks Faced by the Company and Countermeasures The company faces risks from raw material supply, customer concentration, international market volatility, exchange rate fluctuations, and fundraising project uncertainties, addressed by proactive stocking, market expansion, and financial derivatives - The company faces five major risks: raw material supply, customer concentration, international markets (sales accounting for 77.79%), exchange rate fluctuations, and the implementation of fundraising projects[96][97][98][99][100] - To mitigate exchange rate risks, the company has been purchasing exchange rate-related options and forward foreign exchange contracts since 2018[99] Section 5. Important Matters This section details important corporate matters, including commitment fulfillment, significant related-party transactions, and social responsibility initiatives III. Commitments Fulfilled and Overdue Unfulfilled by Related Parties Including the Company's Actual Controller, Shareholders, and Directors, Supervisors, and Senior Management During the reporting period, the company and its related parties strictly fulfilled all IPO commitments, including share lock-up, with some shareholders' 12-month lock-up period concluding on March 28, 2020 - The 36-month share lock-up period (until March 28, 2022) committed by controlling shareholder Asia Optoelectronics (Hong Kong) and actual controller JIA JITAO is being strictly fulfilled[105][108] - The 12-month share lock-up period for company shareholders Bian Ruiqun, Lin Xuefeng, Xie Zhigang, and other partial shareholders concluded on March 28, 2020[108] XIII. Significant Related-Party Transactions During the reporting period, the company did not engage in significant related-party transactions related to daily operations, asset or equity acquisitions/disposals, related-party creditor-debtor relationships, or non-operating fund occupation by the controlling shareholder or its related parties - The company had no related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related-party creditor-debtor relationships during the reporting period[127][128][129][130] XVI. Social Responsibility The company actively fulfilled its social responsibilities, with its wholly-owned subsidiary donating 0.08 million Yuan for poverty alleviation industrial projects in Xiuyan County - The company's wholly-owned subsidiary donated 0.08 million Yuan to Anshan Economic Development Zone for poverty alleviation industrial projects in Xiuyan County, primarily for constructing edible mushroom cold sheds[144] Section 6. Share Changes and Shareholder Information This section outlines changes in the company's share capital and provides details on its shareholder structure I. Share Change Status The company implemented its 2019 equity distribution, increasing total share capital from 109.56 million to 164.34 million shares, and released some pre-IPO restricted shares on March 30, 2020 - Due to the implementation of the 2019 equity distribution (transferring 5 shares for every 10 shares), the company's total share capital increased from 109.6 million shares to 164.3 million shares[153] Share Capital Changes | Share Type | Quantity Before Change | Quantity After Change | | :--- | :--- | :--- | | Restricted Shares | 86,700,000 | 94,383,562 | | Unrestricted Shares | 22,860,000 | 69,956,438 | | Total Shares | 109,560,000 | 164,340,000 | III. Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 16,583 common shareholders, with the top three holding 36.65%, 13.87%, and 13.85% respectively, indicating a relatively concentrated equity structure Top Shareholders | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Asia Optoelectronics (Hong Kong) Co., Ltd. | Overseas Legal Person | 36.65% | 60,223,500 | | Lin Xuefeng | Domestic Natural Person | 13.87% | 22,785,750 | | Bian Ruiqun | Domestic Natural Person | 13.85% | 22,761,000 | | Xie Zhigang | Domestic Natural Person | 8.46% | 13,909,500 | Section 7. Information on Preferred Shares This section confirms the absence of preferred shares within the company during the reporting period - The company had no preferred shares during the reporting period[174] Section 8. Information on Convertible Corporate Bonds This section confirms the absence of convertible corporate bonds issued by the company during the reporting period - The company had no convertible corporate bonds during the reporting period[178] Section 9. Information on Directors, Supervisors, and Senior Management This section details the status of the company's directors, supervisors, and senior management, noting no changes in personnel - There were no changes in the company's directors, supervisors, and senior management during the reporting period, with their shareholdings increasing primarily due to the company's capital reserve to share capital transfer[183][184] Section 10. Information on Corporate Bonds This section confirms the absence of publicly issued and listed corporate bonds by the company that are outstanding or overdue - The company has no corporate bonds publicly issued and listed on a stock exchange that are outstanding or overdue for full repayment as of the approval date of the semi-annual report[188] Section 11. Financial Report This section presents the company's financial statements, significant accounting policies, and detailed notes to the consolidated financial statements II. Financial Statements As of June 30, 2020, total assets were 957 million Yuan, equity 803 million Yuan, H1 revenue 214 million Yuan, net profit 52.97 million Yuan, with operating cash inflow of 13.55 million Yuan Key Items from Consolidated Balance Sheet (June 30, 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 956,880,819.43 | | Total Liabilities | 153,516,590.03 | | Total Equity Attributable to Parent Company Shareholders | 803,364,229.40 | Key Items from Consolidated Income Statement (H1 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 214,394,569.60 | | Total Operating Costs | 175,381,541.44 | | Total Profit | 62,139,893.78 | | Net Profit | 52,967,891.90 | Key Items from Consolidated Cash Flow Statement (H1 2020) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 13,544,983.85 | | Net Cash Flow from Investing Activities | 20,722,653.58 | | Net Cash Flow from Financing Activities | -27,129,613.44 | | Net Increase in Cash and Cash Equivalents | 7,432,701.78 | 44. Significant Changes in Accounting Policies and Estimates The most significant accounting policy change during the reporting period was the adoption of new revenue recognition standards effective January 1, 2020, leading to a reclassification of 2.06 million Yuan from 'Advances from Customers' to 'Contract Liabilities' on the initial adoption date, with no impact on opening retained earnings - The company adopted the new revenue recognition standards (Cai Kuai [2017] No. 22) issued by the Ministry of Finance, effective January 1, 2020[515] Accounting Policy Adjustment for New Revenue Standards | Adjusted Item | Before Adjustment (Dec 31, 2019) | After Adjustment (Jan 1, 2020) | | :--- | :--- | :--- | | Advances from Customers | 2,060,565.92 | 0 | | Contract Liabilities | 0 | 2,060,565.92 | VII. Notes to Consolidated Financial Statement Items Financial statement notes highlight the company's 15% high-tech enterprise tax rate, 7.415 million Yuan in expensed R&D costs, 55.02% customer concentration in accounts receivable, and the consolidation of a new subsidiary - As a high-tech enterprise, the company enjoys a 15% preferential corporate income tax rate and a 75% additional deduction for R&D expenses[539][540] - The top five accounts receivable clients accounted for 55.02% of the total at period-end, indicating a high risk of customer concentration[569] - During the reporting period, the company established a wholly-owned subsidiary, Shanghai Crystal Information Technology Co., Ltd., and included it in the scope of consolidation[784][788] Section 12. Catalogue of Reference Documents This section lists the documents available for reference related to the report