BESTWAY(SZ:300008)2024-01-16 16:00Financial Performance - The company's revenue for the first half of 2023 was CNY 1,462,406,360.11, representing a year-on-year increase of 56.40% compared to CNY 935,041,978.80 in the same period last year [29]. - The net profit attributable to shareholders for the same period was CNY 64,660,105.63, up 61.61% from CNY 40,010,732.96 in the previous year [29]. - The company's total revenue for the reporting period was 146,240.64 million yuan, representing a year-on-year increase of 56.40% [66]. - The net profit attributable to shareholders was 6,466.01 million yuan, reflecting a year-on-year growth of 61.61% [66]. - The shipbuilding EPC business achieved a revenue of 12.69 billion yuan, accounting for 87% of total revenue, with a year-on-year increase of 64% [67]. - The defense equipment and products business saw a revenue increase of 114%, driven by new orders for special unmanned vessels and underwater security products [68]. - The energy business experienced a revenue decline of 46% due to a 30% drop in natural gas market prices compared to the previous year, although the gross margin improved by 6.32% [69]. - The shipbuilding engineering technical service business reported a revenue growth of 59% and a gross margin increase of 5.27% [70]. - The gross profit margin for the first half of 2023 was reported at 35%, a slight improvement from 32% in the same period last year [121]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion yuan for the first half of 2023, representing a year-on-year growth of 15% [120]. Cash Flow and Financial Position - The company reported a net cash flow from operating activities of -CNY 121,303,455.67, a decrease of 134.96% compared to CNY 346,977,075.65 in the previous year [29]. - Cash and cash equivalents decreased to ¥35,766,631.33, down 87.57% from ¥287,777,072.50 in the previous year [73]. - The company reported a substantial increase in financing cash flow, which rose to ¥213,496,533.42, a 1,429.31% increase due to expanded bank credit lines [73]. - The net cash flow from operating activities was -121,303,455.67 yuan, a significant decrease from 346,977,075.65 yuan in the previous year [194]. - The company raised 392,000,000.00 yuan through borrowings in the first half of 2023, compared to 106,450,000.00 yuan in the same period of 2022 [195]. - The ending balance of cash and cash equivalents was 142,972,053.22 CNY, up from 51,239,402.68 CNY at the end of the previous period [200]. Business Segments and Operations - The company has three main business segments: marine engineering, defense equipment, and energy, and it is focusing on R&D and marketing to enhance competitiveness [9]. - The shipbuilding and marine engineering business generated a revenue growth of 41.19% year-on-year, with a net profit increase of 55.19% [37]. - The company secured new orders for 7 offshore vessels and 8 transport vessels during the reporting period, with a total of 39 and 33 orders on hand respectively [40]. - The company has established a supplier management system, ensuring that suppliers are evaluated based on their business, technical, and service qualifications, with a focus on reducing costs and improving efficiency [42]. - The company’s defense equipment business includes the design and assembly of special defense vessels and related products, with a focus on underwater security equipment and intelligent ship systems [46]. - The company’s procurement process includes a classification of materials into A, B, and C categories, ensuring that critical components are sourced from qualified suppliers [47]. - The production process is divided into planning, manufacturing, and service stages, ensuring a structured approach to project execution [48]. Risk Management - The company faces foreign exchange risks primarily from USD and EUR-denominated export ship orders, and it plans to implement hedging strategies to manage these risks [5]. - There is a risk of customer defaults due to macroeconomic uncertainties, and the company is enhancing credit assessments and contract management to mitigate this risk [7]. - Rising costs of raw materials and labor are impacting production costs, and the company aims to improve management and cost control to minimize these effects [8]. - The company has established a risk management system for futures hedging to mitigate price volatility risks [86]. - The company aims to avoid speculative trading in futures and focuses on hedging against commodity price fluctuations [86]. Research and Development - Research and development expenses were ¥30,766,067.95, showing a slight increase of 1.33% year-on-year [72]. - The company is actively exploring hydrogen, helium, and renewable energy sectors, including wind and solar power [60]. - The company has established a comprehensive technology patent portfolio in key equipment and systems for liquefied natural gas (LNG) cargo systems, natural gas power systems, and refueling systems [50]. - The company has received over 400 technology patents and has been recognized as a "specialized and innovative" enterprise by the Ministry of Industry and Information Technology [57]. - The company is investing in research and development, allocating 7.70% of its revenue towards innovation and new technologies [139]. Corporate Governance and Shareholder Relations - The company emphasizes the protection of shareholder rights and adheres to legal regulations to enhance corporate governance [109]. - The company conducted multiple investor meetings to discuss its business operations and future plans throughout the reporting period [97]. - The company has committed to providing a supportive work environment to enhance employee satisfaction and well-being [110]. - The company has implemented measures to enhance communication with investors, including regular updates and interactive platforms [110]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period [102]. Strategic Initiatives and Future Outlook - The company aims to enhance shareholder value by implementing a dividend policy that targets a payout ratio of 30% of net profits starting from 2024 [118]. - The company has set a performance guidance for the second half of 2023, projecting a revenue target of 1.5 billion RMB, which would mark a 10% increase from the first half [118]. - A strategic acquisition is planned, with the company looking to acquire a competitor for approximately 500 million RMB to enhance its technological capabilities [119]. - The company is expanding its market presence, targeting international markets with a focus on Southeast Asia, aiming for a 25% increase in market share by the end of 2024 [118]. - The company has outlined a positive outlook for the second half of 2023, projecting a revenue growth of 10% to 12% [122].