银河磁体(300127) - 2019 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice, the report's table of contents, and definitions of key terms used throughout the document Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] - The company faces risks from product structure adjustments in downstream application markets, raw material price fluctuations (rare earth metals), and exchange rate volatility (USD-settled exports), with corresponding countermeasures in place[4][5][6] Table of Contents This section lists the overall structure of the report, comprising eleven main chapters covering company profile, business overview, operational analysis, significant events, and financial reports - The report is divided into eleven sections, covering company profile, business overview, management discussion and analysis, significant events, changes in shares and shareholder information, and financial reports[8] Definitions This section defines common terms used in the report, including company names, subsidiaries, various magnets, and raw materials, clarifying "this reporting period" as January-June 2019 - The reporting period refers to January-June 2019[10] - Key terms include Company/This Company/Issuer/Galaxy Magnet, Subsidiary/Galaxy Magnetic Powder, Wholly-owned Subsidiary/Yinci Materials, Magnet, Rare Earth Magnet, Samarium Cobalt Magnet, Neodymium Iron Boron Magnet, Bonded Neodymium Iron Boron Magnet, Sintered Neodymium Iron Boron Magnet, Hot-pressed Neodymium Iron Boron Magnet/Hot-pressed Magnet, MQI, MQ Magnetic Powder[10] Company Profile and Key Financial Indicators This section outlines the company's basic information, contact details, and key financial performance metrics for the reporting period Company Profile The company's stock abbreviation is "Galaxy Magnet," stock code 300127, listed on the Shenzhen Stock Exchange, with Dai Yan as the legal representative - The company's stock abbreviation is “Galaxy Magnet”, stock code 300127, listed on the Shenzhen Stock Exchange[13] - The company's legal representative is Dai Yan[13] Contact Person and Information The Board Secretary is Zhu Kuiwen, Securities Affairs Representative is Huang Ying, and the contact address is No. 6 Baicao Road, West District, Chengdu High-tech Zone - The Board Secretary is Zhu Kuiwen, and the Securities Affairs Representative is Huang Ying[14] - The company's contact address is No. 6 Baicao Road, West District, Chengdu High-tech Zone[14] Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure newspaper, designated website, report placement location, or registration status - The company's contact information, information disclosure and placement locations, and registration status remained unchanged during the reporting period[15][16][17] Key Accounting Data and Financial Indicators The company's total operating revenue decreased by 2.75% year-on-year in the first half of 2019, and net profit attributable to shareholders decreased by 8.51% 2019 Semi-Annual Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (Yuan) | Prior Year Period Adjusted (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 294,720,662.47 | 303,047,424.52 | -2.75% | | Net Profit Attributable to Listed Company Shareholders | 72,054,396.32 | 78,760,136.82 | -8.51% | | Net Profit Attributable to Listed Company Shareholders After Non-Recurring Items | 72,829,274.02 | 78,453,200.88 | -7.17% | | Net Cash Flow from Operating Activities | 51,173,608.31 | 48,187,223.75 | 6.20% | | Basic Earnings Per Share (Yuan/share) | 0.22 | 0.24 | -8.33% | | Diluted Earnings Per Share (Yuan/share) | 0.22 | 0.24 | -8.33% | | Weighted Average Return on Net Assets | 5.80% | 6.41% | -0.61% | | Period-End Indicators | Current Reporting Period-End (Yuan) | Prior Year-End Adjusted (Yuan) | Period-End vs. Prior Year-End Change | | Total Assets | 1,240,823,408.12 | 1,303,831,016.76 | -4.83% | | Net Assets Attributable to Listed Company Shareholders | 1,183,588,387.00 | 1,224,635,216.68 | -3.35% | - Accounting policy changes retrospectively adjusted 56,565.59 yuan of "Operating Revenue (Other Business Income)" for January-June 2018, simultaneously increasing "Other Income" by 56,565.59 yuan, with no impact on profit[20] Differences in Accounting Data under Domestic and International Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or foreign accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and Chinese accounting standards during the reporting period[21] - The company reported no differences in net profit and net assets between financial statements disclosed under foreign accounting standards and Chinese accounting standards during the reporting period[22] Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the reporting period amounted to -774,877.70 yuan, primarily comprising government grants recognized in current profit and loss, and other non-operating income and expenses 2019 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB Yuan) | Explanation | | :--- | :--- | :--- | | Government grants recognized in current profit and loss (excluding government grants closely related to the company's business and enjoyed at fixed or quantitative standards set by the state) | 283,737.96 | See "Section X, VII, 67 Other Income" of this report | | Other non-operating income and expenses apart from the above items | -1,196,093.74 | | | Less: Income tax impact | -136,853.36 | | | Minority interest impact (after tax) | -624.72 | | | Total | -774,877.70 | -- | - The company did not classify non-recurring gains and losses as recurring gains and losses during the reporting period[24] Company Business Overview This section details the company's main business activities, significant asset changes, and core competencies during the reporting period Main Businesses Engaged by the Company During the Reporting Period The company primarily engages in R&D, production, and sales of bonded NdFeB, SmCo, and hot-pressed NdFeB magnets, widely used in automotive, energy-efficient home appliances, power tools, and robotics - The company's products include bonded neodymium iron boron magnets, samarium cobalt magnets, and hot-pressed neodymium iron boron magnets, applied in automotive motors, hard disk drives, optical disk drives, various pump motors, stepping motors, and permanent magnet brushless DC motor rotor assemblies[26] - In the first half of 2019, the company's operating revenue was 294,720,662.47 yuan, a year-on-year decrease of 2.75%; net profit attributable to shareholders was 72,054,396.32 yuan, a year-on-year decrease of 8.51%[27] - The decrease in operating revenue was mainly due to a significant decline in sales revenue from hard disk magnets, with sales revenue from hot-pressed magnets and samarium cobalt magnets also decreasing[27] - The year-on-year decrease in total profit and net profit attributable to the parent company was primarily due to a slight decrease in sales revenue, a decline in gross profit margins for some products, and exchange rate fluctuations[27] Significant Changes in Major Assets At the end of the reporting period, the company's intangible assets and construction in progress significantly increased from the beginning of the year, primarily due to its wholly-owned subsidiary acquiring land use rights and commencing basic construction for a high-performance rare earth permanent magnet materials project Major Asset Changes | Major Asset | Period-End vs. Period-Beginning Change (Yuan) | Increase Rate | Explanation of Change | | :--- | :--- | :--- | :--- | | Intangible Assets | 7,739,958.47 | 40.00% | Mainly due to the wholly-owned subsidiary Chengdu Yinci Materials Co., Ltd. acquiring land use rights for the "High-Performance Rare Earth Permanent Magnet Materials Engineering Project" and transferring them to intangible assets. | | Construction in Progress | 1,135,892.26 | 60.47% | Mainly due to the wholly-owned subsidiary Chengdu Yinci Materials Co., Ltd. commencing basic construction for the "High-Performance Rare Earth Permanent Magnet Materials Engineering Project." | - The company had no major overseas assets during the reporting period[29] Analysis of Core Competitiveness The company's core competitiveness remained stable during the reporting period, with no severe impacts from equipment technology upgrades or resignations of key technical personnel, and four new utility model patents were added - The company's core competitiveness was not severely impacted, and its wholly-owned subsidiary, Chengdu Yinci Materials Co., Ltd., acquired land use rights[29] - During the reporting period, the company added 4 utility model patents, including a gear rotor, a magnet with a charging coil sleeve and arc-shaped pole, a magnet with a charging coil inner sleeve and triangular pole, and a magnet assembly with enhanced bonding strength and a rotor assembly using this magnet assembly[30] - The new patents played a significant role in improving the production quality or efficiency of products or components[30] Management Discussion and Analysis This section provides an overview of the company's operating performance, main business analysis, asset and liability status, investment activities, and risk factors during the reporting period Overview In the first half of 2019, rare earth prices fluctuated, overall downstream market demand slightly decreased, while demand for automotive and high-efficiency energy-saving motor magnets increased, and traditional product demand declined - In the first half of 2019, rare earth prices fluctuated with an initial decrease followed by a slight increase, overall downstream demand for the company's products was stable with a slight decline, demand for automotive and some high-efficiency energy-saving motor magnets increased, while demand for some traditional products decreased[33] - The company's countermeasures included actively negotiating raw material and product prices with upstream and downstream partners, continuously developing new products, promoting product and equipment automation, and strictly implementing various management measures to improve efficiency[33] 2019 Semi-Annual Key Operating Performance | Indicator | Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 294,720,662.47 | -2.75% | | Total Profit | 85,305,200.25 | -8.52% | | Net Profit Attributable to Listed Company Shareholders | 72,054,396.32 | -8.51% | - The decrease in operating revenue was mainly due to a significant decline in sales revenue from hard disk magnets within bonded neodymium iron boron magnets, with sales revenue from hot-pressed magnets and samarium cobalt magnets also decreasing to some extent[33] - The year-on-year decrease in total profit and net profit attributable to the parent company was primarily due to a slight decrease in sales revenue, a decline in gross profit margins for some products, and exchange rate fluctuations[34] Analysis of Main Business The company's main business revenue slightly decreased year-on-year, but financial expenses significantly reduced by 296.61%, primarily due to increased fixed deposit interest and exchange rate effects Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 294,720,662.47 | 303,047,424.52 | -2.75% | | | Operating Cost | 192,921,375.12 | 194,693,616.30 | -0.91% | | | Selling Expenses | 8,373,170.64 | 7,709,013.78 | 8.62% | | | Administrative Expenses | 8,129,739.10 | 8,683,809.64 | -6.38% | | | Financial Expenses | -9,849,359.27 | -2,483,390.67 | -296.61% | Decreased by 7,365,968.60 yuan compared to the same period last year, mainly due to increased fixed deposit interest and exchange rate effects. | | Income Tax Expenses | 12,864,332.62 | 13,836,097.20 | -7.02% | | | R&D Investment | 9,601,204.92 | 9,592,829.22 | 0.09% | | | Net Cash Flow from Operating Activities | 51,173,608.31 | 48,187,223.75 | 6.20% | | | Net Cash Flow from Investing Activities | 85,811,179.26 | 58,974,274.28 | 45.51% | Mainly due to the redemption of principal-protected wealth management products maturing within one year and increased cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets. | | Net Cash Flow from Financing Activities | -114,037,226.00 | -146,975,862.00 | 22.41% | | | Net Increase in Cash and Cash Equivalents | 23,092,495.79 | -39,550,858.44 | 158.39% | Due to the combined effect of increased net cash flow from investing activities and decreased net cash outflow from financing activities. | - During the reporting period, the completion rates for both unfulfilled orders from the previous period and new orders for the current period were high, with bonded neodymium iron boron magnet orders achieving 100.00% and 78.20% completion, respectively[39] Operating Revenue, Cost, and Gross Profit Margin by Product/Service and Region | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Product or Service | | | | | | | | Rare Earth Permanent Magnets | 294,720,662.47 | 192,921,375.12 | 34.54% | -2.75% | -0.91% | -1.21% | | Bonded Neodymium Iron Boron Magnets | 278,049,624.92 | 183,380,056.50 | 34.05% | -0.47% | -1.02% | 0.37% | | By Region | | | | | | | | Export Sales | 123,727,978.77 | 71,212,115.20 | 42.44% | -16.31% | -16.05% | -0.18% | | Domestic Sales | 170,992,683.70 | 121,709,259.92 | 28.82% | 10.17% | 10.78% | -0.40% | Analysis of Non-Main Business Non-main business activities contributed minimally to total profit, with investment income accounting for 5.35% and non-operating expenses for 1.40% Impact of Non-Main Business on Total Profit | Item | Amount (RMB Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 4,564,970.63 | 5.35% | | | | Non-Operating Expenses | 1,196,093.74 | 1.40% | | | | Credit Impairment Losses | 124,648.26 | 0.15% | | | | Other Income | 345,307.13 | 0.40% | | | Analysis of Assets and Liabilities At the end of the reporting period, the company's monetary funds significantly increased by 32.11% compared to the end of the previous year, primarily due to the redemption of principal-protected wealth management products Significant Changes in Asset Composition | Item | Period-End Amount (Yuan) | Proportion of Total Assets | Prior Year-End Amount (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 512,668,139.08 | 41.32% | 112,136,680.05 | 9.21% | 32.11% | Increased at the end of the current reporting period compared to the end of the prior year, mainly due to the redemption of principal-protected wealth management products maturing within one year. | | Accounts Receivable | 162,546,182.33 | 13.10% | 178,312,778.13 | 14.65% | -1.55% | | | Inventories | 125,326,544.55 | 10.10% | 117,738,761.83 | 9.67% | 0.43% | | | Fixed Assets | 172,203,377.38 | 13.88% | 168,118,127.52 | 13.81% | 0.07% | | | Construction in Progress | 3,014,389.27 | 0.24% | 1,257,544.77 | 0.10% | 0.14% | | - The company had no assets or liabilities measured at fair value at the end of the reporting period[45] - The company had no restricted asset rights at the end of the reporting period[45] Analysis of Investment Status The company's total raised capital was 696.5732 million yuan, with cumulative investment of 630.6741 million yuan by the end of the reporting period Overall Use of Raised Capital | Indicator | Amount (Million Yuan) | | :--- | :--- | | Total Raised Capital | 696.57 | | Total Raised Capital Invested in Current Period | 0 | | Total Cumulative Raised Capital Invested | 630.67 | | Total Raised Capital with Changed Use in Current Period | 0 | | Total Cumulative Raised Capital with Changed Use | 0 | | Proportion of Cumulative Raised Capital with Changed Use | 0.00% | - The "High-Precision, High-Cleanliness Hard Disk Bonded Neodymium Iron Boron Magnet Expansion Project" did not meet its expected targets, while the "High-Performance Automotive Bonded Neodymium Iron Boron Magnet Expansion Project" significantly exceeded its expected targets, primarily due to downstream demand changes leading to product structure adjustments[49] - The "Samarium Cobalt Magnet Project" and "Hot-Pressed Magnet Project" were completed in February 2018, achieving production capacity targets, but due to technical, process, equipment automation, and market development issues, they did not achieve expected benefits during the reporting period[49] - The company used idle over-raised funds to purchase principal-protected bank wealth management products, with an amount not exceeding 150 million yuan, and funds are available for revolving use[51] Overview of Wealth Management Entrustment During the Reporting Period | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (Million Yuan) | Unexpired Balance (Million Yuan) | Overdue Unrecovered Amount (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Idle Own Funds | 300 | 50 | 0 | | Brokerage Wealth Management Products | Idle Own Funds | 90 | 90 | 0 | | Total | | 390 | 140 | 0 | Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[58] - The company did not sell significant equity during the reporting period[59] Analysis of Major Holding and Participating Companies The company's main holding subsidiary is Leshan Galaxy Yuantong Magnetic Powder Co., Ltd., which primarily engages in R&D, production, and sales of rare earth metal materials, magnetic powder, and magnetic materials, achieving a net profit of 3.5107 million yuan during the reporting period Financial Status of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Leshan Galaxy Yuantong Magnetic Powder Co., Ltd. | Subsidiary | Research, production, and sales of rare earth metal materials, magnetic powder, and magnetic material application products, as well as related technical consulting services. | 45,200,000 | 56,893,295.10 | 53,589,752.59 | 66,103,929.98 | 4,156,516.00 | 3,510,708.48 | - The wholly-owned subsidiary, Chengdu Yinci Materials Co., Ltd., established in March 2017, is currently constructing factory buildings and has not yet commenced production and operation[61] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[62] Forecast of Operating Performance for January-September 2019 The company did not issue any warnings or explanations regarding losses or significant changes in operating performance for January-September 2019 - The company did not issue any warnings or explanations regarding losses or significant changes in operating performance for January-September 2019 compared to the same period last year[63] Risks Faced by the Company and Countermeasures The company's products, rare earth permanent magnet materials, have good market prospects but face risks from rapid product upgrades and adjustments in downstream demand structure - The company's products belong to rare earth permanent magnet materials, primarily used in high-efficiency energy-saving motors, with good market prospects[63] - The company's products have a wide range of applications and are updated quickly; downstream demand for automotive magnets and high-efficiency energy-saving motor magnets increased, while demand for some traditional products decreased[63] - No new risks with significant future operational impact emerged during the reporting period[64] Significant Events This section covers significant events during the reporting period, including shareholder meetings, profit distribution plans, commitments, accounting firm appointments, litigation, and related party transactions Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held its 2018 Annual General Meeting and the First Extraordinary General Meeting in 2019, with investor participation rates exceeding 71% for both Shareholder Meeting Information During the Reporting Period | Meeting Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | | 2018 Annual General Meeting | Annual General Meeting | 71.90% | April 22, 2019 | April 23, 2019 | Juchao Information Network | | 2019 First Extraordinary General Meeting | Extraordinary General Meeting | 71.83% | May 31, 2019 | June 01, 2019 | Juchao Information Network | - The company reported no situations where preferred shareholders with restored voting rights requested an extraordinary general meeting during the reporting period[68] Profit Distribution and Capital Reserve Conversion Plan for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[68] Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Commitment-Related Parties During and as of the End of the Reporting Period The company reported no overdue unfulfilled commitments by its actual controller, shareholders, related parties, acquirers, or other commitment-related parties during or as of the end of the reporting period - The company reported no overdue unfulfilled commitments by its actual controller, shareholders, related parties, acquirers, or other commitment-related parties during or as of the end of the reporting period[69] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[70] Board of Directors' and Supervisory Board's Explanation of "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[71] Board of Directors' Explanation of "Non-Standard Audit Report" for the Previous Year The company provided no explanation regarding a non-standard audit report for the previous year during the reporting period - The company provided no explanation regarding a non-standard audit report for the previous year during the reporting period[71] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[71] Litigation Matters The company is involved in a significant lawsuit with the Pixian District Finance Bureau of Chengdu, concerning the repayment of 4.8833 million yuan in principal and interest from a 2005 re-loan of national debt funds Major Litigation and Arbitration Matters | Litigation (Arbitration) Basic Information | Amount Involved (Million Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | | :--- | :--- | :--- | :--- | :--- | :--- | | In July 2017, the Pixian District Finance Bureau of Chengdu sued the company, demanding repayment of 4,756,979.00 yuan (3,710,000.00 yuan principal, 1,056,979.00 yuan interest) of re-loan national debt funds transferred to the company's declared project in 2005; the case was first heard in the Pixian District People's Court in November 2017, a second hearing was held on June 20, 2018, and on April 26, 2019, the Pixian District People's Court ruled that the company should repay the Pixian District Finance Bureau the principal of 3.71 million yuan and interest (calculated up to the actual payment date). On May 10, 2019, the company appealed to the Chengdu Intermediate People's Court, and the judgment result has not yet been received. | 4.88 | Yes | Appealed to the Intermediate People's Court, judgment not yet received. | Appealed to the Intermediate People's Court, judgment not yet received. | A provision for liabilities of 1,183,312.12 yuan (interest payable as of the judgment date) has been accrued according to the Pixian District Court's judgment. | - The company had no other litigation matters during the reporting period[73] Media Scrutiny The company did not face any widespread media scrutiny during the reporting period - The company did not face any widespread media scrutiny during the reporting period[74] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[75] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no issues regarding the integrity status of itself, its controlling shareholder, or its actual controller during the reporting period - The company reported no issues regarding the integrity status of itself, its controlling shareholder, or its actual controller during the reporting period[76] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, or their implementation, during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, or their implementation, during the reporting period[76] Significant Related Party Transactions The company did not engage in any related party transactions concerning daily operations, asset or equity acquisitions/disposals, joint external investments, related party receivables/payables, or other significant related party transactions during the reporting period - The company did not engage in related party transactions related to daily operations during the reporting period[77] - The company did not engage in related party transactions involving asset or equity acquisitions or disposals during the reporting period[78] - The company did not engage in related party transactions involving joint external investments during the reporting period[79] - The company had no related party receivables or payables during the reporting period[80] - The company had no other significant related party transactions during the reporting period[81] Significant Contracts and Their Performance The company had no significant contracts related to trusteeship, contracting, leasing, major guarantees, or other significant contracts during the reporting period - The company had no trusteeship situations during the reporting period[82] - The company had no contracting situations during the reporting period[83] - The company had no leasing situations during the reporting period[84] - The company had no guarantee situations during the reporting period[85] - The company had no other significant contracts during the reporting period[86] Social Responsibility The company is not classified as a key pollutant-discharging entity by environmental protection authorities and has not yet undertaken targeted poverty alleviation efforts, with no such plans for the future - The company is not classified as a key pollutant-discharging entity by environmental protection authorities[87] - The company has not yet undertaken targeted poverty alleviation efforts for the semi-annual period and has no such plans for the future[87][88] Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[89] Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[90] Changes in Shares and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder numbers, and controlling shareholder information during the reporting period Changes in Share Capital The company's total share capital remained unchanged during the reporting period, but restricted shares increased by 750 due to the lock-up following the resignation of independent director Luo Min, with a corresponding decrease in unrestricted shares Changes in Share Capital | Share Class | Quantity Before Change | Change (＋, －) | Quantity After Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 96,032,470 | +750 | 96,033,220 | | 3. Other Domestic Holdings | 96,032,470 | +750 | 96,033,220 | | Domestic Natural Person Holdings | 96,032,470 | +750 | 96,033,220 | | II. Unrestricted Shares | 227,113,890 | -750 | 227,113,140 | | 1. RMB Ordinary Shares | 227,113,890 | -750 | 227,113,140 | | III. Total Shares | 323,146,360 | 0 | 323,146,360 | - Changes in restricted shares were mainly due to the lock-up of 1,000 shares after independent director Luo Min's resignation, with a planned release date of December 2, 2019[94] - The company had no securities issuance and listing situations during the reporting period[93] Securities Issuance and Listing The company had no securities issuance and listing situations during the reporting period - The company had no securities issuance and listing situations during the reporting period[93] Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of common shareholders was 31,078. Chengdu Galaxy Industrial (Group) Co., Ltd. and Dai Yan were the top two shareholders, holding 32.20% and 31.51% respectively - At the end of the reporting period, the total number of common shareholders was 31,078[95] Shareholding Status of Common Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End | Number of Restricted Shares Held | Number of Unrestricted Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu Galaxy Industrial (Group) Co., Ltd. | Domestic Non-State-Owned Legal Person | 32.20% | 104,065,945 | 0 | 104,065,945 | Pledged 1,499,900 | | Dai Yan | Domestic Natural Person | 31.51% | 101,815,862 | 76,361,896 | 25,453,966 | | | Zhang Yan | Domestic Natural Person | 3.73% | 12,057,318 | 9,042,988 | 3,014,330 | | | Wu Zhijian | Domestic Natural Person | 3.73% | 12,057,318 | 9,042,988 | 3,014,330 | | | Central Huijin Asset Management Co., Ltd. | State-Owned Legal Person | 1.05% | 3,388,100 | 0 | 3,388,100 | | | He Jinzhou | Domestic Natural Person | 0.65% | 2,111,464 | 1,583,598 | 527,866 | | | Chen Wu | Domestic Natural Person | 0.37% | 1,208,719 | 0 | 1,208,719 | | | Fu Qinlong | Domestic Natural Person | 0.23% | 731,704 | 0 | 731,704 | | | Industrial and Commercial Bank of China - Zhonghai Energy Strategy Mixed Securities Investment Fund | Other | 0.19% | 603,500 | 0 | 603,500 | | | Liu Zonghui | Domestic Natural Person | 0.19% | 598,000 | 0 | 598,000 | | - Tang Buyun and Zhang Yan, the actual controllers of Chengdu Galaxy Industrial (Group) Co., Ltd., are a married couple, holding 66% and 20% of Chengdu Galaxy Industrial (Group) Co., Ltd. shares, respectively[96] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[97] - The company's actual controller remained unchanged during the reporting period[97] Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[100] Directors, Supervisors, and Senior Management Information This section details changes in shareholdings and personnel for the company's directors, supervisors, and senior management during the reporting period Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[103] Changes in Company Directors, Supervisors, and Senior Management During the reporting period, three independent directors, Luo Min, Zhou Yousu, and He Yong, resigned due to the expiration of their terms, and Wang Renping, Fu Jiang, and Liu Zhiqiang were elected as new independent directors Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Luo Min | Independent Director | Term Expired Resignation | June 01, 2019 | Term expiration resignation | | Zhou Yousu | Independent Director | Term Expired Resignation | June 01, 2019 | Term expiration resignation | | He Yong | Independent Director | Term Expired Resignation | June 01, 2019 | Term expiration resignation | | Wang Renping | Independent Director | Elected | May 31, 2019 | Re-election | | Fu Jiang | Independent Director | Elected | May 31, 2019 | Re-election | | Liu Zhiqiang | Independent Director | Elected | May 31, 2019 | Re-election | Corporate Bonds Information The company had no corporate bonds publicly issued and listed on a stock exchange that were unexpired or not fully redeemed as of the approval date of the semi-annual report - The company had no corporate bonds publicly issued and listed on a stock exchange that were unexpired or not fully redeemed as of the approval date of the semi-annual report[107] Financial Report This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies and specific financial items Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[109] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2019 Consolidated Balance Sheet As of June 30, 2019, the company's total consolidated assets were 1.241 billion yuan, total liabilities were 51.3343 million yuan, and total owners' equity was 1.189 billion yuan Consolidated Balance Sheet Key Data | Item | June 30, 2019 (Yuan) | December 31, 2018 (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,240,823,408.12 | 1,303,831,016.76 | | Total Liabilities | 51,334,338.28 | 72,745,588.55 | | Total Owners' Equity | 1,189,489,069.84 | 1,231,085,428.21 | | Monetary Funds | 512,668,139.08 | 489,575,643.29 | | Accounts Receivable | 162,546,182.33 | 170,070,503.86 | | Inventories | 125,326,544.55 | 135,115,104.94 | | Other Current Assets | 140,263,478.35 | 241,288,084.55 | | Intangible Assets | 27,091,326.94 | 19,351,368.47 | | Accounts Payable | 28,076,554.70 | 37,685,655.85 | | Employee Benefits Payable | 1,001,415.59 | 11,327,109.95 | | Provisions | 1,183,312.12 | 0 | Parent Company Balance Sheet As of June 30, 2019, the parent company's total assets were 1.239 billion yuan, total liabilities were 61.4678 million yuan, and total owners' equity was 1.178 billion yuan Parent Company Balance Sheet Key Data | Item | June 30, 2019 (Yuan) | December 31, 2018 (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,238,996,618.11 | 1,298,444,437.59 | | Total Liabilities | 61,467,790.50 | 84,026,258.76 | | Total Owners' Equity | 1,177,528,827.61 | 1,214,418,178.83 | | Monetary Funds | 499,879,927.31 | 460,749,654.98 | | Accounts Receivable | 162,546,182.33 | 170,070,503.86 | | Inventories | 99,238,977.41 | 107,740,618.01 | | Other Current Assets | 140,000,000.00 | 240,535,167.40 | | Long-Term Equity Investments | 70,000,000.00 | 70,000,000.00 | | Accounts Payable | 38,816,166.70 | 49,764,510.89 | | Employee Benefits Payable | 996,486.90 | 10,972,415.53 | | Provisions | 1,183,312.12 | 0 | Consolidated Income Statement In the first half of 2019, the company's consolidated total operating revenue was 295 million yuan, a year-on-year decrease of 2.75%; net profit was 72.4409 million yuan, a year-on-year decrease of 8.78% Consolidated Income Statement Key Data | Item | 2019 Semi-Annual (Yuan) | 2018 Semi-Annual (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 294,720,662.47 | 303,047,424.52 | | II. Total Operating Costs | 213,254,294.50 | 222,390,681.42 | | Financial Expenses | -9,849,359.27 | -2,483,390.67 | | Add: Other Income | 345,307.13 | 323,637.55 | | Investment Income | 4,564,970.63 | 13,874,824.51 | | Credit Impairment Losses | 124,648.26 | 0 | | Asset Impairment Losses | 0 | -1,693,179.06 | | III. Operating Profit | 86,501,293.99 | 93,282,661.46 | | Less: Non-Operating Expenses | 1,196,093.74 | 30,057.54 | | IV. Total Profit | 85,305,200.25 | 93,252,603.92 | | Less: Income Tax Expenses | 12,864,332.62 | 13,836,097.20 | | V. Net Profit | 72,440,867.63 | 79,416,506.72 | | Net Profit Attributable to Parent Company Owners | 72,054,396.32 | 78,760,136.82 | | Basic Earnings Per Share (Yuan/share) | 0.22 | 0.24 | Parent Company Income Statement In the first half of 2019, the parent company's operating revenue was 295 million yuan, a year-on-year decrease of 2.75%; net profit was 76.2119 million yuan, a year-on-year decrease of 10.98% Parent Company Income Statement Key Data | Item | 2019 Semi-Annual (Yuan) | 2018 Semi-Annual (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 294,720,662.47 | 303,047,424.52 | | Less: Operating Costs | 197,943,763.60 | 202,588,595.06 | | Financial Expenses | -9,480,540.77 | -2,163,997.27 | | Add: Other Income | 345,307.13 | 323,637.55 | | Investment Income | 11,764,970.63 | 25,874,824.51 | | Credit Impairment Losses | 124,822.80 | 0 | | Asset Impairment Losses | 0 | -1,692,837.90 | | II. Operating Profit | 89,649,541.31 | 98,354,405.31 | | Less: Non-Operating Expenses | 1,189,705.18 | 57.54 | | III. Total Profit | 88,459,836.13 | 98,354,347.77 | | Less: Income Tax Expenses | 12,247,961.35 | 12,739,287.27 | | IV. Net Profit | 76,211,874.78 | 85,615,060.50 | | Basic Earnings Per Share (Yuan/share) | 0.24 | 0.26 | Consolidated Cash Flow Statement In the first half of 2019, the company's net cash flow from operating activities was 51.1736 million yuan, a year-on-year increase of 6.20% Consolidated Cash Flow Statement Key Data | Item | 2019 Semi-Annual (Yuan) | 2018 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 51,173,608.31 | 48,187,223.75 | | Net Cash Flow from Investing Activities | 85,811,179.26 | 58,974,274.28 | | Net Cash Flow from Financing Activities | -114,037,226.00 | -146,975,862.00 | | Net Increase in Cash and Cash Equivalents | 23,092,495.79 | -39,550,858.44 | | Period-End Cash and Cash Equivalents Balance | 512,668,139.08 | 112,136,680.05 | - The increase in net cash flow from investing activities was mainly due to a significant increase in cash received from investment redemptions (250 million yuan)[125] Parent Company Cash Flow Statement In the first half of 2019, the parent company's net cash flow from operating activities was 47.3903 million yuan, a year-on-year increase of 9.20% Parent Company Cash Flow Statement Key Data | Item | 2019 Semi-Annual (Yuan) | 2018 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 47,390,309.03 | 43,399,358.89 | | Net Cash Flow from Investing Activities | 104,696,255.08 | 71,975,826.49 | | Net Cash Flow from Financing Activities | -113,101,226.00 | -145,415,862.00 | | Net Increase in Cash and Cash Equivalents | 39,130,272.33 | -29,777,171.09 | | Period-End Cash and Cash Equivalents Balance | 499,879,927.31 | 73,106,335.83 | Consolidated Statement of Changes in Owners' Equity As of June 30, 2019, total owners' equity attributable to the parent company was 1.184 billion yuan, a 3.35% decrease from the beginning of the period Consolidated Statement of Changes in Owners' Equity | Item | 2019 Semi-Annual Period-End Balance (Yuan) | 2019 Semi-Annual Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 323,146,360.00 | 323,146,360.00 | | Capital Reserves | 496,202,753.84 | 496,202,753.84 | | Surplus Reserves | 139,672,318.95 | 139,672,318.95 | | Retained Earnings | 224,566,954.21 | 265,613,783.89 | | Total Owners' Equity Attributable to Parent Company | 1,183,588,387.00 | 1,224,635,216.68 | | Minority Interests | 5,900,682.84 | 6,450,211.53 | | Total Owners' Equity | 1,189,489,069.84 | 1,231,085,428.21 | - Total comprehensive income attributable to owners of the parent company for the current period was 72,054,396.32 yuan[131] - The amount of profit distributed to owners (or shareholders) for the current period was 113,101,226.00 yuan[131] Parent Company Statement of Changes in Owners' Equity As of June 30, 2019, total parent company owners' equity was 1.178 billion yuan, a 3.04% decrease from the beginning of the period Parent Company Statement of Changes in Owners' Equity | Item | 2019 Semi-Annual Period-End Balance (Yuan) | 2019 Semi-Annual Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 323,146,360.00 | 323,146,360.00 | | Capital Reserves | 496,202,753.84 | 496,202,753.84 | | Surplus Reserves | 139,672,318.95 | 139,672,318.95 | | Retained Earnings | 218,507,394.82 | 255,396,746.04 | | Total Owners' Equity | 1,177,528,827.61 | 1,214,418,178.83 | - Total comprehensive income for the current period was 76,211,874.78 yuan[137] - The amount of profit distributed to owners (or shareholders) for the current period was 113,101,226.00 yuan[137] Company Basic Information The company, formerly Chengdu Galaxy New Composite Materials Factory, was restructured into a joint-stock company in 2001 and listed on the Shenzhen Stock Exchange in 2010, primarily manufacturing and selling permanent magnet alloy components - The company, formerly Chengdu Galaxy New Composite Materials Factory, was restructured into Chengdu Galaxy Magnet Co., Ltd. in 2001[141][142] - The company publicly issued RMB common shares and was listed on the Shenzhen Stock Exchange on September 20, 2010[142] - The company operates in the electronic components manufacturing industry, primarily manufacturing and selling permanent magnet alloy components[145] - The company has no actual controller, with Chengdu Galaxy Industrial (Group) Co., Ltd. as the largest shareholder[145] - The company's financial report was approved for issuance by the Board of Directors on August 26, 2019[146] - Two subsidiaries were included in the scope of consolidated financial statements for the current period: Leshan Galaxy Yuantong Magnetic Powder Co., Ltd. (holding subsidiary) and Chengdu Yinci Materials Co., Ltd. (wholly-owned subsidiary)[147] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant CSRC regulations, using the accrual basis of accounting and historical cost measurement for most items - The company's financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and their supporting guidelines and interpretations, based on actual transactions and events[148] - The company's accounting is based on the accrual method, and except for certain financial instruments, all items are measured at historical cost[148] - The company has the ability to continue as a going concern for 12 months from the end of the reporting period, with no significant matters affecting this ability[149] Significant Accounting Policies and Accounting Estimates The company adheres to enterprise accounting standards for financial statement preparation and implemented accounting policy changes for the 2019 general enterprise financial statement format, primarily involving presentation adjustments with no impact on profit - The financial statements and notes prepared by the company comply with the requirements of the "Enterprise Accounting Standards," truthfully and completely reflecting the financial position, operating results, and cash flows[151] - The company uses RMB as its bookkeeping currency, and its operating cycle is 12 months[153][154] - The company classifies, recognizes, and measures financial assets and liabilities, and performs impairment tests and provisions for financial assets[165][166][167][168][169][170] - The company accrues bad debt provisions for notes receivable and accounts receivable based on the expected credit loss model and categorizes risk levels by aging[171][172][173] - Inventories are accounted for at actual cost, issued using the weighted average method, and measured at the lower of cost or net realizable value at year-end[175][176] - Fixed assets are depreciated using the straight-line method, and construction in progress is measured at actual cost, transferred to fixed assets in the month of completion and acceptance[186][187] - Intangible assets are measured at actual cost and amortized on a straight-line basis over their estimated useful lives; internal R&D expenditures are capitalized when conditions are met, otherwise expensed[189][191][192] - The company's revenue recognition principle is that the significant risks and rewards of ownership of goods are transferred to the buyer, economic benefits can flow in, and revenue and costs can be reliably measured[199] - The company implemented accounting policy changes for the 2019 general enterprise financial statement format, primarily involving presentation adjustments with no impact on profit[206] Taxes Company and subsidiaries are subject to various taxes including VAT, urban maintenance and construction tax, corporate income tax, education surcharges, local education surcharges, property tax, and land use tax, with specific preferential income tax rates for high-tech enterprises and western development Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Domestic sales: taxable income; Export sales: VAT exemption, deduction, and refund policy | Parent company: Domestic sales: 17%, 16%, 13%, Export sales: tax rate 17%, 16%, refund rate 17%, 16%; Subsidiaries: Domestic sales: 17%, 16%, 13%. | | Urban Maintenance and Construction Tax | Payable VAT and export tax refund/exemption amount | Parent company: 7%; Subsidiaries: 7%, 5%. | | Corporate Income Tax | Taxable income | Parent company: 15％; Subsidiaries: 15%, 20%, 25%. | | Education Surcharge | Payable VAT and export tax refund/exemption amount | Parent company: 3%; Subsidiaries: 3% | | Local Education Surcharge | Payable VAT and export tax refund/exemption amount | Parent company: 2%; Subsidiaries: 2% | | Property Tax | Original value of property | Parent company: Original value of property × 70％ × 1.2％; Subsidiaries: Original value of property × 70％ × 1.2％ | | Land Use Tax | Occupied area | Parent company: 6 Yuan/㎡; Subsidiaries: 1.5 Yuan/㎡, 8 Yuan/㎡ | - The parent company enjoys a 15% corporate income tax preferential policy for high-tech enterprises, valid until December 31, 2019[212] - Subsidiary Leshan Galaxy Yuantong Magnetic Powder Co., Ltd. enjoys a 15% corporate income tax rate under the Western Development preferential policy[213] - Subsidiary Chengdu Yinci Materials Co., Ltd. enjoys a preferential tax reduction policy for small and micro enterprises, paying corporate income tax at a rate of 20% on taxable income not exceeding 1 million yuan[214] Notes to Consolidated Financial Statement Items This section details the composition, period-end balances, period-beginning balances, and significant changes for each consolidated financial statement item Monetary Funds Period-end monetary funds balance was 513 million yuan, an increase of 23.0925 million yuan from the beginning of the period, mainly due to foreign sales receipts awaiting settlement Composition of Monetary Funds | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash on Hand | 50,478.06 | 5,646.96 | | Bank Deposits | 509,948,605.71 | 489,323,148.50 | | Other Monetary Funds | 2,669,055.31 | 246,847.83 | | Total | 512,668,139.08 | 489,575,643.29 | - Period-end other monetary funds primarily consisted of foreign sales receipts awaiting settlement[216] Notes Receivable Period-end notes receivable balance was 55.9527 million yuan, an increase of 9.8089 million yuan from the beginning of the period, mainly comprising bank acceptance bills and commercial acceptance bills Classification of Notes Receivable | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Bank Acceptance Bills | 55,052,738.41 | 46,143,799.08 | | Commercial Acceptance Bills | 900,000.00 | 0 | | Total | 55,952,738.41 | 46,143,799.08 | - The company did not accrue bad debt provisions for notes receivable, considering them to have low credit risk[218][171] Accounts Receivable Period-end accounts receivable book value was 163 million yuan, a slight decrease from the beginning of the period Disclosure of Accounts Receivable by Category | Category | Period-End Book Balance (Yuan) | Proportion | Bad Debt Provision (Yuan) | Provision Rate | Book Value (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable for which Bad Debt Provisions are Accrued by Portfolio | 171,802,411.46 | 100.00% | 9,256,229.13 | 5.39% | 162,546,182.33 | Bad Debt Provisions by Aging | Aging | Book Balance (Yuan) | Bad Debt Provision (Yuan) | Provision Rate | | :--- | :--- | :--- | :--- | | Within 1 year | 169,606,433.90 | 8,480,321.70 | 5.00% | | 1 to 2 years | 1,879,460.18 | 563,838.05 | 30.00% | | 2 to 3 years | 261,120.00 | 156,672.00 | 60.00% | | Over 3 years | 55,397.38 | 55,397.38 | 100.00% | | Total | 171,802,411.46 | 9,256,229.13 | | - Bad debt provisions of 136,757.72 yuan were accrued and 1,344.76 yuan were written off during the current period[226] - The total amount of the top five accounts receivable at period-end was 100,116,293.26 yuan, accounting for 58.27% of the total accounts receivable period-end balance[229] Prepayments Period-end prepayments balance was 4.3824 million yuan, a 233.46% increase from the beginning of the period, mainly due to increased prepayments for materials to suppliers Prepayments by Aging | Aging | Period-End Balance (Yuan) | Proportion | Period-Beginning Balance (Yuan) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 4,382,386.15 | 100.00% | 1,314,206.13 | 100.00% | | Total | 4,382,386.15 | -- | 1,314,206.13 | -- | - The total amount of the top five prepayments at period-end was 3,822,431.83 yuan, accounting for 87.22% of the total prepayments period-end balance[232] Other Receivables Period-end other receivables balance was 21.9349 million yuan, a 90.49% increase from the beginning of the period, mainly due to increased accrued interest on unsettled fixed deposits Composition of Other Receivables | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Accrued Interest | 20,070,146.31 | 8,880,006.42 | | Other Receivables | 1,864,803.16 | 2,634,723.40 | | Total | 21,934,949.47 | 11,514,729.82 | Classification of Accrued Interest | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Fixed Deposit Interest | 14,692,630.55 | 5,116,077.65 | | Wealth Management Product Investment Income | 5,377,515.76 | 3,763,928.77 | | Total | 20,070,146.31 | 8,880,006.42 | - Other receivables by nature of the payment mainly consisted of deposits, advances, and other items[237] - The total amount of the top five other receivables at period-end was 1,730,707.57 yuan, accounting for 90.60% of the total other receivables period-end balance[241] Inventories Period-end inventories balance was 125 million yuan, a decrease of 9.7886 million yuan from the beginning of the period Classification of Inventories | Item | Period-End Book Balance (Yuan) | Period-End Book Value (Yuan) | Period-Beginning Book Balance (Yuan) | Period-Beginning Book Value (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 36,764,205.64 | 36,764,205.64 | 32,905,592.59 | 32,905,592.59 | | Work in Progress | 34,335,396.94 | 34,335,396.94 | 40,669,769.71 | 40,669,769.71 | | Finished Goods | 32,907,642.79 | 32,907,642.79 | 29,282,826.23 | 29,282,826.23 | | Goods in Transit | 18,086,927.47 | 18,086,927.47 | 28,492,945.59 | 28,492,945.59 | | Low-Value Consumables | 2,978,090.47 | 2,978,090.47 | 3,525,589.30 | 3,525,589.30 | | Packaging Materials | 242,946.08 | 242,946.08 | 217,293.86 | 217,293.86 | | Consigned Processing Materials | 11,335.16 | 11,335.16 | 21,087.66 | 21,087.66 | | Total | 125,326,544.55 | 125,326,544.55 | 135,115,104.94 | 135,115,104.94 | - At period-end, there were no situations where the net realizable value of inventories was lower than their book cost, thus no inventory impairment provisions were accrued[243] Other Current Assets Period-end other current assets balance was 140 million yuan, a 41.87% decrease from the beginning of the period, mainly due to the redemption of principal-protected wealth management products maturing within one year Composition of Other Current Assets | Item | Period-End Balance (Yuan) | Period-Beginning