晨曦航空(300581) - 2021 Q2 - 季度财报

Part I. Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, outlines the report structure, and defines key terms used throughout Important Notice The company's management guarantees the report's accuracy and completeness, while the board has decided against profit distribution for the period - Company management guarantees the truthfulness, accuracy, and completeness of the report content, assuming legal responsibility[5] - The company's 2021 semi-annual profit distribution plan includes no cash dividends, no bonus shares, and no capitalization of reserves[11] Risk Factors The company faces risks related to state secrets, military business fluctuations, product pricing uncertainty, and high customer concentration, with the top five customers accounting for 87.56% of sales - The company's operations involve state secrets, posing risks of accidental disclosure that could lead to loss of confidentiality qualifications and impact classified business[7] - The company's military product business is subject to fluctuations, delays, or cancellations of orders due to military procurement plans and international situations, potentially leading to performance decline[8][9] - Military product prices require military approval, a lengthy process where differences between provisional and final prices may cause fluctuations in revenue, costs, and performance[9] - The company has high customer concentration, with sales to the top five customers accounting for 87.56% and to the largest customer 25.89% from January to June 2021, posing a risk if major customer demand changes adversely[10] Definitions This section defines key company abbreviations, professional terms like inertial navigation and gyroscope types, and the reporting period (January-June 2021) used in the report Part II. Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance metrics for the reporting period Company Profile Xi'an Chenxi Aviation Technology Co., Ltd. (stock code: 300581) is a Shenzhen Stock Exchange-listed company, whose registered capital increased from RMB 171.76 million to RMB 309.168 million during the period - During the reporting period, the company's registered capital changed from RMB 171.76 million to RMB 309.168 million due to capitalization of capital reserves[27] Key Accounting Data and Financial Indicators The company achieved significant performance growth, with revenue up 209.34% to RMB 112.64 million and net profit attributable to shareholders turning profitable at RMB 7.78 million, up 294.10% 2021 H1 Key Financial Indicators | Indicator | Current Period | Prior Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 112,643,494.54 | 36,413,609.26 | 209.34% | | Net Profit Attributable to Shareholders of Listed Company (RMB) | 7,781,003.57 | -4,008,770.07 | 294.10% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses (RMB) | 4,027,558.66 | -15,659,608.89 | 125.72% | | Net Cash Flow from Operating Activities (RMB) | 30,892,170.68 | 20,411,146.77 | 51.35% | | Basic Earnings Per Share (RMB/share) | 0.0252 | -0.0130 | 293.85% | | Total Assets (RMB) | 872,053,907.98 | 892,782,510.95 | -2.32% | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 725,547,945.96 | 716,506,985.71 | 1.26% | Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled RMB 3.75 million, primarily from government subsidies of RMB 4.37 million 2021 H1 Non-recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -335.00 | | Government Grants Included in Current Profit/Loss | 4,370,887.04 | | Other Non-operating Income and Expenses | -96.58 | | Less: Income Tax Impact | 617,010.55 | | Total | 3,753,444.91 | Part III. Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, and strategic outlook for the reporting period I. Overview of Main Business Activities During the Reporting Period The company's core business is R&D, production, and sales of aerospace electromechanical products, with significant revenue and net profit growth driven by increased product delivery and acceptance, especially in aviation inertial navigation - The company's main business focuses on aerospace electromechanical products, with key product lines including aviation inertial navigation systems and aero-engine electronic products (e.g., parameter collectors, flight control computers)[35] - During the reporting period, the company's operating revenue reached RMB 113 million, a 209.34% year-on-year increase; net profit attributable to parent company was RMB 7.78 million, a 294.10% year-on-year increase, primarily due to increased product delivery and acceptance compared to the prior year[46] - Revenue from aviation inertial navigation products increased by 378.55% year-on-year, with significant growth in flexible, fiber-optic, and laser strapdown inertial navigation systems[46] - The company operates in the aerospace sector, a nationally encouraged industry, where the continuity of military procurement provides business stability, though order volumes may fluctuate annually[39][42][45] II. Analysis of Core Competencies The company's core strengths include comprehensive, independent core technologies in inertial navigation and engine control, flexible private enterprise mechanisms, stable military customer relationships, and a diverse product portfolio - The company possesses comprehensive, independent core technologies in inertial navigation and engine electronic control, with continuous R&D investment[50][51] - As a private military enterprise, the company benefits from flexible mechanisms and has established a flexible talent incentive system to maintain team stability and motivation[52][53] - Once military products are finalized, suppliers are relatively fixed, providing the company with stable customer resources[53] - The company has a rich product line, being one of the few domestic enterprises with core technologies in navigation, control, communication, and aerospace computers, forming a product spectrum covering various navigation needs[53] III. Analysis of Main Business Both main business revenue and costs significantly increased due to higher product deliveries, with aviation inertial navigation products driving growth at 378.55% year-on-year and a 36.74% gross margin Year-on-Year Changes in Key Financial Data | Item | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 112,643,494.54 | 36,413,609.26 | 209.34% | Increased product delivery and acceptance | | Operating Cost | 64,422,620.02 | 22,822,743.63 | 182.27% | Increased with revenue | | Administrative Expenses | 14,416,744.59 | 9,522,297.36 | 51.40% | Increased personnel salaries and depreciation/amortization | | Credit Impairment Losses | -15,682,310.25 | -9,123,022.62 | 71.90% | Increased provision for doubtful accounts | Operating Revenue by Product Type (RMB) | Product/Service | Operating Revenue | Operating Cost | Gross Margin | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Aviation Inertial Navigation Products | 77,793,266.00 | 49,211,834.81 | 36.74% | 378.55% | | (1) Flexible Strapdown Inertial Navigation System | 13,466,004.97 | 8,683,827.18 | 35.51% | 2,197.19% | | (2) Fiber-Optic Strapdown Inertial Navigation System | 25,339,291.99 | 17,422,363.07 | 31.24% | 565.89% | | (3) Laser Strapdown Inertial Navigation System | 21,402,196.49 | 11,578,249.00 | 45.90% | - | | (5) Navigation Computer Components | 17,585,772.55 | 11,527,395.56 | 34.45% | 48.22% | | Aero-engine Electronic Products | 19,205,033.61 | 10,287,663.74 | 46.43% | 10.92% | | (1) Aero-engine Parameter Collector | 10,541,316.79 | 5,934,109.92 | 43.71% | 67.65% | | (2) Flight Control Computer | 8,663,716.82 | 4,353,553.82 | 49.75% | -21.43% | IV. Analysis of Non-Main Business Non-main business significantly impacted total profit, with government subsidies contributing RMB 4.37 million (54.53% of total profit) and credit impairment losses of RMB -15.68 million negatively impacting profit by -195.65% Impact of Non-Main Business on Total Profit | Item | Amount (RMB) | Percentage of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Other Income | 4,370,887.04 | 54.53% | Primarily government grants received during the reporting period | | Credit Impairment Losses | -15,682,310.25 | -195.65% | Primarily provision for doubtful accounts based on accounting policy for accounts receivable during the reporting period | V. Analysis of Assets and Liabilities Total assets decreased by 2.32% to RMB 872.05 million, with accounts receivable being the largest asset component (33.89%) but decreasing, while monetary funds increased due to customer commercial acceptance bill settlements Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Percentage of Total Assets | Amount at End of Prior Year (RMB) | Percentage of Total Assets | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 89,286,122.36 | 10.24% | 78,412,188.12 | 8.78% | Increase due to settlement of commercial acceptance bills from customers | | Accounts Receivable | 295,551,147.06 | 33.89% | 363,316,265.45 | 40.69% | Decrease due to higher customer repayments | | Inventories | 226,772,121.70 | 26.00% | 221,328,644.79 | 24.79% | Increase in work-in-progress balance at period end | | Fixed Assets | 121,997,825.31 | 13.99% | 105,450,535.49 | 11.81% | Increase due to purchases and transfer from construction in progress | VI. Analysis of Investment Status The company had no major equity or non-equity investments, and its IPO proceeds of RMB 246.41 million were largely utilized, with remaining funds of RMB 14.14 million from completed projects permanently supplementing working capital - The company's total proceeds from its initial public offering were RMB 246.41 million, with no new investments during the reporting period and a cumulative investment of RMB 172.275 million[67][70] - The company closed the "Aviation Airborne Equipment Production Line Construction Project" and "R&D Center Construction Project," permanently allocating the remaining RMB 14.1363 million (including interest) to supplement working capital[73] - Reasons for partial changes in raised fund usage include changes in the laser gyroscope market making external procurement more economical, and the availability of mature and stable external suppliers for circuit and electrical assembly production[80] VIII. Analysis of Major Holding and Participating Companies The company's two wholly-owned subsidiaries, Nanjing Chenxi Aviation Power Technology Co., Ltd. and Hunan Ketaiwei Aviation Equipment Manufacturing Co., Ltd., both reported losses during the period Operating Performance of Major Subsidiaries (RMB) | Company Name | Type | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Nanjing Chenxi Aviation Power Technology Co., Ltd. | Subsidiary | 64,371,586.85 | -7,952,061.57 | 475,428.60 | -992,537.52 | | Hunan Ketaiwei Aviation Equipment Manufacturing Co., Ltd. | Subsidiary | 1,274,322.53 | -708,375.13 | 0.00 | -842,265.36 | X. Risks Faced by the Company and Countermeasures The company reiterates key risks including state secret disclosure, military business volatility, high customer concentration, and pricing uncertainty, outlining strategies to mitigate these, such as market expansion and careful provisional pricing - The company faces major risks including state secret disclosure, military business fluctuations, high customer concentration (top five customers accounted for 87.56% in H1 2021), and uncertainty in military product pricing[91][92] - To address customer concentration risk, the company plans to intensify market development, expanding business to all military branches and civilian markets[92] - To mitigate pricing risk, the company will reference approved prices of similar products when determining provisional prices to minimize differences with final approved prices[93] Part IV. Corporate Governance This section details the company's corporate governance practices, including shareholder meetings and changes in board members and senior management I. Information on Annual and Extraordinary Shareholder Meetings Held During the Reporting Period The company held three shareholder meetings during the period, including two extraordinary general meetings and one annual general meeting, with investor participation rates exceeding 62% - Three shareholder meetings were held during the reporting period, approving proposals including changes in registered capital, annual profit distribution, and closure of fundraising projects[97] II. Changes in Directors, Supervisors, and Senior Management Independent director Wang Mancang resigned and Yang Rong was appointed, while Liu Yilin was newly appointed as Deputy General Manager and General Manager of Nanjing Branch due to company development needs Details of Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Mancang | Independent Director | Resignation | January 18, 2021 | Personal reasons | | Yang Rong | Independent Director | Appointment | January 18, 2021 | Elected as independent director of the third board of directors | | Liu Yilin | Deputy General Manager, General Manager of Nanjing Branch | Appointment | April 25, 2021 | Company development needs | Part V. Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and social responsibility, including compliance with regulations and employee welfare I. Significant Environmental Protection Issues The company and its subsidiaries are not designated as key polluting units and received no environmental administrative penalties during the reporting period - The company and its subsidiaries are not key polluting units and had no environmental administrative penalties during the reporting period[103] II. Social Responsibility The company upholds corporate governance, protects shareholder rights, engages with investors, and prioritizes employee welfare, health, safety, and professional development - The company is committed to improving its corporate governance structure, protecting investor rights, and actively communicating with investors through various channels including phone calls, earnings briefings, and interactive platforms[104] - The company strictly adheres to the "Labor Law," safeguards employee rights, and focuses on employee health, safety, and career development[105] Part VI. Significant Matters This section covers major events during the reporting period, including significant related party transactions and other important corporate developments XI. Significant Related Party Transactions The company engaged in a RMB 400,000 related party procurement of laser gyroscopes from Xi'an Northern Jierui Optoelectronic Technology Co., Ltd., a former associate Related Party Transactions in Ordinary Course of Business | Related Party | Content of Related Party Transaction | Amount Incurred in Current Period (RMB 10,000) | | :--- | :--- | :--- | | Xi'an Northern Jierui Optoelectronic Technology Co., Ltd. | Procurement of Laser Gyroscopes | 40 | XIII. Explanation of Other Significant Matters The company received regulatory approval for its private placement of shares and its controlling shareholder's share reduction plan expired without any shares being sold - The company's application for a private placement of shares was approved by the China Securities Regulatory Commission on June 24, 2021[129][130][131] - The share reduction plan (to reduce no more than 3% of total share capital) disclosed by the company's controlling shareholder and its concerted parties in February 2021 expired on June 15, with no shares sold during the period[131] Part VII. Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure I. Share Changes The company's total share capital increased from 171.76 million shares to 309.168 million shares due to a 10-for-8 bonus share issuance from capital reserves - Due to the implementation of the "8 bonus shares for every 10 shares" capitalization of capital reserves plan, the company's total share capital increased from 171,760,000 shares to 309,168,000 shares[135] III. Shareholder Numbers and Shareholding Status As of the reporting period end, the company had 59,162 common shareholders, with controlling shareholder Xi'an Huiju Technology Co., Ltd. and its concerted party Beijing Aerospace Star Control Technology Co., Ltd. holding a combined 62.26% Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Xi'an Huiju Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 43.57% | 134,707,138 | | Beijing Aerospace Star Control Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 18.69% | 57,798,000 | | Guotai CSI Military Industry ETF | Other | 0.74% | 2,282,900 | | Fullgoal CSI Military Industry Index Fund | Other | 0.40% | 1,240,920 | | Gao Wenshe | Domestic Natural Person | 0.34% | 1,050,000 | - Controlling shareholder Huiju Technology and second-largest shareholder Aerospace Star Control are concerted parties, both effectively controlled by Wu Jian[140] Part X. Financial Report This section presents the company's unaudited semi-annual consolidated and parent company financial statements, along with detailed notes on accounting policies and financial statement items II. Financial Statements This section provides the company's unaudited 2021 semi-annual consolidated and parent company financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity - The company's semi-annual financial report is unaudited[152] Consolidated Balance Sheet As of June 30, 2021, total assets were RMB 872.05 million, total liabilities RMB 146.51 million, and owners' equity attributable to the parent company RMB 725.55 million, with slight changes from year-end Key Items from Consolidated Balance Sheet (RMB) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 872,053,907.98 | 892,782,510.95 | | Total Liabilities | 146,505,962.02 | 176,275,525.24 | | Total Owners' Equity Attributable to Parent Company | 725,547,945.96 | 716,506,985.71 | Consolidated Income Statement In H1 2021, the company achieved total operating revenue of RMB 112.64 million and net profit of RMB 7.78 million, turning losses into profit, despite a significant negative impact from credit impairment losses of RMB -15.68 million Key Items from Consolidated Income Statement (RMB) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Total Operating Revenue | 112,643,494.54 | 36,413,609.26 | | Total Operating Cost | 93,316,268.71 | 45,904,362.75 | | Credit Impairment Losses | -15,682,310.25 | -9,123,022.62 | | Total Profit | 8,015,371.04 | -4,900,571.47 | | Net Profit | 7,781,003.57 | -4,008,770.07 | Consolidated Cash Flow Statement Net cash flow from operating activities increased by 51.35% to RMB 30.89 million, driven by higher cash receipts from sales, while investing activities resulted in a net outflow of RMB 19.76 million Key Items from Consolidated Cash Flow Statement (RMB) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 30,892,170.68 | 20,411,146.77 | | Net Cash Flow from Investing Activities | -19,756,687.94 | -18,978,118.37 | | Net Cash Flow from Financing Activities | -261,548.50 | -10,091,287.50 | | Net Increase in Cash and Cash Equivalents | 10,873,934.24 | -8,658,259.10 | V. Significant Accounting Policies and Estimates This section details the company's key accounting policies and estimates, including revenue recognition and financial instruments, with the most significant change being the adoption of new lease standards from January 1, 2021 - The company adopted the newly revised "Accounting Standard for Business Enterprises No. 21 – Leases" from January 1, 2021, making corresponding adjustments to its opening financial statements by recognizing right-of-use assets and lease liabilities[290][291][300] - For revenue recognition, the company recognizes revenue when customers obtain control of the related goods or services; for military products, approved prices are used for recognized items, while provisional contract prices are used for unapproved items, subject to adjustment upon final approval[270][273] - Allowance for doubtful accounts for accounts receivable uses the expected credit loss model, calculated by aging portfolio, with a 6% provision for receivables within 1 year and 100% for those over 5 years[222][223] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including asset, liability, revenue, and cost breakdowns, highlighting that the top five customers account for 74.28% of total accounts receivable Top Five Accounts Receivable by Debtor at Period End (RMB) | Debtor Name | Accounts Receivable at Period End | Percentage of Total Accounts Receivable at Period End | Allowance for Doubtful Accounts at Period End | | :--- | :--- | :--- | :--- | | Enterprise N | 71,267,588.11 | 20.69% | 6,327,881.89 | | Customer A | 70,548,107.42 | 20.49% | 8,653,852.23 | | Enterprise Z | 66,389,136.00 | 19.28% | 12,049,140.80 | | Customer E | 26,794,582.96 | 7.78% | 1,853,896.95 | | Customer M | 20,793,430.00 | 6.04% | 1,247,605.80 | | Total | 255,792,844.49 | 74.28% | | Operating Revenue by Product Type (RMB) | Product Type | Revenue Amount | | :--- | :--- | | Aviation Inertial Navigation Products | 77,793,266.00 | | Aero-engine Electronic Products | 19,205,033.61 | | Other Product Sales | 8,458,375.64 | | Professional Technical Services | 5,930,672.56 | | Other Business Income | 1,256,146.73 | | Total | 112,643,494.54 |