ZFGF(SZ:300695)2021-08-27 16:00Financial Performance - The company's operating revenue for the reporting period was ¥321,533,856.46, representing a 26.41% increase compared to ¥254,348,469.05 in the same period last year[21]. - The net profit attributable to shareholders decreased by 36.24% to ¥55,925,137.30 from ¥87,706,866.30 year-on-year[21]. - The net cash flow from operating activities fell by 54.43% to ¥38,586,069.71, down from ¥84,665,117.85 in the previous year[21]. - The basic earnings per share decreased by 36.36% to ¥0.84, compared to ¥1.32 in the same period last year[21]. - Total assets increased by 7.00% to ¥2,387,924,679.76 from ¥2,231,755,304.43 at the end of the previous year[21]. - The net assets attributable to shareholders rose by 3.05% to ¥1,889,627,086.09 from ¥1,833,701,948.79 at the end of the previous year[21]. - The decline in net profit and cash flow was significantly impacted by rising steel prices, a decrease in the USD to RMB exchange rate, and increased shipping costs[21]. - The weighted average return on net assets decreased to 3.00% from 4.65% in the previous year[21]. - The company reported a total non-recurring gains and losses of 7,417,091.04 yuan for the reporting period[24]. Subsidiary Contributions - The company's subsidiary, Shaanxi Automobile Zhaofeng, contributed ¥65,628,700 in revenue during the reporting period[21]. - The company’s subsidiary, Shaanxi Automobile Zhaofeng, is expanding into the commercial vehicle chassis system components and new energy electric vehicle bridge units[29]. - The subsidiary Shaanxi Shacman Zhaofeng Technology Co., Ltd. reported a net loss of 948.49 million CNY during the same period[90]. - The company reported a net profit of 76.9 million CNY from its subsidiary Hangzhou Yifeng Auto Parts Co., Ltd. for the reporting period[90]. Research and Development - The company invested 19.73 million yuan in R&D during the reporting period, an increase of 25.23% compared to the previous year[41]. - The company has a strong focus on research and development, particularly in the fourth generation of wheel hub bearing units and electric control wheel hub bearing units[28]. - The company has established a provincial-level key enterprise research institute and a national-level postdoctoral research station, enhancing its R&D capabilities[52]. - The company has developed maintenance-free wheel hub bearing units for commercial vehicles, which can be widely applied across various commercial vehicle models[29]. - The electric vehicle hub motor drive and control system R&D project has an investment of 16,939 million yuan, with the project still ongoing[75]. Market and Sales Strategy - The company is actively expanding its domestic OEM market while strengthening its global aftermarket presence[40]. - The company’s products are primarily targeted at the high-end aftermarket, with sales channels including foreign import traders and domestic export traders[33]. - The automotive parts market is expected to continue expanding due to the increasing vehicle production and ownership, with a total of 292 million cars in China as of June 30, 2021[34]. - The company aims to enhance customer satisfaction through differentiated product development and comprehensive service offerings[49]. - The company has established long-term cooperation relationships with major domestic automotive manufacturers, including Changan Automobile and Dongfeng Xiaokang[34]. Financial Management and Investments - The company has received approval from the board and shareholders for the changes in the use of raised funds, ensuring compliance with regulatory requirements[79]. - The company has utilized 4,793.79 million yuan of raised funds to replace self-raised funds previously invested in projects[76]. - The company has committed to an annual production capacity of 3.6 million automotive hub bearing units by 2021[75]. - The company plans to invest 48.87 million CNY in the new project for the construction of a smart factory for the production of 30 million automotive hub bearing units, with an actual investment of 23.53 million CNY, achieving 48.15% of the planned investment[78]. - The company has not engaged in entrusted financial management during the reporting period[80]. Cash Flow and Liquidity - The cash flow from operating activities decreased by 54.43% to ¥38,586,069.71, primarily due to increased material costs[58]. - The company reported a significant decrease in cash outflows from investment activities, totaling 66,004,294.63 CNY compared to 139,028,260.96 CNY in the previous period[178]. - The overall financial position shows a decrease in cash reserves, highlighting potential liquidity concerns moving forward[181]. - The company reported a total of 29,600,000 CNY from self-owned funds and 37,000,000 CNY from raised funds in structured deposits[82]. - The company has no expected inability to recover principal or other impairment risks in cash management[83]. Risks and Challenges - The company faces risks from macroeconomic fluctuations and industry competition, which may impact operational performance[93]. - The company is exposed to foreign exchange risks, particularly with USD settlements, which have affected overall gross margins due to a declining USD/RMB exchange rate[98]. - The top five customers account for a significant portion of sales, posing a risk if any major customer faces operational or financial difficulties[95]. - The company maintains a high gross margin but faces potential declines due to raw material price fluctuations and increased competition in the auto parts industry[96]. Corporate Governance and Compliance - The company has not engaged in any entrusted loans during the reporting period[87]. - There were no significant asset or equity sales during the reporting period[88][89]. - The company has implemented measures to strengthen internal controls over its foreign exchange hedging activities[86]. - The company’s financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting its financial position and operating results[198]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[196].