精研科技(300709) - 2022 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides crucial disclaimers, defines key terms, and outlines the report's structure Important Notes The company's board and management assure the report's accuracy and completeness, with all directors attending the review meeting - The company's management guarantees the truthfulness, accuracy, and completeness of the report content, with no false records, misleading statements, or major omissions[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this half-year period[4] Definitions This chapter defines key terms used in the report, including the company, its subsidiaries, controlling shareholders, MIM technology, and TWS - MIM (Metal Injection Molding) is the company's core technology, combining traditional powder metallurgy with modern plastic injection molding for near-net-shape forming[11] - The company's controlling shareholders and ultimate beneficial owners are Wang Mingxi and Huang Yichao, who are father and daughter[11] Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance metrics for the reporting period Company Profile Jiangsu Jingyan Technology Co., Ltd. (Stock Code: 300709) is a company listed on the Shenzhen Stock Exchange Company Profile | Item | Content | | :--- | :--- | | Stock Abbreviation | Jingyan Technology | | Stock Code | 300709 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Wang Mingxi | Key Accounting Data and Financial Indicators In H1 2022, the company achieved revenue of 1.001 billion yuan, a 1.95% increase, and net profit attributable to shareholders of 28.78 million yuan, up 20.13% H1 2022 Key Financial Indicators | Indicator | Current Period (million yuan) | Prior Year (Adjusted) (million yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,000.8 | 981.7 | 1.95% | | Net Profit Attributable to Shareholders | 28.78 | 23.95 | 20.13% | | Net Profit Excluding Non-recurring Items | 13.56 | 5.35 | 153.61% | | Net Cash Flow from Operating Activities | 43.55 | 48.28 | -9.79% | | Basic Earnings Per Share (yuan/share) | 0.15 | 0.14 | 7.14% | | Weighted Average Return on Net Assets | 1.30% | 1.38% | -0.08% | | Total Assets (billion yuan) | 3.76 | 3.74 | 0.41% | | Net Assets Attributable to Shareholders (billion yuan) | 2.18 | 2.38 | -8.45% | Non-recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 15.21 million yuan, primarily from fair value changes in financial assets and government grants H1 2022 Non-recurring Gains and Losses | Item | Amount (million yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 0.79 | | Government Grants | 7.98 | | Gains/Losses from Transactional Financial Assets/Liabilities | 8.55 | | Other Non-operating Income/Expenses | 1.04 | | Less: Income Tax Impact | 2.76 | | Less: Impact on Minority Interests (after tax) | 0.39 | | Total | 15.21 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial condition, and future outlook Main Business and Operations In H1 2022, the company focused on MIM technology while expanding into six business segments, achieving revenue of 1.001 billion yuan despite pandemic impacts - The company has formed six major business segments: precision metal manufacturing (MIM), transmission, precision plastics, thermal modules, intelligent manufacturing services, and electronic manufacturing[37][38] - During the reporting period, due to the pandemic, demand from some downstream customers decreased or was delayed, and logistics disruptions led to project delivery delays[42] H1 2022 Performance Overview | Indicator | Amount (million yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 1,000.8 | 1.95% | | Net Profit Attributable to Shareholders | 28.78 | 20.13% | - The company continued to integrate its subsidiaries, Antixin and Ruidian Precision, shifting Antixin's strategy towards "profit-oriented" and deeply involving in Ruidian Precision's daily operations[44] Core Competitiveness Analysis The company's core strengths lie in its organizational culture, customer base, R&D, full-process control, rapid response, and internal management - The company was recognized as a "National Manufacturing Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology in November 2021[41] - The company has accumulated a large number of well-known brand customers in consumer electronics and automotive sectors, including Customer A, Samsung, Xiaomi, OPPO, and vivo[48] - In R&D, the company continues to develop high-strength lightweight metal structural materials (such as titanium alloys), ultra-high-strength steel, and high-polish materials, with some products already in mass production or batch application[50][51] - The company's developed micro-pumps have achieved mass production in robotic vacuum cleaners, and smart flexible screen folding phone hinge products have also entered mass production[52] Main Business Analysis Financial expenses significantly decreased by 125.71% due to convertible bond delisting, while transmission and precision plastic businesses saw high growth Key Financial Data YoY Changes | Item | Current Period (million yuan) | Prior Year (million yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | -3.93 | 15.28 | -125.71% | Decrease in interest expense due to convertible bond delisting | | Net Cash Flow from Investing Activities | -269.94 | -584.73 | -53.84% | Due to wealth management of idle funds | | Net Cash Flow from Financing Activities | -52.74 | 40.27 | -230.97% | Payment for acquisition of Ruidian Precision equity | | Taxes and Surcharges | 10.29 | 6.13 | 67.94% | Increase in urban construction tax and education surcharge | By Product or Service | Product/Service | Operating Revenue (million yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | MIM Components and Assemblies | 607.20 | 17.21% | -17.44% | -3.77% | | End Products | 100.78 | -8.49% | -17.43% | -21.37% | | Transmission, Thermal Components, and Others | 115.82 | 21.26% | 169.96% | -2.86% | | Precision Plastic Components and Assemblies | 143.54 | 36.65% | 151.12% | 12.31% | Analysis of Assets and Liabilities Total assets remained stable at 3.76 billion yuan, with significant shifts in cash, inventory, and construction in progress Major Changes in Asset Composition | Item | Amount at End of Period (million yuan) | Change from Prior Year-End | Main Reason for Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 339.43 | -39.18% | Due to purchase of wealth management products and payment for acquisitions | | Inventories | 661.87 | 62.97% | Due to reasonable stock preparation based on order demand | | Construction in Progress | 61.43 | -73.01% | Due to transfer of buildings under construction to fixed assets | Analysis of Investment Status Total investment reached 227 million yuan, a 20.55% increase, primarily driven by the acquisition of Ruidian Precision and wealth management activities - During the reporting period, the company acquired 100% equity of Changzhou Ruidian Precision Technology Co., Ltd. for 221 million yuan using its own funds, completing the industrial and commercial change registration and gaining control. Ruidian Precision achieved a net profit of 21.31 million yuan during the reporting period[74] - The company's 2020 convertible bond raised 562 million yuan for the "New Consumer Electronics Precision Components Automated Production Project." As of the end of the reporting period, the project investment progress reached 92.17%, with cumulative benefits of 51.17 million yuan[81][85] Overview of Entrusted Wealth Management (Unit: million yuan) | Specific Type | Source of Funds | Amount of Entrusted Wealth Management | Unexpired Balance | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 1,275.9 | 97.9 | | Bank Wealth Management Products | Raised Funds | 71.0 | 46.0 | | Brokerage Wealth Management Products | Own Funds | 70.0 | 70.0 | | Total | | 1,416.9 | 213.9 | Analysis of Major Holding and Participating Companies Newly acquired Ruidian Precision contributed 21.31 million yuan in net profit, while Antixin incurred a 21.52 million yuan loss due to R&D focus and low-margin projects Operating Performance of Major Subsidiaries (H1 2022) | Company Name | Operating Revenue (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | | Changzhou Ruidian Precision Technology Co., Ltd. | 208.59 | 21.31 | | Shenzhen Antixin Technology Co., Ltd. | 100.70 | -21.52 | - Ruidian Precision: Operating revenue and net profit increased year-on-year due to a temporary surge in demand for COVID-19 antigen test kits in China[95] - Shenzhen Antixin: Uneven order distribution in H1, focus on R&D investment, and some low-gross-margin projects impacted profitability. The company is shifting its operating strategy from "scale-oriented" to "profit-oriented"[95] Risks and Countermeasures The company faces risks from economic fluctuations, customer concentration, R&D failures, market competition, goodwill impairment, and declining gross margins - Macroeconomic and Downstream Industry Volatility Risk: The company's business is highly correlated with the consumer electronics industry's prosperity, and macroeconomic uncertainties or slowing growth in smartphones may impact performance[96] - Customer Concentration Risk: The company's customers are mainly concentrated in the consumer electronics sector; a decline in major customer procurement or significant price reductions would severely impact performance[97] - Goodwill Impairment Risk: Goodwill was formed from the 2021 acquisition of Antixin, and impairment was recognized that year due to underperformance. Further impairment may occur if future operations continue to deteriorate[100] - Gross Margin Decline Risk: Factors such as downstream industry cost control, intensified market competition, and rising raw material and labor costs may lead to a decrease in the company's product gross margin[101] Corporate Governance This section details the company's governance structure and the implementation of its equity incentive plans Implementation of Equity Incentive Plans The company repurchased and canceled 19,424 unvested restricted shares from former employees and completed the vesting of the first tranche of 2021 restricted shares - The company repurchased and canceled a total of 19,424 unvested restricted shares from some resigned employees under the 2019 and 2020 incentive plans[110][112] - The conditions for the first vesting period of the initially granted restricted shares under the 2021 incentive plan were met, and the vested shares were listed for trading on July 1, 2022[114] Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and its contributions to social welfare Environmental Protection The company is not a key polluter and adheres to environmental regulations, with proper treatment of wastewater, exhaust gas, and hazardous waste - The company and its subsidiaries are not classified as key polluting units by environmental protection authorities and received no environmental administrative penalties during the reporting period[119][123] - The company has clear treatment measures for wastewater, exhaust gas, and hazardous waste, and regularly commissions qualified units for testing to ensure compliance with national standards[120][121][122] Social Responsibility The company actively fulfilled its social responsibilities by supporting local pandemic prevention efforts in H1 2022 - In H1 2022, facing the local pandemic, the company provided a newly built dormitory building (177 rooms) in its new industrial park free of charge as an isolation point for pandemic control, supporting the city's prevention efforts[123] Significant Matters This section details major events and transactions that significantly impacted the company during the reporting period Significant Related Party Transactions The most significant related party transaction was the 225 million yuan acquisition of 100% equity in Changzhou Ruidian Precision Technology Co., Ltd - The company acquired 100% equity of Changzhou Ruidian Precision Technology Co., Ltd. for 225 million yuan, which constitutes a related party transaction[148] - The acquisition was completed with industrial and commercial change registration on January 19, 2022, making Ruidian Precision a wholly-owned subsidiary of the company[149] Other Significant Matters The company's application for issuing convertible bonds was approved, and it implemented its 2021 profit distribution plan and established a new subsidiary - The company's application to issue convertible corporate bonds to unspecified objects was approved by the Shenzhen Stock Exchange ChiNext Listing Committee on August 11, 2022[158][159] - The company implemented its 2021 annual equity distribution plan, which included a cash dividend of 1.80 yuan (tax inclusive) per 10 shares and a capital reserve transfer of 2 shares per 10 shares to all shareholders[159] - The company established a new wholly-owned subsidiary, Jiangsu Jingyan Power System Co., Ltd., on March 1, 2022[160] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes The company's total share capital increased from 155.19 million to 186.62 million shares due to capital reserve transfers and equity incentive vesting Share Changes | Item | Before This Change (million shares) | Change (Increase/Decrease) (million shares) | After This Change (million shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 31.80 | 6.36 | 38.16 | | Unrestricted Shares | 123.39 | 25.06 | 148.45 | | Total Shares | 155.19 | 31.42 | 186.62 | - The main reasons for the increase in shares were the implementation of the 2021 annual equity distribution (2 shares transferred per 10 shares from capital reserve) and equity incentive vesting[165][166] Shareholder Numbers and Holdings As of the reporting period end, the company had 13,354 common shareholders, with controlling shareholders Wang Mingxi and Huang Yichao holding 19.38% and 4.88% respectively - The total number of common shareholders at the end of the reporting period was 13,354 households[181] Top Five Shareholders' Holdings | Shareholder Name | Holding Percentage | Shares Held at End of Period (million shares) | | :--- | :--- | :--- | | Wang Mingxi | 19.38% | 36.16 | | Huang Yichao | 4.88% | 9.11 | | Changzhou Chuangyan Investment Consulting Co., Ltd. | 4.77% | 8.89 | | Wu Junwen | 2.07% | 3.87 | | Shenwan Hongyuan New Economy Mixed Securities Investment Fund | 1.92% | 3.58 | - The company's actual controllers, Wang Mingxi and Huang Yichao, are father and daughter; Huang Yichao holds 59.50% equity in Changzhou Chuangyan Investment Consulting Co., Ltd., forming a concerted action relationship[182] Financial Report This section presents the company's unaudited financial statements for the first half of 2022, including balance sheet, income statement, and cash flow statement Financial Statements The company's H1 2022 unaudited financial report shows total assets of 3.76 billion yuan, total liabilities of 1.58 billion yuan, and net profit of 28.78 million yuan attributable to the parent company Consolidated Balance Sheet Key Items (2022-06-30) | Item | Amount (billion yuan) | | :--- | :--- | | Total Assets | 3.76 | | Total Liabilities | 1.58 | | Total Equity Attributable to Parent Company Owners | 2.18 | Consolidated Income Statement Key Items (H1 2022) | Item | Amount (million yuan) | | :--- | :--- | | Total Operating Revenue | 1,000.8 | | Total Profit | 9.35 | | Net Profit | 20.15 | | Net Profit Attributable to Parent Company Owners | 28.78 | Consolidated Cash Flow Statement Key Items (H1 2022) | Item | Amount (million yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 43.55 | | Net Cash Flow from Investing Activities | -269.94 | | Net Cash Flow from Financing Activities | -52.74 | | Net Increase in Cash and Cash Equivalents | -268.56 | Significant Accounting Policies and Estimates The company's financial statements are prepared on a going concern basis, adhering to accounting standards, with specific policies for financial assets, inventory, and revenue recognition - Financial asset impairment uses the expected credit loss model, measuring loss provisions for notes receivable and accounts receivable based on their entire lifetime expected credit losses[266][269] - Inventory is valued using the weighted average method at month-end upon issuance, and impairment provisions are made at the lower of cost or net realizable value at period-end[277][278] - Revenue recognition follows new revenue standards, recognized when the customer obtains control of the goods: for domestic sales upon customer acceptance and receipt of payment proof; for export sales upon customs declaration and reconciliation with customs system[337]