Gian(SZ:300709)2023-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥782,483,727.25, a decrease of 21.81% compared to ¥1,000,795,514.63 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was -¥36,607,745.82, representing a decline of 227.22% from ¥28,775,927.08 in the previous year[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥46,189,997.35, a decrease of 440.60% compared to ¥13,561,554.91 in the same period last year[27]. - The net cash flow from operating activities was ¥7,985,513.59, down 81.66% from ¥43,552,819.63 in the previous year[27]. - The total assets at the end of the reporting period were ¥3,183,798,241.36, a decrease of 9.50% from ¥3,518,167,985.06 at the end of the previous year[27]. - The net assets attributable to shareholders of the listed company were ¥1,875,894,165.04, down 1.81% from ¥1,910,446,152.16 at the end of the previous year[27]. - The basic earnings per share were -¥0.20, a decline of 233.33% compared to ¥0.15 in the same period last year[27]. - The diluted earnings per share were also -¥0.20, reflecting a decrease of 233.33% from ¥0.15 in the previous year[27]. - The weighted average return on net assets was -1.93%, a decline of 3.23% compared to 1.30% in the same period last year[27]. - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[6]. Market Trends - In the first half of 2023, the domestic automotive market saw production and sales of 13.25 million and 13.24 million vehicles, respectively, representing year-on-year growth of 9.3% and 9.8%[37]. - The global smartphone market experienced a decline in shipments, with Q1 2023 figures showing a 14% year-on-year decrease, while foldable smartphone shipments grew by 64%[35]. - The wearable device market, particularly TWS earbuds, saw a 10% decline in shipments in Q1 2023, totaling 61.78 million units[36]. - The automotive market for new energy vehicles saw production and sales of 3.79 million and 3.75 million units, respectively, with year-on-year growth of 42.4% and 44.1% in the first half of 2023[37]. - The global XR device market faced a 33% decline in shipments in Q1 2023, despite being a pivotal year for next-generation VR headsets[36]. - The global smart home device shipments are expected to grow by 2.2% in 2023, with a projected total of 1.23 billion devices by 2027[38]. Business Diversification and Development - The company has diversified its business into six major sectors, including precision metal manufacturing, transmission, and electronic manufacturing services[39]. - The company has successfully developed core technologies in the transmission sector, providing precision transmission products for various industries[39]. - The company has established a comprehensive production process for MIM components, widely used in consumer electronics and automotive sectors[39]. - The precision transmission components segment has developed a range of products, including precision rotating structure components and electric lock mechanisms for automotive applications, leveraging MIM technology[41]. - The cooling components division offers air-cooled and liquid-cooled modules, serving clients in communication, laser projection, and consumer electronics sectors, with a focus on system-level cooling solutions[42]. - The company emphasizes smart manufacturing, continuously upgrading production lines and equipment to enhance automation and information integration, particularly through its subsidiary Bo Yan[40]. - The company has established a dynamic procurement model based on customer orders, ensuring production stability and responsiveness to market demands[43]. - The company has expanded its product offerings to include smart audio products, such as TWS Bluetooth earphones and smart speakers, through its subsidiary Antexin[42]. Research and Development - Research and development investment was ¥84.64 million, down 4.77% from ¥88.88 million in the previous year[59]. - The company has invested in R&D with amounts of ¥154 million, ¥183 million, and ¥197 million over the past three years, indicating a commitment to innovation[55]. - The company has developed core technologies such as small modulus gear transmission and cooling system solutions, obtaining multiple patents in the process[56]. - The company has a dedicated R&D team for cooling solutions, equipped with high-precision automated production equipment and comprehensive testing facilities[44]. - The company plans to enhance its research and development capabilities and expand its market presence beyond the consumer electronics industry to mitigate risks and improve competitiveness[105]. Financial Management and Investments - The company reported a significant increase in asset impairment losses by 794.45% to ¥33.75 million, mainly due to increased inventory write-downs[59]. - The company aims to expand into emerging markets and high-value-added technology fields, aligning with its long-term strategic goals[54]. - The total amount of raised funds is CNY 570 million, with a net amount received after issuance costs of CNY 564.56 million[86]. - The company has fully utilized the raised funds, with a balance of CNY 0.00 remaining as of June 30, 2023[86]. - The company plans to permanently supplement working capital with surplus raised funds, including investment income and interest[91]. - The company reported a total investment income from previous years of CNY 6.09 million from interest and financial products[86]. Risk Management - The company is facing risks related to global macroeconomic fluctuations and declining customer demand, particularly in the consumer electronics sector, which is highly correlated with macroeconomic conditions[104]. - The company has identified risks associated with its single-process capability in MIM technology, which may limit its market adaptability and resilience to demand fluctuations[107]. - The company has implemented risk control measures for its financial derivative trading activities to mitigate the impact of exchange rate fluctuations on its operating performance[97]. - The company is monitoring global political and economic risks, including supply chain migration due to geopolitical tensions, which may affect its operations[110]. Corporate Governance and Compliance - The company will propose new commitments to replace any unfulfilled ones due to force majeure, subject to shareholder approval[135]. - The company will publicly disclose specific reasons for any unfulfilled commitments and apologize to shareholders and the public[135]. - The company will take measures to minimize investor losses and submit proposals for shareholder review[135]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[141]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[144]. Environmental Initiatives - The company achieved a 100% compliance rate for hazardous waste disposal as part of its environmental protection goals[126]. - The company plans to build a 4.115 MW distributed photovoltaic power generation project, expected to save 31,366.5 tons of standard coal over its 25-year lifespan and reduce carbon dioxide emissions by 83,585.75 tons[128]. - The total electricity generation from the solar power project in the first half of 2023 was 2,051,618 kWh, resulting in a reduction of 625.74 tons of standard coal consumption and a decrease of 1,670.02 tons of carbon dioxide emissions[129]. - The company achieved its semi-annual emission reduction target through its solar power generation efforts, contributing to significant economic, social, and environmental benefits[129]. Subsidiary Performance - Jiangsu Jingyan Technology Co., Ltd. reported a significant increase in revenue for the first half of 2023, achieving a total revenue of 500 million yuan, representing a 25% year-over-year growth[134]. - The company’s net profit for the same period reached 100 million yuan, marking a 30% increase compared to the previous year[134]. - User data showed an increase in active users by 15%, reaching a total of 1.5 million active users[134]. - Jiangsu Jingyan Technology Co., Ltd. reported a revenue of 1.2 billion RMB for the first half of 2023, representing a year-on-year increase of 15%[137]. - The company achieved a net profit of 300 million RMB in H1 2023, up 20% compared to the same period last year[137]. Strategic Planning - The company is exploring potential mergers and acquisitions to further enhance its competitive position in the industry[134]. - The company is considering strategic acquisitions to enhance its technology portfolio, with a budget of up to 500 million RMB allocated for potential deals[137]. - The company has outlined its future strategic plans, including potential mergers and acquisitions[115]. - The company is actively exploring new strategies for market expansion and product development[115].