三祥科技(831195) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice regarding the report's accuracy and confirms it is unaudited - Company directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this semi-annual report, with no false records, misleading statements, or major omissions[3] - This semi-annual report has not been audited by an accounting firm[3][4] Company Profile This section outlines the company's basic information, main business, and controlling shareholders Basic Information and Main Business Qingdao Sanxiang Technology Co., Ltd. (Stock Code: 831195), listed on the Beijing Stock Exchange, specializes in R&D, production, and sales of automotive rubber hoses and assemblies, controlled by Qingdao Xinjintaida Economic Information Consulting Co., Ltd - The company primarily engages in the R&D, production, and sales of automotive rubber hoses and assemblies, serving vehicle manufacturers, parts suppliers, and aftermarket providers[10] - The company was listed on the Beijing Stock Exchange on December 30, 2022[10] - The company's controlling shareholder is Qingdao Xinjintaida Economic Information Consulting Co., Ltd., with Wei Zengxiang and his concerted parties as the ultimate controlling persons[10][11] Accounting Data and Operating Performance This section presents key financial data, operating results, and significant accounting policy changes Key Accounting Data and Financial Indicators During the reporting period, revenue increased by 9.13%, and gross margin improved to 35.71%, but net profit attributable to shareholders significantly declined by 58.18%, with a 32.73% decrease in net cash flow from operating activities Profitability Indicators (H1 2024) | Indicator | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 432,253,911.44 | 396,106,981.14 | 9.13% | | Gross Margin (%) | 35.71% | 30.66% | - | | Net Profit Attributable to Shareholders (RMB) | 20,805,409.59 | 49,752,766.39 | -58.18% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 19,036,492.63 | 31,258,228.83 | -39.10% | | Basic Earnings Per Share (RMB) | 0.21 | 0.51 | -58.82% | Solvency Indicators (As of June 30, 2024) | Indicator | Current Period End | Prior Year End | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 1,285,053,458.25 | 1,218,214,755.41 | 5.49% | | Total Liabilities (RMB) | 591,204,798.92 | 527,628,643.82 | 12.05% | | Asset-Liability Ratio (Consolidated) (%) | 46.01% | 43.31% | - | Operating and Growth Performance (H1 2024) | Indicator | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities (RMB) | 53,089,520.89 | 78,924,552.38 | -32.73% | | Operating Revenue Growth Rate (%) | 9.13% | 22.23% | - | | Net Profit Growth Rate (%) | -57.55% | 58.08% | - | Accounting Policy Changes The company reclassified warranty-related quality assurance expenses from 'Sales Expenses' to 'Operating Costs' effective January 1, 2024, with retrospective adjustments to prior period data - The company reclassified warranty-related quality assurance expenses from sales expenses to operating costs due to new Ministry of Finance regulations, with retrospective adjustments to financial data[19] Impact of Accounting Policy Change (January-June 2024) | Item | Amount Before Adjustment (RMB) | Amount After Adjustment (RMB) | Impact Amount (RMB) | | :--- | :--- | :--- | :--- | | Operating Costs | 277,115,828.86 | 277,890,149.30 | +774,320.44 | | Sales Expenses | 17,608,429.42 | 16,834,108.98 | -774,320.44 | Impact of Accounting Policy Change (January-June 2023 Retrospective Adjustment) | Item | Amount Before Adjustment (RMB) | Amount After Adjustment (RMB) | Impact Amount (RMB) | | :--- | :--- | :--- | :--- | | Operating Costs | 273,255,897.00 | 274,666,988.50 | +1,411,091.50 | | Sales Expenses | 16,285,168.13 | 14,874,076.63 | -1,411,091.50 | Business Overview The company's core business remains stable, focusing on automotive rubber hoses and assemblies, serving both OEM and aftermarket clients, and holds national 'Specialized, Refined, Unique, and New' enterprise qualifications - The company's business model covers both OEM and aftermarket segments, with direct sales to OEMs and distribution through dealers and retailers for the aftermarket[21] - Clients include traditional OEMs like General Motors, SAIC-GM, Geely, and BYD, and new energy vehicle manufacturers such as T Group, NIO, and Xpeng[21] - The company is recognized as a national 'Specialized, Refined, Unique, and New' 'Little Giant' enterprise, a provincial 'Manufacturing Single Champion' enterprise, and a high-tech enterprise[23] Operating Performance Review In H1 2024, revenue grew by 9.13% to 432.25 million RMB, but net profit attributable to shareholders declined by 58.18% to 20.81 million RMB, primarily due to increased management and financial expenses, and reduced government subsidies - Management expenses increased by 62.72% year-on-year, mainly due to an additional 20.70 million RMB in intermediary fees for legal services related to a US government investigation[31] - Financial expenses increased by 13,608.66% year-on-year, primarily due to a 9.44 million RMB decrease in exchange gains from currency fluctuations[31] - Other income decreased by 96.07% year-on-year, mainly because the US subsidiary received 17.95 million RMB in Employee Retention Credit (ERC) subsidies in the prior year, with no such income in the current period[31] Revenue by Product Category (H1 2024) | Category/Item | Operating Revenue (RMB) | Revenue YoY Change (%) | Gross Margin (%) | Gross Margin YoY Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | | Assembly Products | 341,938,510.71 | 3.62% | 35.04% | +4.51 | | Rubber Hose Products | 83,442,878.26 | 57.12% | 38.65% | +4.83 | | Other Businesses | 3,729,083.01 | -51.90% | 41.42% | +12.90 | Revenue by Region (H1 2024) | Category/Item | Operating Revenue (RMB) | Revenue YoY Change (%) | Gross Margin (%) | Gross Margin YoY Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | | Overseas | 252,178,362.19 | 0.23% | 41.70% | +5.39 | | Domestic | 180,075,549.25 | 24.61% | 27.32% | +6.51 | Cash Flow Status (H1 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 53,089,520.89 | 78,924,552.38 | -32.73% | | Net Cash Flow from Investing Activities | -115,059,559.99 | -52,011,205.88 | -121.22% | | Net Cash Flow from Financing Activities | 25,883,878.56 | -22,955,410.79 | 212.76% | Analysis of Major Holding and Participating Companies The company established a new wholly-owned subsidiary, Qingdao Delongte International Trade Co., Ltd., during the period, while Sanxiang Thailand Co., Ltd. reported a net profit of 8.66 million RMB, and Harco Manufacturing Group, LLC incurred a loss of 9.55 million RMB - A new wholly-owned subsidiary, Qingdao Delongte International Trade Co., Ltd., with a registered capital of 3 million RMB, was established and included in the consolidated financial statements[39][40] Major Holding Subsidiaries' Operating Performance (H1 2024) | Company Name | Net Profit (RMB) | | :--- | :--- | | Qingdao Sanxiang Metal Manufacturing Co., Ltd. | 3,916,699.34 | | Sanxiang North America Co., Ltd. | -446,769.84 | | Harco Manufacturing Group, LLC | -9,553,437.39 | | Sanxiang Thailand Co., Ltd. | 8,660,758.38 | Risks and Countermeasures The company faces risks from macroeconomic fluctuations, market competition, raw material price volatility, rising costs, exchange rate fluctuations, and new energy vehicle market expansion challenges, which it plans to address through innovation, market development, and cost control - Macroeconomic fluctuations and changes in the automotive industry's prosperity may impact the company's performance[43] - Fluctuations in raw material (rubber, carbon black, metal parts) prices may affect the company's profit margins[44] - The company's high proportion of overseas revenue exposes it to exchange rate fluctuation risks, particularly for USD and EUR[44] - The rapid development of new energy vehicles poses challenges to the company's existing fuel vehicle products, requiring enhanced competitiveness in the new energy market[44] Significant Events This section details significant events, including a US enforcement investigation into a subsidiary, external guarantees, related party transactions, and asset pledges Details of Significant Events While there were no major lawsuits, the company has external guarantees, significant related party transactions, and asset pledges, with a notable ongoing US enforcement investigation into its wholly-owned subsidiary, Sanxiang North America, impacting 2024 performance - US law enforcement conducted an on-site search of the wholly-owned subsidiary Sanxiang North America in January 2024; the investigation is ongoing, and related legal fees will impact the company's 2024 operating performance[55][56][268] - The company provided guarantees totaling 104 million RMB for its subsidiaries Qingdao Sanxiang Metal Manufacturing Co., Ltd. and Sanxiang Thailand Co., Ltd[48][49] - The company engages in recurring related party transactions, primarily purchasing raw materials from and selling products to related party Qingdao Sanxiang Machinery Manufacturing Co., Ltd[50][51] - Portions of the company's assets, totaling approximately 160 million RMB (12.49% of total assets), are pledged or mortgaged for bank loans and acceptance bills[53] Share Changes and Financing This section covers changes in share capital, major shareholders, and the utilization of raised funds Share Capital Structure and Major Shareholders As of the reporting period end, the company's total share capital remained at 98.03 million shares, with Qingdao Xinjintaida Economic Information Consulting Co., Ltd. as the largest shareholder, holding 45.38% Share Capital Structure (As of June 30, 2024) | Share Type | Quantity (Shares) | Proportion (%) | | :--- | :--- | :--- | | Unrestricted Shares | 39,229,000 | 40.02% | | Restricted Shares | 58,801,000 | 59.98% | | Total Share Capital | 98,030,000 | 100.00% | Top Two Shareholders' Holdings | Shareholder Name | Shares Held at Period End (Shares) | Proportion at Period End (%) | | :--- | :--- | :--- | | Qingdao Xinjintaida Economic Information Consulting Co., Ltd. | 44,489,000 | 45.38% | | SAKCHAI WONGCHAMCHAROEN | 8,430,000 | 8.60% | Use of Raised Funds The company raised 137 million RMB net from its 2022 public offering, with 88.22 million RMB utilized by the reporting period end for working capital and a technical renovation project, without any change in fund usage - The company's 2022 IPO raised a net amount of 137 million RMB[61] - As of the reporting period end, 88.22 million RMB of the raised funds have been utilized, primarily for supplementing working capital and a technical renovation project[61] Changes in Directors, Supervisors, Senior Management, and Core Employees This section details personnel changes within the board, supervisory board, senior management, and core employee structure Changes in Directors, Supervisors, and Senior Management While core senior management remained stable, the company saw a change in independent directors, with one departing and a new independent director, Ms. Hua Shuanglian, elected - During the reporting period, there was a change in the company's independent directors, with one departing and one new appointment[65][67] - The newly appointed independent director, Ms. Hua Shuanglian, is an academic professor at Shandong University of Science and Technology, holds a doctoral degree, and is a Chinese Certified Public Accountant[66] Employee Information As of the reporting period end, the total number of employees at the company and its subsidiaries increased slightly to 1,224, with production personnel constituting the largest group Employee Count Changes | By Job Nature | Number at Beginning of Period | Number at End of Period | | :--- | :--- | :--- | | Management Personnel | 273 | 238 | | Production Personnel | 773 | 859 | | Sales Personnel | 18 | 17 | | Technical Personnel | 109 | 93 | | Financial Personnel | 18 | 17 | | Total Employees | 1,191 | 1,224 | Financial Accounting Report This section presents the company's unaudited financial statements for the first half of 2024, along with detailed notes on accounting policies and significant events Audit Status The semi-annual financial report has not been audited - The financial report is unaudited[69] Financial Statements This section provides the company's consolidated and parent company financial statements for H1 2024, including balance sheets, income statements, cash flow statements, and statements of changes in equity - The report includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity[69][72][75][79][83] Notes to Financial Statements The notes detail the company's background, financial statement preparation basis, significant accounting policies (including reclassification of warranty expenses), taxes, consolidated financial statement item explanations, and related party transactions, also highlighting the ongoing US subsidiary investigation - The notes disclose an accounting policy change: warranty-related quality assurance expenses are reclassified from sales expenses to operating costs per new regulations, with retrospective adjustments[93][177] - The notes reiterate that the US subsidiary, Sanxiang North America, is under investigation by US law enforcement, and related legal fees will impact 2024 performance[268] - The company and its main subsidiary, Qingdao Sanxiang Metal Manufacturing Co., Ltd., benefit from a 15% high-tech enterprise income tax preferential rate[182] Reference Documents This section lists documents available for reference, including signed financial statements and publicly disclosed reports - Reference documents include financial statements signed by the company's responsible persons, original audit reports (if any), and original copies of all publicly disclosed documents and announcements during the reporting period[287]