[中报]三花智控:2021年半年度报告（英文版）
原标题:三花智控:2021年半年度报告（英文版） Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 1 Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report August 2021 Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 2 Section I Important Notes, Contents and Definitions The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Management of Zhejiang Sanhua Intelligent Controls Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the information presented in this report shall be authentic, accurate, complete and free from material misstatement whether due to false record, misleading statement or significant omission, and they will bear both individual and joint legal liabilities. Zhang Yabo, the Company's legal representative, Yu Yingkui, the person in charge of the accounting work, and Sheng Xiaofeng, the person in charge of accounting department (Accounting Officer) hereby declare and warrant that the financial statements in this report are authentic, accurate and complete. All directors attended the board meeting to review this report. The Company describes in detail concerning the possible risks and countermeasures in Section X " Risks and Countermeasures of the Company" under Section III " Management’s Discussion and Analysis of Operations". Please pay particular attention to relevant contents. The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the current reporting period. Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 3 CONTENTS Section I Important Notes, Contents and Definitions..................................................................................................................................... 2 Section II Corporate Profile and Key Financial Indicators............................................................................................................................ 6 Section III Management’s Discussion and Analysis of Operations...........................................................................................................10 Section IV Corporate Governance................................................................................................................................................................. 26 Section V Environmental and Social Responsibility....................................................................................................................................29 Section VI Significant Events........................................................................................................................................................................ 34 Section VII Changes in Shares and Information about Shareholders...........................................................................................................52 Section VIII Information of Preferred Shares............................................................................................................................................... 59 Section IX Bonds............................................................................................................................................................................................ 60 Section X Financial Report.............................................................................................................................................................................63 Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 4 List of Documents Available for Inspection 1. The 2021 Semi-Annual Report signed by the chairman of the board. 2. The financial report signed and sealed by the Company's legal representative, chief finance officer and person in charge of accounting department. 3. Original copy of all the Company's documents and announcements published on the newspapers designated by CSRC within the reporting period. 4. Other documents available for inspection Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 5 Definitions Items Refers to Definition The Company, Company Refers to Zhejiang Sanhua Intelligent Controls Co., Ltd. The Articles of Associations Refers to Articles of Associations for Zhejiang Sanhua Intelligent Controls Co., Ltd. The CSRC Refers to China Securities Regulatory Commission SZSE Refers to Shenzhen Stock Exchange Zhejiang Securities Regulatory Bureau Refers to Zhejiang Securities Regulatory Bureau of China Securities Regulatory Commission General Meeting Refers to General Meeting of Zhejiang Sanhua Intelligent Controls Co., Ltd. The Board of Directors Refers to The Board of Directors of Zhejiang Sanhua Intelligent Controls Co., Ltd. The Board of Supervisors Refers to The Board of Supervisors of Zhejiang Sanhua Intelligent Controls Co., Ltd. Yuan Refers to RMB Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 6 Section II Corporate Profile and Key Financial Indicators I. Corporate Information Stock abbreviation Sanhua Intelligent Controls Stock code 002050 Stock Exchange where the shares of the Company are listed Shenzhen Stock Exchange Name of the Company in Chinese 浙江三花智能控制股份有限公司 Abbr. of the Company name in Chinese (if any) 三花智控 Name of the Company in English (if any) ZHEJIANG SANHUA INTELLIGENT CONTROLS CO., LTD. Abbr. of the Company name in English (if any) SANHUA Legal Representative Zhang Yabo II. Contacts and Contact Information Board Secretary Securities Affairs Representative Name Hu Kaicheng Wang Yutong Address No. 12 St., No. 289 Xiasha Economic Development, Hangzhou, Zhejiang, China. No. 219, Woxi Avenue, Meizhu, Xinchang, Zhejiang, China. Tel. 0571-28020008 0575-86255360 Fax 0571-28876605 0575-86563888-8288 E-mail [email protected] [email protected] III. Other Relevant Information 1. Company’s contact information Whether there is any change in the Company’s registered address, office address, zip code, website or email address during the reporting period. □Applicable √Not applicable There are no changes in the Company’s registered address, office address, zip code, website or Company email address during the reporting period. Please refer to 2020 Annual Report for details. Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 7 2. Information disclosure and place of the report Whether there is any change in information disclosure and place of the report during the reporting period. √Applicable □ Not applicable Newspaper designated by the Company for information disclosure China Securities Journal, Securities Times Website specified by CSRC for release of the Semi-Annual Report http://www.cninfo.com.cn Place where the Semi-Annual Report is available for inspection Office of the Board of Directors Note: The newspapers designated by the Company were changed from Securities Times and Shanghai Securities News to China Securities Journal and Securities Times on July 1. IV. Key Accounting Information and Financial Indicators Whether the Company performed a retrospective adjustment or restatement of previous accounting data □Yes √ No Unit: RMB Current Reporting Period Corresponding Period of Last Year YoY Change (%) Operating Revenue (RMB) 7,674,081,761.69 5,318,178,626.77 44.30% Net Profit Attributable to Shareholders of the Listed Company (RMB) 823,881,221.70 643,481,717.35 28.03% Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses (RMB) 719,771,655.78 582,191,161.67 23.63% Net Cash Flow Generated from Operational Activities (RMB) 825,216,623.26 1,104,651,449.42 -25.30% Basic Earnings per Share (RMB/Share) 0.23 0.18 27.78% Diluted Earnings per Share (RMB/Share) 0.23 0.18 27.78% Weighted Average ROE 8.04% 6.74% 1.30% At the End of the Current Reporting Period At the End of Last Year YoY Change (%) Total Assets (RMB) 21,007,499,311.90 17,032,530,730.18 23.34% Net Assets Attributable to Shareholders of the Listed Company (RMB) 10,444,077,103.59 10,064,794,519.57 3.77% Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 8 V. Differences in Accounting Data between Domestic and Overseas Accounting Standards 1. Difference in net profits and net assets of this financial report between International Financial Reporting Standards and China Accounting Standards □ Applicable √ Not applicable There is no difference in net profits and net assets of this financial report between International Financial Reporting Standards (IFRS) and China Accounting Standards in the reporting period. 2. Difference in net profits and net assets of this financial report between Overseas Accounting Standards and China Accounting Standards □ Applicable √ Not applicable There is no difference in net profits and net assets of this financial report between Overseas Accounting Standards and China Accounting Standards in the reporting period. VI. Items and Amounts of Non-recurring Gains and Losses √ Applicable □ Not applicable Unit: RMB Items Amount Note Gains or Losses from Disposal of Non-current Assets (Including the Write-off for the Accrued Impairment of Assets) -1,623,182.25 The Government Subsidies Included in the Current Gains and Losses (Excluding the Government Subsidies Closely Related to Regular Businesses of the Company and Issued in the Quota or Quantity Based on the National Standards) 64,034,111.05 Gains or Losses Attributed to the Changes in Fair Value for Holding Held-for-trading financial assets, Derivative Financial Assets, Trading Financial Liabilities, Derivative Financial Liabilities and Investment Income from Disposal of Held-for-trading financial assets, Derivative Financial Assets, Trading Financial Liabilities, Derivative Financial Liabilities and Other Debt Investment, Excluding Hedging Businesses Related to the Regular Business Operation of the Company 60,752,561.20 In order to avoid the price risk of raw materials and prevent exchange rate risk, the Company and its subsidiaries have carried out derivatives business, including futures contracts and foreign exchange forward contracts. From January to June 2021, the futures income was RMB 19.8287 million and the forward income was RMB 40.9239 million; from January to June 2020, the futures income was RMB 1.0049 million and the forward loss Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 9 was RMB 24.4147 million. Thus, the amount of non-recurring profit and loss items fluctuated greatly in the first half of the two years. Meanwhile, the exchange loss from January to June 2021 was RMB 51.1292 million, and the exchange gain from January to June 2020 was RMB 45.6796 million. According to the Explanatory Announcement No. 1 of Information Disclosure of Listed Companies – Non-recurring Gains and Losses, foreign exchange gains and losses are recurring gains and losses, while futures and forward gains and losses are non-recurring gains and losses. Non-operating Income and Expenditures Other Than the Above 891,333.20 Other Gains and Losses Items that Fit in the Definition of Non-recurring Gains and Losses 702,064.60 Less: Impact of Income Tax 20,201,305.62 Impact of Minority Equity (after tax) 446,016.26 Total 104,109,565.92 -- The reasons for the non-recurring gains and losses items defined or listed in the Explanatory Announcement No. 1 of Information Disclosure of Listed Companies – Non-recurring Gains and Losses are defined as recurring gains and losses items □Applicable √ Not applicable In the reporting period, the Company did not define any non-recurring gains and losses items defined and listed in the Explanatory Announcement No. 1 of Information Disclosure of Listed Companies – Non-recurring Gains and Losses, as recurring gains and losses items. Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 10 Section III Management’s Discussion and Analysis of Operations I. The Principal Business of the Company during the Reporting Period 1. Main business The Company adheres to the "Focus on Leading, Innovation, Transcendence" business path, concentrating on the research and application of heat pump technology and thermal management system products, focusing on the development of environmental thermal management solutions for heat exchange and temperature intelligent control, and is committed to the professional operation in the fields of building HVAC, electrical equipment and automotive thermal management. According to the different stages and characteristics of strategic business and their development, the Company's business is mainly divided into refrigeration and air conditioning electrical components business and automotive components business. The main products of refrigeration and A/C electrical parts business include Four-way Reversing Valve, Electronic Expansion Valve, Solenoid Valve, Microchannel Heat Exchanger, Omega Pump, etc., which are widely used in A/C, refrigerator, cold chain logistics, dishwasher and other fields; the main products of automotive components business include Thermal Expansion Valve, Receiver Drier, Electronic Expansion Valve, Thermal Management Integrated Module for new energy vehicle, Electronic Water Pump, etc., which are widely used in both traditional fuel vehicles and new energy vehicle. During the reporting period, the Company's main business and its business model have not changed. 2. Industry development （1） Refrigeration and air conditioning electrical components industry China is the largest manufacturing base of A/C and refrigerators in the world, and its production and sales volume ranks first globally. In line with the trend of environmental protection in the world, energy-saving inverter and intelligent technology have become the trend, which puts forward a series of new requirements for the market of control components, and also brings new development opportunities. As a leading enterprise in the refrigeration control components industry, the Company will follow the trend, firmly seize this opportunity and develop steadily. （2） Automotive components industry The global automobile industry has been developing rapidly, which also drives the market demand of automotive A/C and thermal management products to continue to grow substantially. In recent years, the development of new energy vehicles has become a certain trend, which puts forward higher and more updated requirements for A/C and thermal management products no matter in hybrid, pure electric or hydrogen energy vehicles. Focusing on the in-depth research on A/C and thermal management system of new energy vehicles, the Company has gradually developed from components to module and subsystems, and has become the cooperative partner of Valeo, Volkswagen, Mercedes Benz, BMW, Volvo, Toyota, GM, Geely, BYD, SAIC, NIO, etc. Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 11 3. Industry position of the Company The Company is the world's largest manufacturer of refrigeration control components and the world's leading manufacturer of automotive A/C and thermal management system control components. "Sanhua" refrigeration intelligent control components have become a world-famous brand, and a strategic partner of many automobile enterprises and air-conditioning refrigeration appliance manufacturers in the world. After more than 30 years of development, the Company has established a leading position in the global market of refrigeration and automotive thermal management. The market share of the Company's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve, Microchannel Heat Exchanger, Automotive Electronic Expansion Valve, Thermal Management Integrated Module for new energy vehicle, Omega Pump ranks first globally. The market share of the Company's Service Valve, Vehicle Thermal Expansion Valve and Receiver Drier is in the leading position in the world. II. Core Competitiveness Analysis 1. Clear strategic layout The Company adheres to the " Focus on Leading, Innovation, Transcendence " business path, takes the research and application of heat pump technology and thermal management system products as the core, firmly grasps the development theme of energy conservation, environmental protection and intelligent control, upgrades from "mechanical parts development" to "system control technology solution development of electronic control integration". The Company’s product series are expanded from household A/C and refrigerator components to the field of commercial A/C and commercial refrigeration, and extending to the direction of inverter control technology and system integration and upgrading. Meanwhile, after the injection of automotive business, it gives full play to the synergetic effect with the original business, continues to deepen the research and development of automobile A/C and new energy vehicle thermal management system components, and actively explores the deeper application of thermal management components and subsystems in the automotive field, so as to provide global customers with competitive environmental intelligent control solutions. 2. Technology leading, customer oriented As a national high-tech enterprise, the Company has always adhered to the technological route of independent development and innovation. For decades, it has focused on the field of intelligent control and vigorously cultivated core technologies with independent intellectual property rights. It has been authorized 2,529 patents both domestic and abroad, including 1,235 invention patents. The first priority of the Company is to meet the needs of customers with all products, services and quality. 3. Quality assurance, scale economy effect The Company's products cover refrigeration A/C electrical components and automotive components industry. The market share of the Company's Electronic Expansion Valve, Four-way Reversing Valve, Solenoid Valve, Microchannel Heat Exchanger, Automotive Electronic Expansion Valve, Thermal Management Integrated Module for new energy vehicle, Omega Pump ranks first globally. The market share of Service Valve, Vehicle Thermal Expansion Valve and Receiver Drier is in the leading position in the world. The Company has established a complete and strict quality assurance system, achieved ISO9001, IATF16949, QC080000 quality system certification. The Company won the National Quality Award, Zhejiang Quality Award, and won the high comments from JCI, Daikin, Carrier, Gree, Midea, Haier, Toyota, Benz, Volkswagen, Valeo and other well-known Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 12 enterprises at home and abroad. 4. Advantages of global marketing network and production base Since the 1990s, the Company has focused on opening up international market, and established overseas subsidiaries in Japan, South Korea, Singapore, the United States, Mexico, Germany and other places to build a global marketing network. At the same time, it established overseas production bases in the United States, Poland, Mexico, Vietnam and other places, and has preliminary ability to cope with production globalization. And in practice, we have trained a number of management talents who can meet the requirements of business development in different countries and regions. III. Main Business Analysis Overview In the first half of 2021, the Company actively responded to the changes and challenges, and the overall operation of the Company were elevated even under the harsh background of continued impact from overseas epidemic, sharp rise in international shipping prices and raw material prices, appreciation of RMB exchange rate against US dollar. Specific to the industry in which the Company operates, the refrigeration and air conditioning electrical parts business has maintained a growth trend due to the stable recovery of the home appliance industry and the upgrading of consumption concept. The automotive components business continues to improve due to the prosperity of the new energy vehicle market, which drives the rapid growth of revenue. During the reporting period, the operating revenue is RMB 7.674 billion, a year-on-year increase of 44.30%. The operating profit is RMB 1.008 billion, a year-on-year increase of 36.29%. The net profit attributable to shareholders of listed company is RMB 824 million, a year-on-year increase of 28.03%. The operating revenue of refrigeration and air conditioning electrical components business is RMB 5.563 billion, a year-on-year increase of 27.37%. The operating revenue of automotive components business is RMB 2.111 billion, a year-on-year increase of 122.14%. (I). Actively improve efficiency, reduce costs and optimize the layout of globalization 1. Refrigeration and air conditioning electrical components business In terms of the refrigeration and air conditioning electrical components business, the Company improves efficiency and reduces costs through automation transformation, lean production, staff reduction and efficiency increase, procurement costs reduction, technology costs reduction and other measures. Although AWECO's business is affected by the European epidemic, it has realized positive net profit monthly through tapping potentials of internal management and supply chain transformation. After relocation of the new plant in Vietnam Sanhua, it has been recognized by major customers in the United States, and costs of some products have been lower than that in China. In addition, the Company actively expands kitchen appliances and other products, so as to further broaden the Company's new development fields, continuously improve its sustainable profitability and market competitiveness. 2. Automotive components business The automotive components business will continue to support its strategic customers. In order to satisfy the increasing need of capacity, the Company orderly promotes the production line construction and mass production Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 13 project of the Mexican factory and Shaoxing Binhai factory. On the premise of ensuring the projects of existing customers, the Company develops competitive products, technologies, and actively obtains new orders. In terms of internal management, the Company takes first-class enterprises as models, establishes a global quality management system, so as to improve the quality management of factories at home and abroad. Facing the challenge of the continuous rise of raw material prices and freight expenses, the Company spares no effort to promote the costs reduction, efficiency increase, and linkage rise of product prices through active communication with downstream customers. (II). Continue to promote investment projects and improve the profitability The Company's convertible bonds were listed and traded in Shenzhen Stock Exchange on June 30, 2021, raising RMB 3 billion, which is mainly used in "Construction project of commercial refrigeration and air conditioning intelligent control components with a capacity of 65 million sets per year" and "Technical transformation project of high-efficiency and energy-saving control components for refrigeration and air conditioning with a capacity of 50.5 million sets per year”. The implementation of these projects will help promote the development of the Company's products towards a more efficient and energy-saving direction, further improve the Company's business scale and competitive advantage, optimize the business structure, improve the Company's sustainable profitability, and lay a solid foundation for the Company to achieve medium and long-term strategic development goals. (III). Enhance product strength and improve patent layout of strategic products During the reporting period, the Company invested RMB 352 million in R&D, a year-on-year increase of 46.73%. The Company spares no effort in enhancing its product strengthen through continuous R&D investment. And the Company participates in market competition with new products and new technologies through continuous optimization iteration. In terms of patent layout, the Company will continue to implement "High-quality patents and high-value patents" by promoting the patent layout of key products. By the end of the reporting period, 2,529 patents have been authorized at home and abroad, including 1,235 invention patents. Changes in key financial data over the corresponding period of last year Unit: RMB Current Reporting Period Corresponding Period of Last Year YoY Change (%) Note of Change Operating Revenue 7,674,081,761.69 5,318,178,626.77 44.30% Operating Cost 5,601,811,479.62 3,839,626,004.70 45.89% Selling Expenses 321,908,769.46 257,442,500.54 25.04% Administrative Expenses 374,431,536.21 315,350,745.15 18.73% Financial Expenses 49,304,431.90 -29,893,397.04 264.93% Mainly due to the increase of foreign exchange loss in the current period Income Tax Expenses 170,607,121.16 99,017,348.37 72.30% Mainly due to the increase of total profit in Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 14 the current period, and difference resulted from adjustment of final settlement of income tax R&D Investments 352,175,549.62 240,012,928.38 46.73% Mainly due to the increase of R&D personnel salary + investment in material and power Net Cash Flows from Operating Activities 825,216,623.26 1,104,651,449.42 -25.30% Mainly due to increase in purchasing goods and receiving labor services, decrease in net cash inflow from sales, and increase in employee compensation Net Cash Flows from Investment Activities -313,010,482.60 -679,392,344.66 53.93% Mainly due to the increase in net redemption of financial products and the increase in the purchase of fixed, intangible and other long-term assets Net Cash Flows from Financing Activities 2,299,821,228.74 310,293,217.58 641.18% Mainly due to the issuance of convertible bonds in the current period Net Increase in Cash and Cash Equivalents 2,794,780,733.88 709,896,200.36 293.69% Whether there is significant change in Company’s profit structure or profit source during the reporting period □ Applicable √ Not applicable There is no such case during the reporting period Revenue structure Unit: RMB Current Reporting Period Corresponding Period of Last Year YoY Change (%) Amount Proportion to total revenue Amount Proportion to total revenue Total Revenue 7,674,081,761.69 100% 5,318,178,626.77 100% 44.30% Classified by Industry General 7,674,081,761.69 100.00% 5,318,178,626.77 100.00% 44.30% Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 15 Equipment Manufacturing Industry Classified by Products Refrigeration A/C Electrical Components 5,563,260,796.57 72.49% 4,367,942,431.64 82.13% 27.37% Automotive Components 2,110,820,965.12 27.51% 950,236,195.13 17.87% 122.14% Classified by Region Domestic 3,703,718,671.83 48.26% 2,479,768,382.72 46.63% 49.36% Overseas 3,970,363,089.86 51.74% 2,838,410,244.05 53.37% 39.88% Industries, products or regions accounting for more than 10% of the Company’s operating revenue or operating profit √ Applicable □ Not applicable Unit: RMB Operating revenue Operating cost Gross margin YoY Change (%) of operating revenue YoY Change (%) of operating cost YoY Change (%) of gross margin Classified by industry General Equipment Manufacturing Industry 7,674,081,761.69 5,601,811,479.62 27.00% 44.30% 45.89% -0.80% Classified by product Refrigeration A/C Electrical Components 5,563,260,796.57 4,015,609,936.55 27.82% 27.37% 26.91% 0.26% Automotive Components 2,110,820,965.12 1,586,201,543.07 24.85% 122.14% 134.80% -4.06% Classified by region Domestic 3,703,718,671.83 2,655,946,262.75 28.29% 49.36% 52.18% -1.33% Overseas 3,970,363,089.86 2,945,865,216.87 25.80% 39.88% 40.66% -0.41% In the case that the Company's main business data statistics are adjusted during the reporting period, the Company's main business data of the latest reporting period were adjusted according to the statistics at the end of the last reporting period □ Applicable √ Not applicable Explanations on relevant data changed for more than 30% on a year-over-year base Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 16 √Applicable □Not applicable The operating revenue of automotive components business is increased by 122.14% over the same period of last year. It is mainly due to the continuous improvement of new energy vehicle market. Thus, it drives automotive components business to grow rapidly and operating costs are increased correspondingly. IV. Non-Main Business Analysis √Applicable □Not applicable Unit: RMB Amount Proportion to net profit Note of Change Sustainability Investment Income 97,400,173.01 9.67% Gains and losses of futures contract settlement, foreign exchange forward contract settlement, bank financial product, etc. No Gains and Losses from Change of Fair Value -32,695,697.38 -3.25% Floating income of futures contracts, foreign exchange forward contracts, bank financial products, etc. No Non-operating Income 2,472,160.14 0.25% Income from nonpayment, compensation and liquidated damages, gains from retirement of fixed assets, etc. No Non-operating Expenditures 3,604,181.70 0.36% Loss on retirement of fixed assets, litigation compensation loss, etc. No Credit Impairment Loss -48,442,168.40 -4.81% Bad debt loss, etc. No Assets Impairment Loss -18,614,580.55 -1.85% Loss on impairment of inventories, etc. No Gains on Disposal of Properties 400,172.51 0.04% Gains on disposal of fixed assets No Other Gains 72,081,481.22 7.16% Government subsidies, etc. The government grants of VAT refund of civil welfare enterprises and software product VAT exceeding tax burden are sustainable, while the rest are not Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 17 sustainable V. Analysis of Assets and Liabilities 1. Material changes of assets Unit: RMB At the End of Current Reporting Period At the End of Last Year YoY Change (%) Note of significant change Amount Percentage of total assets Amount Percentage of total assets Cash and Bank Balance 6,301,888,182. 65 30.00% 3,489,687,568. 14 20.49% 9.51% Mainly due to the issuance of convertible bonds in the current period Accounts Receivable 3,100,856,902. 63 14.76% 2,355,613,299. 57 13.83% 0.93% Inventories 2,917,803,847. 90 13.89% 2,307,761,706. 46 13.55% 0.34% Investment property 9,398,176.54 0.04% 10,067,588.96 0.06% -0.02% Long-term Equity Investment 17,828,507.38 0.08% 15,219,616.68 0.09% -0.01% Fixed Assets 3,965,615,647. 93 18.88% 3,839,408,059. 45 22.54% -3.66% Construction in Progress 914,010,795.5 9 4.35% 628,730,529.07 3.69% 0.66% Short-term Borrowings 521,381,193.6 4 2.48% 383,088,296.60 2.25% 0.23% Contractual Liabilities 44,096,560.86 0.21% 42,581,607.67 0.25% -0.04% Long-term Borrowings 17,425,691.86 4.37% 1,707,918,994. 87 10.03% -5.66% Non-current liabilities due within one year 1,012,141,338. 04 4.82% 130,553,923.87 0.77% 4.05% Bonds Payable 2,588,449,353. 66 12.32% 12.32% Mainly due to the issuance of convertible bonds in the current period 2. Main overseas assets √Applicable □ Not applicable Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 18 Content of Assets Formation Assets Scale (RMB) Location Operation Mode Control measures to ensure asset safety Income (RMB) Proportion of overseas assets in net assets of the Company Whether there is significant impairment risk Sanhua Internation al Inc. (USA) (Consolidat ed) Equity Investment 1,676,659, 000.33 The United States R&D, Manufactur ing, Marketing and Investment Manageme nt Financial supervision and external audit 108,267,40 6.20 No Sanhua Internation al Singapore PTE. Ltd. (Consolidat ed) Equity Investment 3,020,615, 669.89 Singapore Manufactur ing, Marketing and Investment Manageme nt Financial supervision and external audit 48,785,981 .05 No 3. Assets and liabilities measured at fair value √ Applicable □ Not applicable Unit: RMB Items Opening balance Profit and loss of fair value change in the current period Cumulative changes in fair value included in equity Impairment accrued in the current period Current purchase amount Current sale amount Other changes Closing balance Financial Assets 1. Held-for-tradi ng financial assets (Excluding Derivative Financial Assets) 752,224,861.7 8 -613,379.14 562,087,170. 50 189,524,312 .14 2.Derivative Financial 58,330,486.53 -31,937,779.9 1 26,392,706. 62 Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 19 Assets Subtotal 810,555,348.3 1 -32,551,159.0 5 562,087,170. 50 215,917,018 .76 Total 810,555,348.3 1 -32,551,159.0 5 562,087,170. 50 215,917,018 .76 Financial Liabilities 7,939,957.91 -213,573.29 7,726,384.6 2 Whether there were any material changes on the measurement attributes of major assets of the Company during the reporting period: □ Yes √ No 4. Limitation of asset rights as of the end of reporting period Items Closing Book value (RMB) Reasons for being restricted Cash and Bank Balance 106,963,410.23 Margin deposits, margin deposits in futures institutions, litigation frozen bank deposits Notes Receivable 1,579,929,231.31 Pledge for financing Total 1,686,892,641.54 -- VI. Analysis of Investments 1. Overview √Applicable □ Not applicable Investment during the Reporting Period (RMB) Investment over the Corresponding Period of Last Year (RMB) Fluctuation Rate (%) 1,581,000,000.00 0.00 0.00% 2. Significant equity investment during the reporting period □Applicable √Not applicable 3. Significant non-equity investment during the reporting period □Applicable √ Not applicable 4. Financial asset investment （1）Securities Investments □ Applicable √ Not applicable Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 20 （2）Derivatives Investments √Applicable □ Not applicable Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 21 Unit: RMB in 10 thousand Operation party of derivatives investment Whether related party Whether related transaction Type of derivatives investment Initial investment amount of derivatives investment Initial date Terminatio n date Opening investment amount Purchased amount during the reporting period Sold amount during the reporting period Impairmen t provisions (if any) Closing investment amount Proportion of closing investment amount to the Company’ s net assets at the end of the reporting period Actual gain or loss during the reporting period Futures Company, Bank No No Futures contracts, foreign exchange forward contracts, etc. Total -- -- Capital source of derivatives investment Company’s self-fund Prosecution (if applicable) Not applicable Announcement date for approvals of derivatives investment from the board of directors (if any) Announcement date for approvals of derivatives investment from the general meeting (if any) Risk analysis and control measures (including but not In order to avoid the price risk of raw materials and exchange rate risk, the Company and its subsidiaries have carried out derivative Zhejiang Sanhua Intelligent limited to, market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) of holding derivatives during the reporting period business, including futures contracts and foreign exchange forward contracts. The Company relevant provisions listed in the Management Measures for Future Hedging Business and Hedging Business. Change of market price or fair value of invested derivatives during the reporting period; specific methods, related assumptions and parameter setting of the derivatives’ fair value analysis should be disclosed -- During the current reporting period, whether there was significant changes of accounting policies and accounting principles of the Company’s derivatives comparing to the prior reporting period Not applicable Specific opinions on the Company’s derivatives investments and risk control from independent directors Not applicable Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 23 VII. Disposal of Significant Assets and Equity 1. Disposal of significant assets □ Applicable √ Not applicable During the reporting period, there was no disposal of significant assets 2. Sale of significant equity □ Applicable √ Not applicable VIII. Analysis of Major Subsidiaries and Investees √ Applicable □ Not applicable Information about major subsidiaries, and investees that contribute above 10% of the Company’s net profit Unit：RMB Company name Company type Principal business Registered capital Total assets Net assets Operating revenue Operating profit Net profit Zhejiang Sanhua Refrigerati on Group Co., Ltd. Subsidiary Refrigerati on and A/C electrical component s manufactur ing and marketing RMB 250 million 3,637,761, 589.65 3,279,261, 854.94 774,323,41 5.75 111,526,87 9.24 95,553,871 .33 Hangzhou Sanhua Microchan nel Heat Exchanger Co., Ltd. Subsidiary Refrigerati on and A/C electrical component s manufactur ing and marketing RMB 360 million 1,800,554, 246.62 1,108,549, 765.66 770,019,63 9.79 81,182,913 .69 63,929,318 .98 Zhejiang Sanhua Trading Co., Ltd. Subsidiary Refrigerati on and A/C electrical component s marketing RMB 50 million 2,537,279, 807.18 123,385,28 1.81 1,945,291, 190.28 2,372,959. 94 843,027.66 Zhejiang Subsidiary Automotiv RMB 1.46 5,169,808, 3,247,619, 2,110,820, 308,193,12 258,125,37 Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 24 Sanhua Automotiv e Componen ts Co., Ltd e component s manufactur ing and marketing billion 588.81 222.58 965.12 6.38 9.09 Zhejiang Sanhua Commerci al Refrigerati on Co., Ltd Subsidiary Refrigerati on and A/C electrical component s marketing RMB 1.64929 billion 1,707,953, 772.71 1,646,698, 303.74 -2,147,004. 73 -2,147,004. 73 Sanhua Internation al Limited (USA) (Consolida ted) Subsidiary Refrigerati on and A/C electrical component s manufactur ing marketing and investment manageme nt USD 37.55 million 1,676,659, 000.33 359,644,42 5.37 1,648,045, 127.66 116,132,36 6.44 108,267,40 6.20 Sanhua Internation al Singapore PTE. Ltd. (Consolida ted) Subsidiary Refrigerati on and A/C electrical component s manufactur ing marketing and investment manageme nt USD 105.57983 3 million 3,020,615, 669.89 627,453,69 3.86 2,727,490, 087.22 62,021,135 .54 48,785,981 .05 Information about obtaining and disposal of subsidiaries during the reporting period □ Applicable √ Not applicable IX. Structural Entities Controlled by the Company □ Applicable √ Not applicable Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report 25 X. Risks and Countermeasures of the Company (1) Risk of price fluctuation of raw materials The raw materials needed by the Company are copper and aluminum, which account for a large proportion of the cost composition of the products. Therefore, the fluctuation of the market price of raw materials will bring large cost pressure to the Company. The Company will reduce the adverse impact of raw material price fluctuations through the establishment of linkage pricing mechanism, hedging operation of commodity futures, and timely negotiation with customers. (2) The risk of rising labor cost The labor costs are rising year by year, which reduces the profit margin of the Company to a certain extent. In the future, the Company will continue to improve the level of intelligent manufacturing by continuously promoting lean production, process improvement and technical transformation. (3) Exchange rate fluctuation risks The Company's export volume is large, involving North America, Europe, Japan, Southeast Asia and other regions. Due to the changes in regional trade policies, the Company's daily operation will be affected. The Company deals with interregional trade risks through transferring production capacity to foreign countries. In addition, the fluctuation of exchange rate will also have a certain impact on the profit. According to the actual situation, the Company deals with and reduces this risk by means of forward foreign exchange settlement and establishing overseas production bases in the United States, Poland, Mexico, India and other places. （未完）  |