[中报]深中华B(200017):深圳中华自行车（集团）股份有限公司2023年半年度报告（英文版）
原标题:深中华B:深圳中华自行车（集团）股份有限公司2023年半年度报告（英文版） Semi-Annual Report 2023 August 2023 Section I. Important Notice, Contents and Interpretation Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. Wang Shenghong, Principal of the Company, Sun Longlong, person in charge of accounting works and She Hanxing, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2023 Semi-Annual Report is authentic, accurate and complete. All directors are attended the Board Meeting for report deliberation. The Company plans not to distribute cash dividends, not to send bonus shares, and no reserve apitalizing. Contents Section I Important Notice, Contents and Interpretation ...............................错误!未定义书签。 Section II Company Profile and Main Financial Indexes ...............................错误!未定义书签。 Section III Management Discussion and Analysis......................................................................... 10 Section IV Corporate Governance.....................................................................错误!未定义书签。 Section V Enviornmental and Social Responsibility ........................................错误!未定义书签。 Section VI Importan Events ..............................................................................错误!未定义书签。 Section VII Changes in Shares and Particular About Shareholders ..............错误!未定义书签。 Section VIII Preferred Stock ..............................................................................错误!未定义书签。 Section IX Corporate Bonds ........................................................................................................... 45 Section X Financial Report ................................................................................错误!未定义书签。 Documents Available for Reference 1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person in charge of accounting organ. 2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC during the reporting period. 3. English version of the Semi-Annual Report 2023 Interpretation
Section II Company Profile and Main Financial Indexes I. Company Profile
1. Way of contact Whether registration address, offices address and codes as well as website and email of the Company changed in reporting period or not ?Applicable □Not applicable
Whether information disclosure and preparation place changed in reporting period or not ?Applicable □Not applicable
Whether other relevant information has changed during the reporting period □Applicable ?Not applicable IV. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data or not □Yes ?No
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) □Applicable ?Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period. 2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) □Applicable ?Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period. VI. Items and amounts of extraordinary profit (gains)/loss ?Applicable □Not applicable Unit: RMB/CNY
The Company does not have other gains/losses items that conform to the definition of non-recurring gains/losses Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring profit(gain)/loss □Applicable ?Not applicable The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurring profit(gain)/loss Section III Management Discussion and Analysis I. Main business of the Company during the reporting period Main business of the Company during the reporting period including jewelry gold business, bicycle and new energy lithium battery materials: (1) The gold jewelry business- the company connected with downstream gold jewelry brands, purchased gold and diamonds according to their product needs, and then commissioned gold jewelry processing plants for processing, made product certification for the processed finished products after passing the inspection, and delivered them to downstream customers. Through the integration of upstream supplier resources and downstream customer resources, the turnover rate of gold jewelry products in the upstream and downstream was improved, the cost of circulation links was reduced, and the overall competitive advantage of the upstream and downstream was formed. (2) Bicycle and new energy lithium battery materials including manufacturing, assembling, purchasing and selling bicycles & electric bicycles, purchasing, selling and commissioning the lithium battery materials. The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self- Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure” (1) Industry development China is one of the most important jewelry producer and consumer in the world at present. With the growth of national economy and the accumulation of residents' wealth, people gradually increase their consumption of high-end consumer goods after meeting the basic living needs. Jewelry with the property of preserving value and showing personality has become a hot spot of consumer interest of Chinese residents. At the same time, with the rise of young consumers and emerging middle class, the demand for quality personal consumption is gradually upgrading, and the young generation's consumption of jewelry tends to be more routine, which can improve the repurchase rate of jewelry products under various occasions, providing greater development space for the jewelry industry. Jewelry can be divided into gold, diamond, jade, colored jewelry and others. Under the background of China’s cultural tradition of advocating gold jewelry and the Investment real estate of gold, gold products occupies a relatively high proportion in the domestic jewelry market in 2022, reaching 57.02%. Diamond and jade are also the main categories of jewelry in China, accounting for 11.40% and 20.45%. From the international market, the jewelry markets of developed countries such as the United States, Japan, and Europe are all dominated by diamond jewelry. Compared with the international market, the main categories of China’s jewelry market are more abundant, and the proportion of various jewelry markets is more balanced, the categories of products are more rich. (2) Industry development trend analysis 1. The increased industry concentration has become the mainstream trend For the past few years, consumers’ brand awareness has been increasing. In addition, at the end of 2014, the National Jewelry Standards Technical Committee revised the mandatory national standard “Regulations on the Purity of Precious Metals in Jewelry and Naming” (GB11887-2012), which deleted the “pure gold” and other titles, guided consumers to pay more attention to jewelry design, craftsmanship, style and brand value, and no longer be attracted by the words “pure gold” in the slogan and pay more attention to product quality, prompting small jewelry enterprises to move closer to large jewelry enterprises. The increasing concentration of the jewelry industry has become the mainstream trend. In contrast, some regional branded or unbranded small jewelry companies are at a disadvantage in terms of scale, capital, cost, etc., coupled with their own lack of ability in brand operation management, product marketing design, and enterprise operation, in the case of consumers paying more and more attention to brand, they will have to choose to rely on the development of jewelry brands with larger brand awareness, which will further promote the improvement of the industry concentration, and the national jewelry brands will gain an opportunity for vigorous development. 2. The development trend of industrial clustering is more obvious The cluster development of the jewelry industry has now become an important direction for China's jewelry industry to improve its comprehensive competitiveness and promote the extension and upgrade of the characteristic industry chain of the regional jewelry. At present, there are more than ten jewelry industry bases in China, all of which have distinctive characteristics and outstanding advantages. Whether it is pearl cultivation, jade carving or jewelry processing, they all add charm to the city and also bring vitality to the prosperity of the jewelry industry. Special jewelry industry bases such as Shenzhen Luohu, Guangzhou Panyu mainly focus on precious metal jewelry inlay processing, diamond cutting, and supporting products, forming a series of leading enterprises and many small and medium-sized enterprises. At the same time, with the strong support of the local government, the supporting system such as logistics services, information services and technical services have been continuously improved. 3. The Third- and fourth-tier cities become important consumer markets for the jewelry industry In recent years, the pace of urbanization in China has gradually accelerated, and the urbanization rate has continued to grow. Residents in rural areas are gradually relocating and settling in nearby third- and fourth-tier cities, which steadily deliver new vitality to the third- and fourth-tier cities. In the future, the third- and fourth-tier cities will have broad market space and show huge growth potential. With the sinking trend of the jewelry consumption market, the third- and fourth-tier cities will become the main markets for the growth of jewelry companies in the future. 4. Channel strength will be regarded as the core competitiveness of enterprises for a long time The internal competition in the jewelry industry is relatively large, and the fierce market competition makes the construction and control of sales channels for jewelry companies crucial. At the same time, due to the high value of jewelry, consumers are often worried about the quality of the product and the reasonableness of the price when purchasing, which often prompts them to purchase through physical channels. There is a certain scarcity of high-quality physical channels, and the number of high-quality shops in a region’s high-quality business districts is scarce. Such high-quality shops can not only provide higher traffic, improve the retail performance of jewelry, but also have the important value of brand promotion. Therefore, in the fierce market competition, it is very important for jewelry enterprises to control high-quality physical channels, which reflects the core competitiveness of enterprises on the other side. 5. Brand and design capabilities will become a new driving force for the development of the industry With the change of consumer demographic structure and the increase of per capital income, the middle and upper middle class and wealthy people have gradually become the main force of consumption, and the mainstream consumption concept has also quietly changed. Compared with traditional consumers, emerging consumer groups pay more attention to the design, craftsmanship, style and brand value of jewelry products, hoping to meet their needs to show their taste and personality. In addition, the Nationa l Jewelry Standards Technical Committee has removed titles such as “pure gold from the national standards, further prompting consumers to pay attention to the design, craftsmanship, style and brand value of jewelry, rather than overemphasizing purity. 6. The rapid development of e-commerce market creates omni-channel marketing model The Internet has provided more convenient and more widely spread way of information sharing, guiding the consumers' demands and choices. In recent years, jewelry retail enterprises have further strengthened online layout, built new media matrix through various social communication platforms, formed multi-channel customer sources, realized rapid spread of online brands and drainage and sales of offline stores, and created a new mode of omni-channel marketing. The development of sharing platforms and e-commerce platforms has changed the consumption habits of consumers, especially the young generation. Online consumers can more conveniently understand product features and share user experience, which has become an important trend of product promotion and future sales. Especially with the rise of live streaming platforms of e-commerce and social contact, the market share of live streaming e-commerce is increasing rapidly. 7. Supply chain management has become an important business method for jewelry enterprises From the perspective of supply chain in the jewelry industry, it mainly involves raw material mining, processing and smelting, blank processing, jewelry production, warehousing, distribution and sales. The jewelry enterprise continue to optimize their supply chain management in order to shorten the supplying cycle and lower operating costs while guarantee the quality. More and more well- known domestic jewelry brands have outsourced part or all of the intermediate processing links with low gross profit and large investment over recent years, focusing on premium front-end design, brand operation and back-end marketing network construction. Supply chain management has become a major means for jewelry enterprise to improving their operational efficiency. (3) Competitive advantages of the company to engage in the jewelry and gold business 1. Superior quality of upstream supplier system As things are at the moment, the company has established relatively stable cooperative relationships with major diamond suppliers and processors at home and abroad, and has advantages in raw material procurement cost, order production cycle and product quality control, which can continuously reduce supply cost and improve operational efficiency. 2. Diversified downstream market channels and customer resources The company is actively expanding its gold jewelry customers now. In addition to customers with clear orders, it is currently negotiating business cooperation with a number of domestic jewelry brands. The above customers include three types of customers, of which Class A customers are national well-known brand customers, with more than 500 retail stores; Class B customers are small and medium-sized/regional/segmented brands, with 300-500 retail stores; Class C customers are small and medium-sized brands, with 50-100 retail stores. 3. Improve the industrial chain of production and design The company has a one-stop industrial chain of design, production, processing, testing, and wholesale. Brand owners can rely on our jewelry processing resources to hand over lower value-added links such as manufacturing and distribution to the company, so as to focus on the higher value-added brand operation and sales links. Outsourcing in the production and design process can improve the homogenization of gold jewelry products. 4. Closed-loop business process and risk control system The company has formulated strict business internal control processes such as supplier admittance standards, customer evaluation system, full-process order tracking system, and procurement price comparison system, and has realized the closed-loop control of capital flow, information flow and logistics and the multi-level risk control through the integrated service platform of supply system and the integrated solution of capital management. In the bicycle and new-energy lithium battery materials industry, as a traditional manufacturing industry, the bicycle industry continues the dilemma of rising labor costs, manufacturing costs, capital costs, and material costs. The new national standard of safety technical specifications for electric bicycles implemented in April 2019 accelerated the industry reshuffle and formed a new round of industry shock. The market share showed a trend of concentration to large-scale enterprises, leading enterprises and brand enterprises, and the industry order was accelerated and optimized, and the market concentration degree was continuously improved. China is the world's largest country in the production and sales of electric bicycles. After years of development, electric bicycles have gradually become an important means of transportation for consumers' daily short-distance trips. At present, there are about 200 million vehicles in the whole society. Under the macro background of economic transformation, information technology and carbon dioxide emission and carbon neutrality policy, the consumer market of two-wheeled electric vehicles gradually presents three trends, namely the consumption upgrading and personalized consumption demand, the consumer awareness of environmental protection, and the consumer pursuit of convenience and intelligence. Structural body, motor, power battery, and control system, as the core application development and commercial value for a long time, and determined the list of qualified suppliers for core components year by year. As one of the core components of electric bicycle, lead-acid batteries have been mainly used as the power batteries in the past ten or twenty years. With the development and popularization of new energy technologies and new energy materials, it is expected that they will be replaced by lithium batteries on a large scale in the future. The implementation of the new national standards for safety technical specifications of electric bicycle has comprehensively improved the safety performance of electric bicycles, adjusted and improved technical indicators such as speed limit, vehicle quality, and pedaling ability. The new standards that are close to the people's livelihood and serve the people's livelihood have increased the application space of lithium battery energy storage, and lithium battery electric bicycles will usher in a new stage of development. The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen Stock Exchange Self- Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure” (1) Main business models during the reporting period 1. Sales model According to the annual order planning and regular procurement requirements of brand retailers, the company provided B-end customers with various forms of supply chain management services such as spot procurement, order production, and customized development, so as to minimize product inventory and improve the supply chain effectiveness for customers. Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and suppliers' product styles and spot resources, and provided corresponding product structure according to the customer's brand characteristics and terminal market needs; Order production: Customers placed orders to the company according to their own needs, and the company purchased raw materials and subcontracted processing to form finished products and sell them to customers; Customized development: According to the characteristics of their own brands and future development needs, customers entrusted the company to develop and design the product styles, and produce finished products to sell to customers. 2.Procurement model The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds and gold, of which the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic mature diamond wholesalers (generally members of the Shanghai Diamond Exchange) ), gold was mainly purchased from the Shanghai Gold Exchange through the company's membership qualifications at Shanghai Gold Exchange. The company has established professional procurement department and team to be responsible for the procurement of diamond products and jewellery. The specific procurement models varied according to customer needs. 3. Production model By integrating upstream commissioned processing plants, the company outsourced the production of products ordered by customers to professional jewelry manufacturers to give full play to their professional and scale effect. In view of the current situation and characteristics of domestic jewelry processing enterprises, the company established a set of effective supplier manage ment mechanisms and evaluation standards to achieve a benign interaction between the production system of outsourced manufacturers and the company's business development. (2) Operation of the physical store during the reporting period the vertical field of gold and jewelry, it connects with the downstream gold jewelry brand and does not have the physical stores. (3) Operation of the on-line sales in reporting period The Company does not have on-line sales in the Period (4) Inventory in the reporting period of the period. Type of the inventories including: Unit: RMB/CNY
II. Core Competitiveness Analysis The Company commenced jewelry and gold business since August 2019. Through internal development, jewelry and gold business has gradually become the core business of the company. Competitive advantages of the company in jewelry and gold business: 1. High-quality upstream supplier system At present, the company has established stable cooperative relations with major diamond suppliers and processors at home and abroad, and has advantages in raw material purchase cost, order production cycle and product quality control, which can continuously reduce the supply cost and operation efficiency. 2. Diversified downstream market channels and customer resources At present, the company is actively developing gold and jewelry customers. In addition to customers placed orders, the company is negotiating business cooperation with many domestic jewelry brands. There are three types of customers, type A customers are national well-known brand customers with more than 500 retail stores; type B customers are small and medium- sized/regional/segmented brands with 300-500 retail stores; type C customers are small and medium-sized brands with 50-100 retail stores. 3. Industrial chain improvement of production and design links The company has an industrial chain process coordinating design, production, processing, inspection and wholesale. Brand owners can rely on our jewelry processing resource advantages and hand over low value-added links such as manufacturing and distribution to the company, so as to focus on the brand operation and sales links with higher added value. Outsourcing of production and design can improve the homogeneity of gold and jewelry products. 4. Closed-loop business process and risk control system The company has developed strict internal business control processes such as supplier admittance criterion, customer evaluation system, whole-process order tracking system and purchase price comparison system. Through integrated service platform of supply system and integrated solution of fund management, the company has realized closed-loop control of capital flow, information flow and logistics, and realized multi-level risk control. III. Main business analysis Overview See the “I-Main businesses of the Company during the reporting period” Y-o-y changes of main financial data Unit: RMB/CNY
No major changes on profit composition or profit resources occurred in reporting period. Constitution of operation revenue Unit: RMB/CNY
Industries, products or regions that account for more than 10% of the operating revenue or operating profit of the Company ?Applicable □Not applicable Unit: RMB/CNY
latest one year’s scope of period-end □Applicable ?Not applicable IV. Analysis of the non-main business □Applicable ?Not applicable V. Assets and liability analysis 1. Major changes of assets composition Unit: RMB/CNY
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