[中报]深纺织Ｂ(200045):2024年半年度报告（英文版）
原标题:深纺织Ｂ:2024年半年度报告（英文版） August 2024 I. Important Notice, Table of Contents and Definitions The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of this semi-annual report. Mr.Yin Kefei, the Company leader, Ms. Liu Yu, Chief financial officer and Mr. Huang Min, the person in charge of the accounting department (the person in charge of the accounting) hereby confirm the authenticity and completeness of the financial report enclosed in this semi-annual report. All the directors attended the board meeting for the review of this semi-annual report. Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors and related persons shall keep sufficient risk awareness, and shall understand the differences between plans, forecasts and commitments, and be reminded of investment risks. The Company has the macroeconomic risks, market competition risks, raw material risks and intensified competition risks. Investors are advised to pay attention to investment risks. For details, please refer to "10. Risks faced by the Company and countermeasures " in the Section III "Management Discussion & Analysis". The Company plans to pay no cash dividend, no bonus shares, and no conversion of capital stock with provident funds. This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall prevail. Table of Contents I. Important Notice, Table of Contents and Definitions II. Company Profile & Financial Highlights III. Management Discussion & Analysis IV. Corporate Governance V. Environmental & Social Responsibility VI. Important Events VII. Change of Share Capital and Shareholding of Principal Shareholders VIII. Situation of the Preferred Shares IX. Corporate Bond X. Financial Report Documents available for inspection 1. Accounting statements carried with personal signatures and seals of legal representative, General Manager, Chief Financial officer; 2. The texts of all the Company's documents and announcements publicly disclosed on the websites designated by China Securities Regulatory Commission in the report period. The above documents were completely placed at the Office of Secretaries of the Board of Directors of the Company. Definition
II. Company Profile & Financial Highlights 1. Company Profile
1. Company contact information Whether the Company's registered address, office address and postal code, website, and email address have changed during the reporting period ?√Applicable □Not applicable
Changes in information disclosure and placed during the reporting period □ Applicable√ Not applicable? The website of the stock exchange and the name and address of the media where the Company discloses the semi- annual report, and the place where the Company's semi-annual report is prepared remained unchanged during the reporting period. For details, please refer to the 2023 Annual Report. 3. Other relevant information Changes in other relevant information during the reporting period □ Applicable√ Not applicable? 4. Summary of accounting data and financial index May the Company make retroactive adjustment or restatement of the accounting data of the previous years □ Yes √ No?
1. Differences in net profit and net assets in the financial reports disclosed in accordance with international accounting standards and Chinese accounting standards □ Applicable√ Not applicable? During the reporting period, the Company did not have any differences in net profit and net assets in the financial reports disclosed in accordance with international accounting standards and Chinese accounting standards. 2. Differences in net profit and net assets in the financial reports disclosed in accordance with overseas accounting standards and Chinese accounting standards □ Applicable√ Not applicable? During the reporting period, the Company did not have any differences in net profit and net assets in the financial reports disclosed in accordance with overseas accounting standards and Chinese accounting standards. 6. Non-recurring gains and losses items and amounts ?√Applicable □Not applicable In RMB
The Company does not have details of other profit and loss items that meet the non-recurring profit and loss definition. Non-recurring gain /loss items recognized as recurring gain /loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses □ Applicable√ Not applicable? The Company does not have non-recurring gain /loss items recognized as recurring gain /loss items as defined in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses. III. Management Discussion & Analysis 1. Main business of the Company during the reporting period (I) Development of the Company's industry Polarizers are also known as polaroid, which can control the polarization direction of specific light beams. When natural light passes through the polarizer, the light whose vibration direction is perpendicular to the transmission axis of the polarizer will be absorbed, leaving only polarized light whose vibration direction is parallel to the transmission axis of the polarizer. The downstream polarizer is mainly used in the panel industry. According to different panel types, polarizers mainly include TN, STN, TFT and OLED. Currently, the global polarizer market is dominated by polarizers for TFT-LCD panels. Each LCD panel requires two polarizers, and one OLED panel requires one polarizer. The high-quality development of the polarizer industry has a profound impact on the entire display industry. As one of the three core raw materials for display panels, the demand for polarizers is directly affected by the fluctuations in the display panel market. In recent years, with the accelerated transfer of the global display panel industry to Chinese Mainland, China's polarizer industry has ushered in a stage of rapid development. The capacity scale and process technology level of domestic polarizer manufacturers have continued to rise. The status and influence of China's polarizer industry in the global market have significantly improved, and Chinese Mainland has become the world's largest polarizer production base. The Company is one of the main domestic polarizer research and development, production, and sales enterprises. It is a pioneer in the polarizer industry in China and has now developed into a leading enterprise in the domestic polarizer industry, becoming an important supplier of mainstream panel enterprises worldwide. 2024 is a major year for sports, with a dense schedule of large international events and the boost from e-commerce promotional activities, leading to concentrated stockpiling by panel manufacturers in the first half of the year, thus driving the release of demand in the polarizer market. By the end of the second quarter of 2024, the phase of peak stockpiling has ended, and panel manufacturers strictly control production line utilization rate to ensure a balanced market supply and demand, thereby maintaining price stability, with downstream demand release tending to be conservative. In the second half of the year, as new domestic polarizer production capacities increase, competition for certain products is expected to intensify, but overseas capacities gradually exit, which will bring significant opportunities for domestic substitution. (II) The Company's main business activities The Company's main business covers such the high and new technology industry as represented by LCD polarizer, its own property management business and the retained business of high-end textile and garment. During the reporting period, the Company's main business has not changed significantly. First, the Company actively optimizes its product mix, implements a product differentiation strategy, increases the proportion of large-size products, increases the market share of high-value products, implements the policy of "ensuring utilization" and seizes market share; Second, the Company conducts in-depth lean management to improve production management efficiency, reduces production line losses, continuously decreases the loss rate of main raw materials, achieves significant improvements in film-breaking levels across production lines, and elevates product yield to a relatively high level in the industry; Third, the Company strengthens innovation leadership, increases R&D investment, continuously advances key technological breakthroughs and innovative product development, and achieves mass production and sales growth of high-performance 55-inch, 65-inch, and 77-inch OLED TV polarizers with high transparency and low reflectivity; Fourth, the Company continues to manage owned properties effectively, improves the quality of property leasing services, and completes the improvement of textile business operations; Fifth, the Company focuses on work safety by conducting safety inspections, drills and training, reinforces security forces, consolidates weak links, and prevents accidents. During the reporting period, the Company achieved an operating income of RMB 1.623 billion, an increase of 8.94% over the same period last year; The Company realized a net profit attributable to shareholders of the listed company of RMB 43.8941 million, an increase of 20.90% over the same period last year. The main reason for the increase in net profit attributable to shareholders of the listed company compared to the same period last year: In the first half of 2024, the Company kept pace with market changes and customer demands, continued to optimize customer and product structures, improved production processes and product yield, consolidated management effectiveness, maintained R&D investment and technological innovation, increased polarizer production and sales, and achieved steady growth in company performance. (III) Main products and their purposes Currently, the Company has 7 mass production lines for polarizers, covering TN, STN, TFT, OLED, 3D, dye sheet, optical film for touch screen and other fields, mainly used in TV, laptops, navigators, monitors, on-board equipment, industrial control, instrumentation, smart phones, wearable devices, 3D glasses, sunglasses and other products. The Company has become an qualified supplier of mainstream panel company such as Huaxing Optoelectronics, BOE, CHOT, Sharp, LGD, Shenzhen Tianma, and Huike by continuously strengthening sales channel expansion and building its own brand. The Company's main products made in each polarizer production line and their application are as follows:
(IV) The Company's business model The polarizer industry has gradually shifted from a traditional business model of R&D, production, and sales to a customer-centric, joint research and development, and comprehensive service business model. The Company understands customer needs, jointly researches and develops, manages high-standard production, manufactures high-quality products, uses advanced polarizer roll and attaching equipment to cooperate with downstream panel manufacturers' production lines, reduces production links, reduces production and transportation costs, and creates value for customers to realize win-win. (V) Market position of the Company's products The Company is one of the main polarization film research and development, production, and sales enterprises in China. It began to engage in polarization film business in 1995 and achieved mass production of the first polarization film in China in 1998. It is a pioneer in the polarization film industry in China and has now mastered the core technology of TN/STN, TFT-LCD, OLED display polarization film research and production. It is one of the few polarization film manufacturers in China with the ability to produce a full range of large, medium, and small size polarization film products. It is the first to achieve mass production of polarization films for OLED TVs and OLED phones, filling the domestic gap. The Company mainly produces polarizing film products for medium and large-sized TFT-LCD. The company's Line 7 is one of the few 2500mm ultra wide polarizing film production lines in the world, which can meet the needs of higher generation panel production lines such as the 8.5/8.6/10.5/11 generation globally. Especially matching the 10.5/11 generation line has the best economic production efficiency, and has industry-leading advantages in the technical level and production capacity of ultra large and large-sized products. (VI) Main performance drivers Refer to "II. Analysis on core competitiveness" in this section for details. 2. Analysis on core competitiveness (I) Technology advantages. SAPO Photoelectric is the first domestic national high-tech company which entered into the R&D and production of the polarizer. We are one of the largest, most technical and professional polarizer R&D teams in the country. With 29 years of operating experience in the polarizer industry, its products cover mainstream display applications such as TN type, STN type, TFT type, and OLED type, and has a complete set of proprietary technology of polarizer that can meet customer needs and has independent intellectual property rights of various new products. As of June 30, 2024, SAPO Photoelectric has obtained a total of 108 patent authorizations, including 20 domestic invention patents, 84 domestic utility model patents, and 4 overseas utility model patents. 4 national standards and 2 industry standards independently drafted and formulated by SAPO Photoelectric are implemented through examination and approval; In addition, 1 industry standard that it participated in the drafting and formulation passed the approval and implementation. SAPO Photoelectric has three innovative platforms: Guangdong Engineering Technology Research Center, Shenzhen Polarizing Materials and Technology Engineering Laboratory and Shenzhen Enterprise Technology Center. It focuses on the R&D and industrialization of OLED and LCD polarizer core production technology, and the localization research of polarizer raw materials, among which, mass production has been achieved for the polarizer projects for OLED TV and OLED mobile phones successfully, filling the domestic gap. (II) Talent advantage. The Company focuses on independent innovation, establishes its own R&D management system, and currently has a team of polarizer managers and senior technical personnel with strong technical capabilities, rich experience, and an international perspective. To adapt to the Company's trend of high-quality development, the Company continuously strengthens its talent team construction. By stimulating the potential and vitality of existing talents, it enhances the core competitiveness of corporate talents, laying a solid foundation for the strategic transformation and upgrade of the Company. First, great emphasis is placed on talent cultivation and team building, striving to create an efficient, collaborative, and creative technical team. The team can quickly perceive market trends, accurately grasp technological directions, overcome technical difficulties, and successfully launch influential innovative products such as ultra-large size LCD TV polarizers, OLED TV polarizers, and OLED smartphone polarizers; Second, it further enriches the ranks of middle-level cadres and core talents, and supplements them with core talents through market-oriented recruitment, social recruitment and internal introduction of subordinate enterprises; Third, internal personnel communication and learning are strengthened. In line with the Group's actual situation, the cadre talent exchange and training activities will continue in 2024 to enhance the comprehensive and duty-fulfilling abilities of the Company's employees, stimulating the vitality of the cadre team; Fourth, according to the principle of "strategic leading, performance-orientation, fairness and justice", the Company has established a performance-based salary assessment and distribution mechanism of "efficiency first, fairness emphasized, rewarding the excellent and punishing the poor, allowing both high and low based on performance, and combining incentives and constraints", reasonably determining the salary structure and level, and forming an incentive and constraint mechanism in which value creation determines value distribution. (III) Market advantage. The Company has a good domestic and international customer base. Compared with advanced foreign counterparts, the greatest advantage lies in having localized supporting capabilities close to the panel market and strong support from national industrial policies. In terms of market demand, with the successive mass production of high-generation 10.5/11 generation TFT-LCD panel production lines in China and the further acceleration of development of large-size panels and terminal products, the domestic polarizer market, especially for ultra-large size polarizers, shows a stable growth trend. The Company owns one of the few 2,500mm ultra-wide polarizer production lines globally, leading the industry in ultra-large size polarizer process technology and production capacity, better matching and meeting the growing market demand for TV polarizers. With continuous breakthroughs in cutting-edge technology, the demand for high-end polarizer products such as OLED and on-board polarizers is rapidly increasing, becoming a blue ocean market that polarizer enterprises are competing for. The Company has achieved mass production breakthroughs in OLED TV and OLED smartphone polarizers and has good technical accumulation in on-board polarizer products, making it in an advantageous position in future market competition. In terms of market development, the Company focuses on customer needs, continuously optimizes production processes and product structures, enhances quality control, organically combines production and sales, establishes a rapid response mechanism, fully leverages localization advantages, provides professional point-to-point services, advances the verification work for various models around the overall strategic deployment, forms a stable supply chain, and continuously increases market share. （四）Quality advantage. The Company always adheres to the quality policy of 'meeting customer needs, and pursuing excellent quality; implementing green manufacturing, and achieving continuous improvement', focusing on product quality control, with products matching international quality standards. The Company strictly controls product performance indicators, standardizes incoming inspection standards, and takes improving quality and reducing consumption as the starting point to achieve simultaneous improvement in both output and quality; The Company introduces a modern management system, and has passed ISO9001 quality management system, ISO14001 environmental management system, ISO450001 occupational health and safety management system, QCO80000 hazardous substances management system, and ISO50001 energy management system certification; Products have passed CTI testing, comply with RoHS directive environmental protection requirements, and achieve standardized management of the entire process from raw material supply, manufacturing, and market sales to customer service, ensuring the stability of product quality. （五）Management advantage. The Company has been deeply involved in the polarizer industry for nearly 30 years, accumulated rich industry management experience, and owned a leading domestic polarizer production management process control system, quality management system, and stable raw material supply channels. The Company carries out comprehensive benchmarking work, organizes management personnel to learn advanced experiences from customers and peers, vigorously promotes standardized management, refines management processes, and draws on the management experience of polarizer enterprises at home and abroad to optimize the Company's organizational structure, reduce management levels, and further improve the Company's management efficiency; The Company continues to implement advanced management system, and reasonable incentive mechanism, etc., to improve decision-making efficiency, speed up market reaction, refine the R&D reward system, and in the meantime to realize the in-depth integration of enterprise and employee values and stimulate new business vitality; The Company formulates the work plan for improving the operation of subordinate companies, sets up the operation improvement working group, comprehensively sorts out the operation of subordinate companies, and carries out business optimization, cost control and cash flow improvement in a steady and orderly manner to help to improve the production and operation of subordinate companies; The Company improves the efficiency of production management, enhances the stability of production, and improves the film breaking level of each production line significantly, reaching a good level in the industry; By setting up a quality improvement topic, the problems such as "broken bright spots", "small bubbles" and "PVA creases" have been obviously improved, and the durability and quality of products have been significantly improved by improving the performance of glue materials, greatly reducing the inventory pressure and customer complaint risk; Lean means are used to achieve cost reduction and efficiency increase, dividing into small independent accounting units, and allowing grassroots backbone employees to participate in production and operation activities. (VI) Policy advantage. Polarizer is seen as an essential part of the panel display industry and its development has promoted the supply capacity of national polarizers, greatly lowered the dependence of national panel enterprises on imported polarizers, and safeguarded the national panel industry, thus playing a positive role in enhancing the overall competitiveness of China's new display industry chain. It has promoted the coordinated development of the entire industrial chain of Shenzhen "20+8" ultra-high definition video display industry cluster. SAPO Photoelectric, the polarizer business carrier, has been continuously recognized by national high-tech enterprises, and the polarizer project has been supported by national, provincial and municipal policies and funds for many times, enjoying the preferential policy of duty-free import of main raw materials. 3. Analysis of main business Overview Refer to the 'I. Main business of the Company during the reporting period' for related content. YoY changes in main financial data In RMB
□ Applicable√ Not applicable? There have been no significant changes in the composition or sources of the Company's profits during the reporting period. Composition of operating income In RMB
operating profit ?√Applicable □Not applicable In RMB
latest period main business data adjusted according to the caliber at the end of the reporting period □ Applicable√ Not applicable? 4. Analysis of non-main business ?√Applicable □Not applicable In RMB
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