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According to Caixin, on August 14th, Glamor, a subsidiary that just turned a loss into a profit in 2023, is becoming the winning hand of Jifeng Auto Parts' performance in the automotive seat assembly field.

Jifeng Auto Parts released its 2024 interim report this evening. The company had an increase in revenue but no increase in net income in the first half of the year, achieving revenue of 11.006 billion yuan, a YoY increase of 5.47%; net profit attributable to the parent was 53.1445 million yuan, down 35.54% YoY.

Financial data shows that Jifeng Auto Parts achieved revenue of 5.287 billion yuan with a YoY increase of 3.45% and a net profit attributable to the parent of 19.0734 million yuan, down 68.23% YoY in Q1. Based on this calculation, the company had revenue of 5.719 billion yuan, up 7.4% YoY, and net profit of 34.0711 million yuan in Q2, up 52.02% YoY.

The reason for the decline in profitability at Jifeng Auto Parts is attributed to a decline in Glamor's income, as well as increased costs related to overseas integration efforts. According to Jifeng Auto Parts' semi-annual report, Glamor faced a challenge of declining income due to a drop in overseas automotive market demand in the first half of this year. According to the semi-annual report, in the first half of this year, Glamor achieved a revenue of 8.625 billion yuan, down 2.82% YoY, and a net profit of -0.035 billion yuan, which is greater than the net loss of -0.002 billion yuan in the same period last year.

Meanwhile, the emerging business with passenger vehicle seats as its core is becoming the key to the company's revenue growth.

The semi-annual report shows that in the first half of 2024, Jifeng Auto Parts' sales revenue in the passenger vehicle seat business was 0.897 billion yuan, an increase of about 7.3 times YoY, and the net loss was -0.023 billion yuan, a significant reduction from the -0.061 billion yuan in the same period last year. During the same period, the company's venting products achieved sales revenue of 0.166 billion yuan, a rapid YoY increase (nearly 95 million yuan YoY), and EBIT was profitable. In addition, the company's car refrigerator business began to contribute revenue for the first time in the first half of the year, with revenue of approximately 22 million yuan.

In terms of orders on hand, as of July 31, 2024, Jifeng Auto Parts had a total of 18 designated passenger vehicle seat projects with a target revenue of 5-7 billion yuan in 2025. As of June 30 of this year, the company's car refrigerator products have obtained 7 designated on-hand projects, while the company's venting products have approximately 70 designated on-hand projects. Jifeng Auto Parts said that more projects will be put into mass production in the coming years, and the revenue of the venting product business will continue to grow rapidly.

Caixin reporters noted that to meet the expansion of the new business with passenger vehicle seats as its core, Jifeng Auto Parts is continuing to increase its new production capacity layout. In the first half of this year, the Hefei base and Changzhou base were completed and put into operation on schedule in the company's domestic passenger vehicle seat production base; the Ningbo base, Changchun base, Tianjin base, Beijing base, Fuzhou base, Yiwu base, and Wuhu base are also under construction. In April of this year, the company completed the issuance of shares to specific targets, raising 1.183 billion yuan, some of which will be used to "expand the strategic emerging business with passenger vehicle seats as its core."

Jifeng Auto Parts' semi-annual report data shows that in the first half of 2024, the company's total operating cost was 10.95 billion yuan, up 6% YoY, slightly higher than the YoY growth rate of total revenue in the same period. On the expense side, the company's management expenses and financial expenses changed significantly, specifically, management expenses were 0.98 billion yuan, up 22.9% YoY, while financial expenses were 0.145 billion yuan, down 26.56% YoY.

It is worth mentioning that Jifeng Auto Parts' net cash flow from operating activities was -0.104 billion yuan in the first half of 2024, while the company's cash flow from operating activities was 0.284 billion yuan in the same period last year. Jifeng Auto Parts explained that this is mainly due to the increase in the company's business volume, the increase in operating accounts receivable, the decrease in operating accounts payable, and the increase in cash paid for operating expenses during the period of business volume growth.