Financial Performance - Revenue for the year ended December 31, 2023, was approximately RMB 1.907 billion, a decrease of about 3.9% compared to the previous year[2] - Profit attributable to equity holders of the parent was approximately RMB 38.6 million, a decrease of about 64.4% from the previous year[2] - Gross profit margin was approximately 27.1%, an increase of about 2.8% compared to the previous year[2] - Basic earnings per share attributable to equity holders of the parent was approximately RMB 0.0218, down from RMB 0.0612 in the previous year[4] - Total comprehensive income for the year was RMB 132.372 million, compared to RMB 116.419 million in the previous year[7] - The group's profit before tax for the year 2023 was RMB 57,085,000, a decrease of 60.2% compared to RMB 143,299,000 in 2022[34] - The total income tax expense for 2023 was RMB 8,621,000, significantly lower than RMB 25,648,000 in 2022, reflecting a decrease of 66.4%[32] - The basic earnings per share for 2023 was RMB 0.0218, down from RMB 0.0612 in 2022, indicating a decline of 64.4%[36] - The company proposed a final dividend of HKD 0.2717 per share for 2023, compared to HKD 0.8389 per share in 2022, representing a decrease of 67.6%[34] Revenue Breakdown - Total revenue for 2023 was RMB 1,850,711,000, a decrease of 3.84% from RMB 1,924,917,000 in 2022[22] - Revenue from mainland China was RMB 1,788,976,000, down from RMB 1,847,943,000 in the previous year, indicating a decline of 3.19%[22] - Revenue from overseas customers was RMB 61,735,000, a decrease of 19.83% compared to RMB 76,974,000 in 2022[22] - Revenue from automotive interior and exterior structural and decorative parts was approximately RMB 1,499,149,000, accounting for about 81.0% of total revenue, with a gross margin increase from 24.9% in 2022 to 28.3% in 2023[49] - Revenue from molds and tools was approximately RMB 151,185,000, representing about 8.2% of total revenue, with a slight decrease in gross margin from 17.8% in 2022 to 17.6% in 2023[50] - Revenue from air conditioning and heater shells and liquid storage cylinders was approximately RMB 112,223,000, with a gross margin increase from 17.7% in 2022 to 23.5% in 2023[50] - Revenue from non-automotive products was approximately RMB 47,466,000, with a gross margin increase from 41.0% in 2022 to 43.7% in 2023[50] Assets and Liabilities - Non-current assets totaled RMB 1.645 billion, an increase from RMB 1.386 billion in the previous year[9] - Current assets amounted to RMB 1.763 billion, a decrease from RMB 1.861 billion in the previous year[10] - Total liabilities were RMB 1.854 billion, compared to RMB 1.817 billion in the previous year[10] - Net assets attributable to equity holders of the parent increased to RMB 1.386 billion from RMB 1.277 billion in the previous year[10] - Trade receivables increased to RMB 704,864,000 in 2023 from RMB 587,172,000 in 2022, reflecting a growth of approximately 19.9%[37] - The total impairment loss for trade receivables was RMB 59,825,000 in 2023, compared to RMB 23,047,000 in 2022, indicating a significant increase in impairment[40] - The aging analysis of trade receivables showed that RMB 614,357,000 was within three months, up from RMB 520,623,000 in the previous year, representing a growth of approximately 17.9%[39] - The group’s trade payables amounted to RMB 875,588,000 in 2023, an increase from RMB 832,747,000 in 2022, reflecting a growth of approximately 5.1%[43] Cost and Expenses - The cost of sold inventory for 2023 was RMB 1,349,788,000, a reduction of 7.4% from RMB 1,458,002,000 in 2022[29] - Research and development costs increased to RMB 86,535,000 in 2023, up 21.1% from RMB 71,476,000 in 2022[29] - The depreciation of property, plant, and equipment decreased to RMB 109,142,000 in 2023 from RMB 129,074,000 in 2022, a decline of 15.5%[29] - The company recognized a financial asset impairment loss of RMB 39,064,000 in 2023, compared to RMB 27,770,000 in 2022, an increase of 40.5%[29] - The deferred tax expense for 2023 was RMB (5,643,000), compared to RMB (4,425,000) in 2022, reflecting an increase of 27.5%[32] Accounting Standards and Compliance - The group has adopted new and revised International Financial Reporting Standards (IFRS) for the financial statements for the year ending December 31, 2023[14] - The group has confirmed the recognition of deferred tax assets and liabilities related to temporary differences arising from lease liabilities and right-of-use assets[16] - The group has not applied the newly issued but not yet effective IFRS standards, planning to adopt them when they come into effect[17] - The group has clarified the distinction between changes in accounting estimates and changes in accounting policies under the revised IAS 8[15] - The group has assessed the impact of the revised IAS 12 on deferred tax assets and liabilities, confirming no significant impact on the overall deferred tax balance[16] - The group will disclose important accounting policy information as required by the revised IAS 1, which emphasizes the significance of accounting policies[14] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and confirmed compliance with applicable accounting standards[76] - The financial data for the year has been approved by the auditors, ensuring consistency with the group's consolidated financial statements[77] Future Outlook and Strategy - The company anticipates that total sales of new energy vehicles in China will reach 11.5 million units in 2024, representing an annual growth of about 20%[68] - The company plans to enhance its production layout and establish a new production facility in Mexico to support global business development[68] - The company aims to expand cooperation with traditional automotive brands and develop lightweight new products using high-performance plastics[68] - The company will focus on improving its product mix to better meet customer demands and strengthen collaboration with automotive brand clients[68] - The company will continue to enhance cost management and seek to achieve better profitability as the industry recovers[68] - There have been no significant investments or acquisitions made by the company during the year, and no plans for major investments or capital asset acquisitions have been authorized by the board[65] Shareholder Information - The board proposed a final dividend of RMB 0.2464 per share, equivalent to HKD 0.2717, compared to RMB 0.7346 per share (HKD 0.8389) in the previous year[73] - The proposed final dividend is subject to approval at the annual general meeting scheduled for June 3, 2024, with expected payment by July 11, 2024[73] - There will be no interim dividend declared during the year[73] - The company will suspend share transfer registration from May 28, 2024, to June 3, 2024, to determine shareholder voting rights at the annual general meeting[74] - A second suspension of share transfer registration will occur from June 12, 2024, to June 14, 2024, for shareholders entitled to the proposed final dividend[75] - The annual results announcement will be published on the Hong Kong Stock Exchange and the company's website[78]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately RMB 864,861,000, an increase of about 11.6% compared to RMB 774,818,000 for the same period in 2022[4]. - The profit attributable to equity holders of the parent company for the six months ended June 30, 2023, was approximately RMB 15,524,000, a decrease of about 43.1% from RMB 27,259,000 for the same period in 2022[4]. - Overall gross margin slightly decreased to approximately 25.6% for the six months ended June 30, 2023, down from 26.8% for the same period in 2022[8]. - The net profit for the six months ended June 30, 2023, was RMB 21,231,000, a decrease of 31.2% from RMB 30,908,000 in the previous year[42]. - The company reported a basic and diluted earnings per share of RMB 0.0088 for the period, down from RMB 0.0154 in the previous year[42]. Revenue Breakdown - Revenue from automotive interior and exterior structural and decorative parts was approximately RMB 701,054,000, accounting for about 81.1% of total revenue, with a gross margin decrease from 28.1% to 25.3%[7]. - Revenue from molds and tools was approximately RMB 46,646,000, accounting for about 5.4% of total revenue, with a gross margin increase from 14.9% to 22.3%[7]. - Revenue from air conditioning and heating unit casings and storage tanks was approximately RMB 67,788,000, accounting for about 7.8% of total revenue, with a gross margin increase from 23.5% to 29.1%[7]. - Revenue from sales of plastic and automotive parts was RMB 818,215,000, up from RMB 720,855,000, reflecting a growth of 13.5%[57]. - Revenue from overseas customers reached RMB 34,619,000, representing a 15.5% increase from RMB 29,945,000 in the previous year[55]. Expenses and Costs - Selling and distribution expenses for the six months ended June 30, 2023, were approximately RMB 55,552,000, a decrease of about 1.7% from RMB 56,524,000 for the same period in 2022[9]. - Administrative expenses for the six months ended June 30, 2023, were approximately RMB 143,908,000, an increase of about 18.2% from RMB 121,721,000 for the same period in 2022, primarily due to increased R&D expenses[10]. - The group's financing costs decreased from approximately RMB 14,676,000 for the six months ended June 30, 2022, to approximately RMB 12,280,000 for the six months ended June 30, 2023, a reduction of about 16.3%[12]. - Tax expenses decreased from approximately RMB 13,260,000 for the six months ended June 30, 2022, to approximately RMB 10,907,000 for the six months ended June 30, 2023, a reduction of about 17.7%[13]. Cash Flow and Financial Position - The net cash flow from operating activities for the six months ended June 30, 2023, was approximately RMB 34,328,000, compared to RMB 230,166,000 for the same period in 2022[14]. - The group's cash and cash equivalents amounted to approximately RMB 154,305,000 as of June 30, 2023, up from approximately RMB 114,845,000 as of December 31, 2022[14]. - The total current assets decreased to RMB 1,781,877,000 from RMB 1,861,260,000, reflecting a decline of 4.3%[43]. - The net current assets stood at RMB 199,456,000, down from RMB 368,850,000, indicating a significant decrease of 46%[43]. - The total liabilities increased to RMB 1,764,935,000, compared to RMB 1,584,730,000, representing an increase of 11.3%[44]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all applicable provisions during the six months ending June 30, 2023, except for certain deviations[25]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code C.2.1, but the board believes this structure effectively executes the group's business strategy[26]. Employee and Operational Insights - The group employed 2,949 employees as of June 30, 2023, down from 2,991 employees as of June 30, 2022[22]. - The group plans to enhance its production layout and establish a new production facility in Mexico to achieve global business development[23]. - The group aims to expand cooperation with traditional automotive brands and strengthen connections with new energy vehicle brands to increase order volume and customer base[23]. Investment and Financing Activities - The company generated net cash inflow from financing activities of RMB 41,831,000, a recovery from a net outflow of RMB 106,073,000 in the same period last year[48]. - New bank loans amounted to RMB 446,000,000, while repayments of bank loans were RMB 423,009,000, indicating a net increase in borrowings[48]. - The company reported a significant increase in interest income from investments, rising to RMB 5,508,000 from RMB 2,568,000, marking a growth of 114%[48]. Shareholding and Equity - As of June 30, 2023, Mr. Zhou Minfeng holds 1,320,000,000 shares, representing approximately 74.61% of the issued shares, while his spouse holds 1,100,000 shares, or 0.06%[29]. - The company's shareholding structure shows that Huayou Holdings owns 74.61% of the issued shares, indicating significant control[35]. Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[39]. - The audit committee has reviewed the financial results for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards[40]. - There were no significant post-reporting date events after June 30, 2023[83].

Financial Performance - For the six months ended June 30, 2023, revenue was approximately RMB 864,861,000, an increase of about 11.6% compared to RMB 774,818,000 for the same period in 2022[2] - Profit attributable to equity holders of the parent for the same period was approximately RMB 15,524,000, a decrease of about 43.1% from RMB 27,259,000 in the previous year[2] - The gross profit margin for the six months ended June 30, 2023, was 25.6%, down from 26.8% for the same period in 2022[2] - Basic earnings per share for the six months ended June 30, 2023, were approximately RMB 0.0088, compared to RMB 0.0154 for the same period in 2022[6] - The total comprehensive income for the period was RMB 21,231,000, down from RMB 30,908,000 in the previous year[7] - The group's profit before tax for the six months ended June 30, 2023, was RMB 15,524,000, down 43.0% from RMB 27,259,000 in the same period of 2022[32] - Other income and gains for the six months ended June 30, 2023, were approximately RMB 14,912,000, a decrease of about 45.7% from RMB 27,449,000 for the same period in 2022[41] - Administrative expenses increased by approximately 18.2% to RMB 143,908,000, primarily due to increased R&D expenditures[43] - The total tax expense for the six months ended June 30, 2023, was RMB 10,907,000, a decrease from RMB 13,260,000 in the same period of 2022[29] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled RMB 1,415,651,000, compared to RMB 1,386,429,000 as of December 31, 2022[9] - Current assets as of June 30, 2023, were RMB 1,781,877,000, a decrease from RMB 1,861,260,000 at the end of 2022[9] - Current liabilities totaled RMB 1,582,421,000 as of June 30, 2023, compared to RMB 1,492,410,000 at the end of 2022[9] - The net asset value as of June 30, 2023, was RMB 199,456,000, down from RMB 368,850,000 at the end of 2022[9] - Total equity as of June 30, 2023, was RMB 1,432,593,000, slightly up from RMB 1,429,957,000 at the end of 2022[11] - Trade receivables as of June 30, 2023, amounted to RMB 546,665,000, a decrease from RMB 587,172,000 as of December 31, 2022[34] - Total trade payables as of June 30, 2023, were RMB 768,995,000, down from RMB 832,747,000 as of December 31, 2022[35] - Interest-bearing bank borrowings amounted to approximately RMB 617,882,000, with about RMB 487,081,000 due within one year[48] - The group's capital commitments amounted to approximately RMB 39,427,000, an increase from RMB 16,569,000 as of December 31, 2022[49] - The group's capital-to-debt ratio was approximately 54.6% as of June 30, 2023, compared to 55.5% as of December 31, 2022[54] Revenue Breakdown - Revenue from mainland China for the same period was RMB 830,242,000, up from RMB 744,873,000, reflecting a growth of 11.4%[20] - The company's overseas revenue for the six months ended June 30, 2023, was RMB 34,619,000, compared to RMB 29,945,000 in the same period of 2022, reflecting a growth of 15.6%[20] - Revenue from the sale of plastic and automotive parts reached RMB 818,215,000, up from RMB 720,855,000, reflecting a growth of 13.5%[25] - Revenue from automotive interior and exterior structural and decorative parts was approximately RMB 701,054,000, accounting for about 81.1% of total revenue, with a gross margin decrease from 28.1% to 25.3%[39] - Revenue from molds and tools was approximately RMB 46,646,000, accounting for about 5.4% of total revenue, with a gross margin increase from 14.9% to 22.3%[39] - Revenue from air conditioning and heater housings and storage tanks was approximately RMB 67,788,000, accounting for about 7.8% of total revenue, with a gross margin increase from 23.5% to 29.1%[40] - Customer contract revenue for the six months ended June 30, 2023, was RMB 864,861,000, which is an increase of 11.6% from RMB 774,818,000 in the same period of 2022[24] Dividends and Subsidies - The company declared a final dividend of HKD 0.8389 per share, compared to HKD 0.5276 per share in the previous year, representing a 59.0% increase[30] - The total income from government subsidies was RMB 3,294,000, down from RMB 4,274,000, a decrease of 23.0%[26] Operational Developments - The company operates as a single business unit focused on the production and sale of automotive interior and exterior decorative and structural parts, molds and tools, and other non-automotive products[19] - The company plans to establish a new production facility in Mexico to enhance global business development and seek overseas orders[58] - The group has successfully expanded its presence in the new energy market and aims to strengthen connections with new energy vehicle brands to secure more orders[58] - The company will focus on improving its product mix to better meet customer demands and enhance collaboration with automotive brand clients[58] Accounting and Compliance - The company has adopted new and revised International Financial Reporting Standards (IFRS) effective January 1, 2023, which are expected to impact the annual consolidated financial statements but have no significant effect on the interim financial data[14] - The company has not reported any significant impact from the application of the revised accounting standards on its financial position or performance[16] - The company has maintained consistent accounting policies in preparing its interim financial data, aligning with those used in the annual financial statements for the year ended December 31, 2022[14] - The financial data disclosed has been prepared in accordance with applicable accounting standards and regulations[65] - The interim results for the six months ended June 30, 2023, have been reviewed by the audit committee[65] - The interim report will be published on the Hong Kong Stock Exchange website and the company's website[66]

Financial Performance - Total revenue for the year ended December 31, 2022, increased by approximately 1.6% to RMB 1,924,920,000 from RMB 1,894,980,000 in 2021[11] - Gross profit rose by about 9.4% to approximately RMB 466,920,000, compared to RMB 426,900,000 in the previous year[11] - Profit attributable to equity holders of the parent increased by approximately 113.7% to around RMB 108,300,000, up from RMB 50,670,000 in 2021[11] - The group's total revenue for the year 2022 was approximately RMB 1,924,917,000, an increase from RMB 1,894,983,000 in 2021, with a gross margin of 24.3% compared to 22.5% in the previous year[18] - Revenue from automotive interior and exterior structural and decorative parts was approximately RMB 1,576,295,000, accounting for about 81.9% of total revenue, with a gross margin increase from 23.1% in 2021 to 24.9% in 2022[18] - Other income and gains for the year amounted to approximately RMB 105,247,000, a 16.3% increase from RMB 90,468,000 in 2021, primarily due to government relocation subsidies and asset sales[20] - Selling and distribution expenses were approximately RMB 120,671,000, accounting for about 6.3% of sales revenue, a slight decrease from 6.6% in 2021[21] - Administrative expenses increased to approximately RMB 270,758,000 from RMB 267,213,000 in 2021, reflecting a 1.3% increase[22] - The company reported a significant increase in revenue, with a year-over-year growth of 25% in the last quarter[69] - Net profit for the year was RMB 117,651 thousand, representing a significant increase of 56.6% compared to RMB 75,080 thousand in 2021[133] - Earnings per share for the year was RMB 0.0612, compared to RMB 0.0286 in the previous year, reflecting a growth of 114.6%[131] Market and Industry Insights - The automotive industry in China produced over 27.02 million vehicles and sold over 26.86 million vehicles in 2022, representing increases of approximately 3.4% and 2.1% respectively[13] - The company aims to enhance its market share and profitability through cost-saving measures and strengthening R&D capabilities[11] - The company is actively seeking favorable acquisition opportunities to increase market share and diversify revenue sources[11] - The company plans to expand its production layout by establishing a new facility in Mexico to enhance global business development and attract overseas orders[32] - The company aims to strengthen cooperation with traditional automotive brands and extend its collaboration to the new energy vehicle sector, focusing on developing lightweight new products using high-performance plastics[32] - The company has successfully entered the new energy market and will continue to seek more orders and customers to expand its economic scale[32] - The company is a major supplier of automotive body parts in China, focusing on the production and sales of interior and exterior decorative and structural automotive parts, molds and tools, air conditioning or heating casings, and other non-automotive products[78] Corporate Governance - The company is committed to establishing good corporate governance practices to enhance transparency and accountability to shareholders[38] - The board believes that effective corporate governance is a key factor in creating more value for shareholders[38] - The board consists of 11 members, including 2 executive directors, 4 non-executive directors, and 5 independent non-executive directors, with a total of 4 board meetings and 1 annual general meeting held during the year[40] - The board is responsible for business planning, investment plans, annual budgets, and dividend recommendations, ensuring effective governance and oversight of the company's operations[42] - The company acknowledges a deviation from the corporate governance code, as the roles of chairman and CEO are held by the same individual, which the board believes facilitates effective execution of business strategies[44] - The company has committed to continuous professional development for all directors to enhance their knowledge and skills, ensuring informed contributions to board discussions[45] - The company has appointed four independent non-executive directors, constituting one-third of the board, in compliance with listing rules[46] - The Audit Committee consists of three independent non-executive directors, with the chairman possessing necessary professional qualifications and accounting experience[47] - The Remuneration Committee is responsible for determining the remuneration packages of all executive directors and senior management, ensuring transparency in the process[48] - The Nomination Committee, consisting of three members, is tasked with reviewing the board's structure and providing recommendations for suitable director candidates[54] Financial Position and Assets - The company reported a decrease in financing costs to RMB 27,976 thousand from RMB 36,090 thousand, a reduction of 22.5%[131] - Non-current assets decreased from RMB 1,614,976,000 to RMB 1,386,429,000, a decline of approximately 14.1% year-over-year[135] - Current assets increased from RMB 1,694,331,000 to RMB 1,861,260,000, representing a growth of about 9.8% year-over-year[135] - Inventory rose significantly from RMB 322,951,000 to RMB 418,152,000, an increase of approximately 29.5% year-over-year[135] - Trade receivables decreased from RMB 815,353,000 to RMB 706,686,000, a decline of about 13.3% year-over-year[135] - Current liabilities decreased from RMB 1,873,141,000 to RMB 1,492,410,000, a reduction of approximately 20.3% year-over-year[137] - Net assets increased from RMB 1,236,848,000 to RMB 1,429,957,000, reflecting a growth of about 15.6% year-over-year[137] - Cash and cash equivalents increased from RMB 61,676,000 to RMB 114,845,000, a growth of about 86.2% year-over-year[135] Risk Management and Internal Controls - The company has established a robust risk management and internal control system, overseen by the Audit Committee[47] - The independent non-executive directors provide impartial opinions on the company's strategy and performance, safeguarding the interests of shareholders[46] - The board is responsible for assessing and determining the nature and extent of risks the group is willing to take to achieve strategic objectives[57] - The company has implemented a strict internal structure to prevent insider trading and conflicts of interest[57] - The group closely monitors government policies and regulations, assessing their impact on operations[83] - The group relies on third-party service providers to enhance performance and efficiency, while managing associated risks[84] Shareholder Communication and Dividends - The company emphasizes the importance of clear and timely communication with shareholders and investors, ensuring transparency through annual reports and other disclosures[66] - The board will regularly review the shareholder communication policy to ensure its effectiveness in providing relevant information to shareholders and potential investors[67] - The company has adopted a dividend policy prioritizing cash dividends of approximately 10% to 15% of annual profits, with decisions made by the board based on financial performance and other factors[68] - The proposed final dividend for the year is RMB 0.7346 per share, an increase from RMB 0.4296 per share in 2021[88] Acquisitions and Investments - The company completed the acquisition of a 15% stake in Ningbo Hualete Automotive Decoration Fabric Co., Ltd. for a cash consideration of RMB 29,600,000 on May 6, 2022, resulting in an indirect ownership of 65%[30] - The company acquired a subsidiary in 2022, resulting in a cash outflow of RMB 16,416,000[143] - The company has been expanding its market presence and exploring potential mergers and acquisitions to enhance its competitive position[78] Compliance and Reporting Standards - The financial statements are prepared in accordance with International Financial Reporting Standards and reported in Renminbi (RMB) rounded to the nearest thousand[155] - The group has adopted revised International Financial Reporting Standards (IFRS) for the first time in the current financial year, with no significant impact on financial position or performance[160] - The group uses equity accounting for investments in joint ventures, recognizing its share of net assets less any impairment losses in the consolidated balance sheet[172]

Financial Performance - Revenue for the year ended December 31, 2022, was approximately RMB 1.924 billion, an increase of about 1.6% compared to the previous year[2] - Profit attributable to equity holders of the parent was approximately RMB 108.3 million, representing an increase of approximately 113.7% year-on-year[2] - Gross profit margin was approximately 24.3%, an increase of about 1.8% compared to the previous year[2] - Basic earnings per share attributable to equity holders of the parent was approximately RMB 0.0612, compared to RMB 0.0286 for the previous year[4] - Total comprehensive income for the year was RMB 116.419 million, compared to RMB 69.491 million for the previous year[6] - The operating profit before tax was RMB 621,949,000, down 5.4% from RMB 658,002,000 in 2021[20] - Other income and gains for the year amounted to approximately RMB 105,247,000, an increase of about 16.3% from RMB 90,468,000 in the previous year[47] Assets and Liabilities - Non-current assets totaled RMB 1.386 billion, a decrease from RMB 1.615 billion in the previous year[7] - Current assets increased to RMB 1.861 billion from RMB 1.694 billion in the previous year[8] - Net assets amounted to RMB 1.430 billion, up from RMB 1.237 billion in the previous year[9] - The company reported a net cash position of RMB 114.845 million, an increase from RMB 61.676 million in the previous year[8] - Trade receivables decreased to RMB 587,172,000 in 2022 from RMB 717,195,000 in 2021, showing a reduction of approximately 18.1%[34] - The company’s trade payables and notes payable totaled RMB 832,747,000 in 2022, down from RMB 955,726,000 in 2021[38] Revenue Breakdown - Revenue from sales of plastic and automotive parts was RMB 1,787,142,000, a decrease of 1.5% compared to RMB 1,814,518,000 in 2021[21] - Revenue from sales of molds and tools increased significantly to RMB 137,775,000, up 71.2% from RMB 80,465,000 in 2021[21] - The company’s revenue from automotive interior and exterior structural and decorative parts accounted for approximately 81.9% of total revenue in 2022[45] - The revenue from air conditioning and heating equipment shells and liquid storage tanks was approximately RMB 125,647,000, down from RMB 148,595,000, representing about 6.5% of total revenue[46] - The revenue from non-automotive products was approximately RMB 56,672,000, up from RMB 50,699,000, accounting for about 2.9% of total revenue[46] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.7346 per share for the year ended December 31, 2022, compared to RMB 0.4296 per share for the previous year[2] - The proposed final dividend for 2022 is HKD 0.8389 per share, an increase from HKD 0.5276 per share in 2021, representing a growth of approximately 59%[31] Taxation - The group reported a total income tax expense of RMB 25,648,000 for the year ended December 31, 2022, compared to RMB 28,117,000 in 2021, reflecting a decrease of approximately 5.3%[29] - The effective tax rate for the group was impacted by various factors, including unrecognized tax losses of RMB 21,062,000 in 2022, down from RMB 24,357,000 in 2021[30] - The total tax expense for the year included current tax expenses of RMB 28,603,000, down from RMB 36,090,000 in the previous year, indicating a decrease of approximately 20.5%[29] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and believes it has complied with all applicable code provisions during the year[64] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and confirmed that the annual results announcement complies with applicable accounting standards[71] - The consolidated financial statements for the year have been approved by the company's auditors, confirming alignment with the reported figures[72] Future Outlook and Strategy - The company plans to expand cooperation with traditional automotive brands and extend its collaboration into the new energy vehicle sector, focusing on developing lightweight new products using high-performance plastics[62] - A new production facility is planned to be established in Mexico to support global business development and attract overseas orders[62] - The China Automobile Industry Association forecasts total vehicle sales in 2023 to reach 9 million units, representing a year-on-year growth of approximately 35%, with a penetration rate of new energy vehicles expected to reach around 35%[61]

Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately RMB 774,818,000, a decrease of about 13.2% compared to RMB 892,299,000 for the same period in 2021[4] - Profit attributable to equity holders for the six months ended June 30, 2022, was approximately RMB 27,259,000, down about 20.2% from RMB 34,170,000 in the same period of 2021[4] - Gross profit for the same period was RMB 207.77 million, down from RMB 230.84 million, reflecting a decline of 10%[47] - The net profit for the period was RMB 30.91 million, compared to RMB 36.44 million in the previous year, representing a decrease of 15.1%[47] - The group's profit before tax for the six months ended June 30, 2022, was RMB 27,259,000, a decrease of 20.3% compared to RMB 34,170,000 for the same period in 2021[75] Revenue Breakdown - Revenue from automotive interior and exterior structural and decorative parts was approximately RMB 626,785,000, accounting for about 80.9% of total revenue, with a gross margin increase from 25.9% to 28.1%[7] - Revenue from molds and tools was approximately RMB 53,963,000, representing about 7.0% of total revenue, with a gross margin decrease from 22.8% to 14.9%[7] - Revenue from air conditioning and heating components was approximately RMB 45,109,000, accounting for about 5.8% of total revenue, with a slight decrease in gross margin from 24.0% to 23.5%[7] - Revenue from non-automotive products was approximately RMB 25,833,000, representing about 3.3% of total revenue, with a gross margin decrease from 52.1% to 39.8%[7] - Revenue from raw material sales was approximately RMB 23,128,000, accounting for about 3.0% of total revenue, with a gross margin increase from 1.6% to 12.5%[8] Expenses and Costs - Selling and distribution expenses were approximately RMB 56,524,000, a decrease of about 18.0% from RMB 68,899,000 in the same period of 2021[10] - Administrative expenses were approximately RMB 121,721,000, a decrease of about 6.1% from RMB 129,638,000 in the same period of 2021, mainly due to reduced R&D expenses[11] - Financing income decreased by approximately 58.0%, from RMB 6,120,000 for the six months ended June 30, 2021, to RMB 2,568,000 for the same period in 2022[13] - Financing costs decreased by approximately 18.0%, from RMB 17,895,000 for the six months ended June 30, 2021, to RMB 14,676,000 for the same period in 2022[14] - Tax expenses increased by approximately 52.0%, from RMB 8,721,000 for the six months ended June 30, 2021, to RMB 13,260,000 for the same period in 2022[15] Cash Flow and Financial Position - The net cash flow from operating activities for the six months ended June 30, 2022, was approximately RMB 230,166,000, compared to a net cash outflow of RMB 15,168,000 for the same period in 2021[16] - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately RMB 177,834,000, an increase from RMB 61,676,000 as of December 31, 2021[16] - The group's interest-bearing bank borrowings as of June 30, 2022, were approximately RMB 624,900,000, down from RMB 713,373,000 as of December 31, 2021[17] - The capital debt ratio as of June 30, 2022, was approximately 57.7%, a decrease from 62.0% as of December 31, 2021[23] - Total liabilities decreased to RMB 1,614,910,000 from RMB 1,873,141,000, indicating improved financial stability[50] Employee and Market Insights - The total number of employees as of June 30, 2022, was 2,991, an increase from 2,790 as of June 30, 2021[25] - In the first half of 2022, China's passenger car production and sales reached 10.434 million and 10.355 million units, representing year-on-year increases of 6.0% and 3.4% respectively[27] - The China Automobile Manufacturers Association forecasts that the total annual car sales in China could reach 27 million units, reflecting an approximate annual growth of 3%[27] - The company anticipates benefiting from the recovery in the automotive industry, expecting to secure more orders from automotive brand clients in the second half of the year and into next year[27] Acquisitions and Investments - The company agreed to purchase 15% equity in Ningbo Hualet Automotive Decoration Fabric Co., Ltd. for EUR 4.5 million (approximately RMB 31.3 million), increasing its indirect ownership to 65%[24] - The acquisition of an additional 15% stake in Ningbo Hualete Automotive Decoration Fabric Co., Ltd. was completed for a total cash consideration of approximately RMB 31,289,000[81] - Since the acquisition, Ningbo Hualete contributed RMB 13,228,000 to the group's revenue and incurred a loss of RMB 327,000 for the six months ended June 30, 2022[85] Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[44] - Major shareholder Huayou Holdings owned 74.61% of the issued shares as of June 30, 2022[39] - The company declared a final dividend of HKD 0.5276 per share, down from HKD 0.6080 per share in the previous year, totaling RMB 7,601,000[73] Other Financial Metrics - The company reported other income and gains of RMB 24.88 million, an increase from RMB 15.58 million in the previous year[47] - The company recognized a loss from the sale of property, plant, and equipment amounting to RMB 5 thousand, compared to a gain of RMB 638 thousand in the previous year[53] - The company reported a significant reduction in government subsidies received, with no new subsidies recorded in the current period compared to RMB 99 thousand in the previous year[54] - The fair value of financial liabilities is not significantly different from their carrying amounts due to their short maturity[17]

Financial Performance - Total revenue for the year was approximately RMB 1,900,000,000, a decrease of about 5.5% from approximately RMB 2,000,000,000 in the previous year[10] - Gross profit decreased by approximately 17% to about RMB 426,900,000, down from RMB 485,060,000 in 2020[10] - Profit attributable to equity holders of the parent decreased by approximately 52.91% to about RMB 50,670,000, compared to RMB 107,570,000 in 2020[10] - The total revenue for automotive structural and decorative parts was approximately RMB 1,575,822,000, accounting for about 83.2% of the total revenue for the year[22] - Revenue from molds and tools decreased to approximately RMB 80,465,000, representing about 4.2% of total revenue, with a gross margin decline to 11.2%[23] - Revenue from air conditioning and heating components increased to approximately RMB 148,595,000, accounting for about 7.8% of total revenue, with a gross margin increase to 18.3%[24] - Other income and gains increased by approximately 121.0% to about RMB 90,468,000, primarily due to compensation for the relocation of factory premises[27] - Selling and distribution expenses were approximately RMB 125,417,000, accounting for about 6.6% of sales revenue[28] - Administrative expenses increased by approximately 8.4% to RMB 267,213,000 compared to the previous year[29] - Financing income rose by approximately 83.3% to RMB 9,332,000, while financing costs decreased by about 4.3% to RMB 36,090,000[31][32] - Cash and cash equivalents at year-end were approximately RMB 61,676,000, down from RMB 94,429,000 the previous year[36] - The company’s interest-bearing bank borrowings were approximately RMB 713,373,000, with RMB 549,273,000 due within one year[36] - The total employee cost for the year was approximately RMB 261,286,000, an increase from RMB 230,188,000 in 2020, primarily due to an increase in the average number of employees to 3,127 from 2,922[46] - As of December 31, 2021, the company's distributable reserves were approximately RMB -21,001,000[156] Market and Industry Insights - The automotive industry in China produced over 26.08 million vehicles and sold over 26.27 million vehicles in 2021, representing increases of approximately 3.4% and 3.8% respectively[15] - In 2021, China's automotive market saw production and sales of 26.08 million and 26.28 million vehicles, respectively, representing year-on-year growth of 3.4% and 3.8%[49] - The new energy vehicle market in China exceeded 3.5 million units sold in 2021, with a market share increase to 13.4%[50] - The company anticipates continued growth in the automotive market in 2022, benefiting from favorable policies and increasing production and sales volumes[49] - The company will continue to expand its business layout in the new energy vehicle sector, aligning with the trend of traditional automotive customers developing more new energy vehicle models[50] - The company relies heavily on the automotive industry and the performance of individual automotive manufacturers, which significantly impacts its financial results[138] - The company faces risks related to global and regional economic conditions, which can affect automotive market demand and pricing pressures[141] Corporate Governance - The board consists of 11 members, including 3 executive directors, 4 non-executive directors, and 4 independent non-executive directors, with a total of 4 board meetings and 1 annual general meeting held during the year[63] - The chairman and CEO roles are currently held by the same individual, which deviates from the corporate governance code, but the board believes this structure effectively executes the group's business strategy[76] - All directors confirmed compliance with the standard code of conduct for securities trading throughout the year[61] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring transparency and accountability to shareholders[63] - Continuous professional development activities were confirmed by all directors, ensuring they remain informed and capable of contributing effectively[71] - The board regularly reviews the company's financial and operational performance, approving overall strategies and policies[68] - The company emphasizes the importance of effective corporate governance as a key factor in creating shareholder value[63] - The board is committed to ongoing review and improvement of corporate governance practices to maximize shareholder returns[63] - The company has appointed a new independent non-executive director, effective April 1, 2022, to enhance board diversity and expertise[65] - The board's composition includes members with extensive industry knowledge and experience, contributing to the group's development[68] - The company has appointed four independent non-executive directors, representing one-third of the board, in compliance with listing rules[79] - The audit committee held two meetings during the year, with all members attending both sessions[84] - The remuneration committee held one meeting during the year, with all members present[87] - The company has established a remuneration policy that ensures transparency and independent judgment in determining the compensation of executive directors and senior management[86] - The company has a risk management and internal control system overseen by the audit committee[83] - The independent non-executive directors provide independent opinions on the group's business strategy and performance, ensuring the interests of shareholders are protected[79] - The company has no plans to renew service contracts for directors who are not seeking re-election at the upcoming annual general meeting[78] - The company has appointed He Yongxin as the company secretary, facilitating communication between the board, shareholders, and management[81] - The company has adopted a board diversity policy to enhance performance, considering factors such as gender, age, cultural background, and professional experience[92] - The company is committed to ensuring compliance with legal and regulatory requirements as part of its corporate governance functions[98] - The board has a succession plan to address potential vacancies due to resignations, retirements, or other circumstances[96] - The company has established a nomination policy to enhance board diversity and improve governance standards[95] - The board will regularly review the nomination policy to ensure its effectiveness[96] - The board is committed to maintaining effective risk management and internal control systems to mitigate significant reporting errors or losses[107] - The company prioritizes cash dividends of approximately 10% to 15% of annual profits, subject to financial performance and other factors[111] - The board emphasizes clear and timely communication with shareholders to build investor confidence and attract new investors[110] - The company has established a comprehensive policy and procedures for financial and risk control to prevent unauthorized asset use and ensure financial information reliability[107] - The internal audit department conducts independent assessments of the adequacy and effectiveness of the risk management and internal control systems[107] - The board regularly reviews the effectiveness of the risk management and internal control systems, ensuring they are deemed effective[107] - The company has a strict internal structure to prevent insider trading and conflicts of interest[107] - The board members and management team have extensive experience in the automotive and financial sectors, contributing to strategic planning and business development[113][114][116][118] - The company is committed to high transparency by publishing accurate and timely information through annual reports and other communications[110] Shareholder and Equity Information - Major shareholder Huayou Holdings owns approximately 1,320,000,000 shares, representing 74.61% of the issued shares[184] - Chen Chun'er, a beneficial owner, holds approximately 1,100,000 shares, representing 0.06% of the issued shares[184] - The company maintained a public float of at least 25% of its issued shares as required by listing rules[200] - The company has adopted two share option plans to incentivize and reward its directors and eligible employees[195] - The company has complied with the disclosure requirements of related party transactions as defined by the listing rules[188] - The company has no significant management and administrative contracts in place for any part of its business during the year[193] - The company confirmed that all controlling shareholders have adhered to non-competition commitments[189] - Ernst & Young will be proposed for reappointment as the company's auditor at the upcoming annual general meeting[197] - The company has no defined benefit plans and has not forfeited any contributions to the central pension plan in the past two years[196] Strategic Initiatives and Future Outlook - The company aims to enhance its market share and profitability through cost-saving measures and strengthening R&D capabilities[10] - The company is actively seeking favorable acquisition opportunities to increase market share and diversify revenue sources[10] - The company has established long-term business relationships with leading enterprises in the automotive industry, providing a strong foothold to capture growth in the sector[15] - The company has a strong focus on research and development in fuel cell technology and electric vehicle systems, aiming to lead in the automotive industry[119] - The company is committed to enhancing its supply chain management and quality control processes in battery production[127] - The company is actively expanding its market presence through strategic partnerships and collaborations in the automotive sector[126] - The company continues to review its competitive advantages and market trends to adapt to changing customer needs[148] - The company has been investing in improving operational efficiency through partnerships with reputable third-party service providers[144] - The company has experienced no significant incidents affecting its operations since the end of the last fiscal year[136] - The company is focused on continuous product development to meet changing consumer preferences and market demands[138] Employee and Operational Insights - The company has a strong focus on employee welfare and safety, with no strikes or fatal accidents reported during the year[146] - The company maintained strong relationships with suppliers, with an average business relationship exceeding 10 years, and no significant disputes reported during the year[146][147] - The company has not experienced any major business interruptions due to customer payment delays or disputes during the year[148] - The total sales for the year were approximately 58.05% from its top five customers, a slight decrease from 59.8% in the previous year[142] - The total sales to the largest and five largest customers accounted for approximately 34.72% and 58.05% of the total revenue, respectively, compared to 39.4% and 59.8% in the previous year[151] - The total purchases from the largest and five largest suppliers represented about 8.07% and 22.31% of total purchases, respectively, compared to 3.8% and 15.3% in the previous year[151]

[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental company information for Huazhong In-Vehicle Holdings Co., Ltd., including board members, committee structures, registered office, and listing details - The Board comprises executive directors (including Chairman and CEO Mr. Zhou Minfeng, Vice Chairman Mr. Wu Bichao), non-executive, and independent non-executive directors, ensuring diverse and independent management[3](index=3&type=chunk) - The company has an Audit Committee, Remuneration Committee, and Nomination Committee to enhance corporate governance, with Mr. Yu Shuli, an independent non-executive director, chairing the Audit and Remuneration Committees[3](index=3&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited under stock code **6830**[3](index=3&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section details Huazhong In-Vehicle Holdings Co., Ltd.'s business, market performance, financial position, liquidity, capital commitments, foreign exchange risk, share capital structure, contingent liabilities, asset pledges, gearing ratio, material investments, employee and remuneration policies, post-reporting events, and future prospects for the six months ended June 30, 2021, highlighting significant growth in revenue and profit driven by automotive market recovery [Business and Market Review](index=4&type=section&id=Business%20and%20Market%20Review) The Group primarily manufactures and sells automotive interior and exterior structural and decorative parts, molds and tools, air conditioner or heater casings, liquid reservoirs, and other non-automotive products, achieving a 17.6% year-on-year revenue growth and a 56.9% increase in profit attributable to owners of the parent for the six months ended June 30, 2021, driven by automotive market recovery - The Group's core business involves the manufacturing and sale of automotive interior and exterior structural and decorative parts, molds and tools, air conditioner or heater casings and liquid reservoirs, and other non-automotive products[4](index=4&type=chunk) 2021 First Half Key Financial Performance | Indicator | Six Months Ended June 30, 2021 (RMB thousands) | Six Months Ended June 30, 2020 (RMB thousands) | Year-on-Year Growth (%) | | :--- | :------------------------------------- | :------------------------------------- | :----------- | | Revenue | 892,299 | 758,941 | 17.6 | | Profit attributable to owners of the parent | 34,170 | 21,781 | 56.9 | [Financial Review](index=4&type=section&id=Financial%20Review) This section analyzes the Group's revenue composition, gross profit margin, other income and expenses, share of profit of joint ventures, finance income and costs, and income tax, noting that automotive interior and exterior structural and decorative parts remain the primary revenue source, with significant growth in non-automotive product revenue and gross profit margin, leading to an overall improved gross profit margin [Revenue](index=4&type=section&id=Revenue) The Group's revenue primarily derives from five product categories, with total revenue of **RMB 892,299,000** for the six months ended June 30, 2021, where automotive interior and exterior structural and decorative parts contributed the most, and non-automotive products showed the most significant growth in revenue and gross profit margin 2021 First Half Revenue and Gross Profit Margin by Product Category | Product Category | 2021 First Half Revenue (RMB thousands) | 2021 First Half Gross Profit Margin (%) | 2020 First Half Revenue (RMB thousands) | 2020 First Half Gross Profit Margin (%) | | :--- | :---------------------------- | :--------------------- | :---------------------------- | :--------------------- | | Automotive interior and exterior structural and decorative parts | 758,775 | 25.9 | 585,523 | 24.5 | | Molds and tools | 36,487 | 22.8 | 78,870 | 29.5 | | Air conditioner and heater casings and liquid reservoirs | 53,858 | 24.0 | 29,871 | 15.5 | | Non-automotive products | 25,056 | 52.1 | 9,480 | 19.6 | | Sale of raw materials | 18,123 | 1.6 | 55,197 | 15.5 | | **Total** | **892,299** | **25.9** | **758,941** | **24.0** | - Revenue from automotive interior and exterior structural and decorative parts increased to **RMB 758,775,000**, accounting for **85.0%** of total revenue, with a slight increase in gross profit margin to **25.9%**, primarily due to increased sales orders from the automotive market recovery[7](index=7&type=chunk) - Revenue from non-automotive products significantly increased to **RMB 25,056,000**, with its gross profit margin rising sharply from **19.6%** to **52.1%**[7](index=7&type=chunk) [Other Income and Gains](index=5&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2021, the Group's other income and gains amounted to approximately **RMB 15,575,000**, representing a decrease of approximately **8.7%** compared to the same period last year - Other income and gains amounted to **RMB 15,575,000**, a decrease of approximately **8.7%** from **RMB 17,066,000** in the same period last year[8](index=8&type=chunk) [Selling and Distribution Expenses](index=5&type=section&id=Selling%20and%20Distribution%20Expenses) For the six months ended June 30, 2021, selling and distribution expenses increased by approximately **24.7%** to **RMB 68,899,000**, mainly due to higher packaging and transportation costs resulting from increased sales volume - Selling and distribution expenses increased by approximately **24.7%** to **RMB 68,899,000**, primarily due to increased packaging and transportation expenses from higher sales volume[9](index=9&type=chunk) [Administrative Expenses](index=5&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2021, administrative expenses increased by approximately **32.0%** to **RMB 129,638,000**, mainly due to higher staff costs, research and development expenses, and professional service fees - Administrative expenses increased by approximately **32.0%** to **RMB 129,638,000**, mainly due to increases in staff costs, research and development expenses, and professional service fees[10](index=10&type=chunk) [Share of Profit of Joint Ventures](index=6&type=section&id=Share%20of%20Profit%20of%20Joint%20Ventures) For the six months ended June 30, 2021, the Group recorded a share of profit of joint ventures of **RMB 18,291,000**, a significant increase from **RMB 8,639,000** in the same period last year - Share of profit of joint ventures increased to **RMB 18,291,000**, compared to **RMB 8,639,000** in the same period last year[11](index=11&type=chunk) [Finance Income](index=6&type=section&id=Finance%20Income) The Group's finance income significantly increased by approximately **170.7%** to **RMB 6,120,000**, primarily due to higher interest income from cash and bank balances and loans to suppliers - Finance income significantly increased by approximately **170.7%** to **RMB 6,120,000**, mainly from interest income on cash and bank balances and loans to suppliers[12](index=12&type=chunk) [Finance Costs](index=6&type=section&id=Finance%20Costs) The Group's finance costs decreased by approximately **7.4%** to **RMB 17,895,000**, primarily due to an overall reduction in financing costs - Finance costs decreased by approximately **7.4%** to **RMB 17,895,000**, mainly due to a decrease in overall financing costs[13](index=13&type=chunk) [Income Tax Expense](index=6&type=section&id=Income%20Tax%20Expense) The Group's income tax expense increased by approximately **6.9%** to **RMB 8,721,000**, primarily due to an increase in taxable profit - Income tax expense increased by approximately **6.9%** to **RMB 8,721,000**, primarily due to an increase in taxable profit[14](index=14&type=chunk) [Liquidity and Financial Resources](index=6&type=section&id=Liquidity%20and%20Financial%20Resources) The Group achieved a net cash inflow of **RMB 26,468,000** in the first half of 2021, a significant improvement from a net cash outflow in the prior year, driven by a substantial reduction in net cash used in operating activities, increased net cash from financing activities, and decreased net cash used in investing activities 2021 First Half Cash Flow Overview | Activity Category | Six Months Ended June 30, 2021 (RMB thousands) | Six Months Ended June 30, 2020 (RMB thousands) | | :--- | :------------------------------------- | :------------------------------------- | | Net cash used in operating activities | (15,168) | (86,732) | | Net cash used in investing activities | (41,583) | (66,821) | | Net cash generated from financing activities | 83,219 | 42,404 | | **Net cash inflow/(outflow)** | **26,468** | **(111,149)** | - As of June 30, 2021, cash and cash equivalents amounted to approximately **RMB 120,897,000**, an increase from **RMB 94,429,000** at the end of 2020[15](index=15&type=chunk) - Total interest-bearing bank borrowings were approximately **RMB 820,311,000**, of which approximately **RMB 635,990,000** are due within one year, and the Board expects to repay or renew these with internal funds[15](index=15&type=chunk) [Capital Commitments](index=7&type=section&id=Capital%20Commitments) As of June 30, 2021, the Group's capital commitments amounted to approximately **RMB 130,472,000**, primarily for the purchase of property, plant, and equipment, a slight decrease from the end of 2020 - Capital commitments amounted to approximately **RMB 130,472,000** (December 31, 2020: **RMB 137,364,000**), mainly for the purchase of property, plant, and equipment[16](index=16&type=chunk) [Foreign Exchange Risk](index=7&type=section&id=Foreign%20Exchange%20Risk) The Group's sales, purchases, cash, and borrowings are primarily denominated in RMB, resulting in minimal foreign exchange fluctuation risk; currently, no foreign currency hedging policy is in place, but management will monitor and consider hedging if necessary - The Group's sales and purchases are primarily denominated in RMB, while cash and cash equivalents are mainly denominated in RMB and HKD, and borrowings are denominated in RMB[17](index=17&type=chunk) - Due to minimal foreign exchange fluctuation risk, the Group currently does not employ any foreign currency hedging policy, but management will closely monitor and consider hedging if significant impacts arise[17](index=17&type=chunk) [Share Capital Structure](index=7&type=section&id=Share%20Capital%20Structure) As of June 30, 2021, the total number of issued and fully paid ordinary shares of the Company was **1,769,193,800** - As of June 30, 2021, the total number of issued and fully paid ordinary shares of the Company was **1,769,193,800**[18](index=18&type=chunk) [Contingent Liabilities](index=7&type=section&id=Contingent%20Liabilities) As of June 30, 2021, the Group had no material contingent liabilities - As of June 30, 2021, the Group had no material contingent liabilities (December 31, 2020: nil)[18](index=18&type=chunk) [Pledge of Assets](index=7&type=section&id=Pledge%20of%20Assets) As of June 30, 2021, certain of the Group's interest-bearing bank and other borrowings were secured by assets totaling approximately **RMB 149,221,000**, a decrease in total pledged assets compared to the end of 2020 Carrying Value of Pledged Assets | Asset Category | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :------------------------- | :--------------------------- | | Property, plant and equipment | 7,527 | 18,694 | | Investment properties | 1,321 | 929 | | Right-of-use assets — prepaid land lease payments | 31,373 | 35,937 | | Pledged deposits | 109,000 | 109,000 | | **Total** | **149,221** | **164,560** | [Gearing Ratio](index=7&type=section&id=Gearing%20Ratio) As of June 30, 2021, the Group's gearing ratio was approximately **62.3%**, consistent with the end of 2020 - As of June 30, 2021, the Group's gearing ratio was approximately **62.3%** (December 31, 2020: **62.3%**)[21](index=21&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments or Capital Assets](index=8&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures,%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) For the six months ended June 30, 2021, the Group held no material investments, nor did it undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures, and the Board currently has no authorized plans for any material investments or additions to capital assets - For the six months ended June 30, 2021, the Group held no material investments or undertook any material acquisitions or disposals of subsidiaries, associates, and joint ventures[22](index=22&type=chunk) - As of the date of this report, the Board has not authorized any plans for material investments or additions to capital assets[22](index=22&type=chunk) [Employees and Remuneration Policy](index=8&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2021, the Group employed **2,790** staff, with total staff costs of approximately **RMB 125,054,000**; the Group's remuneration policy aligns with relevant laws, market conditions, and employee performance, and grants share options to outstanding performers - As of June 30, 2021, the Group had **2,790** employees (June 30, 2020: **2,778** employees)[23](index=23&type=chunk) - For the six months ended June 30, 2021, the Group's total staff costs were approximately **RMB 125,054,000** (first half of 2020: **RMB 95,946,000**)[23](index=23&type=chunk) - The remuneration policy complies with relevant laws, market conditions, and employee performance, and grants share options to eligible individuals for outstanding performance and contributions[23](index=23&type=chunk) [Events After Reporting Period](index=8&type=section&id=Events%20After%20Reporting%20Period) From June 30, 2021, to the date of this report, the Group has not undertaken any material post-reporting period events - From June 30, 2021, to the date of this report, the Group has not undertaken any material post-reporting period events[24](index=24&type=chunk) [Prospects](index=8&type=section&id=Prospects) The Group anticipates continued revenue and profit growth for the full year 2021, benefiting from the sustained recovery of China's automotive market and rapid development of new energy vehicles, focusing on its "plastic-for-steel" technological advantage, expanding new energy vehicle clientele, and enhancing business scale and enterprise value through automation, increased R&D, and M&A opportunities - China's automotive market continued to recover in the first half of 2021, with significant year-on-year growth in production and sales, projecting full-year automotive sales to reach **27 million** units and new energy vehicle sales to increase by approximately **76%**[24](index=24&type=chunk) - The Group will leverage its "plastic-for-steel" technological advantage, strategically develop new energy vehicles, expand its client base and orders in this sector, and maintain its strategy of serving mid-to-high-end passenger vehicle brands[24](index=24&type=chunk) - Future plans include enhancing automation, expanding new plant production capacity, increasing internal optimization and R&D efforts, developing high-value-added fabric panels and one-stop component solutions, and exploring upstream and downstream industry chain expansion and potential M&A opportunities[25](index=25&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section cautions readers that forward-looking statements in the management discussion and analysis involve known and unknown risks and uncertainties, and actual results may differ materially from expectations - Forward-looking statements represent only the Company's expectations or beliefs regarding future events and involve known and unknown risks and uncertainties[26](index=26&type=chunk) - Actual results, performance, or events may differ materially from those expressed or implied in such statements[26](index=26&type=chunk) [Corporate Governance and Other Information](index=9&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines Huazhong In-Vehicle Holdings Co., Ltd.'s corporate governance practices, including compliance with the Corporate Governance Code, updates on directors' information, equity interests of directors and chief executives, share option schemes, substantial shareholders' interests, and the responsibilities of the Audit Committee; the company generally complies with the Corporate Governance Code, with a deviation where the Chairman and Chief Executive Officer roles are held by the same individual [Corporate Governance Code](index=10&type=section&id=Corporate%20Governance%20Code) The Company has adopted the Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules and has complied with all applicable code provisions for the six months ended June 30, 2021, with one exception where the roles of Chairman and Chief Executive Officer are held by the same person - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code for the entire six months ended June 30, 2021, with one deviation[28](index=28&type=chunk) - Deviation from Code Provision A.2.1: Mr. Zhou Minfeng concurrently holds the positions of Chairman and Chief Executive Officer, a structure the Board believes allows for effective execution of business strategies and operations[29](index=29&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=10&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Standard Code set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance with this code for the six months ended June 30, 2021 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with this code for the six months ended June 30, 2021[30](index=30&type=chunk) [Update on Directors' Information](index=10&type=section&id=Update%20on%20Directors'%20Information) This section updates changes in the Board of Directors, including Mr. Wu Bichao's appointment as Vice Chairman and re-designation as an executive director, and the renewal of engagement letters for several directors - Independent non-executive director Mr. Wu Bichao was appointed Vice Chairman of the Board (effective January 27, 2021) and re-designated as an executive director (effective March 1, 2021)[31](index=31&type=chunk) - The engagement letters for executive director Mr. Wu Bichao, non-executive director Ms. Lai Caiyong, and independent non-executive director Mr. Wang Lianzhang were all renewed for a three-year term[31](index=31&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=11&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2021, directors and the chief executive held long positions in the Company's shares, with Mr. Zhou Minfeng holding the vast majority of interests through his wholly-owned Huayou Holdings Limited, and additional shares through spousal interests Directors' Long Positions in the Company (as of June 30, 2021) | Director's Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Zhou Minfeng | Interest in controlled corporation (Huayou Holdings Limited) | 1,320,000,000 | 74.61% | | Mr. Zhou Minfeng | Spouse's interest (Ms. Chen Chun'er) | 1,100,000 | 0.06% | | Mr. Wang Lianzhang | Beneficial owner | 1,000,000 | 0.06% | [Share Option Schemes](index=12&type=section&id=Share%20Option%20Schemes) The Company terminated the 2011 Share Option Scheme on June 2, 2021, though unexercised options granted thereunder remain valid; concurrently, shareholders approved the adoption of a new 2021 Share Option Scheme to incentivize participants, with no options granted, exercised, lapsed, or cancelled under either scheme as of the report date - The 2011 Share Option Scheme was terminated on June 2, 2021, but unexercised share options granted before termination remain valid[35](index=35&type=chunk) - The 2021 Share Option Scheme was adopted with shareholder approval on June 2, 2021, for a ten-year term, aiming to encourage or reward participants for their contributions to the Group[36](index=36&type=chunk) - As of the six months ended June 30, 2021, and the date of this report, no unexercised share options existed, and no share options were granted, exercised, lapsed, or cancelled under either scheme[35](index=35&type=chunk)[36](index=36&type=chunk) [Arrangement to Purchase Shares or Debentures by Directors](index=12&type=section&id=Arrangement%20to%20Purchase%20Shares%20or%20Debentures%20by%20Directors) For the six months ended June 30, 2021, no rights to acquire benefits by means of the acquisition of shares or debentures of the Company were granted to or exercised by the directors or their respective spouses or minor children - For the six months ended June 30, 2021, no rights to acquire benefits by means of the acquisition of shares or debentures of the Company were granted to or exercised by the directors or their respective spouses or minor children[37](index=37&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=12&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2021, Huayou Holdings Limited, wholly-owned by Mr. Zhou Minfeng, was the Company's substantial shareholder, holding **74.61%** of the shares; Mr. Zhou Minfeng's spouse, Ms. Chen Chun'er, also held some shares and was deemed to hold interests in Huayou Holdings Substantial Shareholders' Long Positions in the Company (as of June 30, 2021) | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Huayou Holdings Limited | Beneficial owner | 1,320,000,000 | 74.61% | | Ms. Chen Chun'er | Beneficial owner | 1,100,000 | 0.06% | | Ms. Chen Chun'er | Spouse's interest (through Mr. Zhou Minfeng's interest in Huayou Holdings) | 1,320,000,000 | 74.61% | Equity Interests in Group Companies (10% or more) | Name | Shareholder | Approximate Percentage of Equity Interest | | :--- | :--- | :--- | | Shanghai Huaxin | Shanghai Automotive Air Conditioner Factory | 30% | | Shanghai Huaxin | Shanghai Beicai Industrial Co., Ltd. | 19% | | Changxing Huaxin Automotive Rubber and Plastic Products Co., Ltd. | Shanghai Automotive Air Conditioner Factory | 30% | | Changxing Huaxin Automotive Rubber and Plastic Products Co., Ltd. | Shanghai Beicai Industrial Co., Ltd. | 19% | [Audit Committee](index=14&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process, risk management, and internal control systems; the committee has reviewed the Group's interim results for the six months ended June 30, 2021, and deemed them prepared in accordance with applicable accounting standards, rules, and regulations with proper disclosure - The Audit Committee comprises three independent non-executive directors, with Mr. Yu Shuli as Chairman[42](index=42&type=chunk) - The Committee has reviewed the Group's interim results for the six months ended June 30, 2021, and is of the opinion that they were prepared in accordance with applicable accounting standards, rules, and regulations and properly disclosed[42](index=42&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=14&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2021, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2021, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[43](index=43&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2021 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2021 (six months ended June 30, 2020: nil)[43](index=43&type=chunk) [Acknowledgement](index=14&type=section&id=Acknowledgement) The Chairman of the Board takes this opportunity to express gratitude for the valuable advice and guidance from the directors, and the diligent work and loyal service of all Group employees - The Chairman of the Board expresses gratitude for the valuable advice and guidance from the directors, and the diligent work and loyal service of all Group employees[44](index=44&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the Group's consolidated profit or loss for the six months ended June 30, 2021, showing significant growth in revenue, gross profit, profit before tax, and profit for the period, alongside a substantial increase in earnings per share attributable to owners of the parent Interim Condensed Consolidated Statement of Profit or Loss Summary (Six Months Ended June 30) | Indicator | 2021 (RMB thousands) | 2020 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 892,299 | 758,941 | 17.6 | | Cost of sales | (661,462) | (577,037) | 14.6 | | Gross profit | 230,837 | 181,904 | 26.9 | | Other income and gains | 15,575 | 17,066 | (8.7) | | Selling and distribution expenses | (68,899) | (55,248) | 24.7 | | Administrative expenses | (129,638) | (98,176) | 32.0 | | Share of profit of joint ventures | 18,291 | 8,639 | 111.7 | | Finance income | 6,120 | 2,261 | 170.7 | | Finance costs | (17,895) | (19,317) | (7.4) | | Profit before tax | 45,156 | 31,336 | 44.1 | | Income tax expense | (8,721) | (8,158) | 6.9 | | Profit for the period | 36,435 | 23,178 | 57.2 | | Profit attributable to owners of the parent | 34,170 | 21,781 | 56.9 | | Earnings per share attributable to ordinary equity holders of the parent (RMB) | 0.0193 | 0.0123 | 56.9 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the Group's consolidated comprehensive income for the six months ended June 30, 2021, with total comprehensive income for the period amounting to **RMB 36,435,000**, primarily contributed by profit for the period, and no other comprehensive loss or income compared to the prior year Interim Condensed Consolidated Statement of Comprehensive Income Summary (Six Months Ended June 30) | Indicator | 2021 (RMB thousands) | 2020 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 36,435 | 23,178 | 57.2 | | Other comprehensive loss, net of tax, that may be reclassified to profit or loss in subsequent periods | — | — | N/A | | Other comprehensive (loss)/income, net of tax, that will not be reclassified to profit or loss in subsequent periods | — | (8,520) | N/A | | Other comprehensive (loss)/income for the period, net of tax | — | (8,520) | N/A | | **Total comprehensive income for the period** | **36,435** | **14,658** | **148.6** | | Attributable to: Owners of the parent | 34,170 | 13,261 | 157.7 | | Non-controlling interests | 2,265 | 1,397 | 62.1 | [Interim Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's financial position as of June 30, 2021, showing growth in total assets and total equity, and an improvement in net current liabilities; despite net current liabilities, the Board prepared this financial information on a going concern basis, supported by unutilized credit facilities and cost control measures Interim Condensed Consolidated Statement of Financial Position Summary (as of June 30) | Indicator | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,517,696 | 1,513,285 | 0.3 | | Total current assets | 1,820,934 | 1,733,493 | 5.0 | | Total current liabilities | 1,909,809 | 1,852,914 | 3.1 | | Net current liabilities | (88,875) | (119,421) | (25.6) | | Total assets less current liabilities | 1,428,821 | 1,393,864 | 2.5 | | Total non-current liabilities | 218,927 | 209,648 | 4.4 | | Net assets | 1,209,894 | 1,184,216 | 2.2 | | Total equity | 1,209,894 | 1,184,216 | 2.2 | - As of June 30, 2021, the Group recorded consolidated net current liabilities of **RMB 88,875,000**, but the Board prepared the financial information on a going concern basis, citing unutilized credit facilities (approximately **RMB 813,105,000**) and ongoing cost control measures[57](index=57&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the Group's equity changes for the six months ended June 30, 2021, with the increase in total equity primarily reflecting profit for the period, while also accounting for the final dividend declared for 2020 Interim Condensed Consolidated Statement of Changes in Equity Summary (Six Months Ended June 30) | Equity Component | January 1, 2021 (Audited) (RMB thousands) | Profit for the Period (RMB thousands) | 2020 Final Dividend (RMB thousands) | June 30, 2021 (Unaudited) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 142,956 | — | — | 142,956 | | Reserves | 1,000,514 | 34,170 | (10,757) | 1,023,927 | | **Equity attributable to owners of the parent** | **1,143,470** | **34,170** | **(10,757)** | **1,166,883** | | Non-controlling interests | 40,746 | 2,265 | — | 43,011 | | **Total equity** | **1,184,216** | **36,435** | **(10,757)** | **1,209,894** | - The Group declared a 2020 final dividend of **RMB 10,757,000** during the period[51](index=51&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's cash flows for the six months ended June 30, 2021, recording a net cash inflow of **RMB 26,468,000**, a significant improvement from the net cash outflow of **RMB 111,149,000** in the prior year, primarily due to improved operating cash flow and net inflows from financing activities Interim Condensed Consolidated Statement of Cash Flows Summary (Six Months Ended June 30) | Activity Category | 2021 (RMB thousands) | 2020 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (15,168) | (86,732) | 71,564 | | Net cash used in investing activities | (41,583) | (66,821) | 25,238 | | Net cash generated from financing activities | 83,219 | 42,404 | 40,815 | | **Net increase/(decrease) in cash and cash equivalents** | **26,468** | **(111,149)** | **137,617** | | Cash and cash equivalents at beginning of period | 94,429 | 188,250 | (93,821) | | **Cash and cash equivalents at end of period** | **120,897** | **77,101** | **43,796** | - Net cash used in operating activities significantly decreased from **RMB 86,732,000** in the first half of 2020 to **RMB 15,168,000** in the first half of 2021[52](index=52&type=chunk) - Net cash generated from financing activities significantly increased, primarily from bank loans[53](index=53&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=22&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company information, basis of preparation, changes in accounting policies, operating segment information, revenue and other income, various expenses, income tax, dividends, earnings per share, property, plant and equipment, receivables, payables, commitments, related party transactions, and fair value information of financial instruments, offering deeper explanations and disclosures for the financial statements [1. Company Information](index=22&type=section&id=1.%20Company%20Information) This note reiterates Huazhong In-Vehicle Holdings Co., Ltd.'s incorporation details, listing status, and primary business activities, which involve the manufacturing and sale of automotive and non-automotive products - The Company was incorporated in the Cayman Islands on December 3, 2010, and listed on the Main Board of the Stock Exchange of Hong Kong on January 12, 2012[55](index=55&type=chunk) - The Group primarily engages in the manufacturing and sale of automotive interior and exterior structural and decorative parts, molds and tools, air conditioner or heater casings and liquid reservoirs, and other non-automotive products[55](index=55&type=chunk) [2.1 Basis of Preparation](index=22&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements; despite net current liabilities, the Board prepared this financial information on a going concern basis, supported by unutilized credit facilities and cost control measures - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[56](index=56&type=chunk) - Despite recording consolidated net current liabilities of **RMB 88,875,000** as of June 30, 2021, the Board prepared the financial information on a going concern basis, citing unutilized credit facilities (approximately **RMB 813,105,000**) and ongoing cost control measures[57](index=57&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=23&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those of the prior year, and the newly adopted revised International Financial Reporting Standards had no impact on the Group's financial position or performance - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2020[58](index=58&type=chunk) - The newly adopted revised International Financial Reporting Standards (such as Interest Rate Benchmark Reform, COVID-19-Related Rent Concessions) had no impact on the Group's interim financial position or performance[59](index=59&type=chunk) [3. Operating Segment Information](index=23&type=section&id=3.%20Operating%20Segment%20Information) The Group operates as a single business unit, thus no segment analysis is presented, and non-current assets are primarily located in mainland China - The Group is organized as a single business unit, primarily engaged in the production and sale of automotive interior and exterior decorative and structural parts, molds and tools, air conditioner or heater casings and liquid reservoirs, and other non-automotive products, hence no segment analysis is presented[60](index=60&type=chunk) - As of June 30, 2021, the Group's non-current assets (excluding financial instruments and deferred tax assets) were primarily located in mainland China, amounting to **RMB 1,434,199,000**[61](index=61&type=chunk) [4. Revenue, Other Income and Gains](index=24&type=section&id=4.%20Revenue,%20Other%20Income%20and%20Gains) This note provides a breakdown of revenue by type of goods or services, geographical market, and point in time of revenue recognition, along with an analysis of other income and gains; sales of plastic parts and automotive parts are the main revenue sources, with mainland China contributing the vast majority of revenue Revenue by Type of Goods or Services (Six Months Ended June 30) | Classification of Goods or Services | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Sale of plastic parts and automotive parts | 855,812 | 680,071 | | Sale of molds and tools | 36,487 | 78,870 | | Management services | 1,960 | 1,823 | | **Total revenue from contracts with customers** | **894,259** | **760,764** | Revenue by Geographical Market (Six Months Ended June 30) | Geographical Market | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 860,130 | 739,644 | | Overseas | 34,129 | 21,120 | | **Total revenue from contracts with customers** | **894,259** | **760,764** | Other Income and Gains Analysis (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Rental income | 7,368 | 7,025 | | Government grants | 3,966 | 6,073 | | Management fees | 1,960 | 1,823 | | Gain on disposal of items of property, plant and equipment | 638 | 25 | | Others | 1,643 | 309 | | **Total** | **15,575** | **17,066** | [5. Finance Income](index=25&type=section&id=5.%20Finance%20Income) This note details the sources of finance income, primarily comprising interest income from bank deposits and interest income from loans and receivables, with a significant increase in total amount Finance Income Details (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 3,131 | 2,261 | | Interest income from loans and receivables | 2,989 | — | | **Total** | **6,120** | **2,261** | [6. Finance Costs](index=25&type=section&id=6.%20Finance%20Costs) This note outlines the composition of finance costs, mainly interest expenses on interest-bearing bank borrowings and lease liabilities, with a decrease in the total amount Finance Costs Details (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on interest-bearing bank borrowings | 17,721 | 19,140 | | Interest expense on lease liabilities | 174 | 177 | | **Total** | **17,895** | **19,317** | [7. Profit Before Tax](index=26&type=section&id=7.%20Profit%20Before%20Tax) This note details the major expenses and income items affecting profit before tax, including cost of inventories recognized, depreciation, amortization, employee benefit expenses, net rental income, net exchange differences, and impairment of trade receivables Major Components of Profit Before Tax (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories recognized | 661,462 | 577,037 | | Depreciation of property, plant and equipment | 53,448 | 44,298 | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | 125,054 | 95,946 | | Net rental income | (7,368) | (7,025) | | Net exchange differences | 8,115 | 3,037 | | Impairment of trade receivables | 347 | 1,300 | | Gain on disposal of items of property, plant and equipment | (638) | (25) | [8. Income Tax](index=27&type=section&id=8.%20Income%20Tax) This note presents the main components of the Group's income tax expense for the period, including current income tax and deferred income tax, with an increase in the total amount Income Tax Expense Components (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Current income tax — expense for the period | 12,719 | 27,182 | | Deferred income tax | (3,998) | (19,024) | | **Total income tax expense for the period** | **8,721** | **8,158** | [9. Dividends](index=27&type=section&id=9.%20Dividends) This note discloses the final dividend declared for 2020 and confirms the Board's decision not to declare an interim dividend for the first half of 2021 - A final dividend of **0.6080 HK cents** per ordinary share for 2020 was declared, totaling **RMB 10,757,000**[69](index=69&type=chunk) - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2021[69](index=69&type=chunk) [10. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=28&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This note explains the calculation method for basic and diluted earnings per share and presents the profit attributable to owners of the parent and the weighted average number of ordinary shares used in the calculation - Basic earnings per share for the period are calculated based on the consolidated net profit attributable to owners of the parent and the weighted average number of **1,769,193,800** ordinary shares outstanding for the six months ended June 30, 2021[70](index=70&type=chunk) Basis for Basic and Diluted Earnings Per Share Calculation (Six Months Ended June 30) | Indicator | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to owners of the parent for basic and diluted earnings per share calculation | 34,170 | 21,781 | | Weighted average number of ordinary shares outstanding during the period for basic earnings per share calculation (number of shares) | 1,769,193,800 | 1,769,193,800 | [11. Property, Plant and Equipment](index=28&type=section&id=11.%20Property,%20Plant%20and%20Equipment) This note discloses the Group's investments and disposals in property, plant, and equipment, showing a significant decrease in total purchase cost during the period and an increase in net gain from asset disposals - For the six months ended June 30, 2021, the Group's total cost for purchasing property, plant and equipment was **RMB 51,032,000** (first half of 2020: **RMB 116,016,000**)[73](index=73&type=chunk) - The disposal of assets with a net book value of **RMB 3,215,000** resulted in a net gain on disposal of **RMB 638,000** (first half of 2020: **RMB 25,000**)[73](index=73&type=chunk) [12. Trade Receivables and Bills Receivable](index=29&type=section&id=12.%20Trade%20Receivables%20and%20Bills%20Receivable) This note provides an aging analysis of trade receivables and bills receivable, indicating a decrease in the total amount as of June 30, 2021, with a notable reduction in receivables aged six months to one year Aging Analysis of Trade Receivables and Bills Receivable (as of June 30) | Aging | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 569,760 | 626,037 | | 3 to 6 months | 84,534 | 70,703 | | 6 months to 1 year | 46,152 | 89,171 | | Over 1 year | 36,140 | 33,767 | | **Total** | **736,586** | **819,678** | [13. Trade Payables and Bills Payable](index=29&type=section&id=13.%20Trade%20Payables%20and%20Bills%20Payable) This note provides an aging analysis of trade payables and bills payable, indicating a decrease in the total amount as of June 30, 2021, with a significant reduction in payables aged one to two years Aging Analysis of Trade Payables and Bills Payable (as of June 30) | Aging | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 646,517 | 669,463 | | 3 to 12 months | 219,613 | 259,743 | | 1 to 2 years | 10,610 | 34,682 | | 2 to 3 years | 10,584 | — | | Over 3 years | 1,645 | 1,653 | | **Total** | **888,969** | **965,541** | [14. Commitments](index=29&type=section&id=14.%20Commitments) This note discloses the Group's capital commitments as of the reporting period end, primarily for contracted but unprovided acquisitions of property, plant, and equipment, with a slight decrease in the total amount - As of June 30, 2021, the Group's capital commitments for the acquisition of property, plant and equipment amounted to approximately **RMB 130,472,000** (December 31, 2020: **RMB 137,364,000**)[77](index=77&type=chunk) [15. Related Party Transactions](index=30&type=section&id=15.%20Related%20Party%20Transactions) This note details significant transactions between the Group and its related parties, including sales of goods, purchases of goods, rental income, and management fee collection, all conducted at agreed prices and terms; it also discloses key management personnel's emoluments Summary of Related Party Transactions (Six Months Ended June 30) | Transaction Category | Related Party | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | :--- | | Sales of goods to | Joint ventures | 42,071 | 35,307 | | | Entities significantly influenced by Mr. Zhou's brother | 799 | 828 | | Purchases of goods from | Joint ventures | 32,294 | 27,157 | | | Entities significantly influenced by Mr. Zhou's brother | 4,069 | 5,230 | | | Entities significantly influenced by key management personnel | 2,611 | — | | Total rental income received from | Joint ventures | 4,950 | 5,397 | | | Subsidiaries of joint ventures | 3,267 | 3,238 | | Management fees received from | Joint ventures | 1,960 | 1,823 | Key Management Personnel's Emoluments (Six Months Ended June 30) | Item | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Wages, salaries and other benefits | 2,938 | 1,324 | | Pension scheme contributions | 18 | 16 | | **Total emoluments paid to key management personnel** | **2,956** | **1,340** | [16. Fair Value and Fair Value Hierarchy of Financial Instruments](index=31&type=section&id=16.%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) This note explains the Group's fair value measurement methods and hierarchy for financial instruments, noting that the carrying amounts of most financial instruments approximate their fair values due to short maturities; unlisted equity investments are valued using market valuation techniques, and bills receivable are measured at fair value through other comprehensive income; the note also provides sensitivity analysis for significant unobservable inputs and fair value hierarchy classifications - Except for equity investments designated at fair value through other comprehensive income and non-current interest-bearing bank borrowings, the carrying amounts of the Group's financial instruments reasonably approximate their fair values due to their short maturities[81](index=81&type=chunk)[82](index=82&type=chunk) - Certain unlisted equity investments designated at fair value through other comprehensive income are valued using market valuation techniques, based on forward price-to-earnings multiples and enterprise value to EBITDA multiples of comparable companies, adjusted for a discount for lack of marketability[82](index=82&type=chunk) Assets Measured at Fair Value (as of June 30, 2021) | Asset Category | Total (RMB thousands) | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 69,797 | — | — | 69,797 | | Bills receivable at fair value through other comprehensive income | 124,515 | — | 124,515 | — | [17. Events After Reporting Period](index=35&type=section&id=17.%20Events%20After%20Reporting%20Period) This note confirms that the Group had no material events after June 30, 2021 - The Group had no material events after June 30, 2021[89](index=89&type=chunk) [18. Approval of Interim Condensed Consolidated Financial Information](index=35&type=section&id=18.%20Approval%20of%20Interim%20Condensed%20Consolidated%20Financial%20Information) This note states that the unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 26, 2021 - The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 26, 2021[89](index=89&type=chunk)

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Basic Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) This section provides fundamental details of Huazhong Vehicle Holdings Limited, including board members, headquarters, and listing information - The company's board of directors comprises executive, non-executive, and independent non-executive directors, with **Mr. Zhou Minfeng** serving as Chairman and CEO[4](index=4&type=chunk) - The company is registered in the Cayman Islands, with its China headquarters in Xiangshan County, Zhejiang Province, and its principal Hong Kong office in Shun Tak Centre[4](index=4&type=chunk) - The company's stock code is **6830**, listed on the Main Board of The Stock Exchange of Hong Kong Limited[4](index=4&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business and Market Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) The Group's core business involves manufacturing automotive parts and non-automotive products, experiencing significant declines in revenue and profit in H1 2020 - The Group's principal business is the manufacturing and sales of automotive interior and exterior parts, moulds and tools, air-conditioning/heater casings/reservoirs, and non-automotive products[5](index=5&type=chunk) - In H1 **2020**, China's automobile production and sales volumes decreased by **16.8%** and **16.9%** respectively, leading to an overall market decline[5](index=5&type=chunk) **2020** H1 Key Financial Performance | Metric | **2020** H1 (RMB thousands) | **2019** H1 (RMB thousands) | Comparative Change | | --- | --- | --- | --- | | Revenue | **758,941** | **919,456** | **-17.5%** | | Profit attributable to owners of the parent | **21,781** | **48,709** | **-55.3%** | [Financial Review](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's H1 **2020** financial performance, noting decreased revenue and gross profit, but reduced administrative expenses **2020** H1 Revenue and Gross Profit Margin Overview | Product Category | **2020** Revenue (RMB thousands) | **2020** Gross Profit Margin (%) | **2019** Revenue (RMB thousands) | **2019** Gross Profit Margin (%) | | --- | --- | --- | --- | --- | | Automotive interior and exterior parts | **585,523** | **24.5** | **656,053** | **31.8** | | Moulds and tools | **78,870** | **29.5** | **153,638** | **11.5** | | Air-conditioning/heater casings/reservoirs | **29,871** | **15.5** | **40,616** | **13.5** | | Non-automotive products | **9,480** | **19.6** | **26,475** | **45.6** | | Sales of raw materials | **55,197** | **15.5** | **42,674** | **5.1** | | Total | **758,941** | **24.0** | **919,456** | **26.8** | - Revenue from automotive interior and exterior parts decreased, with gross profit margin falling from **31.8%** to **24.5%**, primarily due to reduced orders from a sluggish automotive market[7](index=7&type=chunk) - Revenue from moulds and tools decreased, but gross profit margin significantly increased from **11.5%** to **29.5%**[8](index=8&type=chunk) - Administrative expenses decreased by approximately **21.5%** to RMB**98,176,000** thousands, mainly due to lower staff costs and benefits, research and development expenses, and professional service fees[11](index=11&type=chunk) - Share of profit of a joint venture increased by **20.9%** to RMB**8,639,000** thousands[12](index=12&type=chunk) - Tax expense decreased by **33.2%** to RMB**8,158,000** thousands, primarily due to a decrease in taxable profit[15](index=15&type=chunk) [Liquidity and Financial Resources](index=7&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group saw increased net cash outflow from operations, reduced investment cash outflow, and a significant decrease in cash and cash equivalents **2020** H1 Cash Flow Overview | Cash Flow Category | **2020** H1 (RMB thousands) | **2019** H1 (RMB thousands) | | --- | --- | --- | | Net cash used in operating activities | (**86,732**) | (**52**) | | Net cash used in investing activities | (**66,821**) | (**116,323**) | | Net cash generated from financing activities | **42,404** | **127,747** | - As of June **30**, **2020**, Cash and cash equivalents were RMB**77,101,000** thousands, significantly decreased compared to RMB**188,250,000** thousands at year-end **2019**[16](index=16&type=chunk) - As of June **30**, **2020**, total interest-bearing bank borrowings were RMB**925,558,000** thousands, of which RMB**866,558,000** thousands are repayable within **one** year[16](index=16&type=chunk) [Capital Commitments](index=7&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June **30**, **2020**, the Group's capital commitments for property, plant, and equipment were approximately RMB**142.1** million, a decrease from year-end **2019** Capital Commitments | Item | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Purchase of property, plant and equipment | **142,105** | **160,011** | [Foreign Exchange Risk](index=7&type=section&id=%E5%A4%96%E5%BD%99%E9%A2%A8%E9%9A%AA) The Group's transactions are primarily in RMB, HKD, and EUR; management monitors exchange rate fluctuations but currently has no hedging policy - Group sales, purchases, cash, and borrowings are primarily denominated in RMB, HKD, and EUR[18](index=18&type=chunk) - No foreign currency hedging policy is currently adopted, as exchange rate fluctuation risk is not significant, but management will closely monitor[18](index=18&type=chunk) [Share Capital Structure](index=7&type=section&id=%E8%82%A1%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June **30**, **2020**, the company had **1,769,193,800** issued and fully paid ordinary shares - As of June **30**, **2020**, the total number of issued and fully paid ordinary shares was **1,769,193,800** shares[19](index=19&type=chunk) [Contingent Liabilities](index=7&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%81%B6) As of June **30**, **2020**, the Group had no significant contingent liabilities - As of June **30**, **2020**, the Group had no significant contingent liabilities[19](index=19&type=chunk) [Pledged Assets](index=8&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June **30**, **2020**, approximately RMB**164.8** million of the Group's assets were pledged for interest-bearing bank and other borrowings Pledged Assets Carrying Amount | Asset Category | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Property, plant and equipment | **15,989** | **16,649** | | Investment property | **1,759** | **1,884** | | Right-of-use assets | **38,034** | **46,803** | | Pledged deposits | **109,000** | **117,434** | | Total | **164,782** | **182,770** | [Gearing Ratio](index=8&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June **30**, **2020**, the Group's gearing ratio slightly increased to approximately **66.5%** from **65.3%** at year-end **2019** Gearing Ratio | Metric | **2020** June **30** | **2019** December **31** | | --- | --- | --- | | Gearing ratio | **66.5%** | **65.3%** | [Significant Investments, Acquisitions, Disposals, and Future Capital Plans](index=8&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group reported no significant investments, acquisitions, or disposals, with no future plans for major capital asset additions - The Group had no significant investments, acquisitions or disposals of subsidiaries, associates and joint ventures during the reporting period[23](index=23&type=chunk) - The Board currently has no future plans for any significant investments or additions of capital assets[23](index=23&type=chunk) [Employees and Remuneration Policy](index=8&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June **30**, **2020**, the Group's employee count and total staff costs decreased, with remuneration policies aligned with market conditions Employees and Remuneration Overview | Metric | **2020** June **30** | **2019** June **30** | | --- | --- | --- | | Employee headcount | **2,778** | **3,416** | | Total staff costs (RMB thousands) | **95,946** | **129,640** | - Remuneration policy is in line with relevant laws, market conditions and employee performance, and share options may be granted to outstanding performers[24](index=24&type=chunk) [Events After Reporting Period](index=8&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E4%BA%8B%E4%BB%B6) No significant events occurred after June **30**, **2020**, up to the report date - No significant events occurred after the reporting period[25](index=25&type=chunk) [Outlook](index=9&type=section&id=%E5%89%8D%E6%99%AF) The Group anticipates a challenging industry environment but plans to enhance competitiveness through internal optimization, R&D, and cost control - The **COVID-19** pandemic severely impacted China's economy and automotive demand, but Group production bases fully resumed operations by late February[26](index=26&type=chunk) - Chinese government policies and stimulus measures, such as increasing vehicle license plate quotas and subsidizing electric vehicles, are expected to drive a moderate market rebound[26](index=26&type=chunk) - The Group will closely collaborate with high-end and joint venture automotive, and electric vehicle brand customers to capture market recovery opportunities, utilizing plastic product design and manufacturing technology to provide lightweight solutions[26](index=26&type=chunk) - The Group will continue to invest in R&D, streamline production processes, and reduce operating expenses to address challenges and maintain financial stability[26](index=26&type=chunk) [Forward-Looking Statements](index=9&type=section&id=%E5%89%8D%E7%9E%BB%E9%99%B3%E8%BF%B0%E8%81%B2%E6%98%8E) This section contains forward-looking statements about future financial and operational results, subject to risks and uncertainties - Forward-looking statements represent only the company's expectations or beliefs regarding future events, involving known and unknown risks and uncertainties[27](index=27&type=chunk) - Actual results, performance or events may differ materially from those expressed or implied[27](index=27&type=chunk) [Corporate Governance and Other Information](index=10&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance Code](index=10&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company adopted and generally complied with the Corporate Governance Code, with a noted deviation regarding the Chairman and CEO roles - The company adopted and complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are held by **Mr. Zhou Minfeng**, deviating from Code Provision A.**2.1**[28](index=28&type=chunk)[29](index=29&type=chunk) - The Board believes this structure allows for efficient execution of business strategies and operations, and will review this deviation periodically[29](index=29&type=chunk) [Standard Securities Dealing Code for Directors of Listed Issuers](index=10&type=section&id=%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted and confirmed directors' compliance with the Standard Securities Dealing Code for listed issuers during the reporting period - The company adopted the Standard Code, and all directors confirmed compliance with the code during the reporting period[30](index=30&type=chunk) [Update on Directors' Information](index=10&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E6%9B%B4%E6%96%B0) This section updates the renewal status of engagement letters for several non-executive and independent non-executive directors - Non-executive Directors **Mr. Guan Xin** and **Mr. Yu Zhuoping's** engagement letters were renewed for terms of **three** years and **two** years respectively[31](index=31&type=chunk) - Independent Non-executive Directors **Mr. Yu Shuli**, **Mr. Tian Yushi**, and **Mr. Xu Jiali's** engagement letters were renewed, all for terms of **three** years[31](index=31&type=chunk)[32](index=32&type=chunk) - Independent Non-executive Director **Mr. Wu Bichao's** engagement letter was renewed for a term of **one** year[32](index=32&type=chunk) [Directors' and Chief Executive's Interests and Short Positions](index=11&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses directors' and chief executive's interests in the company's shares as of June **30**, **2020** Directors' Long Positions in the Company | Name | Capacity/Nature of interest | Number of shares | Approximate percentage | | --- | --- | --- | --- | | **Mr. Zhou Minfeng** | Interest in controlled corporation | **1,320,000,000** | **74.61%** | | **Mr. Zhou Minfeng** | Spouse's interest | **1,100,000** | **0.06%** | | **Mr. Chang Jingzhou** | Beneficial owner | **840,400** | **0.05%** | | **Mr. Wang Lianzhang** | Beneficial owner | **1,000,000** | **0.06%** | [Share Option Scheme](index=12&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company's share option scheme aims to incentivize eligible individuals, with no unexercised options or related activities during the period - The share option scheme aims to provide individual equity opportunities to incentivize and reward eligible individuals contributing to the Group[35](index=35&type=chunk) - During the reporting period and up to the report date, there were no unexercised share options, and no share options were granted, exercised, lapsed or cancelled[35](index=35&type=chunk) [Arrangements for Directors to Purchase Shares or Debentures](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%BC%E8%B2%B7%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E7%9A%84%E5%AE%89%E6%8E%92) During the six months ended June **30**, **2020**, no directors or their associates were granted or exercised rights to profit from purchasing company shares or debentures - During the six months ended June **30**, **2020**, Directors and their associates were not granted or exercised any rights to profit from purchasing company shares or debentures[36](index=36&type=chunk) [Substantial Shareholders' Interests and Short Positions](index=12&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses substantial shareholders' interests in the company's shares as of June **30**, **2020** Substantial Shareholders' Long Positions in the Company | Name | Capacity/Nature of interest | Number of shares | Approximate percentage | | --- | --- | --- | --- | | **Huayou Holdings** | Beneficial owner | **1,320,000,000** | **74.61%** | | **Ms. Chen Chun'er** | Beneficial owner | **1,100,000** | **0.06%** | | **Ms. Chen Chun'er** | Spouse's interest | **1,320,000,000** | **74.61%** | - Shanghai Automotive Air-Conditioner Factory and Shanghai Beicai Industrial Co., Ltd. directly hold **30%** and **19%** interests in Shanghai Huaxin respectively, and indirectly hold **30%** and **19%** interests in Changxing Huaxin[40](index=40&type=chunk) [Audit Committee](index=13&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of independent non-executive directors, reviewed and approved the interim results announcement - The Audit Committee comprises three independent non-executive directors, chaired by **Mr. Yu Shuli**[41](index=41&type=chunk) - The committee's responsibilities include reviewing and overseeing financial reporting, risk management, and internal control systems[41](index=41&type=chunk) - The Audit Committee reviewed the interim results and deemed them properly prepared and disclosed in accordance with applicable accounting standards, rules, and regulations[41](index=41&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=14&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the six months ended June **30**, **2020**, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities - The company or its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[42](index=42&type=chunk) [Interim Dividend](index=14&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June **30**, **2020** - The Board decided not to declare an interim dividend for H**1** **2020**[42](index=42&type=chunk) [Acknowledgement](index=14&type=section&id=%E8%87%B4%E8%AC%9D) The Chairman, **Mr. Zhou Minfeng**, expressed gratitude to the directors for their guidance and to all employees for their diligent service - Chairman **Mr. Zhou Minfeng** expressed gratitude to the directors and employees[42](index=42&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) [Profit or Loss Statement Overview](index=15&type=section&id=%E6%90%8D%E7%9B%8A%E8%A1%A8%E6%A6%82%E8%A6%BD) This section presents the unaudited interim condensed consolidated statement of profit or loss for the six months ended June **30**, **2020** and **2019** Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June **30**) | Metric | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Revenue | **758,941** | **919,456** | | Cost of sales | (**577,037**) | (**673,255**) | | Gross profit | **181,904** | **246,201** | | Other income and gains | **17,066** | **17,186** | | Selling and distribution expenses | (**55,248**) | (**60,857**) | | Administrative expenses | (**98,176**) | (**125,093**) | | Net impairment losses on financial assets | (**1,300**) | (**201**) | | Other expenses | (**4,493**) | (**2,942**) | | Share of profit of a joint venture | **8,639** | **7,142** | | Finance income | **2,261** | **2,464** | | Finance costs | (**19,317**) | (**20,930**) | | Profit before tax | **31,336** | **62,970** | | Income tax expense | (**8,158**) | (**12,220**) | | Profit for the period | **23,178** | **50,750** | | Profit attributable to owners of the parent | **21,781** | **48,709** | | Non-controlling interests | **1,397** | **2,041** | | Basic and diluted earnings per share (RMB per share) | **0.0123** | **0.0275** | [Interim Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) [Comprehensive Income Statement Overview](index=16&type=section&id=%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%E6%A6%82%E8%A6%BD) This section presents the unaudited interim condensed consolidated statement of comprehensive income for the six months ended June **30**, **2020** and **2019** Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June **30**) | Metric | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Profit for the period | **23,178** | **50,750** | | Exchange differences on translation of foreign operations | — | (**464**) | | Equity investments designated at fair value through other comprehensive income: fair value changes | (**11,360**) | **17,281** | | Income tax effect | **2,840** | (**4,321**) | | Total comprehensive income for the period | **14,658** | **63,246** | | Attributable to owners of the parent | **13,261** | **61,205** | | Non-controlling interests | **1,397** | **2,041** | [Interim Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) [Financial Position Statement Overview](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%E6%A6%82%E8%A6%BD) This section presents the unaudited interim condensed consolidated statement of financial position as of June **30**, **2020** and December **31**, **2019** Interim Condensed Consolidated Statement of Financial Position (As of June **30**) | Metric | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Total non-current assets | **1,447,156** | **1,419,830** | | Total current assets | **1,855,696** | **1,886,031** | | Total current liabilities | **2,129,592** | **2,145,608** | | Net current liabilities | (**273,896**) | (**259,577**) | | Total non-current liabilities | **92,082** | **85,329** | | Net assets | **1,081,178** | **1,074,924** | | Total equity | **1,081,178** | **1,074,924** | [Interim Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) [Statement of Changes in Equity Overview](index=19&type=section&id=%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8%E6%A6%82%E8%A6%BD) This section presents the unaudited interim condensed consolidated statement of changes in equity for the six months ended June **30**, **2020** and **2019** - As of June **30**, **2020**, total equity attributable to owners of the parent was RMB**1,041,922** thousands, and non-controlling interests were RMB**39,256** thousands[48](index=48&type=chunk) - Profit for the period was RMB**21,781** thousands, and fair value changes of equity investments designated at fair value through other comprehensive income resulted in a net other comprehensive loss of RMB**8,520** thousands[48](index=48&type=chunk) - Total comprehensive income for the period was RMB**14,658** thousands[48](index=48&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) [Cash Flow Statement Overview](index=20&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E6%A6%82%E8%A6%BD) This section presents the unaudited interim condensed consolidated statement of cash flows for the six months ended June **30**, **2020** and **2019** Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June **30**) | Cash Flow Category | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Net cash flows used in operating activities | (**86,732**) | (**52**) | | Net cash flows used in investing activities | (**66,821**) | (**116,323**) | | Net cash flows generated from financing activities | **42,404** | **127,747** | | Net decrease/increase in cash and cash equivalents | (**111,149**) | **11,372** | | Cash and cash equivalents at end of period | **77,101** | **90,124** | [Notes to the Interim Condensed Consolidated Financial Information](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Company Information](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This note reiterates Huazhong Vehicle Holdings Limited's registration, listing, and primary business scope - The company was incorporated on December **3**, **2010**, in the Cayman Islands and listed on January **12**, **2012**, on the Main Board of The Stock Exchange of Hong Kong[53](index=53&type=chunk) - The Group is principally engaged in the manufacturing and sales of automotive interior and exterior parts, moulds and tools, air-conditioning/heater casings/reservoirs, and other non-automotive products[53](index=53&type=chunk) [Basis of Preparation](index=22&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This note explains the interim condensed consolidated financial information is prepared under IAS **34**, despite a net current liability position - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard **34** 'Interim Financial Reporting'[54](index=54&type=chunk) - As of June **30**, **2020**, the Group recorded net current liabilities of RMB**273,896,000** thousands[55](index=55&type=chunk) - The Board prepared the financial information on a going concern basis and implemented measures, including unutilized credit facilities and cost control, to improve its financial position[55](index=55&type=chunk) [Changes in Accounting Policies and Disclosures](index=23&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E6%9B%B4) This note lists newly adopted IFRS amendments, which had no material impact on the Group's financial position or performance - Amendments to IFRS **3**, IFRS **9**, IAS **39**, IAS **7**, IAS **1**, IAS **8**, and IFRS **16** were adopted for the first time in the current period[56](index=56&type=chunk)[57](index=57&type=chunk) - These amendments had no impact on the Group's financial position or performance[57](index=57&type=chunk) [Operating Segment Information](index=23&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates as a single business unit, thus no segment analysis is presented, with most non-current assets located in Mainland China - The Group is organized as a single business unit, primarily engaged in the production and sale of automotive parts and non-automotive products, thus no segment analysis is presented[58](index=58&type=chunk) Non-current Assets by Region | Region | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Mainland China | **1,385,533** | **1,349,127** | [Revenue, Other Income and Gains](index=24&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) This note details the Group's revenue sources by goods/services, geographical markets, and revenue recognition timing, along with other income and gains Revenue Classification (For the six months ended June **30**) | Classification of goods or services | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Sales of plastic parts and automotive parts | **680,071** | **765,818** | | Sales of moulds and tools | **78,870** | **153,638** | | Other income | **758,941** | **919,456** | | Management services | **1,823** | **1,971** | | Geographical market - Mainland China | **739,644** | **819,482** | | Geographical market - Overseas | **21,120** | **101,945** | Other Income and Gains Analysis (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Rental income | **7,025** | **6,040** | | Government grants | **6,073** | **4,934** | | Dividend income | **1,811** | **2,014** | [Finance Income](index=25&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5) This note discloses the Group's finance income, primarily from bank deposit interest, totaling RMB**2.26** million in H**1** **2020** Finance Income (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Interest income from bank deposits | **2,261** | **2,464** | [Finance Costs](index=25&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) This note details the Group's finance costs, mainly interest expenses on bank borrowings and lease liabilities, totaling RMB**19.32** million in H**1** **2020** Finance Costs (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Interest expense on interest-bearing bank borrowings | **19,140** | **20,720** | | Interest expense on lease liabilities | **177** | **210** | | Total | **19,317** | **20,930** | [Profit Before Tax](index=26&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) This note itemizes expenses and income deducted or included in calculating profit before tax, such as inventory costs, depreciation, and staff benefits Profit Before Tax Adjustments (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Cost of inventories recognized as expense | **577,037** | **673,255** | | Depreciation of property, plant and equipment | **44,298** | **44,516** | | Staff costs and benefits (excluding directors' and chief executive's emoluments) | **95,946** | **119,686** | | Net rental income | (**7,025**) | (**6,040**) | | Net foreign exchange differences | **3,037** | **1,586** | | Impairment of trade receivables | **1,300** | **201** | [Income Tax](index=27&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) This note outlines the Group's income tax expense components, including current and deferred tax, totaling RMB**8.16** million in H**1** **2020** Income Tax Expense (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Current income tax - expense for the period | **27,182** | **13,875** | | Deferred income tax | (**19,024**) | (**1,655**) | | Total income tax expense for the period | **8,158** | **12,220** | [Dividends](index=27&type=section&id=%E8%82%A1%E6%81%AF) This note provides information on declared final dividends and confirms the Board's decision not to declare an interim dividend for H**1** **2020** Final Dividend Declared | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Per ordinary share **0.5206** HK cents (**2019**: **0.4714** HK cents) | **8,404** | **7,130** | - The Board decided not to declare an interim dividend for H**1** **2020**[68](index=68&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=28&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E6%AC%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note explains the calculation of basic and diluted earnings per share, which was RMB**0.0123** in H**1** **2020** Earnings Per Share Calculation Basis (For the six months ended June **30**) | Metric | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Profit attributable to owners of the parent used in calculating basic and diluted earnings per share | **21,781** | **48,709** | Earnings Per Share Calculation Basis (For the six months ended June **30**) | Number of shares | **2020** | **2019** | | --- | --- | --- | | Weighted average number of ordinary shares in issue for basic earnings per share during the period | **1,769,193,800** | **1,769,193,800** | [Property, Plant and Equipment](index=28&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) This note discloses the Group's H**1** **2020** purchases of property, plant, and equipment totaling RMB**116.02** million, and disposals generating a net gain Property, Plant and Equipment Changes (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Total cost of purchases | **116,016** | **156,062** | | Net book value of assets disposed of | **7,735** | **25,765** | | Net gain on disposal | **25** | **1,178** | [Trade and Bills Receivables](index=29&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) This note provides an aging analysis of trade and bills receivables based on invoice date, net of loss allowance - This note provides an aging analysis of trade and bills receivables based on invoice date and net of loss allowance[73](index=73&type=chunk)[74](index=74&type=chunk) [Trade and Bills Payables](index=29&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) This note provides an aging analysis of trade and bills payables as of June **30**, **2020**, noting certain bills are secured by pledged deposits Trade and Bills Payables Aging Analysis (As of June **30**) | Aging | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Within **3** months | **612,580** | **697,204** | | **3** to **12** months | **261,247** | **278,891** | | **1** to **2** years | **23,546** | — | | Over **3** years | **1,429** | **1,528** | | Total | **898,802** | **977,753** | - Certain bills payables are secured by pledged deposits with a carrying amount of RMB**44,763,000** thousands[75](index=75&type=chunk) [Commitments](index=29&type=section&id=%E6%89%BF%E6%93%94) This note discloses the Group's capital commitments for property, plant, and equipment, amounting to RMB**142.11** million at the reporting date Capital Commitments (As of June **30**) | Item | **2020** June **30** (RMB thousands) | **2019** December **31** (RMB thousands) | | --- | --- | --- | | Contracted but not provided for in respect of acquisition of property, plant and equipment | **142,105** | **160,011** | [Related Party Transactions](index=30&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) This note details significant related party transactions, including sales/purchases with joint ventures and key management personnel remuneration Related Party Transactions (For the six months ended June **30**) | Transaction Category | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Sales of goods to a joint venture | **35,307** | **29,625** | | Purchases of goods from a joint venture | **27,157** | **38,756** | | Gross rental income received from a joint venture | **5,397** | **4,505** | | Management fee received from a joint venture | **1,823** | **1,971** | Key Management Personnel's Emoluments (For the six months ended June **30**) | Item | **2020** (RMB thousands) | **2019** (RMB thousands) | | --- | --- | --- | | Salaries, wages and other benefits | **1,324** | **1,771** | | Pension scheme contributions | **16** | **20** | | Total emoluments paid to key management personnel | **1,340** | **1,791** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=31&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E5%8F%8A%E5%85%AC%E5%B9%B3%E5%80%BC%E5%B1%A4%E7%B4%9A) This note discusses fair value measurement of financial instruments, including valuation methods for unlisted equity investments and fair value hierarchy classification - The fair values of short-term financial instruments such as cash and cash equivalents, trade and bills receivables, and trade and bills payables approximate their carrying amounts[83](index=83&type=chunk) - Unlisted equity investments are valued using a market approach, based on multiples of comparable listed companies (e.g., EV/EBITDA, P/E ratio) with discounts for lack of marketability and size differences[83](index=83&type=chunk) - Bills receivables are managed under a business model of holding to collect contractual cash flows and endorsing to suppliers before maturity, measured at fair value through other comprehensive income[84](index=84&type=chunk) Unlisted Equity Investment Fair Value Sensitivity Analysis (**2020** June **30**) | Investment | Significant Unobservable Input | Range | Sensitivity of fair value to input (RMB thousands) | | --- | --- | --- | --- | | Investment A | Average forward P/E multiples of comparable companies | **11.04** to **37.15** | A **10%** increase/decrease in multiples would result in an increase/decrease in fair value of **3,619** | | Investment A | Discount for lack of marketability | **0.00%** to **91.30%** | A **10%** increase/decrease in multiples would result in a decrease/increase in fair value of **687** | | Investment B | Average forward P/E multiples of comparable companies | **28.15** to **50.37** | A **10%** increase/decrease in multiples would result in an increase/decrease in fair value of **1,260** | Financial Instruments Fair Value Hierarchy (**2020** June **30**) | Item | Total (RMB thousands) | Level **1** (RMB thousands) | Level **2** (RMB thousands) | Level **3** (RMB thousands) | | --- | --- | --- | --- | --- | | Equity investments designated at fair value through other comprehensive income | **48,789** | — | — | **48,789** | | Bills receivables at fair value through other comprehensive income | **98,905** | — | **98,905** | — | [Events After Reporting Period](index=35&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E4%BA%8B%E4%BB%B6) This note confirms no significant events occurred after June **30**, **2020** - No significant events occurred after the reporting period[92](index=92&type=chunk) [Approval of Interim Condensed Consolidated Financial Information](index=35&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E6%89%B9%E5%87%86) This note states the unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board on August **26**, **2020** - The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board on August **26**, **2020**[92](index=92&type=chunk)