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耐世特(01316) - 2024 - 中期财报
01316NEXTEER(01316)2024-08-29 10:00

Revenue and Financial Performance - Half-year revenue of 2.1billion,flatcomparedtothefirsthalfof2023[12]−Full−yearrevenuefor2024isexpectedtoreacharecordhigh[12]−RevenueforH12024was2.1 billion, flat compared to the first half of 2023[12] - Full-year revenue for 2024 is expected to reach a record high[12] - Revenue for H1 2024 was 2.099 billion, a slight decrease of 0.1% compared to 2.102billioninH12023[24]−Revenueforthefirstsixmonthsof2024was2.102 billion in H1 2023[24] - Revenue for the first six months of 2024 was 2.1 billion, flat compared to the same period in 2023, but adjusted for unfavorable foreign exchange and reduced commodity compensation, revenue grew by 1%, outperforming the market by 120 basis points[28] - Revenue for the six months ended June 30, 2024, was 2,098.927million,slightlydownfrom2,098.927 million, slightly down from 2,101.830 million in the same period in 2023[87] - Total revenue for the six months ended June 30, 2024, was 2,127.347million,withNorthAmericacontributing2,127.347 million, with North America contributing 1,151.635 million, Asia-Pacific 616.680million,andEurope,MiddleEast,Africa,andSouthAmerica616.680 million, and Europe, Middle East, Africa, and South America 368.276 million[112] - Revenue from external customers for the six months ended June 30, 2024, was 2,098.927million,comparedto2,098.927 million, compared to 2,101.830 million for the same period in 2023[112] - North America revenue decreased to 1,118,983KinH12024from1,118,983K in H1 2024 from 1,194,519K in H1 2023, with the US contributing 664,380K(down6.3664,380K (down 6.3% YoY) and Mexico contributing 454,603K (down 6.4% YoY)[117][120] - Asia-Pacific revenue increased to 594,578KinH12024from594,578K in H1 2024 from 543,983K in H1 2023, driven by growth in China to 524,420K(up12.9524,420K (up 12.9% YoY)[117][120] - Europe, Middle East, Africa, and South America revenue remained stable at 366,348K in H1 2024 compared to 361,149KinH12023,withPolandcontributing361,149K in H1 2023, with Poland contributing 220,917K (up 9.6% YoY)[117][120] - Electric Power Steering (EPS) revenue decreased to 1,404,555KinH12024from1,404,555K in H1 2024 from 1,442,653K in H1 2023, while Driveline (DL) revenue remained stable at 382,244K[120][121]−GeneralMotorsremainedthelargestcustomer,contributing382,244K[120][121] - General Motors remained the largest customer, contributing 754,995K in H1 2024 (up 4.6% YoY), accounting for 36% of total revenue[124] Orders and Customer Projects - Customer project orders totaling 2.1billionsecuredinthefirsthalfof2024[12]−742.1 billion secured in the first half of 2024[12] - 74% from existing business, including DL and CIS business for North American truck projects[12] - 26% from new/newly acquired business, including the first DPEPS order in the Asia-Pacific region[12] - Orders from domestic Chinese automakers increased by 186% to 930 million in H1 2024 compared to H1 2023, accounting for 43% of total orders (9billionoutof9 billion out of 21 billion)[13] - 38 new customer projects were successfully launched globally in H1 2024, including 18 pure electric vehicle projects and the first DPEPS project in EMEA and South America[13] - The company achieved a total order intake of 2.1billioninthefirsthalfof2024,with412.1 billion in the first half of 2024, with 41% from EPS product lines and 59% from driveline product lines[19] - 40% of the orders are for EV or EV/ICE shared platforms, while 60% are for ICE platforms exclusively[19] - New or newly acquired business accounted for 26% of the order intake, driving long-term above-market growth[19] - Orders from domestic Chinese OEMs surged to 930 million in H1 2024, a 186% increase compared to 325millioninH12023[19]−DomesticChineseOEMs′totalproductionincreasedby20325 million in H1 2023[19] - Domestic Chinese OEMs' total production increased by 20% (1.3 million units) in H1 2024 compared to H1 2023[19] - The company successfully launched 38 new customer projects in the first six months of 2024, including 18 pure EV projects, with 32 being new or newly acquired business[30] Profitability and Margins - Gross profit increased by 10.5% to 210.9 million in H1 2024 from 190.8millioninH12023[24]−AdjustedEBITDAroseby6.0190.8 million in H1 2023[24] - Adjusted EBITDA rose by 6.0% to 197.3 million in H1 2024 from 186.1millioninH12023[24]−AdjustedEBITDAforthefirstsixmonthsof2024increasedby186.1 million in H1 2023[24] - Adjusted EBITDA for the first six months of 2024 increased by 11.2 million or 6.0% to 197.3million,drivenbyefficiencyimprovementsandcostreductions,partiallyoffsetbyunfavorableforeignexchange[28]−Grossprofitincreasedto197.3 million, driven by efficiency improvements and cost reductions, partially offset by unfavorable foreign exchange[28] - Gross profit increased to 210.927 million in 2024 from 190.831millionin2023,reflectingimprovedmargins[87]−Operatingprofitdecreasedto190.831 million in 2023, reflecting improved margins[87] - Operating profit decreased to 41.311 million in 2024 from 46.818millionin2023,primarilyduetohigherengineeringandproductdevelopmentcosts[87]−Netprofitattributabletoequityholdersofthecompanywas46.818 million in 2023, primarily due to higher engineering and product development costs[87] - Net profit attributable to equity holders of the company was 15.695 million in 2024, a significant decline from 33.993millionin2023[87]−Netprofitattributabletoequityholdersdecreasedby33.993 million in 2023[87] - Net profit attributable to equity holders decreased by 18.3 million to 15.7million,or0.715.7 million, or 0.7% of total revenue, down from 34.0 million (1.6% of total revenue) in 2023[36] - EBITDA increased by 11.2million[37]−Rawmaterialcostsdecreasedby11.2 million[37] - Raw material costs decreased by 54.2 million or 3.9%, contributing to a gross profit increase of 20.1millionor10.520.1 million or 10.5%[39][40] - The company's pre-tax profit for the six months ended June 30, 2024, was 40.790 million, compared to 45.799millionforthesameperiodin2023[115]−Thecompany′sbasicearningspershareforthesixmonthsendedJune30,2024,was45.799 million for the same period in 2023[115] - The company's basic earnings per share for the six months ended June 30, 2024, was 0.006, down from 0.014inthesameperiodin2023[180]RegionalPerformance−TheAsia−Pacificregionsawstronggrowth,withrevenueincreasingby9.30.014 in the same period in 2023[180] Regional Performance - The Asia-Pacific region saw strong growth, with revenue increasing by 9.3% to 594.6 million, driven by new and acquired projects, despite unfavorable foreign exchange impacts[32][33] - North America revenue decreased by 6.3% to 1.12billion,primarilyduetopoormarketperformanceofcertaincustomerprojectsandtheendofsomeprojectsin2023[32][33]−Europe,MiddleEast,Africa,andSouthAmericarevenueincreasedby1.41.12 billion, primarily due to poor market performance of certain customer projects and the end of some projects in 2023[32][33] - Europe, Middle East, Africa, and South America revenue increased by 1.4% to 366.3 million, despite a 4.1% decline in light vehicle production in Europe, supported by new project launches[32][33] - Global light vehicle production decreased by 0.2% in the first six months of 2024, with growth in the Asia-Pacific region offset by declines in Europe, the Middle East, Africa, and South America[29] - The company's revenue was negatively impacted by 20.9millionduetounfavorableforeignexchangerates,particularlytheappreciationoftheUSDagainsttheRMB[31]OperationalHighlights−Thecompanyhas27manufacturingplants,including1non−consolidatedjointventure[3]−Operates5technologycentersand13customerservicecentersglobally[3]−Servesover60globalanddomesticOEMs,includingBMW,BYD,Ford,andGeneralMotors[3]−ThePortoAlegrefacilityinBrazilfullyresumedoperationsbytheendofJuly2024aftera30−dayflooddisruption[12]−ThecompanybrokegroundonanewmanufacturingandtestingbaseinChangshu,China,expectedtobeoperationalbyearly2025,andexpandedtheMexicoTechnicalCenter,settocompletein2026[16]−TheDLbusinessintheUSunderwentconsolidation,resultingina2220.9 million due to unfavorable foreign exchange rates, particularly the appreciation of the USD against the RMB[31] Operational Highlights - The company has 27 manufacturing plants, including 1 non-consolidated joint venture[3] - Operates 5 technology centers and 13 customer service centers globally[3] - Serves over 60 global and domestic OEMs, including BMW, BYD, Ford, and General Motors[3] - The Porto Alegre facility in Brazil fully resumed operations by the end of July 2024 after a 30-day flood disruption[12] - The company broke ground on a new manufacturing and testing base in Changshu, China, expected to be operational by early 2025, and expanded the Mexico Technical Center, set to complete in 2026[16] - The DL business in the US underwent consolidation, resulting in a 22% increase in throughput and zero late deliveries to customers[16] - The company implemented a second round of the Early Retirement Incentive Program (ERIP) in H1 2024, expected to achieve cost savings in H2 2024[17] - A 25-acre solar power plant was commissioned at the Saginaw, Michigan facility, reducing operational costs through renewable energy[17] - The company completed 20% of the machinery relocation for the North American column business transfer to Mexico, with full completion expected by 2025[18] - The 2024 Global Supplier Conference emphasized strategic themes including dual sourcing, cost targets, faster time-to-market, ESG commitments, and digital supply chain management[18] - The company completed the modular product portfolio for EPS architectures with the launch of mPEPS, a cost-effective and scalable PEPS solution[13] - The company launched the mPEPS system, expanding its modular EPS product portfolio to include single and dual pinion systems[21] Financial Position and Cash Flow - Non-current liabilities decreased by 15.3% to 258.1 million as of June 30, 2024, compared to 304.7millionasofDecember31,2023[25]−CashbalanceasofJune30,2024,was304.7 million as of December 31, 2023[25] - Cash balance as of June 30, 2024, was 279.8 million, a decrease of 31.9millionfromDecember31,2023,primarilyduetoreducedoperatingcashflowandincreasedfinancingactivities[28]−TotalassetsasofJune30,2024,amountedto31.9 million from December 31, 2023, primarily due to reduced operating cash flow and increased financing activities[28] - Total assets as of June 30, 2024, amounted to 3,359.23 million, a slight decrease from 3,404.59millionattheendof2023[83]−Non−currentassetsdecreasedto3,404.59 million at the end of 2023[83] - Non-current assets decreased to 1,814.17 million from 1,856.92million,primarilyduetoreductionsinproperty,plant,andequipment,andintangibleassets[83]−Currentassetsremainedstableat1,856.92 million, primarily due to reductions in property, plant, and equipment, and intangible assets[83] - Current assets remained stable at 1,545.06 million, with inventory increasing to 310.83millionandaccountsreceivablerisingto310.83 million and accounts receivable rising to 800.27 million[83] - Cash and cash equivalents decreased to 279.84millionfrom279.84 million from 311.74 million at the end of 2023[83] - Total equity decreased to 1,994.999millionasofJune30,2024,comparedto1,994.999 million as of June 30, 2024, compared to 2,010.841 million at the end of 2023[85] - Total liabilities decreased to 1,364.231millionin2024from1,364.231 million in 2024 from 1,393.752 million in 2023, reflecting a reduction in non-current liabilities[85] - Exchange rate differences resulted in a loss of 25.256millionin2024,comparedtoalossof25.256 million in 2024, compared to a loss of 10.086 million in 2023, impacting comprehensive income[89] - Operating cash flow for the six months ended June 30, 2024, was 152.387million,adecreasefrom152.387 million, a decrease from 231.191 million in the same period in 2023[96] - Net cash used in investing activities for the six months ended June 30, 2024, was 154.648million,comparedto154.648 million, compared to 171.316 million in the same period in 2023[96] - Net cash used in financing activities for the six months ended June 30, 2024, was 19.703million,comparedto19.703 million, compared to 13.857 million in the same period in 2023[96] - Cash and cash equivalents decreased by 21.964millioninthesixmonthsendedJune30,2024,comparedtoanincreaseof21.964 million in the six months ended June 30, 2024, compared to an increase of 46.018 million in the same period in 2023[96] - The company's cash and cash equivalents at the end of June 30, 2024, were 279.836million,downfrom279.836 million, down from 290.087 million at the end of June 30, 2023[96] Costs and Expenses - Engineering and product development costs increased by 20.6millionor30.320.6 million or 30.3%, reaching 88.6 million or 4.2% of revenue[41] - Total investment in engineering and product development decreased by 12.5millionor8.512.5 million or 8.5% to 135.4 million[42] - Selling, distribution, and administrative expenses increased by 5.1millionor6.65.1 million or 6.6% to 82.4 million, representing 3.9% of revenue[43] - Net financing costs increased to 2.2million,upfrom2.2 million, up from 0.9 million in the same period last year, primarily due to short-term borrowing fluctuations[45] - Cost of sales and operating expenses totaled 2,059,040 thousand USD in the first half of 2024, slightly higher than the 2,056,312 thousand USD recorded in the same period of 2023, with increased employee costs and warranty expenses[162] - Intangible asset impairment charges surged to 37,699 thousand USD in the first half of 2024, compared to 2,371 thousand USD in the same period of 2023, reflecting higher write-downs[162] Liabilities and Provisions - Provisions for litigation, environmental liabilities, warranties, and shutdown claims decreased by 3.8millionto3.8 million to 83.6 million as of June 30, 2024, from 87.4millionasofDecember31,2023[48]−Totalprovisionsdecreasedfrom87,355thousandUSDatthebeginningof2024to83,600thousandUSDbyJune30,2024,primarilyduetoreductionsinlitigationandwarrantyprovisions[153]−Warrantyprovisionsincreasedby20,226thousandUSDinthefirsthalfof2024,reflectinghigherestimatedcostsrelatedtoproductwarranties[153]−Deferredrevenuedecreasedfrom137,473thousandUSDattheendof2023to123,309thousandUSDbyJune30,2024,mainlyduetorevenuerecognitionfrompre−productionactivities[156][157]−Accountspayabledecreasedfrom833,401thousandUSDattheendof2023to810,295thousandUSDbyJune30,2024,withanotablereductioninthe0−30daysagingcategoryfrom460,109thousandUSDto370,755thousandUSD[158][159]−Accruedexpensesincreasedfrom136,096thousandUSDattheendof2023to145,601thousandUSDbyJune30,2024,drivenbyhigherestimatedcustomerclaimsduetosupplychaindisruptions[160]−Othernetincomeincreasedto1,424thousandUSDinthefirsthalfof2024,comparedto1,300thousandUSDinthesameperiodof2023,primarilyduetohighermiscellaneousincome[161]ShareholderandGovernanceInformation−Thecompany′slargestshareholder,NexteerAutomotive(HongKong)HoldingsLimited,holds44.0387.4 million as of December 31, 2023[48] - Total provisions decreased from 87,355 thousand USD at the beginning of 2024 to 83,600 thousand USD by June 30, 2024, primarily due to reductions in litigation and warranty provisions[153] - Warranty provisions increased by 20,226 thousand USD in the first half of 2024, reflecting higher estimated costs related to product warranties[153] - Deferred revenue decreased from 137,473 thousand USD at the end of 2023 to 123,309 thousand USD by June 30, 2024, mainly due to revenue recognition from pre-production activities[156][157] - Accounts payable decreased from 833,401 thousand USD at the end of 2023 to 810,295 thousand USD by June 30, 2024, with a notable reduction in the 0-30 days aging category from 460,109 thousand USD to 370,755 thousand USD[158][159] - Accrued expenses increased from 136,096 thousand USD at the end of 2023 to 145,601 thousand USD by June 30, 2024, driven by higher estimated customer claims due to supply chain disruptions[160] - Other net income increased to 1,424 thousand USD in the first half of 2024, compared to 1,300 thousand USD in the same period of 2023, primarily due to higher miscellaneous income[161] Shareholder and Governance Information - The company's largest shareholder, Nexteer Automotive (Hong Kong) Holdings Limited, holds 44.03% of the issued shares, totaling 1,105,000,000 shares[77] - Beijing E-Town International Investment Development Co., Ltd. holds a 20.92% stake in the company, equivalent to 525,000,000 shares[77] - M&G Plc. holds a 5.33% stake in the company, with 133,657,000 shares[77] - Directors collectively hold a minimal stake, with the highest individual holding being 0.08% by Robin Zane Milavec[74] - No directors or their immediate family members acquired any rights to purchase shares or bonds during the six months ending June 30, 2024[75] - The company's financial statements were reviewed by Deloitte, which found no material misstatements in accordance with International Accounting Standard 34[82] - The company adheres to high standards of corporate governance, including compliance with the Hong Kong Stock Exchange's corporate governance code[63] - The company's chairman also serves as the CEO, a deviation from standard corporate governance practices, but deemed necessary for consistent leadership[64] - No interim dividend was recommended for the six months ended June 30, 2024[67] - No purchase, sale, or redemption of any listed securities by the company or its subsidiaries during the six months ended June 30, 2024[68] - No options were granted under the stock option plan during the six months ended June 30, 2024[68] - The stock option plan expired on June 5, 2024, with no options available for grant as of June 30, 2024[68] - As of June 30, 2024, 8,635,250 shares could be issued under the stock option plan, representing 0.34% of the weighted average number of issued shares[71] - The company's stock price on the day before the option grant date (October 24, 2022) was HK3.98[71] - The total number of options granted but not yet exercised as of June 30, 2024, was 83,143,610[70] - The total number of options available for exercise as of June 30, 2024, was 8,635,250[70] - The exercise price for options granted on October 25, 2022, was HK4.268[70]−Thecompany′stotalissuedsharesasofJune30,2024,were2,509,824,293[73]−Thecompanydeclaredadividendof4.268[70] - The company's total issued shares as of June 30, 2024, were 2,509,824,293[73] - The company declared a dividend of 7,529,000 for the year ended December 31, 2023, payable on July 9, 2024[183] Joint Ventures and Investments - Share of joint venture profits (losses) for Chongqing Nexteer, Dongfeng Nexteer, and CNXMotion were 1.7million,1.7 million, 0, and 0respectivelyforthesixmonthsendedJune30,2024,comparedto0 respectively for the six months ended June 30, 2024, compared to 1.9 million, (0.2million),and(0.2 million), and (1.8 million) for the same period in 2023[46] - The company dissolved Dongfeng Nexteer, a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd., in the six months ended June 30, 2023[187] - The company dissolved CNXMotion, a joint venture with Continental Automotive Systems, Inc., in the year ended December 31, 2023[187] - The company's investment in joint ventures had a book value of 20,097,000asofJune30,2024,relatedtoChongqingNexteer[187]−Thecompany′sshareofjointventureperformanceforthesixmonthsendedJune30,2024,was20,097,000 as of June 30, 2024, related to Chongqing Nexteer[187] - The company's share of joint venture performance for the six months ended June 30, 2024, was 1,657,000, related to Chongqing Nexteer[187] - The company's share of joint venture performance for the six months ended June 30, 2023, was (138,000),including(138,000), including 1,852,000 from Chongqing Nexteer, (196,000)fromDongfengNexteer,and(196,000) from Dongfeng Nexteer, and (1,794,000) from CNXMotion[187] - The