Revenue Performance - For the first half of 2024, the company recorded revenue of approximately RMB 10,655.9 million, a decrease of about 24.4% compared to RMB 14,088.7 million in the same period of 2023[11]. - New passenger vehicle sales revenue fell by approximately 29.3% to about RMB 8,569.4 million, accounting for approximately 80.4% of total revenue[11]. - After-sales and mortgage application service revenue increased by approximately 6.3% to about RMB 2,086.5 million, representing about 19.6% of total revenue[11]. - Revenue for the six months ended June 30, 2024, was RMB 10,655,863 thousand, a decrease of 24.3% compared to RMB 14,088,673 thousand for the same period in 2023[75]. - For the six months ended June 30, 2024, the revenue from new passenger car sales was RMB 8,569,387 thousand, a decrease of 29.4% compared to RMB 12,126,498 thousand in the same period of 2023[92]. - The revenue from after-sales and mortgage application services increased to RMB 2,086,476 thousand, up 6.3% from RMB 1,962,175 thousand in the previous year[92]. Profitability and Loss - The group recorded a loss of approximately RMB 22.9 million for the period, compared to a profit of approximately RMB 44.7 million in H1 2023, resulting in a profit margin of -0.2%, a decrease of 0.5 percentage points year-on-year[18]. - Gross profit decreased approximately 19.4% from about RMB 1,001.1 million in H1 2023 to approximately RMB 806.4 million, while overall gross margin increased by 0.5 percentage points to about 7.6%[13]. - Operating profit decreased to RMB 141,081 thousand from RMB 304,653 thousand, indicating a significant reduction in operational efficiency[75]. - The company reported a net loss of RMB 22,931 thousand for the six months ended June 30, 2024, compared to a profit of RMB 44,727 thousand in the prior year[75]. - Total comprehensive income for the period was a loss of RMB 27,214 thousand, compared to a gain of RMB 41,563 thousand in the previous year[77]. - Basic and diluted loss per share was RMB (2.01) for the current period, compared to earnings of RMB 2.91 in the same period last year[77]. Cost Management - The company's sales cost decreased by approximately 24.7% to about RMB 9,849.4 million, primarily due to the decline in new passenger vehicle sales revenue[12]. - Operating expenses, including distribution costs, administrative expenses, and financing costs, were maintained under strict cost control, with distribution costs decreasing approximately 22.7% to about RMB 295.4 million[15]. - Employee costs for the group amounted to RMB 334.2 million, a decrease from RMB 426.9 million in the same period last year[66]. - Employee costs decreased to RMB 315,776,000 in the first half of 2024 from RMB 400,777,000 in 2023, reflecting a reduction of approximately 21.2%[99]. - Financing costs totaled RMB 334,208,000 for the six months ended June 30, 2024, down from RMB 426,868,000 in the same period of 2023, representing a decrease of approximately 21.7%[98]. Inventory and Efficiency - Inventory turnover days remained at a healthy level of approximately 19 days, with an increase of 7 days compared to the same period last year, highlighting the company's focus on efficiency[10]. - The total inventory as of June 30, 2024, was RMB 1,396,588,000, an increase from RMB 960,042,000 as of December 31, 2023[113]. - Inventory costs were RMB 9,739,231,000 for the six months ended June 30, 2024, down from RMB 12,976,713,000 in 2023, a decrease of about 25.5%[100]. Market Conditions and Strategy - The competitive landscape in the new energy vehicle market is intensifying, with a retail sales volume of 4.11 million units, a year-on-year increase of 33.2%, leading to a market share of 41.8%[9]. - The overall domestic passenger vehicle sales reached 9.84 million units, a year-on-year increase of 3.2%, while luxury vehicle sales decreased by 5.6% to 1.33 million units[8]. - The company is focusing on cost control, cash turnover, and operational efficiency as key strategies in response to the challenging market environment[8]. - The group plans to maintain efficient operations and enhance profitability from new passenger car sales and after-sales services in response to market uncertainties[33]. - The group aims to explore opportunities in the new energy vehicle market by focusing on sales of existing luxury brand electric models[34]. Financial Position - As of June 30, 2024, the total equity of the group was approximately RMB 5,184.7 million, a decrease from RMB 5,286.1 million as of December 31, 2023[27]. - Current assets increased to approximately RMB 6,832.3 million from RMB 6,372.7 million, primarily due to a rise in inventory by approximately RMB 436.5 million[27]. - Current liabilities rose to approximately RMB 6,657.6 million from RMB 4,447.4 million, mainly due to the reclassification of convertible bonds from non-current to current liabilities[27]. - The group's asset-liability ratio was approximately 88.3% as of June 30, 2024, down from 97.7% as of December 31, 2023[28]. - Cash and cash equivalents totaled approximately RMB 3,943.4 million as of June 30, 2024[28]. Shareholder Information - As of June 30, 2024, the total number of issued shares is 1,346,247,201[41]. - Mr. Ye Fan holds 703,916,000 shares, representing 52.29% of the total shares[41]. - FIL Limited and its affiliates collectively hold 121,772,260 shares, accounting for 9.05% of the total shares[46]. - Fidelity Funds owns 95,108,000 shares, which is 7.06% of the total shares[46]. - The company has not established any arrangements for directors to benefit from the purchase of shares or bonds during the period[44]. Convertible Bonds and Financing - The company issued convertible bonds with a total principal amount of HKD 2,750 million in January 2022, guaranteed by the company[59]. - The conversion price for the convertible bonds was adjusted to HKD 44.1764 per share, effective from August 9, 2024[60]. - The outstanding principal amount of convertible bonds as of the report date is HKD 1,873,000,000, representing approximately 68.11% of the initial total principal amount of the convertible bonds[63]. - The company plans to redeem the convertible bonds at 106.9428% of the principal amount on January 13, 2025, at the bondholder's option[59]. - The company has not exercised any conversion rights or redeemed, purchased, or canceled any convertible bonds during the period[65]. Impairment and Taxation - The group recognized impairment losses of approximately RMB 104.8 million and RMB 46.5 million for goodwill and intangible assets, respectively, due to adverse macroeconomic conditions[15]. - The income tax expense for the period was approximately RMB 41.3 million, a decrease of about 66.0% compared to RMB 121.4 million in the same period last year[17]. - The income tax expense for the period was RMB 113,583,000, up from RMB 99,175,000 in the previous year, reflecting an increase of approximately 14.5%[103]. Dividends - The group did not declare an interim dividend for the period, compared to RMB 0.0087 per share in H1 2023[19]. - The approved final dividend for the previous fiscal year is RMB 0.0330 per share, down from RMB 0.1170 per share for the same period in 2023[135]. - The group paid dividends totaling RMB 16.63 million to non-controlling shareholders during the six months ended June 30, 2024, compared to RMB 35.51 million for the same period in 2023[136].
美东汽车(01268) - 2024 - 中期财报