Share Options and Equity - The company granted a total of 86,425,300 share options, representing approximately 2.26% of the issued share capital, with an exercise price of HK1.93 per share[5] - The total number of share options granted is 83,473,600, with varying vesting periods and contractual lives[67] - The fair value of services received in return for share options granted is measured using a binomial lattice model, incorporating expectations of early exercise and the contractual life of the share options[74] - The Group's share option plan, adopted on November 10, 2021, aims to reward and recognize participants' contributions, encourage performance, and establish a shared interest and risk mechanism between shareholders, the Company, and participants[79] Trade and Payables - Trade and bills payables increased to RMB 6,373,157,000 as of 30 June 2023, compared to RMB 6,173,450,000 at the end of 2022[7] - The company's total trade and other payables amounted to RMB 6,802,171,000 as of 30 June 2023, up from RMB 6,659,530,000 at the end of 2022[7] - Bills payable aged 0 to 90 days increased to RMB 2,230,805,000 as of 30 June 2023, compared to RMB 1,773,920,000 at the end of 2022[10] - Trade payables increased slightly from RMB 2,347,911,000 at the end of 2022 to RMB 2,480,154,000 as of June 30, 2023, with the majority (RMB 2,480,154,000) due within 90 days[30] Borrowings and Financial Liabilities - The company's total borrowings and advances drawn on bills receivable discounted with recourse were RMB 11,782,000 as of 30 June 2023, unchanged from the end of 2022[16] - Bank borrowings decreased from RMB 2,248,780,000 at the end of 2022 to RMB 2,173,184,000 as of June 30, 2023, with secured borrowings increasing to RMB 415,860,000[46] - The company's other borrowings as of June 30, 2023, amounted to RMB 8,479,000, owed to Guangxi Automobile, with a variable interest rate of LPR1Y-65BP per annum[46] - The company's bank borrowings as of June 30, 2023, were secured by bank deposits of RMB 58,834,000, up from RMB 38,558,000 at the end of 2022[46] - The company's total secured borrowings, including bills receivable discounted with recourse, amounted to RMB 3,462,994,000 as of June 30, 2023[46] - Total bank and other borrowings as of 30 June 2023 were RMB2,181,663,000, slightly decreased from RMB2,248,780,000 as of 31 December 2022[162][163] Bills Receivable - Bills receivable decreased from RMB 4,508,147,000 at the end of 2022 to RMB 4,247,242,000 as of June 30, 2023, with a significant portion from SGMW (RMB 623,972,000) and third parties (RMB 144,937,000)[21] - Bills receivable discounted with recourse decreased from RMB 1,123,540,000 at the end of 2022 to RMB 788,646,000 as of June 30, 2023[21] - The fair value of bills receivable at FVTOCI as of 30 June 2023 is RMB 4,247,242 thousand, a decrease from RMB 4,508,147 thousand as of 31 December 2022[51] - The Group discounted total bills receivables amounting to approximately RMB4,343,226,000 during the period, with RMB226,255,000 discounted to Guangxi Automobile[162][163] Warranty and Provisions - The company's warranty provision is estimated based on sales volumes and past experience of repairs and returns, with the estimation basis reviewed and revised as appropriate[12] - Warranty provision increased from RMB 87,152,000 at the end of 2022 to RMB 89,968,000 as of June 30, 2023, with additional provisions of RMB 20,264,000 during the period[34] Research and Development - The company's accrued research and development expenses were RMB 105,779,000 as of 30 June 2023, slightly up from RMB 104,004,000 at the end of 2022[7] - R&D expenses for the six months ended 30 June 2023 were RMB 124,035,000, a decrease of 35.1% compared to the same period in 2022, partly due to the completion of the restructuring of the new energy vehicle business[156] Overseas Operations - The Group's overseas production plants in Indonesia and India delivered satisfactory results in the first half of 2023, benefiting from growing customer demand[58] - The Group is optimistic about the business potential for the automobile industry in Indonesia, considering its economic development and population size[58] - The Group's subsidiary in Indonesia successfully achieved turnaround during the period[109] - The Indonesian subsidiary achieved sales revenue of RMB26,502,000 and a net profit of RMB3,792,000 in the first half of 2023[197] Financial Performance - The Group's total revenue for the six months ended 30 June 2023 was RMB 5,089,499,000, a decrease of 18.9% compared to the same period in 2022, mainly due to a decrease in the business volume of the vehicles' power supply system division and the automotive components division[144] - Gross profit for the period was RMB 410,589,000, an increase of 10.3% compared to the same period in 2022, with the gross profit margin improving to 8.1% from 5.9%[145] - The Group recorded a net profit of RMB 12,260,000 for the first half of 2023, a significant improvement from the net loss of RMB 138,587,000 in the same period in 2022, with the profit attributable to the owners of the company being RMB 1,521,000[147] - Total revenue for the twelve months ended 30 June 2023 was RMB11,395,962,000, a decrease from RMB13,490,873,000 in the same period in 2022[165] New Energy and Electric Vehicles - The Group is focusing on the development and production of electric motor control systems and related components for new energy vehicles[54] - The Group is confident in the future profitability of its vehicles' power supply systems division, driven by the "New Four Modernization" trend in the automotive industry[55] - The Group aims to achieve a 50% share of new energy business in the future[115] - The Group aims to achieve a 50% proportion share in the new energy business in the future, focusing on transitioning existing businesses to new energy sources[174] - The HEV hybrid solution launched by the Vehicles' Power Supply Systems division has shown fuel consumption savings of more than 30% compared to traditional fuel engine vehicles with the same capacity[189] - The Group is developing and collaborating on 12 vehicle models with different automakers in Guangxi, focusing on electrification and technological innovation[194] Production and Sales - The Group's main production bases are located in Liuzhou, Qingdao, Chongqing, Jingmen, and Nanning in China, as well as in other Asian countries such as Indonesia and India[89] - The Group's new high-efficiency Atkinson engine has entered mass production, further consolidating its market position with a comprehensive product range covering 1.0L to 2.0L[103] - Wuling New Energy sold approximately 4,700 G model new energy logistics vehicles domestically during the period[106] - The Group's production capacity of new rear axles is expected to increase rapidly in the second half of the year[106] - The Group delivered a batch of new rear axles for Great Wall Motor's high-end plug-in hybrid off-road SUVs in June[106] - Wuling Motors sold approximately 4,700 new energy vehicles in the period, primarily contributed by the G100 series, with expectations of a significant sales increase in the second half of 2023 due to the successful launch of new models like G050 and Ling Shi Gold Card[139] Joint Ventures and Subsidiaries - FL Seating, a joint venture with Faurecia Group, reported a 34.4% decrease in revenue to RMB 80,041,000 and a net operating loss of RMB 7,037,000 for the period[140] - Faurecia Exhaust Control Technology Co., Ltd. saw a 29.0% decrease in revenue to RMB 149,388,000 and a net operating loss of RMB 1,172,000, with the Group's share of the loss being RMB 586,000[142] - AAM JV, a joint venture with American Axle & Manufacturing, incurred an operating loss of RMB 4,998,000, with the Group's share being RMB 2,499,000, and discussions are ongoing for a restructuring plan[143] Cost Control and Efficiency - The Group significantly reduced labor costs in the first half of 2023 through strengthened cost control and lean management[198] - The Group completed the disposal of non-performing receivables, inventories, and inefficient fixed assets in the first half of 2023, improving fine management efficiency[198] - The Group's target for 2023 is to reduce the loss ratio and loss amount by more than 10% compared to 2022, with the Indonesian subsidiary successfully turning a profit[196] - The Group's annual target loss ratio and loss amount for 2023 were cut by more than 10% from a year earlier[109] Market and Customer Diversification - The Group is actively diversifying its market and optimizing product and customer structure, with initial responses from projects like Hozon Motor's EV components and Great Wall Motor's frame supply[57] - The Group provides high-value component products to nearly 20 automobile manufacturers, power systems to over 10 million end-user customers, and vehicles and travel services to more than 1 million customer users[89] - Sales to other customers decreased by 8.6% to approximately RMB545,936,000, accounting for 46.2% of the division's total revenue[128] Dividends and Remuneration - The Group declared a final dividend of HK0.3 cents per share for the previous financial year, amounting to HK$9,894,000 (equivalent to RMB 9,176,000)[63] - The Group's remuneration policy is reviewed annually in line with current applicable legislation, market conditions, and the performance of the Company and individuals[78] Fair Value and Assets - The fair value of unlisted equity securities as of 30 June 2023 is RMB 42,765 thousand, down from RMB 44,707 thousand as of 31 December 2022[51] - The Group's policy is to recognize transfers between levels of the fair value hierarchy as at the end of the reporting period in which they occur[84] - Total assets and total liabilities of the Group as of 30 June 2023 stood at RMB 15,771,604,000 and RMB 12,871,025,000 respectively[155] - Current liabilities amounted to RMB 11,206,503,000, mainly comprising trade and other payables of RMB 6,802,171,000 and advances drawn on bills receivable discounted with recourse of RMB 3,462,994,000[159] Vehicles' Power Supply Systems Division - The Vehicles' Power Supply Systems division reported revenue of RMB1,180,571,000 for the six months ended 30 June 2023, a decrease of 9.7% compared to the same period in 2022[181] - Sales to SGMW, the core customer, amounted to approximately RMB634,635,000, representing a decrease of 10.7% compared to the corresponding period in 2022[182] - The Vehicles' Power Supply Systems division recorded an operating profit of RMB7,298,000 for the first half of 2023, compared to an operating loss of RMB63,013,000 in the corresponding period in 2022[184][186] Automotive Components and Industrial Services - The automotive components and other industrial services division reported revenue of RMB2,543,831,000 for the six months ended 30 June 2023, a decrease of 10.7% compared to the same period in 2022[193] - FL Interior's total revenue decreased by 12.4% to RMB151,505,000 compared to the same period in 2022[113] - FL Interior achieved a net operating profit of RMB11,121,000, slightly increased from RMB10,608,000 in the corresponding period in 2022[113] Commercial Vehicle Division - The commercial vehicle division achieved sales revenue of RMB 1,351,533,000 in the first half of 2023, a year-on-year decrease of 35.2%, mainly due to the restructuring of the new energy vehicle business[104] Innovation and Market Position - The Group's first commercialised coaxial axle in China drew widespread attention at Auto Shanghai 2023[106] - The Group has been recognized as one of the top 100 global automobile parts suppliers[89]
五菱汽车(00305) - 2023 - 中期财报