Financial Performance - For the first half of 2023, China MeiDong Auto Holdings Limited reported revenue of approximately RMB 14,088.7 million, representing a year-on-year increase of about 11.3% compared to RMB 12,658.4 million in the same period of 2022[8]. - New passenger vehicle sales revenue increased by 8.7% to approximately RMB 12,126.5 million, accounting for about 86.1% of total revenue[8]. - After-sales service revenue rose by approximately 30.3% to about RMB 1,962.2 million, driven by efficient operations and contributions from Porsche stores[8]. - The group's profit decreased by approximately 87.8% to about RMB 44.7 million, compared to RMB 366.6 million in the same period last year, with a profit margin dropping from about 2.9% to approximately 0.3%[13]. - Gross profit decreased by 25.0% to approximately RMB 1,001.1 million, with an overall gross margin decline of 3.4 percentage points to about 7.1%[10]. - Operating profit for the period was RMB 304.65 million, a decline of 54.4% compared to RMB 668.12 million in the previous year[58]. - The net profit attributable to equity shareholders was RMB 38.99 million, significantly lower than RMB 343.22 million in the same period last year[59]. - Basic earnings per share decreased to RMB 2.91 from RMB 27.02 year-on-year, reflecting a decline of 89.3%[59]. Revenue Breakdown - New passenger car sales revenue reached approximately RMB 12,126.5 million, an increase of about 8.7% year-on-year, with high-end brand sales contributing approximately RMB 10,826.1 million, accounting for about 89.3% of total new passenger car sales revenue[16]. - The revenue breakdown includes RMB 12,126,498 thousand from passenger car sales and RMB 1,962,175 thousand from after-sales services for the first half of 2023[72]. - Other income for the six months ended June 30, 2023, totaled RMB 123,446 thousand, compared to RMB 109,117 thousand in the same period of 2022, reflecting an increase of approximately 13.1%[77]. Cost and Expenses - Sales costs increased by 15.6% to approximately RMB 13,087.6 million, primarily due to growth in new passenger vehicle sales and after-sales services[9]. - The financing costs for the first half of 2023 amounted to RMB 149,293 thousand, up from RMB 127,146 thousand in the same period of 2022, indicating an increase of approximately 17.4%[79]. - Employee costs for the first half of 2023 were RMB 426,868 thousand, a decrease from RMB 478,109 thousand in the same period of 2022, representing a decline of approximately 10.7%[80]. - The company reported a decrease in convertible bonds from RMB 2,394,840 thousand to RMB 2,274,932 thousand, a reduction of about 5%[61]. Assets and Liabilities - The total equity of the group as of June 30, 2023, was approximately RMB 5,179.7 million, up from RMB 4,433.8 million as of December 31, 2022[20]. - The group’s total current assets were approximately RMB 6,244.8 million, compared to RMB 5,888.5 million at the end of 2022, while current liabilities decreased to approximately RMB 4,268.3 million from RMB 4,873.7 million[20]. - The cash and cash equivalents balance as of June 30 was RMB 1,745,531 thousand, down from RMB 3,496,358 thousand year-on-year[67]. - Trade receivables as of June 30, 2023, amounted to RMB 1,355,066,000, down from RMB 1,560,489,000 as of December 31, 2022, reflecting a decrease of 13.1%[97]. - Total loans and borrowings as of June 30, 2023, were RMB 1,697,948,000, a decrease of 11% from RMB 1,906,731,000 as of December 31, 2022[100]. Dividends - The board proposed an interim dividend of RMB 0.0087 per share, maintaining a payout ratio of about 30.0%[14]. - The interim dividend declared is RMB 0.0087 per share, down from RMB 0.0808 per share for the same period last year, totaling approximately RMB 11.7 million[54]. - The final dividend for the previous fiscal year approved for the next interim period is RMB 0.1170 per ordinary share, amounting to RMB 157,511,000, down from RMB 0.6991 per share totaling RMB 891,651,000 for the same period in 2022[111]. Market Outlook - The company maintains a cautious optimism for the second half of 2023, anticipating adjustments in supply from certain brands and the introduction of economic subsidy policies[6]. - The outlook for the second half of 2023 anticipates improvements in the domestic passenger car supply-demand relationship, driven by expected government subsidies and economic policies[25]. - The company is actively exploring opportunities in the after-sales service for new energy vehicles, with the first Tesla after-sales service store having commenced operations and a second store added in the second half of the year[25]. Stock Options and Financing - The company has adopted a stock option plan allowing the granting of options to selected participants as an incentive for their contributions[33]. - The total number of shares involved in granting options cannot exceed 10% of the issued shares as of the company's listing date[34]. - The company raised approximately HKD 6.19 million from the issuance of 1,455,000 shares after the exercise of stock options, which is expected to be used for operational funding and other corporate purposes over the next three years[42]. - The company has a total of 9324,250 shares accounted for under various stock options, with a significant portion being unexercised[40]. Employee and Management Compensation - As of June 30, 2023, the group had 4,520 employees, with total employee costs amounting to approximately RMB 426.9 million for the period[49]. - Total compensation for key management personnel was RMB 7,433,000 in the first half of 2023, down from RMB 11,834,000 in the same period of 2022[135]. Compliance and Audit - The external auditor has reviewed the interim financial report in accordance with the relevant auditing standards[53]. - The financial report was authorized for publication on August 30, 2023, and is prepared in accordance with Hong Kong Financial Reporting Standards[68].
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