耐世特(01316) - 2023 - 中期财报

Financial Performance - Record half-year revenue of $2.1 billion, a 17.4$4 billion for the first time in the company's history[13] - Generated free cash flow of $59.9 million in the first half of 2023, significantly better than the same period in 2022[13] - Revenue for the first six months of 2023 reached a record$2.10183 billion, a 17.4% increase compared to the same period in 2022[30] - Adjusted EBITDA for the first six months of 2023 was $186.134 million, up 17.7$33.993 million, a significant turnaround from a loss of $11.138 million in the same period last year[30] - Cash balance as of June 30, 2023, was$290.1 million, an increase of $44.2 million from December 31, 2022[34] - Revenue for the first half of 2023 increased by$310.7 million or 17.4% to $2,101.8 million compared to$1,791.1 million in the same period of 2022, driven by increased light vehicle production and new project launches[37] - Net profit attributable to equity holders was $34.0 million or 1.6$11.1 million in the same period of 2022[41] - Revenue increased to $2.10 billion in H1 2023, up 17.3$1.79 billion in H1 2022[93] - Gross profit rose to $190.8 million in H1 2023, a 27.4$149.8 million in H1 2022[93] - Operating profit more than doubled to $46.8 million in H1 2023 from$22.0 million in H1 2022[93] - Net profit attributable to equity holders was $34.0 million in H1 2023, compared to a loss of$11.1 million in H1 2022[94] - Basic earnings per share improved to $0.014 in H1 2023 from a loss of$0.004 per share in H1 2022[94] - Cash generated from operations increased 54.3% to $231.2 million in H1 2023 from$122.5 million in H1 2022[100] - Capital expenditures totaled $176.8 million in H1 2023, up 32.5$133.5 million in H1 2022[100] - Net cash position increased to $290.1 million as of June 30, 2023, compared to$245.9 million at the start of the year[100] - Foreign exchange losses narrowed to $10.1 million in H1 2023 from$45.1 million in H1 2022[96] - Total comprehensive income was $27.3 million in H1 2023, a significant improvement from a loss of$53.9 million in H1 2022[97] - Total revenue for the six months ended June 30, 2023, was $2.123 billion, up from$1.815 billion in the same period in 2022[117] - Adjusted EBITDA for the six months ended June 30, 2023, was $186.134 million, compared to$158.117 million in the same period in 2022[117] - Total revenue for the first half of 2023 reached $2.10183 billion, a 17.3$1.791067 billion in the same period of 2022[126][128] - Electric Power Steering (EPS) revenue grew to $1.442653 billion in H1 2023, up 17.7$1.226394 billion in H1 2022[125][126] - General Motors accounted for $721.887 million in revenue, representing 34.3$99.4 million or 9.1% to $1,194.5 million, supported by a 12.0$165.5 million or 43.7% to $543.9 million, driven by new project launches and a 9.8$38.4 million[39] - Europe, Middle East, Africa, and South America revenue increased by $45.0 million or 14.2$361.1 million, supported by a 16.0% rise in European light vehicle production and a 9.8% increase in South America[39] - North America segment revenue increased to $1.194 billion in the six months ended June 30, 2023, from$1.095 billion in the same period in 2022[117] - Asia-Pacific segment revenue rose to $543.983 million in the six months ended June 30, 2023, from$378.472 million in the same period in 2022[117] - Revenue from the U.S. increased to $709.033 million in the six months ended June 30, 2023, from$641.476 million in the same period in 2022[122] - Revenue from China grew to $464.570 million in the six months ended June 30, 2023, from$314.813 million in the same period in 2022[122] - North America revenue decreased to $503.126 million in Q2 2023 from$546.501 million in Q4 2022, while Mexico revenue increased to $463.447 million from$446.505 million[124] - China revenue declined to $380.260 million in Q2 2023 compared to$391.033 million in Q4 2022, while other Asia-Pacific regions remained stable at around $35 million[124] Operational Efficiency and Cost Management - The company implemented an Early Retirement Incentive Plan (ERIP) in the US to reduce fixed costs, with savings expected in the second half of 2023[16] - A 25-acre solar farm in Saginaw, Michigan, is planned to reduce operational costs using renewable energy, with construction expected to start in late 2023 and completion in 2024[16] - The company is optimizing its US driveline (DL) business by consolidating two plants into one by the end of 2023 to improve efficiency and cost competitiveness[17] - The company is relocating its North American (NA) steering column business from Saginaw, Michigan, to Juarez, Mexico, with completion targeted by 2026 to enhance profitability through economies of scale[17] - The company terminated its electric drive product line in March 2023 to focus on SbW (steer-by-wire) and software-related solutions, reallocating resources to priority business areas[17] - The company dissolved its joint venture CNXMotion in February 2023 to reallocate resources to support priority businesses, leveraging over 60 invention records and 30 patent applications from the venture[18] - Raw material costs increased by$193.4 million or 16.3% to $1,382.8 million, accounting for 65.8$41.0 million or 27.4% to $190.8 million, with gross margin improving to 9.1$68.0 million, accounting for 3.2% of revenue, up by $7.8 million or 13.0$150.7 million, an increase of $14.1 million or 10.3$77.3 million, representing 3.7% of revenue, down by $2.7 million or 3.4$1.3 million, down by $11.2 million due to unfavorable foreign exchange rates compared to the same period in 2022[47] - Net financing costs were$0.9 million, compared to a net financing income of $0.4 million in the same period last year, primarily due to short-term borrowing fluctuations[48] - Income tax expense decreased to$8.4 million, representing 18.3% of pre-tax profit, down by $21.1 million compared to the same period in 2022[50] - Provisions for litigation, environmental liabilities, warranties, and shutdown claims decreased to$86.8 million, down by $6.9 million from the end of 2022[51] - Net cash generated from operating activities increased to$231.2 million, up by $108.7 million year-over-year, driven by higher profitability and favorable working capital changes[54] - Investment activities used a net cash outflow of$171.3 million, primarily for the purchase of machinery, equipment, and intangible assets related to engineering and product development[56] - Net cash used in financing activities was $13.9 million, a decrease of$28.5 million compared to the same period in 2022, mainly due to repayment of borrowings and lease liabilities[57] - Total borrowings decreased by $1.9 million to$47.9 million as of June 30, 2023, primarily due to foreign exchange effects on RMB-denominated loans[58] - Total assets pledged as collateral increased by $17.7 million to$868.9 million as of June 30, 2023, reflecting higher balances of related pledged assets[61] - The capital-to-debt ratio decreased by 10 basis points to 2.4% as of June 30, 2023, compared to 2.5% at the end of 2022[63] - Total costs, including cost of sales, engineering, product development, and administrative expenses, increased to $2,056,312,000 for the six months ended June 30, 2023, up from$1,781,521,000 in the same period of 2022[166] Customer Projects and Orders - Secured customer project orders totaling $2.8 billion in the first half of 2023[13] - Successfully launched 32 new customer projects across all regions, with 37$2.8 billion in customer project orders in the first half of 2023, with 89% of orders coming from the EPS product line and 98% of orders designated for EV or EV/ICE shared platforms[20] - 37% of the orders in H1 2023 were for new or newly acquired business, positioning the company for long-term above-market growth[20] - The company won a significant SbW (Steer-by-Wire) order from a leading global OEM, marking its second SbW contract, and is actively pursuing more SbW opportunities globally[20][21] - In H1 2023, 32 customer projects went into production, including 30 new or newly acquired projects and 19 EV platform projects[24] - The company's REPS (Rack-Assist Electric Power Steering) orders for BEV truck platforms in 2022 and SbW orders in 2023 strengthened its leadership in the North American truck market[22] - The company is collaborating with global and Chinese OEMs on multiple paid SbW development programs, which are likely to transition into production plans in the future[20][21] - The company's products are featured in key EV models such as the Ford F-150 Lightning, GMC Hummer EV, and Chevrolet Silverado EV[22] Strategic Focus and Innovation - The company aims to maintain its global leadership in advanced steering and driveline systems, focusing on electrification, driver assistance, and ADAS technologies[64] - The company's SbW technology supports the transition from hardware-defined to software-defined vehicles, enabling OTA updates and extended platform lifecycles[22] - The company's software development center in India is expected to expand to 550 employees by the end of 2023, enhancing software development and verification efficiency[22] - The company's global software team, spanning four locations, focuses on delivering fast, flexible, and seamless vehicle integration solutions[22] - The company terminated its electric drive product line in March 2023 to focus on SbW (steer-by-wire) and software-related solutions, reallocating resources to priority business areas[17] - The company dissolved its joint venture CNXMotion in February 2023 to reallocate resources to support priority businesses, leveraging over 60 invention records and 30 patent applications from the venture[18] - The company hosted a global supplier conference in Querétaro, Mexico, in May 2023, awarding 95 suppliers with Perfect Quality awards and 5 with Superior Customer Service awards[17] Financial Instruments and Accounting - The company's financial instruments are classified into three levels based on the observability of market data, with no transfers between levels[106][107] - The company adopted new/revised accounting standards effective from January 1, 2023, with no material impact on the condensed financial statements[104] - The company's financial statements are prepared in accordance with International Accounting Standards (IAS) 34 and the disclosure requirements of the Hong Kong Stock Exchange[102] - The company's financial assets and liabilities are measured at fair value, with changes in fair value recognized in other comprehensive income[106] - The company's revenue from tools is recognized as the performance obligations are fulfilled, based on the costs incurred for the tools[110] - The company's revenue from non-production-related engineering design and development is recognized as performance obligations are fulfilled[111] - The company's financial statements are unaudited and should be read in conjunction with the annual financial statements for the year ended December 31, 2022[101][102] - The company's financial statements are presented in thousands of US dollars (USD)[101] - Contract assets increased to $51.365 million as of June 30, 2023, compared to$47.718 million as of December 31, 2022[114] - Contract liabilities decreased to $97.041 million as of June 30, 2023, from$104.613 million as of December 31, 2022[114] - Deferred income is recognized over project cycles typically ranging from four to seven years, related to prepayments for engineering, modeling, and pre-production activities[159] - Deferred revenue decreased to $122,402,000 as of June 30, 2023, compared to$128,853,000 at the end of 2022, with additions of $15,412,000 and recognized losses of$21,065,000 during the period[161] Employee and Compensation - The company employs approximately 13,000 full-time employees and 1,600 contract workers as of June 30, 2023[65] - The company's compensation policy is performance-based and includes various employee benefit plans, such as retirement benefits and incentive programs[65] - Total compensation for the CEO, directors, and key management personnel for the six months ended June 30, 2023, was $5.249 million, up from$2.204 million in the same period in 2022[189] - The company did not recommend any interim dividend for the six months ended June 30, 2023[71] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ended June 30, 2023[72] - The number of stock options available for grant under the stock option plan remained unchanged at 166,636,790 as of January 1, 2023, and June 30, 2023[72] - No stock options were vested under the stock option plan during the six months ended June 30, 2023[72] - The total number of shares that could be issued under the stock option plan as of June 30, 2023, is 12,410,160, representing approximately 0.494% of the weighted average number of issued shares[76] - The total number of stock options granted as of June 30, 2023, is 83,143,610, with 14,341,510 options held and 1,931,350 options exercised[74] - The total number of shares held by directors and key executives through stock options is 5,530,650, representing approximately 0.22% of the total issued shares[74][79] - The exercise price for stock options granted on October 25, 2022, is HKD 4.268, with a market price of HKD 4.140 on the grant date[74] - The total number of shares held by directors and key executives as of June 30, 2023, is 5,530,650, with individual holdings ranging from 351,150 to 2,809,230 shares[74][78] - The total number of shares held by other grant recipients as of June 30, 2023, is 8,810,860, with 1,931,350 options exercised and 6,879,510 options held[74] - The total number of shares held by major shareholders (excluding directors and key executives) as of June 30, 2023, is not disclosed, but their interests are recorded in the register maintained under the Securities and Futures Ordinance[82] - The total number of shares held by directors and key executives through stock options as of June 30, 2023, is 5,530,650, representing approximately 0.22% of the total issued shares[74][79] - The total number of shares held by directors and key executives as of June 30, 2023, is 5,530,650, with individual holdings ranging from 351,150 to 2,809,230 shares[74][78] - The total