Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,225,682 thousand, representing an increase of 26.4% from RMB 2,552,743 thousand in 2022[8]. - Gross profit for the same period was RMB 1,176,729 thousand, up 35.5% from RMB 867,934 thousand in 2022[8]. - Operating profit increased to RMB 434,389 thousand, a rise of 31.3% compared to RMB 330,951 thousand in the previous year[8]. - Net profit attributable to shareholders was RMB 213,815 thousand, reflecting a growth of 49.0% from RMB 143,315 thousand in 2022[8]. - Total assets reached RMB 13,391,901 thousand, compared to RMB 12,665,854 thousand in 2022, indicating a growth of 5.7%[8]. - Equity attributable to shareholders increased to RMB 4,817,438 thousand from RMB 4,504,367 thousand, marking a rise of 6.9%[8]. - Basic and diluted earnings per share were both RMB 21.7, up from RMB 14.6 in the previous year[8]. - Profit before tax increased to RMB 371,972 thousand, representing a 33.3% rise from RMB 279,110 thousand in the previous year[81]. - Net profit for the period was RMB 315,143 thousand, a 32.7% increase compared to RMB 237,465 thousand in 2022[81]. - The company reported a total comprehensive income of RMB 334,192 thousand for the period, compared to RMB 217,274 thousand in 2022[83]. Market Position and Strategy - The company aims to become a leading supplier in the smart grid and energy measurement sectors, focusing on continuous innovation and market expansion[7]. - The company is committed to addressing the significant demand for energy efficiency and management solutions driven by carbon neutrality goals[7]. - The company has a market share of over 20% in high-end metering products in the domestic market, positioning itself as a leader in the industry[6]. - The group is focusing on expanding its market presence in the communication, high-energy consumption, and large property sectors, which are showing stable growth[38]. - National policies are expected to stimulate demand for metering products, benefiting the group's sales and business development[38]. - The group plans to leverage the "Belt and Road" initiative to enhance its international market presence and expand its product offerings[46]. - The group is focusing on the energy storage and renewable energy markets as key development areas for the second half of the year and beyond[51]. Operational Highlights - Operating expenses for the first half of 2023 were RMB 746.54 million, representing 23% of total revenue, consistent with the same period in 2022[13]. - Financing costs increased to RMB 62.42 million due to rising bank borrowing rates, compared to RMB 51.84 million in the previous year[14]. - The company’s debt ratio (total borrowings to total assets) improved to 22% from 24% in the previous year[17]. - The average number of employees decreased to 4,448 from 4,521 at the end of 2022, with total employee costs rising to RMB 413.87 million from RMB 296.70 million[19]. - The company entered into forward foreign exchange contracts valued at USD 105.85 million to mitigate currency risk from foreign currency transactions[18]. Research and Development - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 274,769,000, compared to RMB 241,599,000 in 2022, reflecting an increase of about 13.7%[104]. - The company plans to enhance product R&D to align with the trends of energy digitalization and intelligence, targeting the development of 2 to 3 hot-selling products[51]. - The group achieved breakthroughs in smart cloud platform technology development, focusing on embedded software real-time operating systems and edge computing for new intelligent communication gateways[59]. International Expansion - The company is actively participating in overseas project bidding, successfully winning projects in Malaysia, marking the start of its international expansion[50]. - The overseas revenue amounted to RMB 771.86 million, a 50% increase from RMB 514.98 million in the same period last year[53]. - In the Asia market, the group maintained its position as a key supplier in Bangladesh and continued significant deliveries in Indonesia, with over USD 10 million in orders signed with China Electric Power Equipment Co., Ltd.[54]. - In Africa, the group delivered over RMB 100 million worth of electric meters in Tanzania and is expanding its business in East Africa, while also maintaining a stable supply in the Ivory Coast[54]. - The group achieved electric meter delivery amounts exceeding RMB 120 million in Brazil and RMB 15 million in Ecuador during the review period[55]. Shareholder Information - As of June 30, 2023, the major shareholder, Mr. Ji Wei, holds 533,266,888 shares, representing 53.55% of the company's issued share capital[69]. - The company declared a final dividend of HKD 0.23 per share for the six months ended June 30, 2023, compared to HKD 0.20 per share in the previous year, which is an increase of 15.0%[107]. - No interim dividend was declared for the six months ended June 30, 2023, consistent with the same period in 2022[67]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[73]. - The audit committee, composed entirely of independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2023[72]. - The company confirmed adherence to the securities trading standard code throughout the reporting period[75]. Financial Position - Current liabilities were RMB 6,524,315 thousand, an increase from RMB 5,912,702 thousand at the end of 2022[85]. - Non-current liabilities decreased to RMB 545,491 thousand from RMB 984,877 thousand at the end of 2022[85]. - Cash and bank balances stood at RMB 2,077,253 thousand, slightly up from RMB 2,027,928 thousand at the end of 2022[84]. - The company incurred a net cash outflow from investing activities of RMB 304,032,000, compared to RMB 203,640,000 in the prior year[89]. - The company's cash and cash equivalents at the end of the period stood at RMB 1,677,253,000, slightly down from RMB 1,706,113,000 at the end of the previous year[89].
威胜控股(03393) - 2023 - 中期财报