FII(601138)2022-08-09 16:00Financial Performance - Revenue for the first half of 2022 reached 225.26 billion yuan, a year-on-year increase of 14.91%[16] - Net profit attributable to shareholders of the listed company was 6.87 billion yuan, up 2.16% year-on-year[16] - Cloud computing business revenue in the first half of 2022 was 99.68 billion yuan, an increase of 21.07% year-on-year[20] - Revenue for the reporting period reached 225.26 billion yuan, a year-on-year increase of 14.91%[42] - Net profit attributable to shareholders was 6.872 billion yuan, up 2.16% year-on-year[42] - Cloud computing business revenue grew by 21.07% to 99.678 billion yuan[43] - Communication and mobile network equipment business revenue increased by 10.49% to 124.539 billion yuan[43] - Industrial internet business revenue rose by 17.26% to 435 million yuan[43] - Operating costs increased by 16.16% to 210.609 billion yuan, driven by higher revenue[45] - Sales expenses surged by 64.17% to 530.729 million yuan due to increased employee compensation and after-sales service costs[45] - Long-term equity investments grew by 284.60% to 12.183 billion yuan[47] - Total assets as of the end of the reporting period were 283.53 billion yuan, an increase of 6.35% compared to the end of the previous year[16] - Non-recurring gains and losses amounted to 499.32 million yuan, primarily driven by government subsidies and fair value changes in financial assets[19] - Total operating revenue for the first half of 2022 reached 225.26 billion yuan, a 14.9% increase compared to 196.03 billion yuan in the same period last year[146] - Net profit for the first half of 2022 was 6.88 billion yuan, a 2.3% increase from 6.73 billion yuan in the same period last year[147] - R&D expenses for the first half of 2022 amounted to 5.11 billion yuan, a 2.4% decrease compared to 5.23 billion yuan in the same period last year[146] - Total assets as of the end of the first half of 2022 were 84.75 billion yuan, a 12.4% increase from 75.39 billion yuan at the end of the same period last year[144] - Total liabilities as of the end of the first half of 2022 were 10.45 billion yuan, a significant increase from 796.8 million yuan at the end of the same period last year[145] - Basic earnings per share for the first half of 2022 were 0.35 yuan, a 2.9% increase compared to 0.34 yuan in the same period last year[148] - Total comprehensive income for the first half of 2022 was 7.34 billion yuan, a 16% increase compared to 6.33 billion yuan in the same period last year[148] - Long-term equity investments as of the end of the first half of 2022 were 6.03 billion yuan, a 24.6% increase from 4.84 billion yuan at the end of the same period last year[144] - Contract liabilities as of the end of the first half of 2022 were 9.04 million yuan, compared to zero in the same period last year[144] - Other comprehensive income for the first half of 2022 was 456.61 million yuan, a significant improvement from a loss of 398.33 million yuan in the same period last year[148] - Revenue for the first half of 2022 increased to 66,310 thousand RMB, up from 45,787 thousand RMB in the same period of 2021, representing a growth of approximately 44.8%[149] - Net profit for the first half of 2022 surged to 10,179,114 thousand RMB, compared to 3,176,037 thousand RMB in the first half of 2021, marking a significant increase of approximately 220.5%[150] - Operating profit for the first half of 2022 reached 10,243,962 thousand RMB, up from 3,236,925 thousand RMB in the same period of 2021, reflecting a growth of approximately 216.5%[150] - Cash flow from operating activities for the first half of 2022 was -5,400,762 thousand RMB, a decline from 7,630,592 thousand RMB in the same period of 2021[153] - Cash flow from investing activities for the first half of 2022 was -12,047,200 thousand RMB, compared to -4,632,049 thousand RMB in the first half of 2021[153] - Cash flow from financing activities for the first half of 2022 improved to 11,972,835 thousand RMB, up from 4,152,133 thousand RMB in the same period of 2021[153] - Total cash and cash equivalents at the end of the first half of 2022 decreased to 76,503,782 thousand RMB, down from 81,071,137 thousand RMB at the beginning of the period[154] - Interest income for the first half of 2022 was 297,687 thousand RMB, compared to 244,241 thousand RMB in the same period of 2021[149] - Investment income for the first half of 2022 was 9,989,470 thousand RMB, a significant increase from 3,003,121 thousand RMB in the first half of 2021[149] - Sales revenue from goods and services for the first half of 2022 was 229,891,577 thousand RMB, up from 216,107,714 thousand RMB in the same period of 2021[152] - Operating cash flow from sales of goods and services increased to 107,633 thousand yuan in H1 2022, up from 96,736 thousand yuan in H1 2021[155] - Net cash flow from operating activities decreased to 458,100 thousand yuan in H1 2022, down from 504,495 thousand yuan in H1 2021[155] - Net cash flow from investing activities increased significantly to 5,188,648 thousand yuan in H1 2022, compared to 2,564,965 thousand yuan in H1 2021[155] - Net cash flow from financing activities was -471,691 thousand yuan in H1 2022, a decrease from -4,496 thousand yuan in H1 2021[156] - Total cash and cash equivalents at the end of H1 2022 stood at 22,687,488 thousand yuan, slightly down from 23,512,226 thousand yuan in H1 2021[156] - Comprehensive income for H1 2022 was 7,328,236 thousand yuan, with a net income attributable to the parent company of 6,871,623 thousand yuan[158] - Total owner's equity at the end of H1 2022 was 116,389,428 thousand yuan, down from 119,487,690 thousand yuan at the beginning of the period[159] - The company distributed dividends of 9,890,945 thousand yuan to shareholders in H1 2022[158] - Total comprehensive income for the period amounted to 6,328,309 thousand yuan[160] - Owner's equity decreased by 380 thousand yuan due to owner's capital reduction[160] - Capital reserve increased by 337,592 thousand yuan[160] - Retained earnings decreased by 398,327 thousand yuan[160] - Total owner's equity at the end of the period was 105,973,937 thousand yuan[162] - Comprehensive income for the period was 10,179,114 thousand yuan[162] - Owner's equity decreased by 623,345 thousand yuan due to owner's capital reduction[162] - Profit distribution to owners amounted to 9,890,945 thousand yuan[164] - Retained earnings at the end of the period were 13,747,207 thousand yuan[164] - Total owner's equity at the end of the period was 74,300,607 thousand yuan[164] - The company's total owner's equity at the beginning of the year was 65,415,356, with a decrease of 1,242,337 during the period, resulting in a total owner's equity of 64,173,019 at the end of the period[165][167] - The company's comprehensive income for the period was 3,176,037, contributing positively to the owner's equity[165] - The company's profit distribution to owners (or shareholders) amounted to 4,966,790, which was a significant reduction in owner's equity[165] - The company's capital reserve increased by 317,152 during the period, while the treasury stock decreased by 228,002[165] - The company's share capital decreased by 380 due to owner's capital reduction and other factors[165] - The company's total share capital as of June 30, 2022, was 19,865,104,011 shares, with a par value of 1 yuan per share[172] - The company's registered capital was initially 15,000,000 USD when it was established in 2015, and it has undergone several changes since then[169] - The company's total share capital increased to 19,871,942,995 shares after the completion of the restricted stock incentive plan in 2020[171] Business Operations and Technology - The company's cloud computing business provides solutions including servers, storage, 8K workstations, and technologies like HPC, HCI, and FoxMoD[7] - The company's edge computing platform offers integrated network, computing, storage, and application capabilities[7] - The company is involved in AR (Augmented Reality) and VR (Virtual Reality) technologies[7] - The company's ICT (Information Communications Technology) business focuses on 5G, IoT, and related technologies[7] - The company's CNC (Computer Numerical Control) technology is used for automated machining processes[9] - The company's ODM (Original Design Manufacturer) model involves developing products under clients' brands[9] - The company launched modular servers supporting both X86 and ARM architectures, along with advanced cooling solutions for data centers[21] - WiFi6/6E and 5G-related products achieved double-digit revenue growth in the first half of 2022[23] - The company's R&D efforts in high-performance computing (HPC) have gained recognition from major cloud service providers globally[21] - The company's digital management system (DMS) optimizes production processes to improve quality, efficiency, and cost reduction[22] - The company continues to deepen collaborations with global top-tier clients in the cloud computing sector, maintaining a leading position in server and storage shipments[20] - The company's industrial remote monitoring products, supported by 5G technology, have improved collaboration efficiency, reduced learning time, and increased yield rates, achieving safer operations in industrial scenarios[24] - The company has served over 1,300 enterprises across 8 major industries, including electronics manufacturing, automotive, and medical devices, through its industrial internet solutions[25] - The company plans to further advance its "Lighthouse Navigator Plan" to enhance vertical industry digital integration, focusing on digital performance management, supply chain, and predictive maintenance[26] - China's ICT market is projected to reach $789.7 billion in 2022, with a year-on-year growth of 8.6%, while digital transformation spending is expected to hit $329.1 billion, up 18.6%[28] - China has built the world's largest 5G network, with over 490 million 5G terminal users and more than 1.6 million 5G base stations deployed[29] - The global 5G infrastructure market is estimated to reach $32.2 billion in 2022, with a 9.5% year-on-year growth, driven by RRU, BBU, and 5GC core network equipment[29] - The company has completed R&D and begun shipments of 5G vehicle OBU, FWA, shared RRU, ORAN solutions, and 5G enterprise private networks, catering to various market demands[30] - The global server market is expected to grow by 9.2% in 2022, with shipments surpassing 14.78 million units and a market size of $117.7 billion, driven by the "East Data West Computing" initiative[31] - The company has built 5 world-class "Lighthouse Factories," 9 "Green Factories," and over 10 "Smart Factories," serving more than 50 leading enterprises in industries like new energy vehicles and medical devices[34] - The company has invested approximately 85% of its R&D funds in mainland China, with 80% of its employees based there, maintaining a dual-circulation system that integrates global and domestic operations[35] - The company's business scope includes industrial internet technology R&D, communication system R&D, and management services[172] Environmental and Social Responsibility - 5 subsidiaries were included in the key water pollutant discharge units, with COD emissions ranging from 23mg/L to 72mg/L, all within the permitted standards[66] - 1 subsidiary was included in the key air pollutant discharge units, with particulate matter emissions ranging from 1.10-1.90mg/m³, well below the 10mg/m³ standard[66] - 9 subsidiaries were included in the key solid waste and hazardous waste discharge units, with hazardous waste disposal volumes ranging from 257.28 tons to 2,890.26 tons[67] - Wastewater treatment facilities at subsidiaries have design capacities ranging from 450m³/d to 8,000m³/d, all operating normally[68][69] - Air pollution control systems at subsidiaries include wet scrubbers with capacities up to 561,000m³/h and activated carbon adsorption systems up to 384,400m³/h[68] - Advanced wastewater treatment technologies used include MBR, RO, EDI, and triple-effect evaporation systems[69] - Total COD emissions from all subsidiaries were 135.92 tons, well below the total permitted annual limit of 1,396.32 tons[66] - Total ammonia nitrogen emissions from all subsidiaries were 7.51 tons, significantly below the total permitted annual limit of 159.51 tons[66] - Hazardous waste disposal volumes at the largest subsidiary (Jincheng) reached 2,890.26 tons[67] - The largest wastewater treatment system has a capacity of 8,000m³/d, using a two-stage chemical precipitation process[69] - Industrial Internet intelligent factory renovation project approved with environmental impact assessment (EIA) document number: Shenhuan Shui Han [2017]88[70] - Industrial Internet platform construction project in Jiangmen approved with document number: Jiang Jing Xin Fu [2017]26[70] - High-performance computing data center construction project approved with EIA document numbers: Shenhuan Shui Han [2017]88 and 92[70] - Next-generation communication product R&D center project approved with document number: Shen Long Hua Development and Reform Record [2021]0071[70] - 5G smartphone precision component production project approved with EIA document number: Zheng Jing Huan Jian [2020]50[71] - Smartphone touchscreen module production project approved with EIA document number: Zheng Jing Huan Jian [2020]49[71] - High-end smartphone component upgrade and intelligent manufacturing project approved with EIA document number: Zheng Jing Huan Jian [2022]33[71] - 5G smartphone component expansion project approved with EIA document number: Lan Huan Jian Biao [2020]90[72] - Digital mobile communication equipment component processing project approved with EIA document number: He Huan Jian [2019]4[72] - 5G smartphone component and headset small parts processing renovation project approved with EIA document number: He Huan Jian Biao [2022]018[72] - The company has established emergency response plans for environmental incidents at 10 subsidiaries, with validity periods ranging from 2023 to 2025[73] - The company has not received any environmental penalties during the reporting period[75] - Five subsidiaries have been awarded the highest environmental credit rating of "Green Label" as environmentally trustworthy enterprises[76] - The company has added a new nitrogen removal wastewater treatment system with a capacity of 3,000 cubic meters per day at its Jincheng subsidiary[77] - The company has been awarded 10 green factory certifications and has 18 subsidiaries certified with ISO14001 environmental management systems[78] - The company has set a net-zero emissions target: 80% reduction in operational carbon emissions by 2030, operational carbon neutrality by 2035, and value chain net-zero emissions by 2050[80] - The company implemented over 300 energy-saving projects in the reporting period, achieving an annual reduction of 45,000 tCO2e[81] - Equipment improvement projects resulted in a carbon reduction of 9,976 tCO2e and energy savings of 9.75 million yuan[81] - Process improvement initiatives achieved a carbon reduction of 3,475 tCO2e and energy savings of 3.76 million yuan[81] - New construction and expansion projects contributed to a carbon reduction of 3,077 tCO2e and energy savings of 3.11 million yuan[81] - The company built a distributed photovoltaic power station within the park, with an annual power generation of approximately 40 million kWh[82] - The subsidiary Nanning Fuying Fugui Precision Industry Co., Ltd. purchased 67 million kWh of green electricity, reducing emissions by 68,100 tCO2e[82] - The company conducted carbon inventory for 16 key carbon-emitting legal entities and obtained third-party verification statements[83] - The company established and maintained ISO5001 energy management systems and conducted ISO14064 verification for its subsidiaries[85] - The company developed an online carbon accounting platform based on ISO14064-1 and Greenhouse Gas Protocol standards to facilitate carbon accounting for enterprises[86] - The company invested over 445,300 RMB and provided 27 positions for disabled employees in various poverty alleviation and rural revitalization projects[94] - Nanning Fuying Fugui Precision Industry Co., Ltd. planned to invest 105,000 RMB in public welfare funds for 2022, focusing on education, elderly care, and support for the disadvantaged[94] - Fuying Precision Electronics (Tianjin) Co., Ltd. donated 400,000 RMB to support poverty alleviation and rural revitalization projects in Tianjin[91] - Nanning Fuying Fugui Precision Industry Co., Ltd. provided 15,000 RMB to support the beekeeping industry in Matang Village, Nanning[92] - Fuying Technology (Jiyuan) Co., Ltd. purchased 25,300 RMB worth of local