2019-08-28 08:32Financial Performance - Total revenue for the six months ended June 30, 2019, was RMB 47,558,617 thousand, a decrease of 11.9% compared to RMB 53,708,605 thousand in the same period of 2018[10] - Gross profit for the same period was RMB 8,469,099 thousand, down 21.8% from RMB 10,837,269 thousand year-on-year[10] - Profit attributable to equity holders for the period was RMB 4,009,475 thousand, a decline of 40.0% compared to RMB 6,670,023 thousand in the previous year[11] - Basic earnings per share decreased to RMB 44.39 cents from RMB 74.33 cents, reflecting a 40.4% drop[11] - The total comprehensive income for the six months ended June 30, 2019, was RMB 3,988,462 thousand, a decrease of 41.8% compared to RMB 6,782,202 thousand for the same period in 2018[12] - The profit for the period was RMB 4,047,048 thousand, down 40.0% from RMB 6,735,898 thousand in the previous year[12] Expenses and Costs - The administrative expenses (excluding share-based payments) rose to RMB 2,454,944 thousand, up from RMB 1,608,650 thousand, indicating a significant increase in operational costs[10] - The company incurred employee costs of RMB 2,930,964,000 for the current period, an increase from RMB 2,633,030,000 in the previous period, representing an increase of about 11.3%[40] - The company’s research and development expenses increased to RMB 370,958,000, up from RMB 223,479,000, marking a significant increase of about 66%[40] Cash Flow and Assets - The company reported a net cash position of RMB 13,996,180 thousand, down from RMB 15,737,196 thousand, indicating a decrease of 11.1%[14] - Current assets decreased to RMB 39,452,916 thousand from RMB 42,785,480 thousand, reflecting a decline of 7.3%[14] - Non-current assets totaled RMB 52,083,445 thousand as of June 30, 2019, an increase of 6.5% from RMB 48,675,500 thousand at the end of 2018[14] - The company reported a decrease in operating cash flow before tax adjustments, which was RMB 4,764,588 thousand for the six months ended June 30, 2019, compared to RMB 7,975,344 thousand in the same period of 2018[19] Liabilities and Equity - The total liabilities decreased slightly to RMB 42,196,562 thousand from RMB 43,760,401 thousand, a reduction of 3.6%[15] - The equity attributable to the company's shareholders increased to RMB 46,369,577 thousand from RMB 44,779,507 thousand, representing a growth of 3.5%[15] - The company’s deferred tax liabilities amounted to RMB 877,062,000, a decrease from RMB 1,390,089,000 in the previous period, indicating a reduction of approximately 37%[41] Revenue Sources - Total revenue from automobile sales was RMB 44,979,288 thousand for the six months ended June 30, 2019, compared to RMB 52,809,518 thousand for the same period in 2018, representing a decrease of approximately 15.0%[36] - Total revenue from automobile parts and intellectual property licensing was RMB 2,151,102 thousand and RMB 428,227 thousand respectively, contributing to a total revenue of RMB 47,558,617 thousand for the six months ended June 30, 2019[36] - Other income for the six months ended June 30, 2019, was RMB 612,616 thousand, down from RMB 768,588 thousand in the same period of 2018, indicating a decrease of approximately 20.3%[38] Market and Sales Performance - In the first half of 2019, the total sales volume of the group in the Chinese market decreased by 19% to 613,061 vehicles, while the overall passenger car sales in China dropped by 14%[105] - The group's total revenue (excluding the revenue from the joint venture) fell by 11% year-on-year to RMB 47.56 billion[105] - The group's export sales surged by 344% year-on-year to 38,619 vehicles, accounting for 5.9% of total sales compared to 1.1% in the same period last year[108] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing product offerings, although specific new products or technologies were not detailed in the report[10] - Future outlook remains cautious due to market conditions, with a focus on cost management and operational efficiency to improve profitability[10] - The company plans to continue expanding its automotive financing business and invest in new technologies to enhance operational efficiency[53] Corporate Governance and Structure - The company has established an audit committee to review and supervise its financial reporting processes and risk management systems[142] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules throughout the reporting period[141] - Proper Glory Holding Inc. and its concert parties held a total of 4,019,478,000 shares, representing approximately 44.11% of the company's issued share capital as of June 30, 2019[122]