2020-08-27 08:33Financial Performance - For the six months ended June 30, 2020, Geely reported revenue of RMB 36,819,775 thousand, a decrease of 22.6% from RMB 47,558,617 thousand in the same period of 2019[12]. - Gross profit for the same period was RMB 6,301,598 thousand, down 25.7% from RMB 8,469,099 thousand year-on-year[12]. - The net profit attributable to equity holders for the six months was RMB 2,319,946 thousand, a decline of 42.7% compared to RMB 4,047,048 thousand in the previous year[12]. - Basic earnings per share decreased to RMB 24.73 cents from RMB 44.39 cents, reflecting a drop of 44.3%[13]. - Total comprehensive income for the period was RMB 2,224,975 thousand, down 44.2% from RMB 3,988,462 thousand in the same period last year[14]. - The company reported a pre-tax profit of RMB 2,640,140 thousand, a decrease of 44.6% from RMB 4,764,588 thousand in 2019[12]. - Distribution and selling expenses were RMB (2,189,590) thousand, slightly improved from RMB (2,256,165) thousand in the previous year[12]. - Administrative expenses (excluding share-based payments) increased to RMB (2,674,541) thousand from RMB (2,454,944) thousand, indicating a rise of 9.0%[12]. - Other income for the period was RMB 670,880 thousand, an increase of 9.5% from RMB 612,616 thousand in the previous year[12]. Assets and Liabilities - Non-current assets decreased from RMB 57,913,565 thousand to RMB 58,700,602 thousand, a decline of approximately 1.4%[15]. - Current assets increased from RMB 50,014,013 thousand to RMB 49,514,769 thousand, a decrease of about 1%[15]. - Total equity rose from RMB 54,924,466 thousand to RMB 61,122,351 thousand, reflecting an increase of approximately 11.9%[16]. - The company's cash and cash equivalents increased from RMB 19,281,216 thousand to RMB 20,174,223 thousand, a growth of about 4.6%[15]. - Current liabilities decreased from RMB 48,526,432 thousand to RMB 42,251,675 thousand, a reduction of approximately 12.9%[15]. - The total assets less current liabilities increased from RMB 59,401,146 thousand to RMB 65,963,696 thousand, an increase of about 11%[16]. - The company's inventory decreased from RMB 4,820,776 thousand to RMB 4,231,679 thousand, a decline of approximately 12.2%[15]. Cash Flow and Financing - Cash flow from operating activities showed a net outflow of RMB (3,238,158) thousand, a significant decrease compared to a net inflow of RMB 5,154,168 thousand in the previous year[19]. - The company experienced a cash inflow from financing activities of RMB 5,951,228 thousand, compared to RMB 363,320 thousand in the prior year, indicating a substantial increase in financing activities[19]. - The total cash and cash equivalents at the end of the period amounted to RMB 20,174,223 thousand, up from RMB 13,996,180 thousand at the end of the previous year[19]. - The company issued shares worth RMB 5,937,136 thousand through placement during the period, contributing to the increase in cash flow from financing activities[19]. - The company’s total equity attributable to owners increased to RMB 61,122,351 thousand as of June 30, 2020, compared to RMB 54,924,466 thousand at the beginning of the year[18]. Revenue Sources - Revenue from contracts with customers for the six months ended June 30, 2020, was RMB 36,819,775 thousand, a decrease of 22.6% from RMB 47,558,617 thousand in the same period of 2019[25]. - Sales of automobiles contributed RMB 33,720,437 thousand, while sales of auto parts and intellectual property licensing generated RMB 2,675,112 thousand and RMB 424,226 thousand, respectively[25]. - The company received government subsidies of RMB 615,190 thousand for the six months ended June 30, 2020, compared to RMB 499,603 thousand in 2019[27]. Research and Development - Research and development costs for the six months ended June 30, 2020, amounted to RMB 343,909 thousand, slightly down from RMB 370,958 thousand in 2019[32]. - The company is actively involved in research and development, as evidenced by the income from product development and technical support services amounting to RMB 109,983[96]. Market Performance - For the first half of 2020, the total sales of the group decreased by 19% year-on-year to 530,446 vehicles, primarily due to the impact of the COVID-19 pandemic[107]. - The group's domestic sales in China fell by 17% to 510,873 vehicles, while the overall market share in the Chinese passenger car market increased from 6.1% in the first half of 2019 to 6.5% in the first half of 2020[107]. - Total revenue (excluding the revenue from the joint venture) decreased by 23% to RMB 36.82 billion, mainly due to lower sales and production disruptions caused by regional lockdowns[106]. Corporate Governance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements[140]. - The company has established an audit committee to oversee financial reporting processes and internal controls[140]. - The management expressed gratitude for the efforts and support of all staff during the reporting period[140].