Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 2,852,542 thousand, a 108.5% increase from RMB 1,371,514 thousand in the same period of 2020[12]. - Gross profit for the same period was RMB 223,634 thousand, up 77.9% from RMB 125,578 thousand year-on-year[12]. - Profit attributable to owners of the parent for the period was RMB 97,552 thousand, compared to a loss of RMB 88,527 thousand in the prior year[12]. - Basic earnings per share for the period was RMB 4.65, compared to a loss per share of RMB (4.22) in the previous year[12]. - The company reported a total comprehensive income of RMB 103,967 thousand, recovering from a loss of RMB (137,815) thousand in the same period last year[15]. - The operating profit before tax from continuing operations was RMB 92,473 thousand, significantly higher than RMB 25,465 thousand in the previous year[12]. - Other income and gains increased to RMB 19,489 thousand from RMB 9,245 thousand year-on-year, reflecting a growth of 110.5%[12]. - The company reported a profit of RMB 97,552,000 for the six months ended June 30, 2021, compared to a loss in the previous period[22]. - The company reported a profit from continuing operations of RMB 92,473,000, compared to RMB 25,465,000 in the same period last year, reflecting a growth of 263.5%[28]. - The group achieved a gross profit of RMB 224 million, representing a year-on-year increase of 78.1%[141]. - The group reported a profit attributable to the owners of the parent company of RMB 98 million, compared to a loss of approximately RMB 89 million in the same period last year[141]. Revenue Breakdown - Revenue from mainland China was RMB 1,694,817,000, up 40.8% from RMB 1,203,775,000 in the previous year[47]. - Revenue from other countries/regions increased significantly to RMB 1,157,725,000, compared to RMB 167,739,000 in the prior year, marking a growth of 590.5%[47]. - The total customer contract revenue included RMB 2,830,145,000 from LCD modules, which increased from RMB 1,299,993,000 in the previous year[52]. - Approximately RMB 1,291,139,000 of revenue was generated from sales to related companies, a substantial increase from RMB 294,215,000 in the previous year[50]. - Revenue grew to RMB 2,853 million, representing a year-on-year increase of 108.0%[140]. - Revenue from sales of TFT LCD modules totaled RMB 2,853 million, reflecting a year-on-year growth of 108.0%[144]. - Revenue from mainland China and Hong Kong accounted for 99.4% of the group's total revenue, with RMB 1,695 million and RMB 1,142 million respectively[144]. Expenses and Costs - Selling and distribution expenses rose to RMB 32,020 thousand, up from RMB 15,638 thousand, indicating an increase of 104.5%[12]. - Administrative expenses increased to RMB 115,736 thousand from RMB 88,430 thousand, marking a rise of 30.8%[12]. - The cost of sales increased significantly to RMB 2,628,132,000 from RMB 1,243,145,000, reflecting a substantial rise in inventory costs[61]. - The total tax expense from continuing operations for the period was RMB 21,648,000, compared to RMB 8,896,000 in the previous year[70]. Assets and Liabilities - Non-current assets decreased to RMB 415,960,000 as of June 30, 2021, down from RMB 993,379,000 as of December 31, 2020, representing a decline of 58.2%[17]. - Current assets increased to RMB 2,380,144,000 as of June 30, 2021, compared to RMB 2,121,305,000 as of December 31, 2020, reflecting a growth of 12.2%[17]. - Total liabilities decreased to RMB 2,059,579,000 as of June 30, 2021, down from RMB 2,364,180,000 as of December 31, 2020, a reduction of 12.9%[17]. - Net current assets improved to RMB 380,903,000 as of June 30, 2021, compared to a net current liability of RMB 152,276,000 as of December 31, 2020[17]. - Total equity attributable to owners of the parent company was RMB 736,525,000 as of June 30, 2021, slightly down from RMB 750,504,000 as of December 31, 2020[20]. Cash Flow - Cash and cash equivalents increased significantly to RMB 821,488,000 as of June 30, 2021, up from RMB 416,730,000 as of December 31, 2020, marking a rise of 96.9%[17]. - The operating cash flow for the six months ended June 30, 2021, was RMB 392,588,000, a decrease of 65.6% compared to RMB 1,141,225,000 for the same period in 2020[31]. - Cash and cash equivalents at the end of the period amounted to RMB 821,488,000, up from RMB 304,337,000 in the previous year, representing an increase of 169.5%[31]. - The cash flow from investing activities was a net outflow of RMB 77,788,000, an improvement from a net outflow of RMB 166,949,000 in the previous year[31]. - The financing activities resulted in a net cash inflow of RMB 90,332,000, a significant recovery from a net outflow of RMB 770,968,000 in the previous year[31]. Inventory and Receivables - Trade receivables decreased to RMB 967,486,000 as of June 30, 2021, from RMB 1,012,621,000 as of December 31, 2020, a decline of 4.5%[17]. - The company’s inventory reduced to RMB 306,195,000 as of June 30, 2021, down from RMB 608,515,000 as of December 31, 2020, indicating a decrease of 49.7%[17]. - The company recorded a significant decrease in trade receivables, with a reduction of RMB 257,769,000 compared to an increase of RMB 1,005,592,000 in the same period last year[31]. - The company generated RMB 291,774,000 from a decrease in inventory, compared to RMB 94,624,000 in the previous year, indicating improved inventory management[31]. Strategic Initiatives - The company aims to continue expanding its market presence and investing in new technologies to drive future growth[12]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[19]. - The group plans to enhance its sales strategy for smart devices to capitalize on market opportunities and improve profitability[150]. - The group holds an optimistic long-term outlook for the display module business despite regional pandemic fluctuations affecting economic recovery[153]. Shareholder Information - The company did not recommend any dividend payment for the six months ended June 30, 2021, consistent with the previous year[75]. - The company has granted a total of 103,289,988 shares under the share incentive plan since its adoption, with 102,946,488 shares vested and 343,500 shares forfeited as of June 30, 2021[105]. - The company has a share option scheme effective from June 25, 2015, aimed at rewarding and retaining eligible participants[106]. - The company has capital commitments of RMB 185,712 thousand for property, plant, and equipment as of June 30, 2021, compared to RMB 4,442 thousand as of December 31, 2020[116]. - The company has not specified a minimum holding period for the stock options, but the board may determine a holding period before the options can be exercised[109]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the company secretary not being an employee of the issuer[191]. - The audit committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2021, and found them to comply with applicable accounting standards[196]. - The company has established a code of conduct for directors' securities transactions, which meets or exceeds the standards set by the relevant guidelines[195].
华显光电(00334) - 2021 - 中期财报