东风集团股份(00489) - 2021 - 中期财报

Chairman's Statement The Group achieved stable operational progress in the first half of 2021, capitalizing on market recovery despite challenges like the pandemic, chip shortages, and rising raw material prices - In the first half of 2021, the Group's vehicle sales increased by 24.5% year-on-year, with breakthroughs in passenger vehicle business and increased market share in commercial vehicles[12] - The Group launched the "Oriental Rising" plan, setting "14th Five-Year Plan" targets of 1 million units each for commercial vehicles, self-owned brand passenger vehicles, and new energy vehicles[14] - The Board recommended a special dividend of RMB 0.40 per share (tax inclusive) to shareholders[14] 2021 First Half Key Financial and Operational Indicators | Indicator | Value | Year-on-Year Change | | :--- | :--- | :--- | | Vehicle Sales | Approximately 1.4244 million units | +24.5% | | Profit Before Tax | RMB 10.555 billion | Record high | | Return on Net Assets | 12.1% | Significantly better than prior period | | R&D Investment | - | +31.0% | | Interest-Bearing Debt | Decreased by RMB 8.633 billion from year-end | - | | Gearing Ratio | Decreased by 2.9 percentage points from year-end | - | Board of Directors' Report This report details the Group's business operations, corporate governance practices, and significant events during the reporting period Business Overview The Group's core business encompasses R&D, manufacturing, and sales of commercial vehicles, passenger vehicles, and auto parts, extending to automotive finance and logistics, with commercial vehicles being the primary revenue source in H1 2021 - The Group's main businesses include R&D, manufacturing, and sales of commercial vehicles, passenger vehicles, engines, and parts, along with diversified services like automotive finance, logistics, and insurance brokerage[18] - For the full year, the Chinese automotive market is expected to end three consecutive years of decline and achieve positive growth, with an industry growth forecast of 6.9%, despite uncertainties from localized pandemic resurgences and chip supply risks[23] 2021 First Half Production, Sales Volume, and Market Share | Vehicle Type | Production Volume (units) | Sales Volume (units) | Sales Market Share (%) | | :--- | :--- | :--- | :--- | | Commercial Vehicles | 330,860 | 349,150 | 12.1 | | Passenger Vehicles | 1,090,098 | 1,075,261 | 10.7 | | Total | 1,420,958 | 1,424,411 | 11.0 | 2021 First Half Business Revenue Composition | Business Segment | Sales Revenue (RMB million) | Proportion of Group Sales Revenue (%) | | :--- | :--- | :--- | | Passenger Vehicles | 10,639 | 15.2 | | Commercial Vehicles | 54,519 | 78.1 | | Automotive Finance | 4,465 | 6.4 | | Company and Others | 497 | 0.7 | | Total | 69,856 | 100.0 | Corporate Governance The company adhered to the HKEX Corporate Governance Code and Listing Rules, maintaining a seven-member board with three independent non-executive directors, and confirmed the effectiveness of its internal control systems - The company complied with the code provisions of the Corporate Governance Code contained in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the reporting period[26] - The Board of Directors comprises 7 directors, including 3 independent non-executive directors, with Mr. Liang Weili possessing professional qualifications in accounting and financial management, ensuring compliance with listing rules[27] - The Audit and Risk Management Committee reviewed the Group's unaudited financial report for the six months ended June 30, 2021[33] - The Board, through the Audit and Risk Management Committee and the Company's Audit Department, comprehensively reviewed the effectiveness of the internal control system for the first half of the year and deemed it fully effective[37] Significant Matters The Board declared a special dividend of RMB 0.4 per share, with no major acquisitions, disposals, or significant litigation during the period, and the controlling shareholder held 66.86% of the total share capital as of June 30, 2021 - The Board declared a special dividend of RMB 0.4 per share (tax inclusive), which was approved by the extraordinary general meeting[40] - As of the first half of 2021, the company had no significant acquisitions or disposals of subsidiaries, joint ventures, and associates, nor was it involved in any major litigation or arbitration[41] - The controlling shareholder, Dongfeng Motor Group Company Limited, holds all domestic shares of the company, accounting for 66.86% of the total share capital[45] Share Capital Structure (As of June 30, 2021) | Share Class | Number of Shares | Proportion (%) | | :--- | :--- | :--- | | Domestic Shares | 5,760,388,000 | 66.86 | | H Shares | 2,855,732,000 | 33.14 | | Total Share Capital | 8,616,120,000 | 100.00 | Management Discussion and Analysis This section provides an in-depth analysis of the Group's operating environment, business performance, and financial results for the reporting period Operating Environment In the first half of 2021, China's economy steadily recovered post-pandemic, with GDP growing by 12.7% year-on-year, and the automotive market, especially new energy vehicles, showed strong recovery 2021 First Half China Automotive Market Overview | Market/Segment | Sales Volume | Year-on-Year Growth Rate (%) | | :--- | :--- | :--- | | Overall Automotive Market | 12.8905 million units | 25.6 | | Passenger Vehicles | 10.0066 million units | 27.0 | | Commercial Vehicles | 2.8839 million units | 20.9 | | New Energy Vehicles | 1.2060 million units | 209.5 | Operating Analysis In the first half of 2021, the Group achieved approximately 1.4244 million units in sales, RMB 69.856 billion in sales revenue, and RMB 8.629 billion in profit attributable to shareholders, overcoming challenges like chip shortages and rising raw material prices - Sales volumes across all business segments achieved year-on-year growth: passenger vehicle sales were approximately 1.0753 million units, up approximately 21.9%; commercial vehicle sales were approximately 349,200 units, up approximately 33.2%, exceeding the industry growth rate by 12.3 percentage points; new energy vehicle sales were approximately 45,000 units, up approximately 288.7%[53] Group's 2021 First Half Operating Performance | Indicator | Value | | :--- | :--- | | Total Sales Volume | Approximately 1.4244 million units | | Sales Revenue | Approximately RMB 69.856 billion | | Profit Attributable to Shareholders | Approximately RMB 8.629 billion | Financial Analysis The Group demonstrated strong financial performance in the first half of 2021, with total revenue increasing by 38.1% to RMB 69.856 billion and profit attributable to shareholders surging by 136.9% to RMB 8.629 billion, alongside improved profitability and a stable financial position Revenue Analysis The Group's total revenue increased by 38.1% to RMB 69.856 billion, with all business segments showing growth, notably commercial vehicle revenue up 38.7% and passenger vehicle revenue up 39.9% Segment Revenue (For the Six Months Ended June 30) | Business Segment | 2021 (RMB million) | 2020 (RMB million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | | Passenger Vehicles | 10,639 | 7,606 | 39.9% | | Commercial Vehicles | 54,519 | 39,314 | 38.7% | | Automotive Finance | 4,465 | 3,479 | 28.3% | | Total | 69,856 | 50,576 | 38.1% | Cost, Expense, and Profit Analysis Gross profit increased by 30.5% to RMB 10.200 billion, with a comprehensive gross margin of 14.6%, while other income significantly grew due to Stellantis dividends, and profit attributable to shareholders surged by 136.9% - Other income increased by RMB 1.252 billion year-on-year, primarily due to dividends received from Stellantis during the period[61] - Finance costs decreased by RMB 395 million year-on-year, mainly due to foreign exchange gains from Euro-denominated borrowings as the Euro depreciated against the RMB[67] 2021 First Half Profit and Profitability Ratios | Indicator | 2021 First Half | 2020 First Half | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 10.200 billion | RMB 7.816 billion | +30.5% | | Comprehensive Gross Margin | 14.6% | - | - | | Share of Profits of Joint Ventures | RMB 6.458 billion | RMB 3.224 billion | +100.3% | | Profit Attributable to Shareholders | RMB 8.629 billion | RMB 3.643 billion | +136.9% | | Net Profit Margin | 12.4% | 7.2% | +5.2 percentage points | | Return on Net Assets | 12.1% | 5.7% | +6.4 percentage points | Balance Sheet and Cash Flow Analysis As of June 30, 2021, total assets grew by 2.6% to RMB 324.707 billion, total liabilities decreased by 2.8% to RMB 170.555 billion, and total equity increased by 9.2%, while cash and cash equivalents decreased due to operating and financing outflows Balance Sheet Summary (As of June 30, 2021) | Indicator | June 30, 2021 (RMB billion) | December 31, 2020 (RMB billion) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 159.455 | 144.438 | +10.4% | | Total Current Assets | 165.252 | 172.083 | -4.0% | | Total Assets | 324.707 | 316.521 | +2.6% | | Total Non-Current Liabilities | 28.857 | 33.329 | -13.4% | | Total Current Liabilities | 141.698 | 142.066 | -0.3% | | Total Liabilities | 170.555 | 175.395 | -2.8% | | Total Equity | 154.152 | 141.126 | +9.2% | Cash Flow Statement Summary (2021 First Half) | Cash Flow Item | Amount (RMB million) | | :--- | :--- | | Net cash used in operating activities | (11,466) | | Net cash generated from investing activities | 10,240 | | Net cash used in financing activities | (8,468) | | Net decrease in cash and cash equivalents | (9,694) | Interim Financial Information This section presents the Group's unaudited interim financial statements and accompanying notes for the six months ended June 30, 2021 Interim Condensed Consolidated Financial Statements This section includes the Group's unaudited interim condensed consolidated statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows for the six months ended June 30, 2021 Interim Condensed Consolidated Statement of Profit or Loss Summary (For the Six Months Ended June 30) | Item | 2021 (RMB million) | 2020 (RMB million) | | :--- | :--- | :--- | | Revenue | 69,856 | 50,576 | | Gross Profit | 10,200 | 7,816 | | Profit Before Tax | 10,555 | 4,380 | | Profit for the Period | 9,259 | 3,380 | | Profit Attributable to Equity Holders of the Parent | 8,629 | 3,643 | Interim Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2021 (RMB million) | December 31, 2020 (RMB million) | | :--- | :--- | :--- | | Total Non-Current Assets | 159,455 | 144,438 | | Total Current Assets | 165,252 | 172,083 | | Total Assets | 324,707 | 316,521 | | Total Non-Current Liabilities | 28,857 | 33,329 | | Total Current Liabilities | 141,698 | 142,066 | | Total Liabilities | 170,555 | 175,395 | | Total Equity | 154,152 | 141,126 | Notes to the Interim Condensed Consolidated Financial Statements The notes detail the basis of preparation, significant accounting policies, segment information, and related party transactions, notably the reclassification of the Stellantis investment due to loss of significant influence - The financial information was prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[98] - Due to the merger of PSA and FCA into Stellantis, the Group no longer has significant influence over the combined entity, reclassifying its investment from an associate (equity method) to a financial asset measured at fair value through other comprehensive income, with a fair value of RMB 22.284 billion as of June 30, 2021[126] - Segment information indicates that the commercial vehicle segment is the largest contributor to revenue and performance, while the passenger vehicle segment, despite higher revenue, recorded a segment loss, and the automotive finance segment showed stable performance[111] - Related party transactions are substantial, primarily involving the purchase of auto parts (RMB 10.138 billion) and vehicles (RMB 4.482 billion) from joint ventures, as well as the sale of auto parts (RMB 2.362 billion) to joint ventures[134][136]