Financial Performance - The Group's turnover for the six months ended June 30, 2021, was approximately RMB 5,180.5 million, representing a 40.6% increase from RMB 3,684.2 million in the same period of 2020[12]. - Gross profit for the same period was RMB 745.0 million, up 56.1% from RMB 477.4 million year-on-year[12]. - Profit for the period increased significantly to RMB 44.5 million, a 233.8% rise compared to RMB 13.3 million in the previous year[12]. - Profit attributable to owners of the parent was RMB 29.2 million, reflecting a 15.9% increase from RMB 25.2 million in 2020[12]. - Basic earnings per share remained stable at RMB 0.02 for both 2021 and 2020[14]. - Profit before tax for the period was RMB 55.5 million, compared to RMB 26.1 million in the same period of 2020[83]. - Total comprehensive income for the period reached RMB 49,545,000, a significant increase from RMB 4,701,000 in the previous year, representing a growth of approximately 951%[175]. - The net income attributable to owners of the parent was RMB 34,072,000, compared to RMB 16,890,000 in 2020, marking an increase of about 102%[175]. Revenue Breakdown - Revenue from the Power Solutions business was RMB 4,248.0 million, an increase of 24.7% from RMB 3,405.4 million in the same period last year[31]. - The Recycled Lead business saw revenue of RMB 932.5 million, a significant increase of 234.5% from RMB 278.8 million in the corresponding period of 2020[31]. - Revenue in Mainland China increased by 38.2% to RMB 3,157.5 million, primarily due to increased production output from the Recycled Lead business[68]. - The reserve power battery business accounted for 39.1% of total sales, with sales revenue of RMB 2,028.1 million, a 10.1% increase from RMB 1,842.3 million in the same period last year[37]. - The SLI battery business contributed 27.5% of total sales, with revenue of RMB 1,425.9 million, representing a 35.7% increase from RMB 1,050.7 million in the same period last year[40]. - The motive power battery segment contributed 10.6% of total sales, with revenue of RMB 547.9 million, a 13.7% increase from RMB 481.7 million in the same period last year[40]. Operational Insights - The Group serves battery customers in over 100 countries through more than 80 sales offices and 11 manufacturing facilities located in various countries[22]. - The Group provides backup power solutions to leading telecommunications operators and data center solution providers globally[20]. - The Group anticipates that the new 5G investment cycle will drive growth in the telecommunications and data center backup power solution market in China, presenting new growth opportunities[50]. - The Group has increased resources for research and development to meet the rapid expansion of mobile and data center infrastructure requirements, impacting short-term profitability[50]. Cost and Expenses - Cost of sales rose by 38.3% to RMB 4,435.5 million, primarily due to increased sales[73]. - Selling and distribution expenses increased by 44.4% to RMB 247.5 million, driven by higher freight charges and sales staff commissions[78]. - Research and development expenditure surged by 140.6% to RMB 172.4 million, focusing on performance enhancement of existing products and new product development[78]. - Administrative expenses and research and development costs totaled RMB 143,971 and RMB 172,357 respectively for the six months ended June 30, 2021[167]. Financial Position - As of June 30, 2021, the Group's net current assets were RMB 534.2 million, with cash and bank deposits totaling RMB 858.2 million[83]. - The Group's gearing ratio was 25.2% as of June 30, 2021, slightly down from 25.4% at the end of 2020[86]. - As of June 30, 2021, the Group's bank borrowings amounted to RMB 2,341.6 million, with an interest rate range of 1.80% to 7.90%[88]. - The Group's debt-to-asset ratio was 25.2% as of June 30, 2021, slightly down from 25.4% at the end of 2020[89]. - Current assets totaled RMB 5,828,453,000, up from RMB 5,594,180,000, reflecting an increase of approximately 4.2%[177]. - Total current liabilities amounted to RMB 5,294,298,000, an increase from RMB 4,997,761,000, which is approximately 5.9% higher[179]. - Total equity increased to RMB 3,450,285,000 from RMB 3,399,936,000, showing a growth of approximately 1.5%[181]. Share Options and Corporate Governance - The total number of shares issued as of June 30, 2021, is 1,357,854,666[132]. - The company has authorized a stock option plan allowing for the issuance of up to 135,764,466 shares, representing 10% of the issued shares as of the special meeting date on October 30, 2020[125]. - The company secured a term loan facility of US$100,000,000 to refinance a previous facility and finance working capital, with repayment scheduled in five installments of 15%, 15%, 15%, 15%, and 40% over three years[137][138]. - The company is committed to high standards of corporate governance and believes it has met the relevant code provisions during the reporting period[146]. - The Audit Committee has reviewed the unaudited financial statements and discussed accounting principles and internal controls with management and auditors[148].
理士国际(00842) - 2021 - 中期财报