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亨鑫科技(01085) - 2021 - 中期财报
HXTLHXTL(HK:01085)2021-08-27 10:29

Financial Performance - Revenue for the six months ended June 30, 2021, decreased by approximately RMB 54.3 million or 9.6% to approximately RMB 511.4 million[1] - Gross profit decreased by approximately RMB 22.6 million or 17.4% to approximately RMB 107.1 million[1] - Profit attributable to equity shareholders decreased by approximately RMB 9.6 million or 37.8% to approximately RMB 15.8 million[1] - Basic earnings per share were approximately RMB 0.041, a decrease of approximately RMB 0.025 or 37.9%[1] - The total comprehensive income for the six months ended June 30, 2021, was RMB 12.568 million, down from RMB 25.241 million in the same period of 2020[6] - The company's total comprehensive income for the first half of 2021 was RMB 15,597 thousand, compared to RMB 25,241 thousand in the first half of 2020[26] - The pre-tax profit decreased from approximately RMB 31.6 million in the first half of 2020 to about RMB 14.4 million in the first half of 2021, a decline of approximately RMB 17.2 million or 54.4%[90] - The net profit attributable to equity shareholders was approximately RMB 15.8 million in the first half of 2021, a decrease of about RMB 9.6 million or 37.8% compared to RMB 25.4 million in the first half of 2020[92] Dividends and Shareholder Returns - No interim dividend was recommended for the six months ended June 30, 2021[1] - The company did not declare any interim dividends for the six months ended June 30, 2021, and June 30, 2020[58] - The company paid dividends of RMB (6,130) thousand during the first half of 2021, down from RMB (11,329) thousand in the same period of 2020[24] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 2,244.997 million, compared to RMB 2,227.781 million as of December 31, 2020[13] - Total liabilities as of June 30, 2021, were RMB 506.145 million, an increase from RMB 495.367 million as of December 31, 2020[20] - The asset-liability ratio increased to 23% as of June 30, 2021, from 22% as of December 31, 2020[106] - Short-term loans amounted to approximately RMB 292.06 million as of June 30, 2021, an increase from RMB 278.371 million as of December 31, 2020[104] Cash Flow and Investments - Cash and cash equivalents decreased to RMB 529.779 million from RMB 887.073 million as of December 31, 2020[11] - The company reported a net cash decrease of RMB (361,883) thousand in cash and cash equivalents for the first half of 2021, compared to a decrease of RMB (10,861) thousand in the same period of 2020[24] - Net cash used in investing activities for the first half of 2021 was RMB (232,811) thousand, compared to RMB (60,637) thousand in the first half of 2020, indicating a significant increase in investment outflows[24] Revenue Breakdown - Revenue from RF coaxial cables was RMB 98,426 thousand, down 65.6% from RMB 286,647 thousand in the previous year[34] - Revenue from telecommunications equipment and accessories was RMB 101,065 thousand, a decrease of 16.1% from RMB 120,520 thousand in the prior year[34] - Revenue from antennas was RMB 30,138 thousand, down 77.5% from RMB 134,181 thousand in the previous year[34] - Revenue from the Chinese market was RMB 449,952 thousand, accounting for approximately 87.9% of total revenue, while revenue from India was RMB 4,954 thousand, contributing about 1%[48] Operational Efficiency - The company plans to continue focusing on resource allocation and performance evaluation across its reportable segments to enhance operational efficiency[36] - The overall gross margin for the first half of 2021 was approximately 20.9%, a decrease of about 2.0 percentage points compared to 22.9% in the first half of 2020[80] - The gross margin for RF coaxial cables decreased from approximately 22.2% in the first half of 2020 to about 18.8% in the first half of 2021, resulting in a year-on-year decrease in gross profit contribution of approximately RMB 10.6 million or 16.6%[80] - The gross margin for telecommunications equipment and accessories fell from 29.5% in the first half of 2020 to approximately 23.9% in the first half of 2021, with a year-on-year decrease in gross profit contribution of approximately RMB 12.0 million or 33.8%[81] Employee and Management - The company employed 744 employees as of June 30, 2021, a decrease from 772 employees as of December 31, 2020[131] - Total remuneration for directors and key management personnel increased to RMB 3.669 million in the first half of 2021 from RMB 3.381 million in the first half of 2020[70] - The company has adopted an employee stock option incentive plan to motivate key employees for sustainable development[131] Market Outlook and Challenges - The group anticipates a gradual recovery in domestic investment in the telecommunications industry, with project construction beginning to pick up in the second quarter of 2021[110] - The group faces challenges in overseas markets due to the ongoing severity of the COVID-19 pandemic, impacting product shipments[110] - The company is facing challenges in exports due to ongoing COVID-19 impacts and rising costs from inflation and shipping fees[113] - The company aims to achieve better performance in the second half of 2021, leveraging opportunities from the expanding 5G network coverage[114] Research and Development - Research and development costs increased from approximately RMB 29.8 million in the first half of 2020 to about RMB 36.6 million in the first half of 2021, an increase of approximately RMB 6.8 million or 22.8%[86] Strategic Initiatives - The company is actively developing and selling new products while optimizing its sales structure to mitigate the impact of rising raw material costs[112] - The company is utilizing hedging strategies to counteract the effects of raw material price increases[112] - The company successfully won bids exceeding RMB 600 million in the 700 MHz tender for China Mobile and China Broadcasting, indicating a strong position in the 5G business development[112]