Financial Performance - Revenue for 1H 2020 was US$428.2 million, a decrease of 5.0% compared to 1H 2019[11] - Gross profit for 1H 2020 was US$101.2 million, down 28.9% from 1H 2019[13] - Profit for the period was US$4.0 million, a significant decrease of 95.9% compared to 1H 2019, resulting in a net profit margin of 0.9%[20] - Other income and gains were US$25.4 million, a decrease of 20.1% compared to 1H 2019[14] - Cost of sales rose to US$327.0 million, an increase of 6.0% compared to 1H 2019[12] - The gross margin for the first half of 2020 was approximately 23.6%, down from 31.6% in the first half of 2019[43] - The company reported a net profit of $4.0 million for the first half of 2020, a decline of 95.9% compared to $96.5 million in the same period of 2019[51] - Profit attributable to ordinary equity holders of the parent for the six months ended June 30, 2020, was US$38,140,000, a decrease of 58.1% compared to US$90,826,000 for the same period in 2019[107] Expenses and Costs - Administrative expenses increased by 105.7% to US$129.7 million in 1H 2020, primarily due to higher development and labor costs[16] - Selling and distribution expenses were US$4.2 million, up 5.5% from 1H 2019[15] - The cost of inventories sold was $326,972,000, an increase from $308,370,000 in 2019[95] Cash Flow and Liquidity - Cash and cash equivalents rose from US$476.3 million to US$699.0 million, reflecting a 46.8% increase primarily from operational cash flow[27] - Net cash flows generated from operating activities decreased by 4.3% from US$99.5 million to US$95.2 million due to increased payments for materials and labor[28] - Net cash flows generated from investing activities were US$132.9 million, primarily due to significant payouts from financial assets[29] - The company reported a net increase in cash and cash equivalents of 281.9% from $59,309 thousand to $226,501 thousand[57] Assets and Liabilities - Property, plant and equipment increased from US$1,558.3 million to US$1,790.9 million, a growth of 14.9% due to the construction of Hua Hong Wuxi[22] - Non-current assets increased by 13.4% from $2,116,692 thousand to $2,401,272 thousand, primarily due to the construction of Huahong Wuxi[52] - Current liabilities increased by 2.4% from $475,339 thousand to $486,955 thousand, with trade payables rising by 7.5%[52] - Deferred tax liabilities decreased from US$17.2 million to US$3.2 million, a reduction of 81.4% due to a reversal of dividend withholding tax accrued for 2019[26] Market and Sales Performance - The decrease in revenue was primarily due to lower average selling prices and decreased demand for smart card ICs and super junction products[11] - The company achieved an 11% quarter-over-quarter revenue rebound in Q2 2020 despite the ongoing impact of COVID-19[31] - Revenue from China (including Hong Kong) was $262,093,000, representing an increase of 7.4% from $243,904,000 in 2019[88] - Revenue from the United States decreased by 29% to $59,121,000 from $83,136,000 in 2019[88] - Revenue from Asia (excluding China and Japan) increased by 9.5% to $57,866,000 compared to $53,059,000 in 2019[88] - Revenue from Europe decreased slightly to $35,298,000 from $36,706,000 in 2019[88] - Revenue from Japan saw a significant decline of 59.3%, dropping to $13,826,000 from $33,985,000 in 2019[88] Strategic Developments - The 12-inch wafer fab commenced mass production of 90nm embedded flash memory technology, positioning the company for future market opportunities[32] - The company plans to continue developing its power discrete device and embedded flash memory businesses in both 8-inch and 12-inch wafer fabs[34] - Future business development will emphasize power discrete devices, embedded flash MCU, power management chips, and mobile RF ICs[61] Shareholder and Equity Information - Basic earnings per share for the period were calculated based on a weighted average of 1,291,026,256 shares[105] - The total number of issued shares of the Company as of June 30, 2020, was 1,293,234,591 shares, which is the basis for calculating ownership percentages[178] - The total outstanding options as of June 30, 2020, were 45,022,996 after accounting for cancellations and exercises[166] - The Group's gearing ratio as of June 30, 2020, was -9.92%, indicating a decrease from -2.14% as of December 31, 2019[178] Corporate Governance - The Company has maintained high standards of corporate governance, complying with the Corporate Governance Code during the reporting period[190] - The Audit Committee has reviewed and approved the unaudited results for the six months ended June 30, 2020, discussing accounting principles, internal controls, and financial reporting matters with management[196] - The interim report for the six months ended June 30, 2020, will be published on the Stock Exchange and the company's websites in due course, containing information required by Appendix 16 of the Listing Rules[197]
华虹半导体(01347) - 2020 - 中期财报