Revenue and Profitability - Revenue reached a record high of US$651.0 million, an increase of 52.0% compared to 1H 2020, primarily due to increased wafer shipments and improved average selling price[13]. - Gross profit was US$157.8 million, an increase of 55.9% compared to 1H 2020, driven by improved average selling price and capacity utilization[15]. - Profit for the period was US$58.1 million, an increase of 1,350.4% compared to US$4.0 million in 1H 2020, with a net profit margin of 8.9%[19]. - Revenue increased by 52% year-on-year in the first half of 2021, driven by long-term semiconductor demand and increased production capacity[28]. - Sales revenue reached $650.9 million, a 52.0% increase compared to $428.2 million in the same period last year[40]. - Gross profit amounted to $157.8 million, reflecting a 55.9% growth from $101.2 million year-on-year[41]. - Net profit surged to $58.1 million, up 1,350.4% from $4.0 million in the previous year[44]. - The company reported a net profit margin of 8.9%, compared to 0.9% in the same period last year[44]. Expenses and Costs - Administrative expenses decreased by 22.3% to US$100.8 million compared to 1H 2020, primarily due to decreased development costs and increased government grants for research and development[18]. - Selling and distribution expenses increased by 9.0% to US$4.6 million compared to 1H 2020, mainly due to increased labor expenses[17]. - Financial expenses increased significantly to $5.1 million, up 717.8% from $0.6 million, attributed to higher bank borrowings[44]. - Other income and gains decreased by 16.4% to US$21.2 million compared to 1H 2020, primarily due to decreased fair value gains on financial assets[16]. Assets and Liabilities - Current assets increased by 14.8% to US$1,614.7 million as of 30 June 2021, driven by a 57.1% increase in inventories[20]. - Total non-current assets increased by 6.8% to US$3,376.3 million as of 30 June 2021, reflecting growth in property, plant, and equipment[20]. - Other current liabilities increased from US$469.4 million to US$589.9 million, primarily due to increased advances from customers[22]. - Current liabilities grew by 34.8% to $896.3 million, reflecting increased financial obligations[45]. - Total non-current liabilities rose to US$643,108,000, up from US$549,417,000, indicating an increase of about 16.9%[66]. Cash Flow - Net cash flows generated from operating activities increased by 68.0% to US$159.96 million, primarily due to improved collection of trade receivables[24][25]. - Net cash flows used in investing activities amounted to US$302.2 million, mainly for capital investments[26]. - Net cash flow from financing activities was $187.51 million, including bank borrowings of $190.8 million[53]. - Cash and cash equivalents at the end of the period increased by 39.4% to US$974.52 million[24]. Inventory and Trade Receivables - Inventories rose from US$226.5 million to US$355.9 million, reflecting increased customer demand[21]. - Trade receivables decreased from $121 million to $108.4 million, benefiting from improved customer credit management[47]. - The impairment of trade receivables was US$109,790,000 as of June 30, 2021, down from US$122,571,000 as of December 31, 2020, showing a reduction of 10.4%[115]. Share Capital and Equity - The company reported a profit of US$77,141,000 for the period, contributing to a total comprehensive income of US$102,498,000[69]. - Equity attributable to owners of the parent reached US$1,984,207,000, a slight increase from US$1,979,033,000, showing a growth of approximately 0.3%[66]. - The Group's share capital increased to US$1,984,207,000 as of June 30, 2021, up from US$1,971,748,000 as of June 30, 2020[120]. - The total equity increased to US$3,451,574,000 as of June 30, 2021, compared to US$3,354,121,000 at the end of 2020, marking an increase of approximately 2.9%[66]. Market Performance - The shipment volume of IGBT increased by 121% year-on-year, contributing to a 40% revenue increase in discrete devices[30]. - Revenue from China (including Hong Kong) reached $474,953,000, up 81% from $262,093,000 in 2020[86]. - The Group's revenue from Asia (excluding China and Japan) increased to $74,409,000 from $57,866,000 in 2020, marking a 29% growth[86]. - The Group's revenue from Europe was $31,118,000, down from $35,298,000 in 2020, indicating a decline in this market[86]. Corporate Governance and Compliance - The company continues to adhere to HKAS 34 in preparing its interim financial information, ensuring compliance with relevant accounting standards[59]. - The Group's financial information is unaudited as of June 30, 2021, indicating a need for caution in interpreting the results[121]. - The Group did not declare any interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[110]. Employee and Management - The company had approximately 6,000 employees as of June 30, 2021, up from approximately 5,500 a year earlier[199]. - Total compensation paid to key management personnel for the six months ended June 30, 2021, was $1,530,000, slightly down from $1,588,000 in 2020, a decrease of 3.7%[137]. Related Party Transactions - The Group's related party transactions include dealings with Huahong Group and its subsidiaries, which are significant shareholders[128]. - Sales of goods to related parties for the six months ended June 30, 2021, amounted to $5,565,000, an increase from $5,219,000 in 2020, representing a growth of 6.6%[133]. - Purchases of goods from related parties totaled $10,685,000 for the same period, significantly up from $5,443,000 in 2020, indicating a year-over-year increase of 96.5%[133]. Financial Assets and Investments - The fair value of equity investments designated at fair value through other comprehensive income as of June 30, 2021, is $232.575 million, with $2.533 million categorized under Level 2 and $230.042 million under Level 3[150]. - The total fair value of financial assets measured at fair value as of December 31, 2020, was $230.265 million[151]. - The company confirms compliance with accounting policies for investments and financial assets as per HKFRS 9[197].
华虹半导体(01347) - 2021 - 中期财报