Financial Performance - The turnover for the six months ended June 30, 2021, was RMB 3,194,976, representing a 10.1% increase from RMB 2,902,578 in the same period of 2020[12]. - The profit for the period was RMB 8,592, a significant recovery from a loss of RMB 35,021 in the previous year, marking a 124.5% improvement[12]. - Profit attributable to owners of the Company was RMB 10,382, compared to a loss of RMB 28,809 in the prior period, reflecting a 136.0% increase[12]. - Basic and diluted earnings per share were RMB 0.95, a turnaround from a loss of RMB 2.64 per share in the same period last year, indicating a 136.0% improvement[12]. - Gross profit for the Group was approximately RMB 273.6 million, reflecting a year-on-year increase of approximately 47.3% from RMB 185.7 million in 2020[45]. - The total comprehensive income for the period was RMB 8,134, compared to a loss of RMB 37,100 in the same period last year[92]. - The profit before income tax for the period was RMB 24,605, with an income tax expense of RMB 16,013, resulting in a profit for the period of RMB 8,592[148]. - The net profit for the ODM business segment was approximately RMB 66.9 million, a significant increase from RMB 2.3 million in 2020[48]. Market Trends - Global smartphone shipments are forecasted to reach approximately 1.38 billion units in 2021, an increase of 7.7% over 2020, with a projected growth of 3.8% in 2022[13]. - The Chinese smartphone market recorded its first growth in four years at the start of 2021, driven by the acceleration of 5G penetration[14]. - The demand for smartphones is expected to recover further in the second half of 2021, with increased consumer willingness to purchase 5G devices[14]. - The five-year compound annual growth rate for smartphone shipments is expected to be 3.7% through 2025[13]. - The Group anticipates favorable conditions for recovery in the supply and demand of smartphones and tablets as the pandemic stabilizes[15]. Business Segments - The ODM business accounted for approximately 95.1% of the Group's consolidated turnover, with a turnover of approximately RMB 3,037.3 million, up from RMB 2,712.6 million in 2020[30]. - The sales volume of mobile phone batteries increased by approximately 3.2% to approximately 73.3 million pieces, with a turnover of approximately RMB 2,811.9 million, reflecting a year-on-year increase of approximately 14.3%[35]. - The bare battery cell business recorded a turnover of approximately RMB 92.1 million, up from RMB 59.1 million in 2020, accounting for approximately 2.9% of the Group's consolidated turnover[30]. - The ODM business segment generated a turnover of approximately RMB 3,037.3 million, accounting for approximately 95.1% of the Group's consolidated turnover[45]. - Sales from mobile phone batteries amounted to approximately RMB 2,811.9 million, representing about 88.0% of the Group's consolidated turnover, up from 84.8% in 2020[47]. Operational Adjustments - The Company actively monitored changes in customer demand and adjusted production plans accordingly to manage risks associated with the Pandemic[23]. - The Group's capital management strategy includes evaluating the impact of the Pandemic on capital and material reserves to ensure timely payments[23]. - The Group continues to explore cost-efficient financing options to maintain financial flexibility and adequate liquidity for operations and growth plans[61]. - The Group's experienced ODM product development team focuses on optimizing battery solutions to align with customer needs, ensuring high safety standards for battery products[34]. Financial Position - As of June 30, 2021, the Group's cash and cash equivalents amounted to approximately RMB 171.7 million, a decrease from RMB 211.3 million as of December 31, 2020, primarily due to increased cash outflows for construction and equipment acquisition[64]. - The Group's outstanding borrowings increased to approximately RMB 1,149.1 million as of June 30, 2021, compared to RMB 911.9 million as of December 31, 2020, with a debt-to-equity ratio of approximately 111.8%[64]. - The current ratio remained stable at approximately 1.1 times as of June 30, 2021, with current assets of approximately RMB 4,179.7 million and current liabilities of approximately RMB 3,875.9 million[67]. - Net current assets increased by approximately 9.3% to RMB 303.8 million as of June 30, 2021, from RMB 278.0 million as of December 31, 2020[67]. - The Group's consolidated cost of sales amounted to approximately RMB 2,921.4 million, representing a 7.5% increase compared to RMB 2,716.8 million in 2020[55]. Employee and Operational Metrics - As of June 30, 2021, the Group had 3,725 full-time employees, a decrease from 4,457 employees as of June 30, 2020, representing a reduction of approximately 16.4%[73][75]. - Employee costs for the review period amounted to RMB 222.1 million, down from RMB 273.2 million for the six months ended June 30, 2020, indicating a decrease of about 18.7%[73][75]. - The management regularly reviews the remuneration policy and evaluates employee performance to ensure competitive compensation[73][75]. Compliance and Reporting - The review of interim financial information was conducted in accordance with Hong Kong Standard on Review Engagements 2410[81][82]. - The conclusion of the review indicated that the interim financial information is prepared in accordance with IAS 34[83][84]. - The interim financial information was prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant financial reporting standards[119]. - The interim financial information has been prepared in accordance with International Accounting Standards (IAS) 34 and reflects the same accounting policies as the consolidated financial statements for the year ended December 31, 2020[123][125].
锐信控股(01399) - 2021 - 中期财报