Sales Performance - China Harmony Auto achieved new car sales of 22,447 units in the first half of 2021, representing a 53.6% increase year-on-year[11]. - BMW brand sales accounted for approximately 76.3% of total sales, with 17,116 units sold, a 51.2% increase compared to the same period last year[11]. - The luxury car market grew by 39.7% year-on-year, with sales reaching 1,471,689 units in the first half of 2021[9]. - Electric vehicle retail sales surged by 220.9% year-on-year, totaling 1,007,129 units sold in the first half of 2021[9]. - The sales momentum for luxury brands such as Lexus, Volvo, and Lincoln saw significant increases, with year-on-year growth rates of 28.8%, 46.6%, and 243.4% respectively[11]. Financial Performance - The company's revenue for the first half of 2021 was RMB 9,373.9 million, a 62.9% increase from RMB 5,754.7 million in the same period last year[16]. - New car sales revenue rose from RMB 5,021.4 million to RMB 8,251.3 million, accounting for 88.0% of total revenue in the first half of 2021[16]. - The gross profit increased by 65.3% to RMB 859.2 million, with a gross margin of 9.2%, slightly up from 9.0% in 2020[19]. - Operating profit for the first half of 2021 was RMB 564.9 million, representing a 54.2% growth compared to RMB 366.4 million in 2020[23]. - The company recorded a significant increase in net profit attributable to shareholders of RMB 390.8 million, up 66.5% from the previous year[26]. Inventory and Cash Management - The average inventory level for dealers was maintained at about 1.5 months, indicating a healthy inventory level[8]. - The company reduced its inventory days from 32 days last year to 23.7 days in the first half of 2021[11]. - Cash and deposits totaled RMB 1,926.6 million as of June 30, 2021, with net cash generated from operating activities amounting to RMB 462.5 million[27]. - Inventory slightly increased to RMB 1,117.8 million, with an average turnover period reduced by 16.2 days to 23.7 days[31]. Expansion and Growth Strategy - The company added four new authorized dealer outlets in the first half of 2021, including two for Ferrari and one each for Lamborghini and Lexus[11]. - The company is focusing on the used car and electric vehicle markets to drive future growth[12]. - The company anticipates strong performance in the second half of 2021, driven by robust demand for luxury and electric vehicles despite ongoing chip shortages[15]. - The company plans to open 4 new 4S stores, contributing to a capital expenditure of RMB 170.1 million in the first half of 2021[29]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[94]. Employee and Governance - As of June 30, 2021, the group had a total of 4,398 employees, an increase from 4,206 employees as of December 31, 2020, reflecting a growth of approximately 4.6%[38]. - The group has not engaged in any significant acquisitions or disposals during the six months ending June 30, 2021, apart from those disclosed in the interim report[39]. - The group has not granted any share awards under the share option scheme from January to June 2021 to protect the interests of all shareholders[38]. - The company has complied with the Corporate Governance Code during the reporting period[76]. - The company’s board will continue to review and monitor its corporate governance practices to maintain high standards[76]. Share Options and Financial Instruments - The group has 43,891,000 unexercised share options under the share option scheme, representing about 2.8% of the total issued shares as of June 30, 2021[38]. - The group’s share option plan aims to attract and retain capable employees, with a total of 70,000,000 new options granted in May 2017[53]. - The company repurchased a total of 6,287,000 shares at an average price of HKD 3.30, with a total cost of approximately HKD 20.93 million during the reporting period[73]. - The company has not utilized any financial derivatives to hedge against interest rate risks, which may arise from fluctuations in borrowing costs[37]. - The company recognized a foreign exchange loss of RMB 25.8 million during the six months ended June 30, 2021, compared to a loss of RMB 23.7 million in the same period last year, indicating increased volatility in foreign exchange rates[96].
和谐汽车(03836) - 2021 - 中期财报