华众车载(06830) - 2020 - 中期财报

Company Information Company Basic Information This section provides fundamental details of Huazhong Vehicle Holdings Limited, including board members, headquarters, and listing information - The company's board of directors comprises executive, non-executive, and independent non-executive directors, with Mr. Zhou Minfeng serving as Chairman and CEO[4] - The company is registered in the Cayman Islands, with its China headquarters in Xiangshan County, Zhejiang Province, and its principal Hong Kong office in Shun Tak Centre[4] - The company's stock code is 6830, listed on the Main Board of The Stock Exchange of Hong Kong Limited[4] Management Discussion and Analysis Business and Market Review The Group's core business involves manufacturing automotive parts and non-automotive products, experiencing significant declines in revenue and profit in H1 2020 - The Group's principal business is the manufacturing and sales of automotive interior and exterior parts, moulds and tools, air-conditioning/heater casings/reservoirs, and non-automotive products[5] - In H1 2020, China's automobile production and sales volumes decreased by 16.8% and 16.9% respectively, leading to an overall market decline[5] 2020 H1 Key Financial Performance | Metric | 2020 H1 (RMB thousands) | 2019 H1 (RMB thousands) | Comparative Change | | --- | --- | --- | --- | | Revenue | 758,941 | 919,456 | -17.5% | | Profit attributable to owners of the parent | 21,781 | 48,709 | -55.3% | Financial Review This section reviews the Group's H1 2020 financial performance, noting decreased revenue and gross profit, but reduced administrative expenses 2020 H1 Revenue and Gross Profit Margin Overview | Product Category | 2020 Revenue (RMB thousands) | 2020 Gross Profit Margin (%) | 2019 Revenue (RMB thousands) | 2019 Gross Profit Margin (%) | | --- | --- | --- | --- | --- | | Automotive interior and exterior parts | 585,523 | 24.5 | 656,053 | 31.8 | | Moulds and tools | 78,870 | 29.5 | 153,638 | 11.5 | | Air-conditioning/heater casings/reservoirs | 29,871 | 15.5 | 40,616 | 13.5 | | Non-automotive products | 9,480 | 19.6 | 26,475 | 45.6 | | Sales of raw materials | 55,197 | 15.5 | 42,674 | 5.1 | | Total | 758,941 | 24.0 | 919,456 | 26.8 | - Revenue from automotive interior and exterior parts decreased, with gross profit margin falling from 31.8% to 24.5%, primarily due to reduced orders from a sluggish automotive market[7] - Revenue from moulds and tools decreased, but gross profit margin significantly increased from 11.5% to 29.5%[8] - Administrative expenses decreased by approximately 21.5% to RMB98,176,000 thousands, mainly due to lower staff costs and benefits, research and development expenses, and professional service fees[11] - Share of profit of a joint venture increased by 20.9% to RMB8,639,000 thousands[12] - Tax expense decreased by 33.2% to RMB8,158,000 thousands, primarily due to a decrease in taxable profit[15] Liquidity and Financial Resources The Group saw increased net cash outflow from operations, reduced investment cash outflow, and a significant decrease in cash and cash equivalents 2020 H1 Cash Flow Overview | Cash Flow Category | 2020 H1 (RMB thousands) | 2019 H1 (RMB thousands) | | --- | --- | --- | | Net cash used in operating activities | (86,732) | (52) | | Net cash used in investing activities | (66,821) | (116,323) | | Net cash generated from financing activities | 42,404 | 127,747 | - As of June 30, 2020, Cash and cash equivalents were RMB77,101,000 thousands, significantly decreased compared to RMB188,250,000 thousands at year-end 2019[16] - As of June 30, 2020, total interest-bearing bank borrowings were RMB925,558,000 thousands, of which RMB866,558,000 thousands are repayable within one year[16] Capital Commitments As of June 30, 2020, the Group's capital commitments for property, plant, and equipment were approximately RMB142.1 million, a decrease from year-end 2019 Capital Commitments | Item | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Purchase of property, plant and equipment | 142,105 | 160,011 | Foreign Exchange Risk The Group's transactions are primarily in RMB, HKD, and EUR; management monitors exchange rate fluctuations but currently has no hedging policy - Group sales, purchases, cash, and borrowings are primarily denominated in RMB, HKD, and EUR[18] - No foreign currency hedging policy is currently adopted, as exchange rate fluctuation risk is not significant, but management will closely monitor[18] Share Capital Structure As of June 30, 2020, the company had 1,769,193,800 issued and fully paid ordinary shares - As of June 30, 2020, the total number of issued and fully paid ordinary shares was 1,769,193,800 shares[19] Contingent Liabilities As of June 30, 2020, the Group had no significant contingent liabilities - As of June 30, 2020, the Group had no significant contingent liabilities[19] Pledged Assets As of June 30, 2020, approximately RMB164.8 million of the Group's assets were pledged for interest-bearing bank and other borrowings Pledged Assets Carrying Amount | Asset Category | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Property, plant and equipment | 15,989 | 16,649 | | Investment property | 1,759 | 1,884 | | Right-of-use assets | 38,034 | 46,803 | | Pledged deposits | 109,000 | 117,434 | | Total | 164,782 | 182,770 | Gearing Ratio As of June 30, 2020, the Group's gearing ratio slightly increased to approximately 66.5% from 65.3% at year-end 2019 Gearing Ratio | Metric | 2020 June 30 | 2019 December 31 | | --- | --- | --- | | Gearing ratio | 66.5% | 65.3% | Significant Investments, Acquisitions, Disposals, and Future Capital Plans The Group reported no significant investments, acquisitions, or disposals, with no future plans for major capital asset additions - The Group had no significant investments, acquisitions or disposals of subsidiaries, associates and joint ventures during the reporting period[23] - The Board currently has no future plans for any significant investments or additions of capital assets[23] Employees and Remuneration Policy As of June 30, 2020, the Group's employee count and total staff costs decreased, with remuneration policies aligned with market conditions Employees and Remuneration Overview | Metric | 2020 June 30 | 2019 June 30 | | --- | --- | --- | | Employee headcount | 2,778 | 3,416 | | Total staff costs (RMB thousands) | 95,946 | 129,640 | - Remuneration policy is in line with relevant laws, market conditions and employee performance, and share options may be granted to outstanding performers[24] Events After Reporting Period No significant events occurred after June 30, 2020, up to the report date - No significant events occurred after the reporting period[25] Outlook The Group anticipates a challenging industry environment but plans to enhance competitiveness through internal optimization, R&D, and cost control - The COVID-19 pandemic severely impacted China's economy and automotive demand, but Group production bases fully resumed operations by late February[26] - Chinese government policies and stimulus measures, such as increasing vehicle license plate quotas and subsidizing electric vehicles, are expected to drive a moderate market rebound[26] - The Group will closely collaborate with high-end and joint venture automotive, and electric vehicle brand customers to capture market recovery opportunities, utilizing plastic product design and manufacturing technology to provide lightweight solutions[26] - The Group will continue to invest in R&D, streamline production processes, and reduce operating expenses to address challenges and maintain financial stability[26] Forward-Looking Statements This section contains forward-looking statements about future financial and operational results, subject to risks and uncertainties - Forward-looking statements represent only the company's expectations or beliefs regarding future events, involving known and unknown risks and uncertainties[27] - Actual results, performance or events may differ materially from those expressed or implied[27] Corporate Governance and Other Information Corporate Governance Code The company adopted and generally complied with the Corporate Governance Code, with a noted deviation regarding the Chairman and CEO roles - The company adopted and complied with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are held by Mr. Zhou Minfeng, deviating from Code Provision A.2.1[28][29] - The Board believes this structure allows for efficient execution of business strategies and operations, and will review this deviation periodically[29] Standard Securities Dealing Code for Directors of Listed Issuers The company adopted and confirmed directors' compliance with the Standard Securities Dealing Code for listed issuers during the reporting period - The company adopted the Standard Code, and all directors confirmed compliance with the code during the reporting period[30] Update on Directors' Information This section updates the renewal status of engagement letters for several non-executive and independent non-executive directors - Non-executive Directors Mr. Guan Xin and Mr. Yu Zhuoping's engagement letters were renewed for terms of three years and two years respectively[31] - Independent Non-executive Directors Mr. Yu Shuli, Mr. Tian Yushi, and Mr. Xu Jiali's engagement letters were renewed, all for terms of three years[31][32] - Independent Non-executive Director Mr. Wu Bichao's engagement letter was renewed for a term of one year[32] Directors' and Chief Executive's Interests and Short Positions This section discloses directors' and chief executive's interests in the company's shares as of June 30, 2020 Directors' Long Positions in the Company | Name | Capacity/Nature of interest | Number of shares | Approximate percentage | | --- | --- | --- | --- | | Mr. Zhou Minfeng | Interest in controlled corporation | 1,320,000,000 | 74.61% | | Mr. Zhou Minfeng | Spouse's interest | 1,100,000 | 0.06% | | Mr. Chang Jingzhou | Beneficial owner | 840,400 | 0.05% | | Mr. Wang Lianzhang | Beneficial owner | 1,000,000 | 0.06% | Share Option Scheme The company's share option scheme aims to incentivize eligible individuals, with no unexercised options or related activities during the period - The share option scheme aims to provide individual equity opportunities to incentivize and reward eligible individuals contributing to the Group[35] - During the reporting period and up to the report date, there were no unexercised share options, and no share options were granted, exercised, lapsed or cancelled[35] Arrangements for Directors to Purchase Shares or Debentures During the six months ended June 30, 2020, no directors or their associates were granted or exercised rights to profit from purchasing company shares or debentures - During the six months ended June 30, 2020, Directors and their associates were not granted or exercised any rights to profit from purchasing company shares or debentures[36] Substantial Shareholders' Interests and Short Positions This section discloses substantial shareholders' interests in the company's shares as of June 30, 2020 Substantial Shareholders' Long Positions in the Company | Name | Capacity/Nature of interest | Number of shares | Approximate percentage | | --- | --- | --- | --- | | Huayou Holdings | Beneficial owner | 1,320,000,000 | 74.61% | | Ms. Chen Chun'er | Beneficial owner | 1,100,000 | 0.06% | | Ms. Chen Chun'er | Spouse's interest | 1,320,000,000 | 74.61% | - Shanghai Automotive Air-Conditioner Factory and Shanghai Beicai Industrial Co., Ltd. directly hold 30% and 19% interests in Shanghai Huaxin respectively, and indirectly hold 30% and 19% interests in Changxing Huaxin[40] Audit Committee The Audit Committee, composed of independent non-executive directors, reviewed and approved the interim results announcement - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Yu Shuli[41] - The committee's responsibilities include reviewing and overseeing financial reporting, risk management, and internal control systems[41] - The Audit Committee reviewed the interim results and deemed them properly prepared and disclosed in accordance with applicable accounting standards, rules, and regulations[41] Purchase, Sale or Redemption of Listed Securities During the six months ended June 30, 2020, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities - The company or its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[42] Interim Dividend The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2020 - The Board decided not to declare an interim dividend for H1 2020[42] Acknowledgement The Chairman, Mr. Zhou Minfeng, expressed gratitude to the directors for their guidance and to all employees for their diligent service - Chairman Mr. Zhou Minfeng expressed gratitude to the directors and employees[42] Interim Condensed Consolidated Statement of Profit or Loss Profit or Loss Statement Overview This section presents the unaudited interim condensed consolidated statement of profit or loss for the six months ended June 30, 2020 and 2019 Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Revenue | 758,941 | 919,456 | | Cost of sales | (577,037) | (673,255) | | Gross profit | 181,904 | 246,201 | | Other income and gains | 17,066 | 17,186 | | Selling and distribution expenses | (55,248) | (60,857) | | Administrative expenses | (98,176) | (125,093) | | Net impairment losses on financial assets | (1,300) | (201) | | Other expenses | (4,493) | (2,942) | | Share of profit of a joint venture | 8,639 | 7,142 | | Finance income | 2,261 | 2,464 | | Finance costs | (19,317) | (20,930) | | Profit before tax | 31,336 | 62,970 | | Income tax expense | (8,158) | (12,220) | | Profit for the period | 23,178 | 50,750 | | Profit attributable to owners of the parent | 21,781 | 48,709 | | Non-controlling interests | 1,397 | 2,041 | | Basic and diluted earnings per share (RMB per share) | 0.0123 | 0.0275 | Interim Condensed Consolidated Statement of Comprehensive Income Comprehensive Income Statement Overview This section presents the unaudited interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2020 and 2019 Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Profit for the period | 23,178 | 50,750 | | Exchange differences on translation of foreign operations | — | (464) | | Equity investments designated at fair value through other comprehensive income: fair value changes | (11,360) | 17,281 | | Income tax effect | 2,840 | (4,321) | | Total comprehensive income for the period | 14,658 | 63,246 | | Attributable to owners of the parent | 13,261 | 61,205 | | Non-controlling interests | 1,397 | 2,041 | Interim Condensed Consolidated Statement of Financial Position Financial Position Statement Overview This section presents the unaudited interim condensed consolidated statement of financial position as of June 30, 2020 and December 31, 2019 Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Total non-current assets | 1,447,156 | 1,419,830 | | Total current assets | 1,855,696 | 1,886,031 | | Total current liabilities | 2,129,592 | 2,145,608 | | Net current liabilities | (273,896) | (259,577) | | Total non-current liabilities | 92,082 | 85,329 | | Net assets | 1,081,178 | 1,074,924 | | Total equity | 1,081,178 | 1,074,924 | Interim Condensed Consolidated Statement of Changes in Equity Statement of Changes in Equity Overview This section presents the unaudited interim condensed consolidated statement of changes in equity for the six months ended June 30, 2020 and 2019 - As of June 30, 2020, total equity attributable to owners of the parent was RMB1,041,922 thousands, and non-controlling interests were RMB39,256 thousands[48] - Profit for the period was RMB21,781 thousands, and fair value changes of equity investments designated at fair value through other comprehensive income resulted in a net other comprehensive loss of RMB8,520 thousands[48] - Total comprehensive income for the period was RMB14,658 thousands[48] Interim Condensed Consolidated Statement of Cash Flows Cash Flow Statement Overview This section presents the unaudited interim condensed consolidated statement of cash flows for the six months ended June 30, 2020 and 2019 Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash Flow Category | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Net cash flows used in operating activities | (86,732) | (52) | | Net cash flows used in investing activities | (66,821) | (116,323) | | Net cash flows generated from financing activities | 42,404 | 127,747 | | Net decrease/increase in cash and cash equivalents | (111,149) | 11,372 | | Cash and cash equivalents at end of period | 77,101 | 90,124 | Notes to the Interim Condensed Consolidated Financial Information Company Information This note reiterates Huazhong Vehicle Holdings Limited's registration, listing, and primary business scope - The company was incorporated on December 3, 2010, in the Cayman Islands and listed on January 12, 2012, on the Main Board of The Stock Exchange of Hong Kong[53] - The Group is principally engaged in the manufacturing and sales of automotive interior and exterior parts, moulds and tools, air-conditioning/heater casings/reservoirs, and other non-automotive products[53] Basis of Preparation This note explains the interim condensed consolidated financial information is prepared under IAS 34, despite a net current liability position - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[54] - As of June 30, 2020, the Group recorded net current liabilities of RMB273,896,000 thousands[55] - The Board prepared the financial information on a going concern basis and implemented measures, including unutilized credit facilities and cost control, to improve its financial position[55] Changes in Accounting Policies and Disclosures This note lists newly adopted IFRS amendments, which had no material impact on the Group's financial position or performance - Amendments to IFRS 3, IFRS 9, IAS 39, IAS 7, IAS 1, IAS 8, and IFRS 16 were adopted for the first time in the current period[56][57] - These amendments had no impact on the Group's financial position or performance[57] Operating Segment Information The Group operates as a single business unit, thus no segment analysis is presented, with most non-current assets located in Mainland China - The Group is organized as a single business unit, primarily engaged in the production and sale of automotive parts and non-automotive products, thus no segment analysis is presented[58] Non-current Assets by Region | Region | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Mainland China | 1,385,533 | 1,349,127 | Revenue, Other Income and Gains This note details the Group's revenue sources by goods/services, geographical markets, and revenue recognition timing, along with other income and gains Revenue Classification (For the six months ended June 30) | Classification of goods or services | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Sales of plastic parts and automotive parts | 680,071 | 765,818 | | Sales of moulds and tools | 78,870 | 153,638 | | Other income | 758,941 | 919,456 | | Management services | 1,823 | 1,971 | | Geographical market - Mainland China | 739,644 | 819,482 | | Geographical market - Overseas | 21,120 | 101,945 | Other Income and Gains Analysis (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Rental income | 7,025 | 6,040 | | Government grants | 6,073 | 4,934 | | Dividend income | 1,811 | 2,014 | Finance Income This note discloses the Group's finance income, primarily from bank deposit interest, totaling RMB2.26 million in H1 2020 Finance Income (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Interest income from bank deposits | 2,261 | 2,464 | Finance Costs This note details the Group's finance costs, mainly interest expenses on bank borrowings and lease liabilities, totaling RMB19.32 million in H1 2020 Finance Costs (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Interest expense on interest-bearing bank borrowings | 19,140 | 20,720 | | Interest expense on lease liabilities | 177 | 210 | | Total | 19,317 | 20,930 | Profit Before Tax This note itemizes expenses and income deducted or included in calculating profit before tax, such as inventory costs, depreciation, and staff benefits Profit Before Tax Adjustments (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Cost of inventories recognized as expense | 577,037 | 673,255 | | Depreciation of property, plant and equipment | 44,298 | 44,516 | | Staff costs and benefits (excluding directors' and chief executive's emoluments) | 95,946 | 119,686 | | Net rental income | (7,025) | (6,040) | | Net foreign exchange differences | 3,037 | 1,586 | | Impairment of trade receivables | 1,300 | 201 | Income Tax This note outlines the Group's income tax expense components, including current and deferred tax, totaling RMB8.16 million in H1 2020 Income Tax Expense (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Current income tax - expense for the period | 27,182 | 13,875 | | Deferred income tax | (19,024) | (1,655) | | Total income tax expense for the period | 8,158 | 12,220 | Dividends This note provides information on declared final dividends and confirms the Board's decision not to declare an interim dividend for H1 2020 Final Dividend Declared | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Per ordinary share 0.5206 HK cents (2019: 0.4714 HK cents) | 8,404 | 7,130 | - The Board decided not to declare an interim dividend for H1 2020[68] Earnings Per Share Attributable to Owners of the Parent This note explains the calculation of basic and diluted earnings per share, which was RMB0.0123 in H1 2020 Earnings Per Share Calculation Basis (For the six months ended June 30) | Metric | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Profit attributable to owners of the parent used in calculating basic and diluted earnings per share | 21,781 | 48,709 | Earnings Per Share Calculation Basis (For the six months ended June 30) | Number of shares | 2020 | 2019 | | --- | --- | --- | | Weighted average number of ordinary shares in issue for basic earnings per share during the period | 1,769,193,800 | 1,769,193,800 | Property, Plant and Equipment This note discloses the Group's H1 2020 purchases of property, plant, and equipment totaling RMB116.02 million, and disposals generating a net gain Property, Plant and Equipment Changes (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Total cost of purchases | 116,016 | 156,062 | | Net book value of assets disposed of | 7,735 | 25,765 | | Net gain on disposal | 25 | 1,178 | Trade and Bills Receivables This note provides an aging analysis of trade and bills receivables based on invoice date, net of loss allowance - This note provides an aging analysis of trade and bills receivables based on invoice date and net of loss allowance[73][74] Trade and Bills Payables This note provides an aging analysis of trade and bills payables as of June 30, 2020, noting certain bills are secured by pledged deposits Trade and Bills Payables Aging Analysis (As of June 30) | Aging | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Within 3 months | 612,580 | 697,204 | | 3 to 12 months | 261,247 | 278,891 | | 1 to 2 years | 23,546 | — | | Over 3 years | 1,429 | 1,528 | | Total | 898,802 | 977,753 | - Certain bills payables are secured by pledged deposits with a carrying amount of RMB44,763,000 thousands[75] Commitments This note discloses the Group's capital commitments for property, plant, and equipment, amounting to RMB142.11 million at the reporting date Capital Commitments (As of June 30) | Item | 2020 June 30 (RMB thousands) | 2019 December 31 (RMB thousands) | | --- | --- | --- | | Contracted but not provided for in respect of acquisition of property, plant and equipment | 142,105 | 160,011 | Related Party Transactions This note details significant related party transactions, including sales/purchases with joint ventures and key management personnel remuneration Related Party Transactions (For the six months ended June 30) | Transaction Category | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Sales of goods to a joint venture | 35,307 | 29,625 | | Purchases of goods from a joint venture | 27,157 | 38,756 | | Gross rental income received from a joint venture | 5,397 | 4,505 | | Management fee received from a joint venture | 1,823 | 1,971 | Key Management Personnel's Emoluments (For the six months ended June 30) | Item | 2020 (RMB thousands) | 2019 (RMB thousands) | | --- | --- | --- | | Salaries, wages and other benefits | 1,324 | 1,771 | | Pension scheme contributions | 16 | 20 | | Total emoluments paid to key management personnel | 1,340 | 1,791 | Fair Value and Fair Value Hierarchy of Financial Instruments This note discusses fair value measurement of financial instruments, including valuation methods for unlisted equity investments and fair value hierarchy classification - The fair values of short-term financial instruments such as cash and cash equivalents, trade and bills receivables, and trade and bills payables approximate their carrying amounts[83] - Unlisted equity investments are valued using a market approach, based on multiples of comparable listed companies (e.g., EV/EBITDA, P/E ratio) with discounts for lack of marketability and size differences[83] - Bills receivables are managed under a business model of holding to collect contractual cash flows and endorsing to suppliers before maturity, measured at fair value through other comprehensive income[84] Unlisted Equity Investment Fair Value Sensitivity Analysis (2020 June 30) | Investment | Significant Unobservable Input | Range | Sensitivity of fair value to input (RMB thousands) | | --- | --- | --- | --- | | Investment A | Average forward P/E multiples of comparable companies | 11.04 to 37.15 | A 10% increase/decrease in multiples would result in an increase/decrease in fair value of 3,619 | | Investment A | Discount for lack of marketability | 0.00% to 91.30% | A 10% increase/decrease in multiples would result in a decrease/increase in fair value of 687 | | Investment B | Average forward P/E multiples of comparable companies | 28.15 to 50.37 | A 10% increase/decrease in multiples would result in an increase/decrease in fair value of 1,260 | Financial Instruments Fair Value Hierarchy (2020 June 30) | Item | Total (RMB thousands) | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | | --- | --- | --- | --- | --- | | Equity investments designated at fair value through other comprehensive income | 48,789 | — | — | 48,789 | | Bills receivables at fair value through other comprehensive income | 98,905 | — | 98,905 | — | Events After Reporting Period This note confirms no significant events occurred after June 30, 2020 - No significant events occurred after the reporting period[92] Approval of Interim Condensed Consolidated Financial Information This note states the unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board on August 26, 2020 - The unaudited interim condensed consolidated financial statements were approved and authorized for issue by the Board on August 26, 2020[92]