Financial Performance - Revenue for the first half of 2024 was US$938.5 million, a decrease of 25.6% compared to US$1,262.2 million in the first half of 2023[21]. - Gross profit for the first half of 2024 was US$79.7 million, down 78.9% from US$377.3 million in the same period last year[24]. - Loss for the period was US$67.0 million, compared to a profit of US$148.7 million in the first half of 2023, representing a decline of 145.1%[34]. - Sales revenue for the first half of 2024 was reported at $1,262.2 million, an increase from $1,215.5 million in the first half of 2023[85]. - The net loss for the period was $67.03 million, compared to a profit of $148.74 million in the first half of 2023, marking a 145.1% decline[105]. - Total comprehensive loss for the period amounted to $116,743,000, significantly higher than the loss of $38,447,000 reported in the previous year[149]. - Basic earnings per share for the period was US$0.022, a decline from US$0.176 in the prior year[147]. Income and Expenses - Other income and gains increased by 40.3% to US$71.1 million, primarily due to increased interest income[25]. - Administrative expenses rose by 11.0% to US$164.1 million, mainly due to increased operating expenses for Hua Hong Manufacturing[29]. - Finance costs decreased by 12.8% to US$49.4 million, attributed to lower interest rates on bank borrowings[31]. - The average selling price decline was a significant factor contributing to the revenue and gross profit decreases[22][24]. - The company experienced a decrease in cost of sales by 3.0% to US$858.8 million, primarily due to reduced labor costs[23]. - Share of profits of associates decreased by 19.9% to US$2.8 million, reflecting lower profits realized by associates[32]. - Income tax credit for the period was US$11.5 million, compared to an expense of US$26.9 million in the first half of 2023[33]. Assets and Liabilities - Total non-current assets increased by 5.3% from US$4,373.9 million to US$4,605.8 million[36]. - Cash and cash equivalents rose by 15.0% from US$5,585.2 million to US$6,423.9 million, reflecting improved cash flow management[52]. - Interest-bearing bank borrowings increased by 5.3% from US$2,099.6 million to US$2,212.0 million, attributed to increased drawdowns[56]. - Total liabilities increased by 10.1% to $1.07 billion, with interest-bearing bank loans rising by 28.0% to $247.03 million[107]. - The Group's net assets increased by 12.9% from US$8,014.5 million to US$9,044.9 million[36]. - Current assets rose to $7,499,016,000, compared to $6,569,555,000 at the end of 2023, indicating an increase of about 14.1%[151]. Production and Capacity - The 8-inch capacity utilization rate exceeded 100%, while the 12-inch capacity utilization rate approached full production in Q2 2024[69]. - The Hua Hong Manufacturing project, with a planned monthly production capacity of 83,000 wafers, completed the structural topping-out of the main plant in April 2024, two months ahead of schedule[73]. - The company plans to advance production capacity and accelerate process development, focusing on "Specialty IC + Power Discrete" technologies in its "8-inch + 12-inch" production platforms[74]. - In the first half of 2024, the company achieved a production capacity utilization rate exceeding 100% for the 8-inch capacity and nearly full capacity for the 12-inch capacity, with revenue growth observed for two consecutive quarters[135]. Market and Demand - The overall product demand for IC process platforms improved, with shipments and revenue showing a growth trend compared to the second half of 2023[70]. - The revenue of high-end power discrete devices IGBT and superjunction MOSFET experienced declines in the first half of 2024, but the number of new industrial and automotive-related products continued to grow[71]. - The company is facing dual pressure on demand and pricing for high-end power devices starting from late 2023, with expected revenue declines in the first half of 2024[136]. Government Grants and Taxation - Government grants increased from US$35.0 million to US$39.4 million, primarily due to receipts for research and development projects[44]. - The Group's effective tax rate in Hong Kong remained at 16.5%, with no provision made for profits tax due to no assessable income during the period[192]. - The Group's subsidiary recognized as a High and New Technology Enterprise is entitled to a preferential tax rate of 15%[195]. - A subsidiary in Wuxi, China, is exempt from corporate income tax for the first five years of taxable profit, followed by a 50% reduction for the next five years[198]. Cash Flow - Net cash flows generated from operating activities decreased by 53.1% from US$293.1 million to US$137.6 million, primarily due to decreased revenue[48]. - Operating cash flow net amount decreased by 53.1% to $137.55 million, primarily due to reduced sales revenue[120]. - The net cash flow from financing activities amounted to $1.2061 billion, including $1.1819 billion from non-controlling equity contributions and $202.4 million from bank borrowings[122]. - Cash generated from operations was $194,822,000, a decrease from $364,563,000 in the prior year[159]. - The company reported a net increase in cash and cash equivalents of $872,687,000, compared to a decrease of $97,806,000 in 2023[162].
华虹半导体(01347) - 2024 - 中期业绩