Financial Performance - In the first half of 2022, the sales revenue of the MLCC segment amounted to RMB 182.4 million, representing a decrease of 31.2% compared to the first half of 2021[16]. - For the six months ended June 30, 2022, the Group's total revenue was RMB 194.3 million, a decrease of RMB 120.8 million or 38.3% compared to the same period in 2021[50]. - Revenue from the MLCC segment was RMB 182.4 million, representing a decrease of RMB 82.5 million or 31.2% due to weakening market conditions[50]. - The gross profit for the same period was RMB 12.22 million, significantly down from RMB 129.22 million in the previous year[121]. - The loss from continuing operations for the period was RMB 48.39 million, compared to a profit of RMB 28.11 million in the prior year[121]. - The total comprehensive loss for the period, net of income tax, was RMB 28.86 million, contrasting with a total comprehensive income of RMB 31.32 million in the previous year[121]. - The reportable segment loss for the six months ended June 30, 2022, was RMB (44,204,000), compared to a profit of RMB 51,911,000 in the same period of 2021[177]. Profitability and Margins - The gross profit margin of the MLCC segment was 0.2% for the first half of 2022, down from 29.8% in the same period of 2021[16]. - The gross profit margin for the six months ended June 30, 2022, was 6.3%, a decrease of 34.7% compared to the same period in 2021[51]. - The gross profit margin of the MLCC segment fell from 29.9% to 0.2% due to decreased sales and increased average costs[52]. Research and Development - The Group continued to invest in research and development, achieving breakthroughs in mini-sized high-capacity specifications and bulk delivery in the first half of 2022[21]. - The Group's strategy includes a commitment to traditional consumption-grade products while accelerating R&D in industrial and automotive-grade technologies[21]. - Research and development costs increased to RMB 29.8 million, an increase of RMB 7.9 million from the previous year, reflecting ongoing efforts in new product and technology development[61]. - Research and development costs for the current period amounted to RMB 29,793,000, an increase of 36.3% from RMB 21,866,000 in the same period of 2021[192]. Investments and Financial Services - In the first half of 2022, the total capital commitment of the managed funds was approximately US$647.8 million, with the Group committing about US$89.9 million and investing US$75.5 million[37]. - The six funds that the Group invested in contributed a net loss of RMB6.2 million to the Group's financial results, in addition to asset management fee income of RMB18.1 million[38]. - The Group's investment in the Tianli Private Debt Fund L.P. amounted to US$35.0 million, focusing on a wide range of private debt instruments[31]. - The Group's investment in the Tianli China Opportunities Fund I L.P. was US$17.5 million, targeting a project fund established for investment in Beijing[30]. - The Group's investment and financial services segment includes direct investments in debt, equity, asset management, and financial advisory services, showcasing a diversified service offering[162]. Operational Developments - The new base in Chuzhou, Anhui, has completed its main structure, and preparations for the new base in Dongguan are ongoing[22]. - A groundbreaking ceremony for the "Industrial Automotive Grading Ceramic Capacitor Project of Dong Eyang" was held on August 5, 2022, attracting significant attention[22]. - The Group is focusing on optimizing its product mix by increasing the proportion of industrial and automotive-grade products while meeting consumer-grade customer needs[16]. - The Group's existing production bases in Anhui and Dongguan maintained stable operations during the reporting period[22]. - The Group is accelerating technology upgrades and moderate production capacity expansion to meet customer demands[22]. - The new base in Dongguan for the automotive-grade ceramic capacitor project has commenced construction, attracting significant attention[24]. Financial Position and Liquidity - As of June 30, 2022, the Group's net current assets were approximately RMB 118.1 million, a significant improvement from net current liabilities of RMB 29.1 million as of December 31, 2021[85][87]. - The current ratio increased to 1.3 as of June 30, 2022, compared to 1.0 as of December 31, 2021, primarily due to the reclassification of other loans amounting to RMB 216.9 million as non-current liabilities[86][88]. - The Group's banking facilities remained stable at RMB 568.0 million, with utilized facilities increasing to RMB 258.0 million from RMB 132.4 million[90][93]. - The gearing ratio increased to approximately 37.9% as of June 30, 2022, up from 36.0% as of December 31, 2021, due to an increase in bank and other loans[91][94]. - Cash and bank balances totaled RMB 91.0 million, an increase of RMB 28.1 million from 31 December 2021, due to cash received from the gain on deregistration of an associate[77]. Market Outlook - The electronic information industry, particularly the MLCC sector, is expected to see long-term growth driven by demand from 5G, automotive electronics, and the Internet of Things[105][106]. - Despite short-term fluctuations in the MLCC market, long-term demand from 5G, automotive electronics, and the Internet of Things is anticipated to drive industry growth[108]. - The electronic information industry is a key strategic emerging industry supported by the Chinese government, with MLCC being a major passive component in electronic devices, referred to as the "rice of the electronics industry"[108]. - By 2025, the self-sufficiency rate of core basic components and key basic materials in China is expected to reach 70% as per the "Made in China 2025" initiative[108]. Employee and Administrative Information - As of June 30, 2022, the group had a total of 1,169 employees, a slight decrease from 1,199 employees as of December 31, 2021[114]. - Administrative expenses were RMB45.6 million, representing a decrease of RMB14.1 million from the six months ended 30 June 2021, mainly due to a foreign exchange loss recorded in 2021[61]. - Staff costs, including directors' emoluments, were RMB 79,447,000 for the six months ended June 30, 2022, down from RMB 97,899,000 in the same period of 2021[192].
天利控股集团(00117) - 2022 - 中期财报