2022-09-01 08:49Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 58,183,773 thousand, an increase from RMB 45,032,091 thousand in the same period of 2021, representing a growth of approximately 29.2%[7] - Gross profit for the same period was RMB 8,475,802 thousand, compared to RMB 7,759,047 thousand in 2021, reflecting an increase of about 9.2%[7] - Profit attributable to equity holders for the period was RMB 1,277,848 thousand, down from RMB 2,409,088 thousand in 2021, indicating a decrease of approximately 46.9%[7] - Basic earnings per share for the period was RMB 14.83 cents, compared to RMB 23.60 cents in the previous year, a decline of about 37.5%[7] - The total comprehensive income for the six months ended June 30, 2022, was RMB 1,726,252 thousand, a decrease of 28.7% compared to RMB 2,420,554 thousand for the same period in 2021[8] - The net profit for the period was RMB 1,277,848 thousand, down 46.9% from RMB 2,409,088 thousand in the previous year[8] - The company reported a pre-tax profit of RMB 1,316,513 thousand, down from RMB 2,920,638 thousand in the previous year, a decrease of approximately 55.0%[7] Expenses and Costs - The total distribution and selling expenses for the period were RMB 3,303,773 thousand, up from RMB 2,554,189 thousand in 2021, representing an increase of about 29.3%[7] - Employee costs, including directors' remuneration, amounted to RMB 3,837,265,000 for the six months ended June 30, 2022, up from RMB 2,929,970,000 in the previous year, representing a rise of approximately 31%[34] - Depreciation for owned assets was RMB 1,369,278,000, compared to RMB 1,192,899,000 in the previous year, indicating an increase of about 14.8%[35] Cash Flow and Financial Position - The company’s cash and cash equivalents increased to RMB 37,562,245 thousand from RMB 28,013,995 thousand, marking a growth of 34.2%[11] - The cash flow from operating activities for the six months ended June 30, 2022, was significant, reflecting strong operational performance[17] - The net cash generated from operating activities was RMB 9,807,546 thousand, significantly higher than RMB 4,117,052 thousand in the previous year, indicating a year-over-year increase of approximately 138.5%[18] - The total cash and cash equivalents at the end of the period reached RMB 37,562,245 thousand, up from RMB 19,799,643 thousand at the end of the previous year, marking an increase of approximately 89.6%[18] - The company’s total liabilities as of June 30, 2022, were RMB 53,377,123,000, down from RMB 58,354,487,000 as of December 31, 2021, indicating a decrease of approximately 8.5%[69] Investments and Acquisitions - The company completed the acquisition of China-Euro Vehicle Technology AB for approximately SEK 1,057.8 million (around RMB 741.3 million), focusing on smart electric vehicle design and technology solutions[84] - The company is in the process of acquiring 45,375,000 shares of Renault Korea Motors Co., Ltd. for approximately KRW 264 billion (approximately RMB 1,608,795,000), with the subscription not yet completed as of June 30, 2022[89] - The company has a capital commitment of RMB 629,142,000 for a joint venture with LG Chem Ltd. for the production and sale of electric vehicle batteries, with the establishment not yet completed[90] Market and Sales Performance - Total revenue for the six months ended June 30, 2022, was RMB 58,183,773,000, an increase from RMB 45,032,091,000 in the same period of 2021, representing a growth of approximately 29.1%[28] - Revenue from automobile sales and related services was RMB 49,202,613,000, compared to RMB 39,312,044,000 in the previous year, indicating a year-on-year increase of about 25.5%[28] - Total sales in the Chinese market decreased by 9% year-on-year to 526,217 units, primarily due to pandemic control measures and global chip shortages[130] - Total sales of pure electric vehicles reached 85,820 units, a year-on-year increase of 520%, while plug-in hybrid vehicles sold 23,891 units, up 192% year-on-year[137] Future Outlook and Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[1] - The management remains optimistic about future performance despite the current challenges in the market[1] - The group plans to launch several new products in the second half of 2022, including the all-new Boyue L SUV and the Starry L plug-in hybrid model[141] - The group expects significant sales contributions from hybrid vehicles equipped with the Raytheon hybrid technology in the second half of 2022[137] Shareholder and Corporate Governance - Proper Glory Holding Inc. holds a total of 4,215,888,000 shares, representing approximately 42.07% of the company's issued share capital[155] - The company is committed to adhering to corporate governance codes, with specific compliance noted in the report[183] - The audit committee was established in accordance with listing rules to review and supervise the financial reporting process, risk management systems, and internal controls as of June 30, 2022[188]