Financial Performance - Revenue from continuing operations for the six months ended June 30, 2022, was RMB 2,735,253 thousand, a decrease of 4.1% compared to RMB 2,852,542 thousand in the same period of 2021[11] - Gross profit for the same period was RMB 208,896 thousand, down 6.6% from RMB 223,634 thousand year-on-year[11] - Profit attributable to owners of the parent for the period was RMB 133,973 thousand, representing an increase of 37.5% compared to RMB 97,552 thousand in the previous year[11] - Basic earnings per share for the period was RMB 6.44, compared to RMB 4.65 in the same period last year, reflecting a year-on-year increase of 38.3%[11] - For the six months ended June 30, 2022, the company reported a total comprehensive income of RMB 134,016 thousand, compared to RMB 103,967 thousand for the same period in 2021, representing an increase of approximately 29.0%[19] - The company reported a profit attributable to owners of the parent from continuing operations of RMB 133,973 thousand for the six months ended June 30, 2022, compared to RMB 70,825 thousand in the same period of 2021[68] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,529,060 thousand, a decrease from RMB 1,586,715 thousand as of December 31, 2021[15] - Current liabilities decreased to RMB 1,685,368 thousand from RMB 2,038,131 thousand at the end of the previous year, indicating improved liquidity[15] - Net assets attributable to owners of the parent increased to RMB 957,987 thousand from RMB 831,497 thousand, showing a growth of 15.2%[17] - As of June 30, 2022, total equity amounted to RMB 957,987 thousand, an increase from RMB 736,525 thousand as of June 30, 2021, representing a growth of approximately 30.0%[21] - Trade payables as of June 30, 2022, totaled RMB 1,286,510,000, a decrease from RMB 1,477,768,000 as of December 31, 2021[81] Cash Flow - The cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542 thousand, a significant decrease from RMB 392,588 thousand in the same period of 2021, indicating a decline of approximately 99.3%[25] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542,000, a significant decrease from RMB 392,588,000 in the same period of 2021[27] - The net cash flow used in investing activities was RMB (65,604,000), an improvement compared to RMB (77,788,000) in the previous year[27] - The net cash flow from financing activities was RMB 4,134,000, down from RMB 90,332,000 in the prior year[27] - The total cash and cash equivalents at the end of the period amounted to RMB 1,015,860,000, compared to RMB 821,488,000 at the end of the previous period[27] Revenue Breakdown - Revenue from mainland China was RMB 1,545,853,000, down 8.8% from RMB 1,694,817,000 in the previous year[42] - Revenue from other countries/regions increased to RMB 1,189,400,000, up 2.7% from RMB 1,157,725,000 in the prior year[42] - Revenue declined to RMB 2,735 million, a decrease of 4.1% year-on-year, primarily due to reduced demand and inventory adjustments by major brand customers[124] - Revenue from mainland China and Hong Kong accounted for 99.9% of total revenue, with RMB 1,546 million and RMB 1,187 million respectively[128] Expenses and Costs - The cost of sales for the period was RMB 2,625,357,000, slightly down from RMB 2,628,132,000 in the previous year[52] - Research and development expenses for the period were RMB 77,413,000, a decrease of 11% from RMB 87,003,000 in the previous year[52] - The company recorded a loss of RMB 7,529 thousand related to equity-settled share-based payment arrangements during the six months ended June 30, 2022[19] - The company incurred capital expenditures of RMB (79,680,000) for property, plant, and equipment, down from RMB (130,071,000) in the previous year[27] Shareholder Information - The total issued and fully paid ordinary shares remained at 2,114,307,929 shares as of June 30, 2022, with a corresponding value of RMB 172,134,000[91] - The company did not recommend any dividend payment for the six months ended June 30, 2022, consistent with the previous year[69] - The company declared no interim dividend for the six months ended June 30, 2022, consistent with the previous year[169] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The company maintained strategic partnerships with major clients, which helped mitigate the impact of industry-wide pressures[124] - The group acquired 100% equity of Gaosenda Intelligent Technology Co., Ltd. for RMB 51 million, enhancing its IoT product supply chain[134] Related Party Transactions - The company reported related party transactions with TCL Technology and its subsidiaries amounting to RMB 673,601,000 in total sales, with product sales contributing RMB 24,577,000[110] - The interest income from related parties was RMB 12,522,000, compared to RMB 6,198,000 in the previous year[110] - As of June 30, 2022, the company had receivables from related parties totaling RMB 343,480,000, a decrease from RMB 453,462,000 as of December 31, 2021[114] Corporate Governance - The audit committee has been established to review and supervise the financial reporting process and internal controls of the group[177] - The audit committee consists of three members, including the chairperson, Ms. Xu Huimin, and two independent non-executive directors, Mr. Li Yang and Mr. Xu Yan[177] - The company complied with the corporate governance code, with some deviations noted regarding the company secretary's employment status[172]
华显光电(00334) - 2022 - 中期财报