Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 2.7% to RMB 6,003.4 million compared to RMB 6,168.3 million in the same period of 2022[8]. - Gross profit increased by 19.3% to RMB 818.0 million, with a gross margin improvement from 11.1% to 13.6%[9]. - Profit for the period surged by 141.1% to RMB 232.6 million, up from RMB 96.5 million in the previous year[9]. - Profit attributable to equity holders of the parent increased by 161.3% to RMB 209.1 million, compared to RMB 80.0 million in the same period last year[9]. - The total comprehensive income for the period was RMB 312.4 million, compared to RMB 132.3 million in the same period last year[11]. - The total revenue for the six months ended June 30, 2023, was RMB 6,003,416, a decrease of 2.67% from RMB 6,168,315 in the same period of 2022[27]. - The company's net profit for the same period was RMB 232.6 million, an increase of 141.1% year-on-year, with profit attributable to equity holders rising by 161.3% to RMB 209.1 million[103]. Dividends and Shareholder Returns - The company declared an interim dividend of 4 HK cents per share, with a payout ratio of 24.0%[8]. - The group proposed an interim dividend of HKD 0.04 per share, compared to no dividend for the previous period[135]. Revenue Breakdown - Revenue from the power solutions business increased to RMB 5,006,921, up 1.99% from RMB 4,911,188 in the previous year[27]. - Revenue from lead recycling business decreased to RMB 996,495, down 20.73% from RMB 1,257,127 in the previous year[27]. - Revenue from mainland China was RMB 3,662,189, an increase of 9.39% from RMB 3,347,229 in the previous year[29]. - Revenue from the Americas decreased to RMB 805,290, down 31.73% from RMB 1,179,691 in the previous year[29]. - The backup battery business contributed 47.5% to total sales, with revenue of RMB 2,853.2 million, a decrease of 3.1% from RMB 2,945.4 million in the same period last year[82]. - The starting battery business accounted for 24.5% of total sales, with revenue of RMB 1,469.1 million, an increase of 4.4% from RMB 1,406.9 million in the same period last year[90]. - The power battery segment achieved revenue of RMB 621.8 million, a 16.3% increase from RMB 534.6 million in the same period last year[91]. Expenses and Costs - Research and development costs rose to RMB 160.7 million, up from RMB 122.2 million in the previous year, reflecting the company's strategy for further growth[9]. - The company reported a significant increase in administrative expenses, which rose to RMB 195.0 million from RMB 152.1 million[9]. - The total employee benefits expenses increased to RMB 533,088, up 9.16% from RMB 487,994 in the previous year[39]. - Financial costs increased to RMB 98,058, up 32.23% from RMB 74,120 in the previous year[42]. - Selling and distribution expenses decreased by 29.0% from RMB 301.7 million to RMB 214.3 million, attributed to the reclassification of transportation costs[112]. - Administrative expenses increased by 28.2% from RMB 152.1 million to RMB 195.0 million, mainly due to rising employee costs[113]. - Research and development expenses grew by 31.5% from RMB 122.2 million to RMB 160.7 million, focused on enhancing product performance and developing new products[122]. Assets and Liabilities - Non-current assets totaled RMB 3,756.9 million as of June 30, 2023, compared to RMB 3,704.9 million at the end of 2022[13]. - Current assets increased to RMB 7,503.8 million from RMB 6,789.5 million at the end of the previous year[13]. - Current liabilities increased to RMB 6,517,476 thousand as of June 30, 2023, compared to RMB 6,208,599 thousand as of December 31, 2022, reflecting a growth of 4.98%[15]. - Net current assets rose significantly to RMB 986,275 thousand from RMB 580,883 thousand, marking an increase of 69.5%[15]. - Total assets minus current liabilities reached RMB 4,743,238 thousand, up from RMB 4,285,796 thousand, indicating a growth of 10.67%[15]. - Non-current liabilities totaled RMB 483,480 thousand, a substantial increase from RMB 249,561 thousand, representing a growth of 93.8%[15]. - Equity attributable to owners of the parent company increased to RMB 4,022,229 thousand from RMB 3,822,278 thousand, reflecting a growth of 5.23%[15]. - The company’s total liabilities increased to RMB 2,489,171,000 as of June 30, 2023, from RMB 2,361,044,000 as of December 31, 2022, marking an increase of 5.4%[64]. Market and Strategic Initiatives - The company is engaged in power solutions and lead recycling, indicating a focus on sustainable and innovative business practices[17]. - The company plans to strengthen cooperation with telecom operators and invest in research and development to capture opportunities in the energy storage market[94]. - The company aims to expand into new segments such as solar and wind energy while continuing to grow its replacement market[94]. - The sales of start-stop batteries are expected to benefit from the growing demand for new energy vehicles, with a projected global market size increase from USD 70.6 billion in 2022 to USD 273.4 billion by 2032, reflecting a compound annual growth rate of 14.5%[96]. - The home energy storage market is anticipated to grow from approximately USD 4.38 billion in 2023 to USD 16.75 billion by 2028, at a compound annual growth rate of 24.4%[98]. - The company plans to enhance its production capacity in its flagship factory in Anhui, focusing on lithium battery production, and aims to establish a battery assembly plant in Mexico to expand its North American presence[99]. Other Financial Information - The company recognized foreign exchange gains of RMB 74,189, compared to gains of RMB 54,159 in the previous year[39]. - The total income tax expense for the six months ended June 30, 2023, was RMB 33,034,000, a decrease of 31.3% from RMB 48,060,000 in the same period of 2022[8][9]. - The group recorded a profit before tax of RMB 265.7 million, compared to RMB 144.5 million for the previous period[117]. - The group had no impairment losses recognized for the six months ended June 30, 2023[56]. - The group recognized a net loss of RMB 2,101,000 from the sale of assets with a carrying amount of RMB 8,392,000 during the six months ended June 30, 2023[49].
理士国际(00842) - 2023 - 中期业绩