2022-11-16 08:40Financial Performance - Revenue for the three months ended September 30, 2022, was $17,089 million, a decrease of 4.4% compared to $17,869 million for the same period in 2021[4]. - Gross profit for the six months ended September 30, 2022, was $5,745 million, down from $5,830 million in the same period last year, reflecting a decline of 1.5%[4]. - Operating profit for the six months ended September 30, 2022, was $1,628 million, compared to $1,559 million for the same period in 2021, representing an increase of 4.4%[4]. - Net profit attributable to equity holders for the six months ended September 30, 2022, was $1,056 million, up from $978 million in the same period last year, marking a growth of 8%[4]. - Basic earnings per share for the six months ended September 30, 2022, was 8.93 cents, compared to 8.44 cents for the same period in 2021, an increase of 5.8%[4]. - For the six months ended September 30, 2022, the total revenue was $34,045,155 thousand, a decrease from $34,797,926 thousand for the same period in 2021, representing a decline of approximately 2.2%[16]. - The total operating profit for the company was $2,233,567 thousand, slightly down from $2,325,720 thousand in the previous year, representing a decrease of approximately 4%[16]. - The profit attributable to equity holders increased by $79 million to approximately $1.056 billion, with a basic earnings per share of 8.93 cents, up by 0.49 cents[78]. - The group recorded a pre-tax profit of $1.401 billion, compared to $1.392 billion in the previous year[77]. Assets and Liabilities - Total assets as of September 30, 2022, were $43,293 million, a decrease from $44,510 million as of March 31, 2022[7]. - Total liabilities decreased to $37,666,589 thousand as of September 30, 2022, from $39,115,743 thousand as of March 31, 2022, indicating a reduction of approximately 3.7%[8]. - The company’s total assets amounted to $43,293,487 thousand as of September 30, 2022, down from $44,510,444 thousand as of March 31, 2022, reflecting a decrease of approximately 2.7%[8]. - The company’s long-term debt increased significantly to $3,937,047 thousand as of September 30, 2022, from $2,633,348 thousand as of March 31, 2022, indicating a rise of approximately 49.5%[8]. - The company’s total non-current liabilities decreased to $680,785,000 as of September 30, 2022, from $1,274,001,000 as of March 31, 2022, a significant decline of 46.5%[48]. - The company’s total liabilities decreased from $11,289,547,000 as of March 31, 2022, to $9,786,759,000 as of September 30, 2022, reflecting a reduction of approximately 13.3%[37]. Cash Flow and Investments - Cash and cash equivalents increased to $5,567 million as of September 30, 2022, from $3,930 million as of March 31, 2022[7]. - Net cash generated from operating activities for the six months ended September 30, 2022, was $2,896,060 thousand, compared to $2,471,820 thousand for the same period in 2021, reflecting an increase of about 17.2%[9]. - The company reported a net cash outflow from investing activities of $1,193,786 thousand for the six months ended September 30, 2022, compared to $534,959 thousand in the prior year, indicating a significant increase in investment expenditures[9]. - Financing activities generated a net cash inflow of $616,836 thousand, a turnaround from a net cash outflow of $896,841 thousand in the same period last year[10]. - Cash and cash equivalents totaled $5.628 billion as of September 30, 2022, compared to $4.023 billion on March 31, 2022, with 72% held in bank deposits[122]. Equity and Shareholder Information - Total equity increased to $5,626,898 thousand as of September 30, 2022, up from $5,394,701 thousand as of March 31, 2022, representing a growth of approximately 4.3%[8]. - The company paid dividends totaling $455,376 thousand during the reporting period, compared to $359,037 thousand in the previous year, representing an increase of about 26.9%[10]. - The company declared an interim dividend of 8 Hong Kong cents per ordinary share, consistent with the previous year, totaling $123,602,000 for the six months ended September 30, 2022[33]. - As of September 30, 2022, the total number of unexercised stock options and restricted stock units for executives and non-executive directors was 10,751,138[145]. - Major shareholders include Legend Holdings Limited with 2,867,636,724 shares (35.69% equity), and Nanming Limited with 257,400,000 shares (12.05% equity)[156]. Business Segments and Operations - The Smart Devices Business Group generated revenue of $27,989,687 thousand, with an operating profit of $2,089,397 thousand, compared to $30,004,546 thousand and $2,260,510 thousand respectively in the previous year[16]. - The Infrastructure Solutions Business Group reported revenue of $4,700,436 thousand, with an operating profit of $47,313 thousand, a significant improvement from a loss of $16,946 thousand in the same period last year[16]. - The Solutions Services Business Group achieved revenue of $3,177,071 thousand and an operating profit of $696,910 thousand, up from $2,547,616 thousand and $548,472 thousand respectively in the prior year[16]. - The company is focusing on smart home technology and has partnered with "First in Families" to assist families with disabilities in smart home renovations[2]. - The company aims to enhance its IT service capabilities and expand its customer base through the recent acquisitions, leveraging existing product strategies and solution development capabilities[69]. Research and Development - Research and development expenses increased to $1.067 billion, up from $948 million in the previous year[79]. - The company is committed to doubling its R&D investment to enhance competitiveness in next-generation product design and solutions[140]. Governance and Management - The audit committee reviewed the unaudited interim results for the six months ended September 30, 2022, and regularly meets with management and external auditors[168]. - The company has adopted the corporate governance code and confirmed compliance for the six months ending September 30, 2022[169]. - The board consists mostly of independent non-executive directors and holds quarterly meetings to review operations led by Yang Yuanqing[170].