Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 557,527,000, a decrease of 63.5% compared to RMB 1,525,644,000 in the same period of 2021[3] - Gross profit for the same period was RMB 99,605,000, down 13.7% from RMB 115,439,000 year-on-year[3] - Net profit for the period was RMB 830,007,000, a significant decline of 88.9% from RMB 7,469,521,000 in the previous year[5] - Basic and diluted earnings per share were RMB 0.16449, compared to RMB 1.50777 in the prior year, reflecting a decrease of 89.1%[3] - Total comprehensive income for the period was RMB 821,616,000, down 87.4% from RMB 6,511,168,000 in the same period last year[5] - The profit before tax for the period was RMB 826,195,000, showing a significant increase compared to the previous year's profit of RMB 7,475,583,000[29] - The unaudited profit attributable to equity holders of the company was RMB 829,900,000 in the first half of 2022, down from RMB 7,607,100,000 in the same period of 2021[104] Assets and Liabilities - Non-current assets totaled RMB 27,460,032,000, a decrease from RMB 44,993,801,000 as of December 31, 2021[7] - Current assets increased significantly to RMB 23,652,859,000 from RMB 4,957,194,000 at the end of 2021, indicating improved liquidity[8] - Current liabilities decreased to RMB 4,028,533,000 from RMB 8,613,068,000, reflecting a reduction in short-term obligations[8] - The company's total equity increased to RMB 46,976,786,000 from RMB 41,174,339,000, indicating a strengthening of the financial position[8] - The company's total assets as of June 30, 2022, were RMB 51,112,891,000, reflecting an increase from RMB 49,950,995,000 as of December 31, 2021[30] - The total liabilities for the automotive parts segment were RMB 3,008,241,000, and for BMW vehicle sales, it was RMB 82,752,172,000[30] Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 850,172,000, a decrease from RMB 1,628,076,000 in the same period of 2021[17] - The net cash generated from investing activities was RMB 17,252,758,000, compared to a cash outflow of RMB 583,769,000 in the previous year[17] - The net cash used in financing activities was RMB 1,212,075,000, down from RMB 1,918,808,000 in the prior year[17] - The total cash and cash equivalents increased to RMB 17,940,107,000 as of June 30, 2022, from RMB 1,049,252,000 at the beginning of the period[17] Segment Performance - Revenue from the sale of automotive parts for the six months ended June 30, 2022, was RMB 420,045,000, significantly lower than RMB 1,309,463,000 in the same period of 2021[25] - Total revenue for the automotive parts manufacturing and sales segment was RMB 420,045,000, while BMW vehicle sales generated RMB 109,113,173,000 in revenue[29] - The company recognized revenue of RMB 29,193,591,000 from Brilliance BMW during the period, with a profit of RMB 4,759,564,000[47] Credit and Provisions - The expected credit loss provisions for receivables amounted to RMB 10,675,000 for loans and RMB 38,049,000 for other receivables, compared to RMB 4,400,000 and RMB 146,000 respectively in the prior year, indicating a substantial increase in provisions[35] - The expected credit loss allowance for loans and receivables was RMB 420.6 million in the first half of 2022, a decrease of 6.5% from RMB 449.9 million in the same period of 2021[101] - The expected credit loss provision for accounts receivable was RMB 110,265,000, significantly impacting the net receivable balance[82] Employee and Operational Costs - Employee costs, including directors' remuneration, totaled RMB 163,191,000 for the six months ended June 30, 2022, down 39.7% from RMB 270,542,000 in the previous year[37] - General and administrative expenses decreased by 13.6% to RMB 226.8 million in the first half of 2022, compared to RMB 262.4 million in the same period of 2021, but the percentage of these expenses to revenue increased from 17.2% to 40.7%[99] - Selling expenses decreased by 83.0% to RMB 15.8 million in the first half of 2022, compared to RMB 92.7 million in the same period of 2021, leading to a reduction in the percentage of selling expenses to revenue from 6.1% to 2.8%[99] Legal and Compliance Issues - The company has ceased consolidating the financial statements of its joint venture, Huachen Renault, since January 2022 due to its restructuring[25] - The company is under the control of the Chinese government, which is considered a related party for disclosure purposes[77] - The company has complied with all provisions of the Corporate Governance Code, except for the delay in publishing the annual results for 2021[148] - The independent investigation into unauthorized financial support since 2019 has been completed, with a report issued on August 18, 2022[157] Future Outlook and Strategy - The company plans to enhance its production capacity with the completion of the expansion of the Dandong plant and the new Lydia plant, supporting the launch of new models in 2022 and beyond[106] - The company aims to become a leading supplier of luxury electric vehicles in China and is exploring new technologies with BMW to accelerate the sustainable development of the entire value chain of electric vehicles[108] - BMW will continue to launch new internal combustion and pure electric vehicle models in the Chinese market over the next few years, with the first domestically produced X5 model and the first electric 3 Series long-wheelbase model launched in Q3 2022[120]
BRILLIANCE CHI(01114) - 2022 - 中期财报