Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 490,468,000, a decrease of 47.8% compared to RMB 939,319,000 for the same period in 2021[4] - Gross profit for the same period was RMB 29,851,000, down 74.3% from RMB 116,124,000 in 2021[4] - The company reported a net loss of RMB 37,773,000 for the six months ended June 30, 2022, compared to a profit of RMB 32,121,000 in the previous year[4] - The basic loss per share for the period was RMB (0.029), compared to earnings per share of RMB 0.025 in the previous year[4] - The company recorded a pre-tax loss of RMB 35,041,000 for the six months ended June 30, 2022, compared to a profit of RMB 31,290,000 in the same period of 2021[15] - The company recorded an unaudited loss attributable to owners of the company of approximately RMB 37.77 million for the first half of 2022, compared to a profit of RMB 32.12 million in the same period of 2021[95] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,826,354,000, a decrease from RMB 3,964,825,000 as of December 31, 2021[6] - Current liabilities decreased to RMB 1,913,822,000 from RMB 1,974,757,000 in the previous year[9] - The total liabilities, including trade and other payables, decreased from RMB 751,485,000 as of December 31, 2021, to RMB 657,042,000 as of June 30, 2022, a reduction of approximately 12.5%[64] - The group’s total liabilities to equity ratio decreased to approximately 1.18 as of June 30, 2022, down from 1.21 as of December 31, 2021, primarily due to a reduction in payables[99] Cash Flow and Investments - The company’s cash and cash equivalents increased to RMB 81,204,000 from RMB 12,853,000 as of December 31, 2021[6] - Net cash generated from operating activities for the six months ended June 30, 2022, was RMB 5,904,000, significantly down from RMB 641,425,000 in the previous year[15] - Net cash from investing activities for the six months ended June 30, 2022, was RMB 76,811,000, a decrease of 61.1% compared to RMB 197,621,000 in the same period of 2021[15] - The company’s net cash used in financing activities for the six months ended June 30, 2022, was RMB 14,364,000, a significant improvement compared to RMB 410,453,000 in the previous year[24] Inventory and Receivables - Inventory as of June 30, 2022, was RMB 492,405,000, an increase from RMB 471,886,000 in the previous year[6] - Trade receivables amounted to RMB 101,855,000, a decrease from RMB 150,557,000 as of December 31, 2021, indicating a decline of approximately 32.3%[61] - The expected credit loss recognized for trade receivables was RMB 363,952,000 as of June 30, 2022, compared to RMB 363,876,000 as of December 31, 2021, showing a slight increase[59] Revenue by Segment - The gasoline engine segment generated revenue of RMB 128,652 thousand, down 60.2% from RMB 322,999 thousand in the previous year[36] - The diesel engine and engine parts segment reported revenue of RMB 41,125 thousand and RMB 320,691 thousand respectively, compared to RMB 23,255 thousand and RMB 593,065 thousand in the prior year, indicating a significant decline[36] - The company's segment revenue from engine business dropped by approximately 50.97%, from RMB 346.25 million in the first half of 2021 to RMB 169.78 million in the first half of 2022[91] Operational Changes - The group recorded a decrease in sales primarily due to a significant drop in traditional gasoline engine sales, attributed to a core customer undergoing restructuring[110] - The group anticipates that the reduction in vehicle purchase tax for cars priced below RMB 300,000 will benefit over 10 million vehicles, potentially increasing sales by 1.5 million units[109] - The company aims to continue exploring new business opportunities with major clients such as BMW, Ideal Auto, and SAIC Maxus[113] Corporate Governance - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period[133] - The audit committee, including independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2022[136] - Major shareholders include Huachen Investment, Huachen China, and others, each holding approximately 31.20% of the company's shares as of June 30, 2022[120]
新晨动力(01148) - 2022 - 中期财报