Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,249,808 thousand, compared to RMB 490,468 thousand for the same period in 2022, representing a significant increase [8]. - Gross profit for the period was RMB 107,160 thousand, with a gross margin improvement compared to the previous period [3]. - The net profit for the six months ended June 30, 2023, was RMB 21,742 thousand, a turnaround from a loss of RMB 37,773 thousand in the same period last year [9]. - Basic earnings per share for the period was RMB 0.017, compared to a loss per share of RMB 0.029 in the same period last year [11]. - For the six months ending June 30, 2023, the company reported a pre-tax profit of RMB 25,267,000, compared to a loss of RMB 35,041,000 in the same period last year [32]. - The company reported a profit attributable to owners of the company of RMB 21,742,000 for the six months ended June 30, 2023, compared to a loss of RMB 37,773,000 in the same period of 2022, marking a turnaround in performance [43]. - The company recorded an unaudited profit before tax for the first half of 2023 was approximately RMB 25.27 million, a turnaround from an unaudited loss of RMB 35.04 million in the first half of 2022, mainly due to business growth post-COVID and increased profits from an associated company [143]. Assets and Liabilities - Total assets increased to RMB 5,428,139 thousand as of June 30, 2023, compared to RMB 4,156,131 thousand at the end of 2022 [12]. - The company reported a significant increase in trade and other receivables, amounting to RMB 2,180,396 thousand, up from RMB 783,560 thousand in the previous year [12]. - As of June 30, 2023, the company's current liabilities net amount was approximately RMB 288,027,000, but the financial statements were prepared on a going concern basis [34]. - The company has committed to providing ongoing financial support for the next 12 months to maintain its operations [35]. - The total amount of trade payables and notes payable was RMB 541.80 million as of June 30, 2023, compared to RMB 496.75 million as of December 31, 2022, reflecting an increase of about 9.06% [83]. - The company’s total liabilities increased, with trade payables and other payables showing a notable rise in the current period [70]. Cash Flow and Financing - Cash and cash equivalents decreased to RMB 43,710 thousand from RMB 59,059 thousand at the beginning of the period, reflecting cash flow challenges [20]. - Financing costs increased to RMB 30,958 thousand from RMB 28,204 thousand year-on-year, indicating rising interest expenses [3]. - The company obtained new bank borrowings of approximately RMB 274.05 million during the reporting period, with interest rates ranging from 4.40% to 6.50% [88]. - The company has pledged approximately RMB 128.98 million in bank deposits as of June 30, 2023, compared to RMB 135.13 million as of December 31, 2022, to secure credit financing [195]. Operational Highlights - The sales volume of engines increased by approximately 1,055.56% from about 13,500 units in the first half of 2022 to approximately 156,000 units in the first half of 2023, primarily due to the increase in sales of range-extended gasoline engines [97]. - The company sold approximately 949,000 connecting rods in the first half of 2023, representing an increase of about 120.80% compared to approximately 429,800 units sold in the same period of 2022 [98]. - The engine business segment recorded a revenue increase of approximately 989.7%, rising from RMB 169.78 million in the first half of 2022 to RMB 1.8501 billion in the first half of 2023, primarily due to increased sales of range-extended gasoline engines [139]. Employee and Administrative Costs - Total employee costs increased to RMB 62,048,000 in the first half of 2023 from RMB 56,198,000 in the same period of 2022, reflecting a rise of 10.0% [51]. - Administrative expenses increased by approximately 50.98% to RMB 73.57 million in the first half of 2023, accounting for approximately 3.27% of revenue, primarily due to increased research and office expenses [122]. Corporate Governance - The company has adhered to all provisions of the Corporate Governance Code during the reporting period [181]. - The audit committee, along with management, reviewed the accounting principles and practices adopted by the group for the six months ended June 30, 2023 [183]. - The company has confirmed compliance with the standards for securities trading by its directors during the reporting period [182]. - The company continues to focus on maintaining the highest level of corporate governance to meet business needs and shareholder expectations [181]. Investment and Development - The company invested approximately RMB 9,631,000 in the development of new automotive engine technology during the reporting period [75]. - The company has made significant investments in construction projects amounting to approximately RMB 11,256,000 during the reporting period, down from RMB 24,079,000 in the same period of the previous year [43]. - The company plans to expand its product range in gasoline and diesel engines, supported by the recent investment in technology development [75]. Stock Options and Shareholder Information - A new stock option plan was adopted on June 19, 2023, allowing a maximum of 10% of issued shares to be granted as options [158]. - The new stock option plan allows for the issuance of up to 128,221,179 stock options as of June 30, 2023 [172]. - The company has not recognized any expenses related to stock options for the current reporting period [159]. - As of June 30, 2023, the company had 1,282,211,794 shares issued, with major shareholders holding approximately 31.20% each [164][174].
新晨动力(01148) - 2023 - 中期财报