Financial Performance - Revenue reached an all-time high of US$1,215.5 million, an increase of 86.7% compared to 1H 2021, primarily benefiting from increased wafer shipments and improved average selling price[19] - Gross profit was US$368.9 million, an increase of 133.7% compared to 1H 2021, driven by improved average selling price and product mix[21] - Profit for the period was US$155.4 million, an increase of 167.4% compared to 1H 2021, with a net profit margin of 12.8%, up 3.9 percentage points[24] - Sales reached US$1.215 billion in the first half of 2022, representing a year-on-year increase of 86.7%[39] - Net cash flows generated from operating activities increased from US$160.0 million to US$407.8 million, a growth of 155.0%[30] - The company reported a total comprehensive loss for the period of $54,700,000, compared to a comprehensive income of $91,702,000 in the same period of 2021[86] - Profit before tax reached $176,757,000, up from $71,438,000, reflecting a growth of 147% year-over-year[85] - Profit attributable to ordinary equity holders of the parent for the six months ended June 30, 2022, was $186,877,000, compared to $77,141,000 for the same period in 2021, representing an increase of 142.5%[115] Expenses and Liabilities - Selling and distribution expenses increased by 52.5% to US$7.0 million, primarily due to increased labor expenses[22] - Administrative expenses rose by 37.8% to US$138.9 million, mainly due to increased labor expenses and decreased government grants for research and development[23] - Financial expenses surged by 196.4% to $15 million, mainly due to increased bank borrowings[70] - Trade payables increased by 56.0% to US$303.3 million, reflecting higher operational activity[25] - Interest-bearing bank borrowings increased by 18.6% to US$231.3 million, indicating higher financing needs[25] - Total liabilities as of June 30, 2022, were $1,377,763,000, compared to $1,437,151,000 at the end of 2021, indicating a decrease[88] Assets and Cash Flow - Current assets increased by 9.7% to US$2,622.3 million, with cash and cash equivalents rising by 6.1% to US$1,707.7 million[25] - Non-current assets decreased by 5.1% to US$3,618.4 million, primarily due to depreciation[25] - Cash and cash equivalents at the end of the period were US$1.7077 billion, a 75.2% increase from US$974.5 million at the end of 2021[29] - Trade and notes receivables rose from US$181.0 million to US$242.0 million, primarily due to increased revenue[26] - Net cash flows used in investing activities were US$227.1 million, primarily for capital investments of US$236.4 million[31] Revenue Sources and Growth - The 12-inch platform accounted for over 40% of total revenue in the first half of 2022, becoming a key growth engine for the company[42] - Revenue from the power discrete device technology platform increased over 60% year-on-year, driven by automotive and industrial applications[41] - Sales of the eNVM platform grew by over 60% year-on-year, driven by strong demand in high-end consumer, industrial control, and automotive electronics applications[81] - The power discrete device process platform saw a year-on-year growth of over 60%, with IGBT sales continuing to grow at a triple-digit percentage rate[81] Taxation and Government Grants - Current income tax expense in the PRC was $32,740,000 for the six months ended June 30, 2022, compared to $18,012,000 in 2021[111] - Total income tax expense for the period was $21,407,000, an increase from $13,335,000 in the previous year[111] - The Group's subsidiary, HHGrace, is entitled to a preferential tax rate of 15% from 2021 to 2023 due to its qualification as a "High and New Technology Enterprise"[110] - The company received government grants for property, plant, and equipment amounting to $4,805 thousand during the period, while no such grants were received in the previous year[94] Shareholder Information and Equity - The total equity attributable to owners of the parent at June 30, 2022, was $3,631,866,000, compared to $3,354,121,000 at June 30, 2021[92] - The weighted average number of ordinary shares in issue during the period was 1,301,607,081, slightly up from 1,299,811,409 in the previous year[113] - The total number of issued shares of the Company as of June 30, 2022, was 1,301,812,904 shares[164] - Substantial shareholders include Shanghai Hua Hong International, holding 347,605,650 shares, representing approximately 26.70% of the issued share capital[163] Corporate Governance and Compliance - The Company is committed to high standards of corporate governance and has complied with the Corporate Governance Code during the six months ended June 30, 2022[181] - The Audit Committee has reviewed and approved the unaudited results of the Group for the six months ended June 30, 2022, discussing accounting principles and internal controls with management[183] - The Company has received confirmations from all Directors regarding compliance with the required standards for securities transactions throughout the six months ended June 30, 2022[182] Related Party Transactions - Sales of goods to related parties for the six months ended June 30, 2022, totaled $8,963,000, compared to $10,286,000 in the same period of 2021, representing a decrease of approximately 12.8%[127] - Purchases of goods from related parties amounted to $9,340,000 for the six months ended June 30, 2022, down from $10,685,000 in 2021, indicating a decline of about 12.6%[127] - The company reported a significant increase in sales to Huahong Zealcore, which rose to $4,202,000 in 2022 from $3,168,000 in 2021, a growth of approximately 32.6%[127] Employee Information - The Company had approximately 6,300 employees as of 30 June 2022, an increase from approximately 6,000 employees as of 30 June 2021[175] - The total compensation paid to key management personnel for the six months ended June 30, 2022, was US$1,868,000, an increase of 22% from US$1,530,000 in 2021[132]
华虹半导体(01347) - 2022 - 中期财报