Financial Performance - Revenue reached an all-time high of US$1,262.2 million, an increase of 3.8% compared to 1H 2022, primarily benefiting from improved average selling price[24] - Gross profit was US$377.3 million, an increase of 2.3% compared to 1H 2022, driven by improved average selling price[26] - Profit attributable to owners of the parent was US$230.8 million, an increase of 23.5% compared to 1H 2022[23] - Profit for the period was US$148.7 million, a decrease of 4.3% compared to 1H 2022, with a net profit margin of 11.8%[36] - Other income and gains were US$50.7 million, an increase of 153.3% compared to 1H 2022, primarily due to increased interest income and government subsidies[27] - Basic earnings per share attributable to ordinary equity holders increased to $0.176 from $0.144, marking a rise of 22.2%[168] Expenses and Costs - Finance costs increased to US$56.7 million, a rise of 278.5% compared to 1H 2022, primarily due to increased interest rates on bank borrowings[33] - Income tax expense was US$26.9 million, an increase of 25.9% compared to 1H 2022, primarily due to increased taxable profit[35] - Selling and distribution expenses decreased to US$5.1 million, a decrease of 27.6% compared to 1H 2022, primarily due to decreased labor expenses[30] - Administrative expenses increased to US$147.8 million, an increase of 6.4% compared to 1H 2022, primarily due to increased engineering wafer costs[31] - Cost of sales was US$885.0 million, an increase of 4.5% compared to 1H 2022, primarily due to increased depreciation and utility costs[25] Assets and Liabilities - Total non-current assets decreased by 2.7% from US$3,979.7 million to US$3,870.7 million[38] - Cash and cash equivalents decreased by 7.9% from US$2,008.8 million to US$1,851.0 million[50] - Net cash flows generated from operating activities decreased by 28.1% from US$407.8 million to US$293.1 million[50] - Total current liabilities decreased by 20.1% from US$1,382.4 million to US$1,104.4 million[38] - Other non-current assets increased by 63.3% from US$54.8 million to US$89.5 million due to increased prepayments for capital expenditure[42] Production and Capacity - The capacity utilization rate remained high, with double-digit growth in sales of eNVM/Standalone NVM process platforms[69] - Revenue from power discrete devices increased over 30% year-on-year in the first half of 2023[71] - The Company plans to continue expanding production capacity and accelerate process development in the second half of 2023, despite a slow recovery in the end-user market[73] - The joint venture for Wuxi Phase II project (HH Fab9) involves an investment of US$880.38 million and aims for a monthly production capacity of 83,000 wafers[72] Share Issuance and Financial Strategy - The RMB Share Issue raised gross proceeds of RMB21,203 million (approximately US$2,974 million), with net proceeds of RMB20,921 million (approximately US$2,934 million) after deducting issuance costs[77] - The Company intends to apply proceeds from the RMB Share Issue to projects including the "Hua Hong Manufacturing (Wuxi) Project" and the "8-Inch Factory Optimisation and Upgrading Project"[82] - The Company expects the RMB Share Issue to enhance its production capacity and R&D capabilities, consolidating its position as a leading pure-play foundry in the PRC[76] - The Board believes the RMB Share Issue will strengthen the financial position and broaden the Company's fundraising channels and shareholder base[76] Research and Development - The "Specialty Technological Innovation and Research and Development Project" aims to enhance proprietary innovation and R&D capabilities[85] - The "Special Process Technology Innovation R&D Project" is intended to strengthen the company's independent innovation and R&D capabilities[159] Market and Economic Conditions - The company will continue to pursue a diversified development strategy despite slow recovery in end-market demand[151] - Approximately 23% of the company's sales for the six months ended June 30, 2023, were denominated in currencies other than the functional currency of its subsidiaries[145] - The company’s bank borrowings amounted to $1.653 billion, with a potential impact of $57 million on pre-tax profit if the USD appreciates or depreciates by 5% against the RMB[145]
华虹半导体(01347) - 2023 - 中期财报