Financial Performance - For the six months ended June 30, 2023, the turnover decreased by 16.1% to RMB 2,645,133,000 compared to RMB 3,151,541,000 in the same period of 2022[15]. - The company reported a loss for the period of RMB 15,343,000, a significant decline from a profit of RMB 12,447,000 in the previous year, representing a 223.3% change[15]. - The loss attributable to owners of the company was RMB 14,290,000, compared to a profit of RMB 14,214,000 in the prior year, marking a 200.5% change[15]. - Basic and diluted loss per share was RMB (1.31) cents, a decrease of 200.8% from earnings of RMB 1.30 cents per share in the previous year[15]. - Gross profit for the Group was approximately RMB 180.1 million, a decrease of approximately 31.4% compared to RMB 262.7 million in the same period of 2022[50]. - EBITDA for the Group was approximately RMB 76.9 million, down approximately 38.1% from RMB 124.3 million in the same period of 2022[50]. - The Group recorded a total comprehensive loss of RMB 13,864 for the period, compared to a loss of RMB 7,962 in the previous year[121]. - The total comprehensive income for the period ended June 30, 2023, was RMB (13,582,000), a significant decline from the total comprehensive income of RMB 2,752,000 for the same period in 2022[128]. Market Trends - According to IDC, smartphone shipments in China for Q1 2023 were approximately 65.44 million units, down by 11.8% year-on-year, indicating ongoing market challenges[18]. - The overall industry is experiencing a prolonged consumer replacement cycle due to economic factors and weak consumer confidence, impacting demand for new devices[20]. - In Q1 2023, China's foldable product shipments reached 1.02 million units, a year-on-year increase of 52.8%[22]. - In Q2 2023, smartphone shipments in China were approximately 65.7 million units, down by 2.1% year-on-year, indicating a significant narrowing of the decline[24]. - Total smartphone shipments in the first half of 2023 were approximately 130 million units, representing a year-on-year decrease of 7.4%[24]. - The foldable smartphone market saw shipments of nearly 3.3 million units in 2022, achieving a year-on-year growth of 118%[23]. - Foldable smartphone shipments are expected to reach 4.5 million units in 2023, reflecting a growth rate of 69.5%[23]. - IDC predicts a 3.2% decline in global smartphone shipments to 1.17 billion units in 2023, with a recovery expected in 2024 at a growth rate of 6%[25]. Business Strategy - The company is focusing on R&D and application of lithium-ion batteries, aiming to expand into new markets such as wearable device batteries and automotive batteries[17]. - The company is adjusting its development strategy to respond to market changes and increasing demand for emerging consumer electronics products[17]. - The ODM business primarily supplies lithium-ion batteries for mobile phones, tablets, notebooks, and power banks, reflecting a shift in product focus[17]. - The company aims to provide more diversified professional module business to its customers in response to market trends[17]. - The Group is diversifying its product and technology platforms to reduce dependence on the mobile phone battery segment[32]. - The Group aims to enhance operational efficiency and explore new markets for power supply products, including wearable device batteries and car batteries, to capture market opportunities[36]. - The Group is focusing on expanding its ODM business while managing losses in the bare battery cell segment[156]. Financial Position - As of June 30, 2023, the Group's outstanding borrowings amounted to approximately RMB 1,400,300,000, an increase from RMB 1,186,500,000 at the end of 2022[79]. - The total debt to equity ratio increased to approximately 132.7% as of June 30, 2023, compared to 111.0% at the end of 2022, primarily due to an increase in short-term borrowings[79]. - The Group's current ratio remained stable at approximately 1.1 times as of June 30, 2023, with current assets of approximately RMB 3,535,000,000 and current liabilities of approximately RMB 3,136,500,000[84]. - Net current assets increased by approximately 1.1% to RMB 398,400,000 as of June 30, 2023, from RMB 393,900,000 at the end of 2022[89]. - The Group's capital commitments outstanding as of June 30, 2023, amounted to approximately RMB 46,000,000, up from RMB 19,100,000 at the end of 2022, mainly for the acquisition of property, plant, and equipment[91]. - The Group's treasury management focuses on maintaining a diversified debt profile and enhancing cost-efficiency in funding initiatives to ensure financial flexibility[75]. - The Group's total equity attributable to owners of the Company as of June 30, 2023, was RMB 1,056,625,000, down from RMB 1,070,207,000 at the end of 2022, indicating a decrease of approximately 1.3%[128]. Operational Efficiency - The Group recorded a net cash outflow from operating activities of approximately RMB 487,900,000 for the six months ended June 30, 2023, compared to RMB 403,600,000 in 2022[78]. - The cash and cash equivalents at the end of the period on June 30, 2023, were RMB 118,205,000, down from RMB 175,270,000 at the end of June 30, 2022, representing a decrease of about 32.6%[132]. - The Group's operations are primarily conducted in RMB, and it does not face significant difficulties from foreign exchange fluctuations[99]. - The Group continues to monitor foreign exchange risks and will take prudent measures when necessary[99]. - The Group's operations are not significantly affected by COVID-19, indicating no ongoing concern issues[145]. Employee and Management - As of June 30, 2023, the Group had 2,835 full-time employees, a decrease from 3,155 employees as of June 30, 2022, representing a reduction of approximately 10.1%[104][107]. - Employee costs for the review period amounted to RMB 220.1 million, down from RMB 310.5 million for the six months ended June 30, 2022, indicating a decrease of approximately 29.1%[104][107]. - The management regularly reviews the remuneration policy to ensure it aligns with market standards and performance-related rewards[104][107]. Research and Development - Research and development costs for the six months ended June 30, 2023, were RMB 42,884,000, down 42.9% from RMB 75,116,000 in the same period of 2022[173].
锐信控股(01399) - 2023 - 中期财报