Revenue and Sales Performance - For the six months ended June 30, 2022, Centenary United Holdings Limited recorded revenue of approximately RMB 777.5 million, a decrease of about 20.6% compared to the same period in 2021[14]. - New car sales revenue was approximately RMB 633.4 million (5,095 units), down 24.0% from RMB 833.2 million (7,079 units) in the previous period[15]. - Revenue from motor vehicle sales contributed approximately RMB 654.2 million, accounting for about 84.1% of total revenue, while comprehensive automotive services generated approximately RMB 123.3 million, representing about 15.9% of total revenue[33]. - The company's revenue for the six months ended June 30, 2022, was RMB 777,458,000, a decrease of 20.6% compared to RMB 979,587,000 for the same period in 2021[122]. - Revenue from automobile sales was RMB 654,167,000, down 23.7% from RMB 856,278,000 year-on-year[153]. Profitability and Loss - Gross profit increased by 18.7% to approximately RMB 53.4 million, with a gross margin rising to 6.9%[14]. - The overall gross profit for the reporting period was approximately RMB 53.4 million, an increase of about 18.7% from RMB 45.0 million in the previous period, with the overall gross margin rising from approximately 4.6% to 6.9%[37]. - The company reported a loss before tax of RMB 5,510,000, an improvement from a loss of RMB 9,665,000 in the prior year, indicating a reduction in losses by 43.5%[122]. - The net loss for the period was RMB 7,841,000, slightly improved from RMB 8,134,000 in the previous year, reflecting a decrease of 3.6%[122]. - Basic and diluted loss per share was RMB 1.43, compared to RMB 1.58 in the same period last year, showing a reduction in loss per share by 9.5%[122]. Market and Industry Outlook - The domestic automotive market is expected to see a sales volume of over 27 million units in 2022, with new energy vehicle sales projected to reach a historical high of 5.5 million units, representing a year-on-year growth of over 56%[13]. - The automotive industry in China is recovering, with June 2022 showing a year-on-year increase of 28.2% in production and 23.8% in sales, indicating a return to normalcy in the supply chain[10]. - The outlook for the second half of the year anticipates a recovery in the passenger car market and continued rapid growth in the new energy vehicle sector, with a focus on comprehensive new energy mobility solutions[26]. Operational Developments - The company plans to open 4 new new energy stores and has 3 more under construction, aiming to increase the total number of operational stores to 37 by the third quarter of 2022[14]. - The group aims to establish 2,000 charging stations by 2024, with 39 stations and 192 charging piles already built, providing a total of 338 charging points[29]. - The company plans to enhance its presence in the used car market with a one-stop used car complex in Zhongshan, expecting over 20 car dealers and more than 250 used car display spaces[30]. Financial Position and Cash Flow - Cash and cash equivalents decreased to approximately RMB 93.4 million from RMB 159.2 million, a reduction of about RMB 65.8 million[45]. - The net cash flow from operating activities for the six months ended June 30, 2022, was a loss of RMB 57,515,000, compared to a gain of RMB 5,143,000 in the same period of 2021[142]. - The cash flow from investing activities resulted in a net outflow of RMB 29,505,000, up from RMB 14,763,000 in the previous year[142]. - The financing activities generated a net cash inflow of RMB 65,620,000, contrasting with a net outflow of RMB 16,889,000 in the prior year[142]. Shareholding and Corporate Governance - As of June 30, 2022, the company had a total of 373,916,000 shares held by Mr. Luo, representing 74.01% of the total shares[77]. - The company has 33,198,000 unexercised share options under the share option scheme, accounting for approximately 6.57% of the issued share capital as of the report date[82]. - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the combined roles of the Chairman and CEO[105]. - The board believes that the insurance claim rejection will not have a significant adverse impact on the company's financial condition and business operations[69]. Employee and Administrative Expenses - Employee benefits expenses (excluding directors' remuneration) increased to RMB 44,914,000, up 11.0% from RMB 40,191,000 year-on-year[162]. - Administrative expenses rose to approximately RMB 37.4 million, an increase of about RMB 4.3 million, primarily due to higher salaries and reduced rental discounts[40]. Inventory and Trade Payables - Inventory levels rose significantly to RMB 312,273,000, compared to RMB 215,591,000, marking an increase of approximately 45%[127]. - Trade payables decreased to RMB 115,388,000 from RMB 141,245,000, a decline of about 18.3%[127]. - The group maintained strict control over its outstanding receivables to minimize credit risk, with no significant credit concentration risk identified as of June 30, 2022[187].
世纪联合控股(01959) - 2022 - 中期财报