中创新航(03931) - 2023 - 中期财报

Company Information This section provides essential corporate details for CALB Technology Group, including governance, contact information, and key operational identifiers Basic Company Information This section provides basic company information for CALB Technology Group Co., Ltd., including key contact and governance details such as board members, authorized representatives, auditors, registered office, principal place of business, principal bankers, stock code, and company website - Board members include Executive Directors Ms. Liu Jingyu (Chairwoman and President), Mr. Dai Ying, Non-executive Directors Mr. Zhou Sheng, Mr. Zhang Guoqing, Mr. Li Yunxiang, and Independent Non-executive Directors Mr. Wu Guangquan, Mr. Wang Susheng, Mr. Chen Zetong[5] - The company's auditor is RSM Hong Kong[5] - The company's stock code is 3931, and its website is http://www.calb-tech.com[6](index=6&type=chunk) Management Discussion and Analysis This section analyzes the Group's H1 2023 performance, industry trends, strategic initiatives, and financial health Industry Overview This section analyzes H1 2023 power battery and energy storage market growth, driven by NEV sales and supportive policies China New Energy Vehicle Sales and Penetration (10,000 units) | Indicator | 2021 | 2022 | H1 2023 | | :--- | :--- | :--- | :--- | | Sales (10,000 units) | 350.7 | 687.2 | 375 | | Penetration Rate (%) | 13% | 25% | 28.3% | - In H1 2023, China's NEV sales reached 3.75 million units, a 44% YoY increase, with a penetration rate of 28.3%; total NEV sales for 2023 are projected to reach 9 million units, a 31% YoY increase[7] - From January to June 2023, global power battery installations reached 304.3 GWh, a 50.1% YoY increase; global power battery installations are projected to reach 749 GWh in 2023, a 45% YoY increase[10] - From January to June 2023, domestic power battery installations reached 152.1 GWh, a 38.1% YoY increase, with LFP batteries accounting for 68.3% and NCM batteries for 31.5% of total installations[10] - By 2025, the cumulative installed capacity of the global electricity storage market is expected to reach 500 GWh, with new energy storage accounting for over 50%[13] Business Operations This section outlines CALB's strategic focus on innovation, product leadership, and market expansion, highlighting significant H1 2023 operational improvements - As of June 30, 2023, the Group's total assets were approximately RMB 100.281 billion, a 10.9% YoY increase; net assets were approximately RMB 44.906 billion, an 8.0% YoY increase[15] - Revenue reached approximately RMB 12.295 billion, a 34.1% YoY increase; net profit was approximately RMB 266 million, a 60.8% YoY increase[15] - The Group's operating performance continued to improve significantly, with power battery installations growing exponentially, entering the global top five[15] Technological Breakthroughs The Group significantly enhanced core competitiveness through increased R&D, extensive patent applications, and a comprehensive patent layout across the battery industry chain - During the reporting period, the Group applied for 1,009 patents and obtained 534 patent grants[16] - As of June 30, 2023, the Group had cumulatively applied for 3,724 patents, of which 2,232 were granted[16] - Formed a patent layout covering the entire battery industry chain, including battery materials, battery structure, system integration, electrical circuits, BMS, manufacturing processes and equipment, and battery recycling and regeneration[16] Product Leadership The Group maintains market leadership by innovating high-performance, high-safety power batteries and energy storage solutions across diverse applications - In the power market, the product line was further enriched, completing a multi-scenario layout across all fields, maintaining high standardization and scalability of product specifications, and leading the development direction of standardized prismatic batteries in the industry[17] - In the energy storage market, a series of high-performance, high-safety, and high-efficiency products were developed, fully covering needs from portable energy storage to residential, commercial & industrial distributed energy storage, and grid-side & generation-side large-scale energy storage power stations[18] (1) Ternary Power Products The Group's ternary products offer ultra-fast charging, high power, and energy density for premium EVs and hybrids - 400V 2C mid-nickel high-voltage battery: Achieves 20%-80% charge in 18 minutes, already mass-delivered for customer 100kWh and other vehicle models[18] - 800V 3C/4C mid-nickel high-voltage battery: First to achieve 20%-80% charge in 10 minutes, and already mass-delivered[18] - 800V 6C high-nickel battery: 46-series large cylindrical product, cell energy density up to 300Wh/kg, maximum fast charging capability over 6C[18] - Ultra-high energy density semi-solid-state battery: Cell energy density exceeds 400Wh/kg, cycle life approaches 1,000 cycles, achieving extreme balance of energy, performance, and safety[18] (2) Phosphate Series Power Products The Group's phosphate products provide diverse, high-performance solutions for passenger vehicles, featuring innovative LFP battery technologies - High-power LFP battery: Developed for passenger vehicle hybrid market, covering 80km-300km range, already mass-delivered to leading customers[19] - High-specific energy LFP battery: Adopts the world's first full-tab stacking technology, leading the industry's third-generation standard for prismatic products[19] - One-Stop LFP battery: Industry's highest mass-produced LFP battery pack energy density (153Wh/kg), supporting 600km cruising range[19] - One-Stop high-manganese lithium iron phosphate battery: 0 nickel, 0 cobalt usage, battery pack energy density 180Wh/kg, supporting over 700km cruising range[19] (3) Energy Storage Products The Group's energy storage products deliver long-life, high-efficiency, and safe solutions for utility, commercial, and residential sectors - Utility-scale energy storage applications: Liquid-cooled/air-cooled container products, simplifying system integration components by over 20%, increasing integrated power per unit area by over 30%[20] - Commercial & industrial energy storage applications: Outdoor integrated cabinets and container products offer modular design, active safety systems, and intelligent power distribution systems, maximizing arbitrage profits from peak-valley price differences[20] - Residential energy storage applications: Long-life prismatic batteries and intelligent management systems feature multiple protection mechanisms, passing a series of overseas certifications like UL/IEC/CE[21] Performance Achievements The Group achieved rapid growth in power battery and energy storage markets, entering the global top five for passenger vehicle installations - In H1 2023, cumulative passenger vehicle market installations reached 12 GWh, a 53% YoY increase; monthly installations exceeded 3 GWh, entering the global top five for installations[22] - Maintained a leading position in the BEV (Battery Electric Vehicle) market, further improved strategic layout in the PHEV/REEV (Plug-in Hybrid Electric Vehicle/Range-Extended Electric Vehicle) sub-segments, securing new model nominations from multiple customers[22] - Assisted customers like AION, Xpeng, Deepal, NIO, Leapmotor, Smart in launching multiple new vehicle models, and commenced mass production and delivery of NIO's overseas export models[22] - Commercial vehicle business achieved comprehensive cooperation and mass delivery with customers including Geely, Ruichi, Chery, and FAW Jiefang[23] - Energy storage system business completed significant deployments in utility-scale, commercial & industrial, and residential energy storage sub-segments, securing annual centralized procurement and supplier nominations from multiple state-owned power enterprises, system integrators, and leading PV and wind power companies[23] Future Outlook This section details CALB's future strategies for technology, product innovation, and market expansion to secure competitive advantages and new growth Technology and Product Innovation The Group will pursue continuous innovation in advanced materials, smart manufacturing, and next-gen battery technologies to maintain product leadership - In chemical energy storage materials, focus will be on breakthroughs in key technologies such as high-manganese lithium iron phosphate materials, 5V high-voltage nickel-manganese lithium materials, and new silicon-carbon anode materials[24] - In intelligent manufacturing technology, through structural innovation of batteries and highly integrated manufacturing process innovation, efficient manufacturing technology upgrades will be achieved, and a new structural top-flow cylindrical battery technology supporting 6C fast charging will be launched[24] - In high-performance battery and system technology, committed to building comprehensive leading advantages in high specific energy, long life, high safety, high power, and all-climate technology fields, and completing the promotion of high specific energy 4C ultra-fast charging prismatic battery products[24] - In new battery types, focusing on next-generation battery technologies such as high-manganese lithium iron phosphate batteries, 5V high-voltage nickel-manganese lithium batteries, high-specific energy anode-free batteries, all-solid-state batteries, and lithium-sulfium batteries[24] - In battery full lifecycle management, continuous investment in intelligent battery management technology development, and active exploration of efficient cascade utilization and recycling technologies[24] Market and Customer Expansion The Group will expand in power battery and energy storage markets through platform products and strategic partnerships - In the power battery market, develop PHEV/REEV platform products covering 80km-300km range, forming comprehensive strategic cooperation with domestic independent brand hybrid architectures and technologies[25] - In the 400V pure electric market, iterate One-Stop technology to launch battery products with higher energy density and faster charging speeds; the new generation One-Stop, equipped with high-manganese lithium iron phosphate technology, can achieve a battery pack energy density of 180Wh/kg, supporting a cruising range of over 700km[25] - In the 800V pure electric market, deploy two product lines: prismatic batteries (meeting up to 4C charging scenarios) and cylindrical batteries (creating the best solution for 6C and above ultra-fast charging scenarios)[25] - In the energy storage system market, focus on new energy generation-side, grid-side, and user-side sub-segments, establishing long-term strategic cooperation with leading enterprises in wind power, photovoltaic, and grid industries[26] Financial Review This section provides a comprehensive review of the Group's financial performance for the six months ended June 30, 2023, including key financial indicators and changes in revenue, profit, balance sheet, liquidity, capital structure, foreign exchange risk, capital expenditures, and contingent liabilities Overview The Group achieved significant revenue and gross profit growth, with improved margins, despite a decrease in profit attributable to owners Key Financial Indicators | Financial Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,294,712 | 9,167,200 | | Gross Profit | 1,179,065 | 870,479 | | Profit for the Period | 266,487 | 165,695 | | Profit Attributable to Owners of the Company | 146,517 | 166,719 | | Basic Earnings Per Share (RMB) | 0.0827 | 0.1107 | | Gross Margin (%) | 9.6% | 9.5% | | Net Sales Margin (%) | 2.2% | 1.8% | - Gross margin increased by 0.1% from 9.5% in the same period of 2022 to 9.6%, mainly due to the gradual release of the Group's production capacity and more significant economies of scale during the reporting period[27] - Net sales margin increased by 0.4% from 1.8% in the same period of 2022 to 2.2%, primarily due to the Group's increased gross profit and effective control of various expenses[28] Revenue Structure Power battery sales remain dominant, but energy storage and overseas revenue show strong growth, reflecting successful market diversification - The Group's revenue increased by 34.1% from RMB 9.167 billion in the same period of 2022 to RMB 12.295 billion, primarily due to the gradual release of production capacity, richer product lines, market expansion, and continuous growth in customer demand[29] 1) Revenue by Product%20Revenue%20by%20Product) Power battery sales revenue grew by 20.0%, while energy storage and other products saw a robust 268.1% increase Revenue by Product | Item | 2023 Revenue (RMB thousand) | Revenue Share (%) | 2022 Revenue (RMB thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Power Batteries | 10,377,467 | 84.4% | 8,646,346 | 94.3% | | Energy Storage System Products and Others | 1,917,245 | 15.6% | 520,854 | 5.7% | | Total | 12,294,712 | 100.0% | 9,167,200 | 100.0% | - Power battery sales revenue increased by 20.0%, mainly due to the company's capacity release, continuous enrichment of product lines, and growth in market and customer demand[30] - Revenue from energy storage system products and others increased by 268.1%, mainly due to the Group's continuous expansion in domestic and international energy storage system markets, leading to sustained sales growth[31] 2) Revenue by Product Delivery Location%20Revenue%20by%20Product%20Delivery%20Location) Revenue from mainland China grew by 32.5%, while overseas revenue surged 115.7%, driven by energy storage Revenue by Product Delivery Location | Item | 2023 Revenue (RMB thousand) | Revenue Share (%) | 2022 Revenue (RMB thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 11,920,164 | 97.0% | 8,993,569 | 98.1% | | Overseas Regions | 374,548 | 3.0% | 173,631 | 1.9% | | Total | 12,294,712 | 100.0% | 9,167,200 | 100.0% | - Revenue from mainland China increased by 32.5%, mainly due to the Group's continuous increase and release of production capacity and rapid growth in battery demand from major customers[32] - Revenue from overseas regions increased by 115.7%, primarily driven by strong growth in overseas energy storage business, indicating a significant upward trend in the Group's international operations[33] Financial Position Total assets and liabilities increased, with non-current assets and liabilities rising due to expansion and project financing 1) Assets%20Assets) Total assets grew 10.9%, driven by non-current asset expansion, while current assets decreased due to H-share proceeds utilization - The Group's total assets increased by 10.9% to RMB 100.281 billion; non-current assets increased by 25.8% to RMB 66.827 billion, mainly due to the Group's continuous investment in production bases, leading to an increase in property, plant and equipment[34] - Current assets decreased by 10.5% to RMB 33.453 billion, mainly due to the use of H-share proceeds for the company's production base construction, a decrease in bank deposits, and a reduction in inventory as operational efficiency improved[34] 2) Liabilities%20Liabilities) Total liabilities increased 13.3%, with non-current liabilities significantly rising due to project financing to meet funding needs for business expansion and major projects - The Group's total liabilities increased by 13.3% to RMB 55.375 billion; current liabilities increased by 1.4% to RMB 33.232 billion, mainly due to business expansion and continuous investment in production bases, leading to an increase in payables for property, plant and equipment[35] - Non-current liabilities increased by 37.4% to RMB 22.143 billion, primarily due to increased project syndicated loans to meet the Group's funding needs for business expansion and continuous investment in major projects[35] Liquidity and Financial Resources Despite operating cash outflow, the Group maintains sufficient liquidity with substantial cash balances and borrowings for operations and capital needs - Net cash outflow from operating activities for the six months ended June 30, 2023, was RMB 2.725 billion, a decrease of RMB 3.168 billion compared to a net cash inflow of RMB 443 million in the same period of 2022, mainly due to increased payments for materials and employee expenses from business growth[36] - The Group's bank and cash balances as of June 30, 2023, were approximately RMB 9.687 billion[36] - The Group's total borrowings as of June 30, 2023, were approximately RMB 26.844 billion, mainly comprising bank project loans and bill discounting financing[36] Capital Structure The debt-to-asset ratio increased to 42.0% due to project borrowings, but the Group maintains financial stability - The Group's debt-to-asset ratio as of June 30, 2023, was 42.0% (December 31, 2022: 17.7%), with the increase mainly due to increased project construction borrowings[38] - Approximately 21.0% of the Group's borrowings are denominated in RMB and bear fixed interest rates, with the remaining portion bearing floating interest rates[37] Foreign Exchange Risk The Group's RMB-denominated operations in mainland China experienced no significant foreign exchange impact during the period - The Group's operations are primarily located in mainland China, and most transactions are conducted in RMB[39] - During the reporting period, the Group did not experience any significant difficulties or impacts on its operations or liquidity due to currency exchange rate fluctuations[39] Capital Expenditures Capital expenditures reached RMB 11.992 billion, primarily for capacity expansion and facility upgrades, funded by various sources - During the reporting period, the Group's capital expenditures for the six months ended June 30, 2023, were RMB 11.992 billion (2022: RMB 11.031 billion)[40] - Capital expenditures were primarily used for capacity expansion, including the construction of new production facilities and the upgrading of existing machinery and equipment[40] Capital Commitments Total contracted but unspent capital commitments were RMB 23.651 billion, mainly for property, plant, and equipment - Total contracted but not yet incurred capital expenditures as of June 30, 2023, were RMB 23.651 billion (December 31, 2022: RMB 29.205 billion)[41] - Capital commitments primarily relate to the acquisition of property, plant, and equipment[41] Restricted Assets The Group had RMB 3.015 billion in restricted assets, including pledged deposits and bills, used to secure financing - As of June 30, 2023, the Group had restricted assets with a total carrying value of RMB 3.015 billion used to obtain bank loans and other bank financing[42] - These assets include pledged and restricted bank deposits of RMB 1.242 billion, bills receivable of RMB 364 million, property, plant and equipment of RMB 962 million, and right-of-use assets of RMB 446 million[42] Significant Investments Held As of June 30, 2023, the Group did not hold any significant investments - As of June 30, 2023, the Group held no significant investments[43] Future Plans for Material Investments and Capital Assets As of June 30, 2023, the Group had no other future plans for material external investments and capital assets - As of June 30, 2023, the Group had no other plans for material external investments and capital assets[44] Material Acquisitions and Disposals of Subsidiaries, Joint Ventures, and Associates For the six months ended June 30, 2023, the Group did not undertake any material acquisitions or disposals of subsidiaries, joint ventures, or associates - For the six months ended June 30, 2023, the Group had no material acquisitions or disposals of subsidiaries, joint ventures, or associates[45] Contingent Liabilities The Group faces contingent liabilities from endorsed bank bills and multiple IP infringement claims by CATL, with some patents declared invalid - As of June 30, 2023, the maximum risk from potential default on endorsed and discounted bank acceptance bills was RMB 4.994 billion (December 31, 2022: RMB 3.535 billion)[46] - CATL filed four intellectual property infringement claims against the Company regarding Patent 1, Patent 2, Patent 3, and Patent 4, seeking total compensation of RMB 485 million and expenses of RMB 2.7 million[47] - The Company has appealed the first-instance judgments of the Fuzhou Intermediate People's Court regarding Patent 1, Patent 3, and Patent 4 to the Supreme People's Court, and has made provisions totaling RMB 8.64 million[49][50][51] - On August 3, 2023, the China National Intellectual Property Administration declared the invention patent rights for Patent 1 and Patent 4 entirely invalid[51] - The directors believe that the claims related to Patent 2 and Patent 6 lack merit, and a satisfactory resolution of these claims is unlikely to result in an outflow of economic benefits[51] Corporate Governance and Other Information This section covers the Group's governance, compliance, IPO proceeds, dividends, employee policies, and director/shareholder interests Compliance with Corporate Governance Code The Company complied with the Corporate Governance Code, with a justified deviation for the combined Chairman and CEO role - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1 (which stipulates that the roles of chairman and chief executive should be separate)[53] - Ms. Liu Jingyu serves as both the Chairwoman and President of the Company, and the Board believes that having the same person in these roles ensures leadership consistency within the Group and enables more effective and efficient formulation of overall strategic planning[53] Standard Code for Securities Transactions by Directors and Supervisors The Company adopted and complied with the Standard Code for securities transactions by directors, supervisors, and senior management - The Company has adopted the Standard Code as the code of conduct for securities transactions by directors, supervisors, and senior management of the Group[55] - The directors and supervisors have confirmed their compliance with the Standard Code for the six months ended June 30, 2023[55] Audit Committee Review of Interim Results The Audit Committee reviewed the H1 2023 interim financial statements, confirming compliance and adequate disclosure - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2023[56] - Confirmed compliance with all applicable accounting principles, standards, and requirements, and adequate disclosure[56] Legal Proceedings and Compliance Except for the patent infringement claims disclosed in this report, the Group was not involved in any legal proceedings, arbitrations, or litigations during the reporting period that would have a material adverse effect on its ordinary business, financial position, or operating results - Except as disclosed in this report, during the reporting period, the Group was not involved in any legal proceedings, arbitrations, or litigations that would have a material adverse effect on its ordinary business, financial position, or operating results[57] Use of Proceeds from Listing IPO proceeds of HKD 9.980 billion are primarily for new production facilities, with HKD 2.083 billion utilized by June 30, 2023 - The total net proceeds from the listing were approximately HKD 9.980 billion[58] Use of Proceeds from Listing | Item | Approximate Percentage of Total Net Proceeds (%) | Net Proceeds Available from Listing (HKD million) | Amount Used for the Six Months Ended June 30, 2023 (HKD million) | Net Proceeds Unused as of June 30, 2023 (HKD million) | Expected Timeline for Use of Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction of New Production Facilities (95GWh Power Batteries and Energy Storage Systems) | 80.0 | 7,984.08 | 2,082.91 | 2,183.12 | Before December 31, 2024 | | Advanced Technology R&D | 10.0 | 998.01 | 0.00 | 998.01 | Before December 31, 2023 | | Working Capital and General Corporate Purposes | 10.0 | 998.01 | 0.00 | 965.77 | Before December 31, 2023 | | Total | 100.0 | 9,980.10 | 2,082.91 | 4,146.90 | | Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2023, neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2023, neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[59] Interim Dividend The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2023, nor to effect any capitalization issue or other forms of distribution from capital reserves - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2023, nor to effect any capitalization issue or other forms of distribution[60] Events After Reporting Period The Board confirmed that, apart from the patent-related matters disclosed in Note 27(b), there have been no material adverse changes in the Company's financial or trading position or prospects from June 30, 2023, up to the date of this report - After careful consideration, the directors confirmed that there have been no material adverse changes in the Company's financial or trading position or prospects from June 30, 2023, up to the date of this report[61] Employees and Remuneration Policy Employee numbers significantly increased to 21,587, driven by business growth and conversion of external labor to formal employees - The Company's employee remuneration is based on the 3P1M (person, performance, position, market) remuneration philosophy, primarily determined by market conditions, position value, individual performance, and capabilities[62] - As of June 30, 2023, the Group had 21,587 employees, a significant increase from the total number of employees as of December 31, 2022[62] - The overall increase in headcount was mainly due to the conversion of certain labor personnel, previously employed by external labor service companies and providing outsourced labor services, to formal employees of the Group, as well as the continuous development of the business[62] Changes in Information of Directors, Supervisors and Senior Management Members For the six months ended June 30, 2023, and up to the date of this report, there were no changes in the information of directors, supervisors, and senior management members required to be disclosed under Rule 13.51B(1) of the Listing Rules - For the six months ended June 30, 2023, and up to the date of this report, there were no changes in the information of directors, supervisors, and senior management members required to be disclosed under Rule 13.51B(1) of the Listing Rules[63] Material Transactions, Arrangements or Contracts Except as disclosed in this report, at no time during the six months ended June 30, 2023, did the Company or any of its subsidiaries enter into any material transactions, arrangements, or contracts in which any director, supervisor, or entity connected with any director or supervisor had a material interest - Except as disclosed in this report, at no time during the six months ended June 30, 2023, was there any material transaction, arrangement, or contract entered into by the Company or any of its subsidiaries in which any director, supervisor, or any entity connected with any director or supervisor had a material interest, and which remained in force at the end of the period or at any time during the period[64] Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations Executive Directors Liu Jingyu and Dai Ying held long positions in domestic shares, representing 0.09% and 0.06% of total share capital respectively Shareholdings of Directors, Supervisors or Chief Executive (as of June 30, 2023) | Name | Position | Nature of Interest | Share Class | Number of Shares Held (1) | Percentage of Respective Share Class (2) | Percentage of Total Share Capital (3) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liu Jingyu | Executive Director | Beneficial Owner | Domestic Shares | 1,640,913 | 0.11% | 0.09% | | Dai Ying | Executive Director | Beneficial Owner | Domestic Shares | 1,151,168 | 0.08% | 0.06% | Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares of the Company Key shareholders, including Jintan Holdings, Jinyuan Investment, and AVIC, collectively control significant voting rights in the Company Shareholdings of Substantial Shareholders and Other Persons (as of June 30, 2023) | Shareholder Name | Nature of Interest | Share Class | Number of Shares Held (1) | Percentage of Respective Share Class (2) | Percentage of Total Share Capital (3) | | :--- | :--- | :--- | :--- | :--- | :--- | | Changzhou Jinsha Technology Investment Co., Ltd. | Beneficial Owner | Domestic Shares | 252,130,281(L) | 16.74%(L) | 14.23%(L) | | Jiangsu Jintan Investment Holdings Co., Ltd. | Interest in Controlled Corporation | Domestic Shares | 452,573,757(L) | 30.04%(L) | 25.54%(L) | | Xiamen Jinyuan Investment Group Co., Ltd. | Interest in Controlled Corporation | Domestic Shares | 253,809,580(L) | 16.85%(L) | 14.32%(L) | | Sichuan Chengfei Integration Technology Co., Ltd. | Beneficial Owner | Domestic Shares | 151,145,867(L) | 10.03%(L) | 8.53%(L) | | Aviation Industry Corporation of China, Ltd. | Interest in Controlled Corporation | Domestic Shares | 163,970,995(L) | 10.88%(L) | 9.25%(L) | | Guotai Junan Securities Co., Ltd. | Interest in Controlled Corporation | H Shares | 48,331,900(L) | 18.18%(L) | 2.73%(L) | | Huatai Securities Co., Ltd. | Interest in Controlled Corporation | H Shares | 47,861,800(L) | 18.00%(L) | 2.70%(L) | | J.P. MORGAN SECURITIES PLC | Interest in Controlled Corporation | H Shares | 29,570,100(L) | 11.12%(L) | 1.67%(L) | - Jingsha Investment, Huake Engineering, Huake Investment, Jintan Guofa, Jintan Hualuogeng, and Jintan Holdings constitute a group of largest shareholders, directly or indirectly controlling a total of approximately 25.54% of the Company's voting rights[70] - Jinyuan Investment directly and indirectly controls a total of approximately 14.32% of the Company's voting rights[72] - AVIC indirectly controls a total of approximately 9.25% of the Company's voting rights[73] Rights of Directors and Supervisors to Acquire Shares or Debentures No arrangements granting directors or supervisors rights to acquire shares or debentures of the Company or related entities existed in H1 2023 - Except as disclosed in this report, at no time during the reporting period did the Company or any of its subsidiaries or holding companies or any subsidiary of the Company's holding company enter into any arrangement granting directors or supervisors the right to acquire benefits through the acquisition of shares or debentures of the Company or any other corporate body[77] Share Option Schemes The Group's 2019, 2020, and 2021 equity incentive schemes incentivize management through indirect shareholdings, with some transfers occurring Summary of Equity Incentive Schemes | Scheme | 2019 Equity Incentive Scheme | 2020 Equity Incentive Scheme | 2021 Equity Incentive Scheme | | :--- | :--- | :--- | :--- | | Maximum Entitlement per Participant | Not exceeding 1% of the Company's issued shares at the plan adoption date | Not exceeding 1% of the Company's issued shares at the plan adoption date | Not exceeding 1% of the Company's issued shares at the plan adoption date | | Amount Payable upon Acceptance of Award | Same as the price at which Lihang Jinzhi subscribed for the Company's increased registered capital on July 29, 2019 | RMB 1.0293 per share | RMB 41.67 per share | | Incentive Shares Granted (Directors and Senior Management) | 939,512 shares (0.05% of issued share capital) | 6,139,910 shares (0.35% of issued share capital) | 188,400 shares (0.01% of issued share capital) | | Incentive Shares Granted (Other Incentive Objects) | - | 13,106,987 shares (0.74% of issued share capital) | 8,454,000 shares (0.48% of issued share capital) | - Under the 2020 Equity Incentive Scheme, Ms. Liu Jingyu acquired 36,521 shares on April 10, 2023[82] - Under the 2021 Equity Incentive Scheme, Ms. Liu Jingyu acquired 91,200 shares on April 10, 2023, and Mr. Dai Ying acquired 64,800 shares on April 11, 2023, and 32,400 shares on June 21, 2023[84] Condensed Consolidated Statement of Profit or Loss This statement shows H1 2023 revenue and gross profit growth, with fluctuations in net profit due to finance costs and tax credits Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30, 2023) The Group's condensed consolidated statement of profit or loss for the six months ended June 30, 2023, shows YoY growth in revenue and gross profit, but profit for the period and profit attributable to owners of the Company fluctuated due to a significant increase in finance costs and income tax credit Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30, 2023) | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,294,712 | 9,167,200 | | Cost of Sales | (11,115,647) | (8,296,721) | | Gross Profit | 1,179,065 | 870,479 | | Operating Profit | 364,776 | 323,486 | | Finance Costs | (138,290) | (13,737) | | Profit Before Tax | 226,468 | 309,362 | | Profit for the Period | 266,487 | 165,695 | | Attributable to Owners of the Company | 146,517 | 166,719 | | Non-controlling Interests | 119,970 | (1,024) | | Basic Earnings Per Share (RMB) | 0.0827 | 0.1107 | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement reports H1 2023 profit for the period of RMB 266 million and total comprehensive income of RMB 257 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2023) The Group's condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2023, shows a profit for the period of RMB 266 million and a net other comprehensive expense of RMB 9.06 million, resulting in a total comprehensive income for the period of RMB 257 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2023) | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 266,487 | 165,695 | | Other Comprehensive (Expense)/Income, Net of Tax | (9,056) | 490 | | Total Comprehensive Income for the Period | 257,431 | 166,185 | | Attributable to Owners of the Company | 137,461 | 167,209 | | Non-controlling Interests | 119,970 | (1,024) | Condensed Consolidated Statement of Financial Position This statement shows H1 2023 total assets at RMB 100.281 billion, with increased non-current assets, liabilities, and equity Condensed Consolidated Statement of Financial Position (As at June 30, 2023) The Group's condensed consolidated statement of financial position as of June 30, 2023, shows total assets increased to RMB 100.281 billion, with a significant rise in non-current assets; total liabilities also increased, but net assets and total equity maintained steady growth Condensed Consolidated Statement of Financial Position (As at June 30, 2023) | Indicator | As of June 30, 2023 (RMB thousand) | As of December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 66,827,229 | 53,101,171 | | Current Assets | 33,453,486 | 37,359,447 | | Total Assets | 100,280,715 | 90,460,618 | | Current Liabilities | 33,231,873 | 32,774,951 | | Non-current Liabilities | 22,142,817 | 16,110,208 | | Total Liabilities | 55,374,690 | 48,885,159 | | Net Assets | 44,906,025 | 41,575,459 | | Equity Attributable to Owners of the Company | 34,499,914 | 34,379,318 | | Non-controlling Interests | 10,406,111 | 7,196,141 | | Total Equity | 44,906,025 | 41,575,459 | Condensed Consolidated Statement of Changes in Equity This statement shows H1 2023 total comprehensive income of RMB 257 million and total equity increasing to RMB 44.906 billion Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2023) The Group's condensed consolidated statement of changes in equity for the six months ended June 30, 2023, shows a total comprehensive income for the period of RMB 257 million, contributions from non-controlling interests of RMB 3.090 billion, and share-based payments of RMB 20.71 million, leading to total equity increasing to RMB 44.906 billion Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2023) | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Total Comprehensive Income for the Period (Attributable to Owners of the Company) | 137,461 | 167,209 | | Total Comprehensive Income for the Period (Non-controlling Interests) | 119,970 | (1,024) | | Contributions from Non-controlling Interests | 3,090,000 | 3,118,000 | | Share-based Payments | 20,705 | 20,037 | | Payment of Listing Expenses | (37,570) | - | | Total Equity at End of Period | 44,906,025 | 24,857,114 | Condensed Consolidated Statement of Cash Flows This statement shows H1 2023 net cash outflows from operating and investing activities, offset by financing inflows, resulting in RMB 8.445 billion cash at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2023) The Group's condensed consolidated statement of cash flows for the six months ended June 30, 2023, shows a net cash outflow from operating activities of RMB 2.725 billion, a net cash outflow from investing activities of RMB 13.689 billion, and a net cash inflow from financing activities of RMB 13.894 billion, resulting in cash and cash equivalents of RMB 8.445 billion at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2023) | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flows (Used in)/Generated from Operating Activities | (2,724,886) | 443,220 | | Net Cash Used in Investing Activities | (13,688,636) | (7,195,963) | | Net Cash Generated from Financing Activities | 13,893,847 | 6,969,708 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (2,519,675) | 216,965 | | Cash and Cash Equivalents at End of Period | 8,444,794 | 3,326,470 | Notes to the Condensed Financial Statements These notes provide detailed explanations and disclosures for the Group's H1 2023 condensed financial statements 1. General Information This note provides CALB's basic corporate information, including its incorporation, HKEX listing, and primary business activities - CALB Technology Group Co., Ltd. ("the Company") is a joint stock company incorporated in the People's Republic of China ("China"), with its H shares listed on The Stock Exchange of Hong Kong Limited since October 6, 2022[92] - The Company and its subsidiaries (collectively, "the Group") have been engaged in the design, research and development, production, and sale of power batteries and energy storage system products[92] 2. Basis of Preparation These interim financial statements adhere to IAS 34 and HKEX Listing Rules, consistent with 2022 annual accounting policies - These condensed financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board ("IASB") and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[93] - The accounting policies and methods of computation used in the preparation of these condensed financial statements are consistent with those adopted in the 2022 Annual Report[93] 3. Adoption of New and Revised International Financial Reporting Standards The Group adopted IAS 12 amendments for deferred tax and Pillar Two rules, with no material impact on financial position A. Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction IAS 12 amendments for deferred tax on lease transactions had no impact on the financial position due to offsetting conditions - The Group has adopted the amendments to International Accounting Standard 12 "Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction" from January 1, 2023[94] - For lease transactions, the Group is required to recognize related deferred tax assets and liabilities from the beginning of the earliest comparative period presented, but due to these balances meeting the offsetting conditions of IAS 12 paragraph 74, there was no impact on the condensed consolidated statement of financial position[94] B. International Tax Reform – Pillar Two Model Rules IAS 12 amendments for Pillar Two top-up tax had no retrospective impact as no new legislation was enacted - The Group has adopted the amendments to International Accounting Standard 12 "International Tax Reform – Pillar Two Model Rules", which provide a temporary mandatory exception to the accounting for deferred tax on top-up tax, effective immediately[96] - As no new legislation implementing top-up tax was enacted or substantively enacted in any jurisdiction where the Group operates as of December 31, 2022, retrospective application had no impact on the Group's condensed consolidated interim financial statements[96] 4. Changes in Accounting Policies and Disclosures New accounting policies and government grant presentation were adopted and retrospectively applied, restating comparative figures - The Group adopted new accounting policies and presentation methods for government grants for the year ended December 31, 2022; this change has been applied retrospectively, and accordingly, the corresponding figures in the comparative financial statements have been restated[97] Impact of Changes in Accounting Policies and Disclosures (For the six months ended June 30, 2022) | Item | As Previously Reported (RMB thousand) | Impact of Changes in Accounting Policies and Disclosures (RMB thousand) | As Restated (RMB thousand) | | :--- | :--- | :--- | :--- | | Cost of Sales | (8,347,442) | 50,721 | (8,296,721) | | Selling Expenses | (193,494) | 52,599 | (140,895) | | Administrative Expenses | (297,680) | 69,040 | (228,640) | | Research and Development Expenses | (412,837) | 207,562 | (205,275) | | Government Grants and Subsidies | 393,222 | (379,922) | 13,300 | 5. Critical Judgments and Key Estimates Product warranty provisions are based on recent claims and historical data, now presented as current and non-current portions - The Group makes product warranty provisions for products sold that are still under warranty, based on the best estimate of expected settlement under sales agreements, considering the Group's recent claim cases, historical warranty data, and the weighted probabilities of all possible outcomes[98] - Due to continuous business development over the years and recent increases in production capacity, the Group has obtained more detailed and longer-term historical warranty data, and warranty provisions are presented as current and non-current portions at the end of the reporting period[98] 6. Fair Value Measurement This note details fair value measurements of financial assets, totaling RMB 901 million, using Level 1 and Level 2 inputs (a) Disclosure of Fair Value Hierarchy: Financial asset fair value measurements, totaling RMB 901 million, primarily use Level 1 and Level 2 inputs Disclosure of Fair Value Hierarchy for Financial Assets (as of June 30, 2023) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Other Comprehensive Income - Certificates of Deposit | - | 123,398 | 123,398 | | Financial Assets at Fair Value Through Other Comprehensive Income - Investments in Listed Equity Securities | 223,005 | - | 223,005 | | Financial Assets at Fair Value Through Other Comprehensive Income - Investments in Unlisted Equity Securities | - | 295,917 | 295,917 | | Financial Assets at Fair Value Through Profit or Loss - Investments in Listed Equity Securities | 44,192 | - | 44,192 | | Financial Assets at Fair Value Through Profit or Loss - Investments in Unlisted Debt Instruments | - | 214,730 | 214,730 | | Total | 267,197 | 634,045 | 901,242 | Disclosure of Fair Value Hierarchy for Financial Assets (as of December 31, 2022) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Other Comprehensive Income - Certificates of Deposit | - | 101,428 | 101,428 | | Financial Assets at Fair Value Through Other Comprehensive Income - Investments in Listed Equity Securities | 234,590 | - | 234,590 | | Financial Assets at Fair Value Through Other Comprehensive Income - Investments in Unlisted Equity Securities | - | 286,712 | 286,712 | | Financial Assets at Fair Value Through Profit or Loss - Investments in Listed Equity Securities | 75,662 | - | 75,662 | | Financial Assets at Fair Value Through Profit or Loss - Investments in Unlisted Debt Instruments | - | 149,263 | 149,263 | | Total | 310,252 | 537,402 | 847,655 | (b) Disclosure of Valuation Procedures and Valuation Techniques and Inputs Used for Fair Value Measurement by the Group as at June 30, 2023: The CFO oversees fair value measurements, using specific techniques for Level 2 inputs, with no changes in valuation methods - The Group's Chief Financial Officer is responsible for the fair value measurement of financial assets and financial liabilities required for financial reporting, including Level 2 fair value measurements, and reports directly to the Board on these fair value measurements[102] - For Level 2 fair value measurements, the specific valuation techniques used by the Group to value financial assets include the annual interest rate for certificates of deposit and the net asset value for limited partnership funds and limited partnerships[102] - For the six months ended June 30, 2023, there were no changes in the valuation techniques used; there were no transfers into or out of Level 3 fair value measurements[102] 7. Segment Information The Group operates as a single reportable segment in China, with major customer revenue disclosed - The Group primarily designs, researches, develops, produces, and sells power batteries and energy storage system products in China, and all assets are primarily located in China; therefore, the chief operating decision-maker regularly reviews only one single business reportable segment[103] Revenue from Customers Accounting for Over 10% of the Group's Total Revenue (For the six months ended June 30, 2023) | Customer | 2023 Revenue (RMB thousand) | 2022 Revenue (RMB thousand) | | :--- | :--- | :--- | | Customer G | 4,609,230 | 3,013,601 | | Customer J* | 1,828,430 | Not Applicable | | Customer X | 1,385,310 | 2,698,733 | 8. Revenue This note disaggregates revenue by product and geography, detailing transaction prices for remaining performance obligations (a) Disaggregation of Revenue Revenue is primarily from power battery sales in mainland China, with significant growth in overseas energy storage products Disaggregation of Revenue by Major Product or Service Line (For the six months ended June 30, 2023) | Item | 2023 Revenue (RMB thousand) | 2022 Revenue (RMB thousand) | | :--- | :--- | :--- | | Sale of Power Batteries | 10,377,467 | 8,646,346 | | Sale of Energy Storage System Products and Others | 1,917,245 | 520,854 | | Total | 12,294,712 | 9,167,200 | Disaggregation of Revenue by Major Geographical Market (For the six months ended June 30, 2023) | Region | Sale of Power Batteries (RMB thousand) | Sale of Energy Storage System Products and Others (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Mainland China | 10,264,880 | 1,655,284 | 11,920,164 | | Europe | 35,800 | 58,142 | 93,942 | | Asia | 72,361 | 183,419 | 255,780 | | United States | 3,766 | 20,400 | 24,166 | | Other | 660 | - | 660 | | Revenue from External Customers | 10,377,467 | 1,917,245 | 12,294,712 | - The vast majority of revenue (RMB 12,290,461 thousand) is recognized at a point in time when goods are transferred[105] (b) Transaction Price Allocated to the Remaining Performance Obligations from Contracts with Customers Remaining performance obligations totaled RMB 283 million, expected to be recognized as revenue within one year - The transaction price allocated to remaining performance obligations (unfulfilled or partially unfulfilled) as of June 30, 2023, was RMB 283,009 thousand (December 31, 2022: RMB 490,532 thousand)[106] - The expected timing of revenue recognition is within 1 year[106] 9. Investment and Other Income This note lists investment and other income, including interest from bank deposits and financial assets, and compensation Investment and Other Income (For the six months ended June 30, 2023) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 69,541 | 43,536 | | Interest Income from Financial Assets at Fair Value Through Other Comprehensive Income | 8,147 | 54,901 | | Supplier Compensation | 5,820 | 1,016 | | Insurance Compensation Income | 979 | 186 | | Other | 846 | 935 | | Total | 85,333 | 100,574 | 10. Government Grants and Subsidies Government grants and subsidies significantly increased to RMB 33.22 million, mainly for R&D and industrial development Government Grants and Subsidies (For the six months ended June 30, 2023) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | R&D Subsidies | 14,720 | 7,394 | | Industrial Development Subsidies | 17,052 | 5,249 | | Employee Stability Subsidies | 370 | 4 | | Recruitment Subsidies | 637 | 135 | | Other | 437 | 518 | | Total | 33,216 | 13,300 | - For the six months ended June 30, 2023, the Group received or recognized government grants and subsidies receivable from relevant entities of the Jintan District Government totaling approximately RMB 224 million (2022: RMB 68.06 million)[110] 11. Other Net Losses Other net losses include inventory provisions and fair value changes of financial assets, with no put option liability changes post-listing Other Net Losses (For the six months ended June 30, 2023) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Inventory Provisions | (330,587) | (53,137) | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | (32,003) | (8,927) | | Fair Value Changes of Put Option Liabilities | - | (40,007) | | Net Exchange Gains | 41,069 | 9,989 | | Total | (321,128) | (92,106) | - Since the Company's listing on The Stock Exchange of Hong Kong Limited on October 6, 2022, the written put options expired, and therefore, no fair value changes of put option liabilities have been recognized since October 6, 2022[113] 12. Income Tax (Credit)/Expense The Group reported an income tax credit of RMB 40.02 million, benefiting from a 15% preferential tax rate for high-tech enterprises Income Tax (Credit)/Expense (For the six months ended June 30, 2023) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Current Tax - China | 51,146 | 122,910 | | Current Tax - Germany | 36 | - | | Deferred Tax | (91,201) | 20,757 | | Total | (40,019) | 143,667 | - The Company and certain subsidiaries operating in mainland China are approved as high-tech enterprises and enjoy a preferential corporate income tax rate of 15%[115] 13. Profit for the Period This note details expenses contributing to profit, with employee benefit expenses significantly increasing due to staff conversion Components of Profit for the Period (For the six months ended June 30, 2023) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :--- | :--- | | Inventory Provisions | 330,587 | 53,137 | | Amortization of Intangible Assets | 77,168 | 70,801 | | Cost of Inventories Sold | 11,115,647 | 8,296,721 | | Depreciation of Property, Plant and Equipment | 715,810 | 314,874 | | Depreciation of Right-of-Use Assets | 32,750 | 23,820 | | Salaries, Bonuses and Allowances | 1,107,813 | 421,575 | | Contributions to Retirement Benefit Schemes | 84,622 | 22,023 | - Salaries, bonuses and allowances, and contributions to retirement benefit schemes for the six months ended June 30, 2023, increased significantly due to the conversion of certain labor personnel, previously employed by external labor service companies providing outsourced labor services, to formal employees of the Group, as well as the continuous development of the Group's business[116] 14. Dividends The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2023 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2023[118] 15. Earnings Per Share Basic earnings per share were RMB 0.0827, with no diluted earnings per share presented due to lack of dilutive shares (a) Basic Earnings Per Share Basic EPS was RMB 0.0827, based on RMB 147 million profit and 1.772 billion weighted average shares - For the six months ended June 30, 2023, basic earnings per share were RMB 0.0827 (same period in 2022: RMB 0.1107)[120] - Calculated based on profit attributable to owners of the Company of RMB 147 million (same period in 2022: RMB 167 million) and a weighted average of approximately 1.772 billion (same period in 2022: 1.506 billion) ordinary shares outstanding during each period[120] (b) Diluted Earnings Per Share Diluted earnings per share are not presented as there were no potential dilutive ordinary shares of the Company during the period - Diluted earnings per share are not presented as there were no potential dilutive ordinary shares of the Company during the period[121] 16. Property, Plant and Equipment The Group acquired RMB 15.723 billion in property, plant and equipment, reflecting continuous capital inves