中创新航(03931) - 2023 - 中期业绩

Financial Highlights The Group reported a 34.1% revenue increase to RMB 12.295 billion, with profit for the period up 60.8% to RMB 266.49 million, despite a 12.1% decline in profit attributable to owners Key Financial Metrics Changes in H1 2023 | Metric | For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2022 | Change | | :--- | :--- | :--- | :--- | | Group Revenue | RMB 12,294.71 million | RMB 9,167.20 million | +34.1% | | Profit for the Period | RMB 266.49 million | RMB 165.70 million | +60.8% | | Profit Attributable to Owners of the Company | RMB 146.52 million | RMB 166.72 million | -12.1% | | Basic Earnings Per Share | RMB 0.0827 | RMB 0.1107 | -25.3% | Interim Condensed Consolidated Financial Statements This section presents the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2023, detailing core financial data Interim Condensed Consolidated Statement of Profit or Loss The Group's revenue grew 34.1% to RMB 12.295 billion, with gross profit up 35.4% to RMB 1.179 billion, while profit before tax declined due to increased finance costs Statement of Profit or Loss Summary (For the Six Months Ended June 30) | Item (RMB thousands) | 2023 (Unaudited) | 2022 (Restated) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 12,294,712 | 9,167,200 | +34.1% | | Gross Profit | 1,179,065 | 870,479 | +35.4% | | Operating Profit | 364,776 | 323,486 | +12.8% | | Profit Before Tax | 226,468 | 309,362 | -26.8% | | Profit for the Period | 266,487 | 165,695 | +60.8% | | Profit Attributable to Owners of the Company | 146,517 | 166,719 | -12.1% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2023, total assets grew 10.9% to RMB 100.281 billion, total liabilities increased 13.3% to RMB 55.375 billion, and net assets rose 8.0% to RMB 44.906 billion Statement of Financial Position Summary (RMB thousands) | Item | June 30, 2023 (Unaudited) | December 31, 2022 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 100,280,715 | 90,460,618 | +10.9% | | Non-current Assets | 66,827,229 | 53,101,171 | +25.8% | | Current Assets | 33,453,486 | 37,359,447 | -10.5% | | Total Liabilities | 55,374,690 | 48,885,159 | +13.3% | | Non-current Liabilities | 22,142,817 | 16,110,208 | +37.4% | | Current Liabilities | 33,231,873 | 32,774,951 | +1.4% | | Total Equity | 44,906,025 | 41,575,459 | +8.0% | Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed explanations of the financial statements, including segment information, revenue composition, and major customer details, highlighting the Group's single business segment - The Group primarily operates in a single business segment in China, which involves the design, research and development, production, and sales of power battery and energy storage system products[9][16] Major Customer Revenue (For the Six Months Ended June 30) | Customer | 2023 Revenue (RMB thousands) | 2022 Revenue (RMB thousands) | | :--- | :--- | :--- | | Customer G | 4,609,230 | 3,013,601 | | Customer J | 1,828,430 | Not Applicable* | | Customer X | 1,385,310 | 2,698,733 | Revenue Breakdown by Product (For the Six Months Ended June 30) | Product Line | 2023 Revenue (RMB thousands) | 2022 Revenue (RMB thousands) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Sales of Power Batteries | 10,377,467 | 8,646,346 | +20.0% | | Sales of Energy Storage System Products and Others | 1,917,245 | 520,854 | +268.1% | | Total | 12,294,712 | 9,167,200 | +34.1% | - During the reporting period, the Group's employee benefit expenses significantly increased, primarily due to the conversion of some outsourced personnel to permanent employees and staff expansion driven by business development[28][29] Management Discussion and Analysis Management reviewed the industry, business, and financial performance for H1 2023, highlighting growth in new energy and energy storage markets, operational breakthroughs, and ongoing patent litigation Industry Overview In H1 2023, China's new energy vehicle sales grew 44% to 3.75 million units, global power battery installed capacity increased 50.1% to 304.3 GWh, and the global energy storage market expanded rapidly - In H1 2023, China's new energy vehicle sales reached 3.75 million units, a 44% year-on-year increase, with a penetration rate of 28.3%[39] - From January to June 2023, global power battery installed capacity reached 304.3 GWh, a 50.1% year-on-year increase, with China's market installed capacity at 152.1 GWh, up 38.1% year-on-year, and LFP batteries accounting for 68.3%[42] - The global energy storage market is rapidly developing due to policy support and technological advancements, with cumulative installed capacity projected to reach 500 GWh by 2025[45] Business Review The company's performance improved, with power battery installed capacity entering the global top five, significant patent achievements, new product launches, and deepened customer collaborations in passenger, export, and commercial vehicle markets - As of June 30, 2023, the company had cumulatively applied for 3,724 patents, with 2,232 authorized, establishing a full industry chain patent layout[48] - The company launched several innovative products, including 46-series large cylindrical batteries with energy density up to 300Wh/kg, semi-solid-state batteries exceeding 400Wh/kg, and the industry's highest mass-produced LFP battery pack at 153Wh/kg[51][52] - In H1 2023, passenger vehicle installed capacity reached 12 GWh, a 53% year-on-year increase, with monthly installed capacity entering the global top five; the company deepened cooperation with key customers like Aion, Xpeng, Deepal, and Nio, and expanded into export and commercial vehicle businesses[54] Future Outlook The company plans to maintain technology and product leadership by focusing on advanced materials, 6C fast-charging cylindrical batteries, next-generation battery technologies, and expanding into hybrid, pure electric, and all energy storage market segments - Key technological innovations include accelerating the development of new materials like high-manganese lithium iron phosphate and 5V high-voltage nickel-manganese lithium oxide, launching 6C fast-charging cylindrical batteries, and tackling next-generation battery technologies such as all-solid-state and lithium-sulfur[55] - Key market expansion focuses include: in the power battery market, leveraging One-Stop technology to cover hybrid and high-to-low-end pure electric markets; in the energy storage market, providing full-scenario solutions to establish it as a new business growth point[56] Financial Review In H1 2023, the Group's revenue grew 34.1% to RMB 12.295 billion, gross profit increased 35.5% to RMB 1.179 billion, and energy storage revenue surged 268.1%, while the asset-liability ratio rose and operating cash flow turned negative Key Financial Ratios | Financial Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Gross Margin | 9.6% | 9.5% | | Net Sales Margin | 2.2% | 1.8% | Revenue by Product (H1 2023) | Item | Revenue (RMB thousands) | Revenue Share | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Power Batteries | 10,377,467 | 84.4% | +20.0% | | Energy Storage System Products and Others | 1,917,245 | 15.6% | +268.1% | | Total | 12,294,712 | 100.0% | +34.1% | - The asset-liability ratio increased from 17.7% at the end of 2022 to 42.0% as of June 30, 2023, primarily due to increased borrowings for project construction[68] - Net cash outflow from operating activities was RMB 2.725 billion, compared to an inflow of RMB 443 million in the same period last year, mainly due to increased payments for materials and employee expenses driven by business growth[67] Contingent Liabilities The company faces multiple patent infringement lawsuits from CATL, with provisions made for some claims and others deemed baseless, while the CNIPA has invalidated two key patents used in the litigation - The company has made provisions totaling RMB 8.64 million for CATL's claims regarding Patents One, Three, and Four[78] - On August 3, 2023, the China National Intellectual Property Administration declared the invention patent rights for Patents One and Four, used by CATL in its lawsuits, entirely invalid[79] Contingent Liabilities Related to CATL (As of June 30, 2023) | Related Patent | Claimed Damages (RMB thousands) | Claimed Costs (RMB thousands) | | :--- | :--- | :--- | | Patent Two | 365,000 | 1,200 | | Patent Six | 130,000 | 500 | Other Information This section covers IPO proceeds utilization, employee growth, the Board's decision not to declare an interim dividend, and corporate governance practices, including the combined roles of Chairman and President Use of IPO Proceeds and Utilization (As of June 30, 2023) | Item | Net Proceeds (HKD millions) | Actual Net Utilized (HKD millions) | Net Unutilized (HKD millions) | | :--- | :--- | :--- | :--- | | Construction of Production Facilities | 7,984.08 | 5,800.96 | 2,183.12 | | Research and Development of Advanced Technologies | 998.01 | 0.00 | 998.01 | | Working Capital and General Corporate Purposes | 998.01 | 32.24 | 965.77 | | Total | 9,980.10 | 5,833.20 | 4,146.90 | - As of June 30, 2023, the Group had 21,587 employees, with the significant increase primarily due to the conversion of some outsourced personnel to permanent employees and business expansion[85] - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2023[85] - The company complies with the Corporate Governance Code, with a deviation where the roles of Chairman (Ms. Liu Jingyu) and President (Ms. Liu Jingyu) are not separated; the Board believes this arrangement benefits leadership consistency and decision-making efficiency, with sufficient safeguards to balance power[86][87]