Market Performance - The domestic central air conditioning market growth was only 1.7% due to factors like raw material price fluctuations and real estate market adjustments[5]. - Retail sales of household air conditioners decreased by 15.3% year-on-year, with retail volume down by 20.9%[5]. - The refrigerator market saw a retail volume decline of 5.5% and a retail value decline of 3.4% in the first half of 2022[6]. - The washing machine market experienced a retail volume drop of 9.2% and a retail value drop of 10.1%[6]. - Exports of refrigerators, washing machines, and household air conditioners fell by 10.8%, 12.9%, and 2.18% respectively due to various global economic factors[9]. Product Development and Innovation - The average price of household air conditioners increased by 6.5% in the first half of 2022, driven by higher demand for new features[5]. - The high-end refrigerator segment saw a retail value share increase of 4.7 percentage points compared to 2021[6]. - The company is focusing on developing energy-efficient, low-carbon, and smart home appliances to meet evolving consumer demands[6]. - The company launched the "Dual Purification" home central air conditioning under the Hitachi brand, achieving over 15% market share in the home decoration retail market in the first half of 2022[11]. - The company introduced the "Photovoltaic Central Air Conditioning" product line, utilizing photovoltaic energy technology to enhance energy efficiency and reduce carbon emissions[11]. - The Hisense brand's "C200" air conditioner became the top-selling model in the industry for 8 consecutive weeks after its launch[12]. - The Hisense brand's vacuum preservation refrigerator series was recognized as a leading product in the vacuum preservation category in 2022[13]. - The company’s washing machine products received the 2022 German iF Design Award, marking the fifth consecutive win for the company in this prestigious international award[14]. Financial Performance - The company achieved operating revenue of 38.307 billion yuan, a year-on-year increase of 18.15%[10]. - The HVAC business generated main operating revenue of 18.947 billion yuan, up 17.47% year-on-year, while the ice washing business saw a decline of 6.30% to 10.427 billion yuan[10]. - Domestic sales revenue reached 20.654 billion yuan, growing by 12.25%, while international sales revenue surged by 34.57% to 14.322 billion yuan[10]. - The net profit attributable to shareholders was 620 million yuan, reflecting a year-on-year growth of 0.79%[10]. - The net cash flow from operating activities decreased significantly by 65.46%, amounting to RMB 720.03 million compared to RMB 2.08 billion in the previous year[19]. - The company reported a decrease of 5.87% in net profit after deducting non-recurring gains and losses, totaling RMB 428.07 million compared to RMB 454.78 million last year[19]. - The company received government subsidies amounting to RMB 127.00 million, contributing positively to its financial performance[20]. Research and Development - The company established R&D centers in the US, Japan, and Europe, focusing on a unified global platform and standards to enhance product quality and competitiveness[17]. - Research and development expenses increased by 27.71% to RMB 1,067,706,086.41 from RMB 836,068,530.36 in the previous year[24]. - The company adjusted its R&D organizational structure to enhance long-term capabilities and improve global R&D resource collaboration[51]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period amounted to RMB 7,798,340,633.53, representing 14.02% of total assets, an increase of 1.47% compared to the previous year[35]. - The company's accounts receivable decreased by 31.27% to RMB 156,881,858.82 from RMB 228,252,631.50 at the beginning of the period[24]. - Short-term borrowings decreased by 43.71% to RMB 1,609,308,315.26 from RMB 2,858,984,229.49 at the beginning of the period[24]. - The total cash flow from investing activities increased by 180.24% to RMB 1,516,440,091.45 from RMB 541,119,116.10 in the previous year[26]. Risk Management - The company faces risks from macroeconomic fluctuations that could impact consumer demand for home appliances, as well as rising costs of raw materials and labor affecting profitability[56]. - Trade protectionism and barriers in certain regions may increase operational costs and affect the competitiveness of the company's export business[56]. - The company has implemented internal control measures to enhance foreign exchange risk management capabilities[41]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period[79]. - The financial report for the half-year period has not been audited[82]. - The company confirmed that all directors have complied with the standard code of conduct during the reporting period[78]. Shareholder Information - The company's share capital structure as of June 30, 2022, included 903,135,562 A shares (66.27%) and 459,589,808 H shares (33.73%), totaling 1,362,725,370 shares[67]. - The top ten shareholders held a total of 1,134,000,000 shares, representing 83.24% of the company's issued share capital as of June 30, 2022[68]. - The board of directors proposed not to distribute an interim dividend for the six months ending June 30, 2022, consistent with the previous year[79]. Taxation - The corporate income tax rate applicable to the group is 25%[184]. - The effective corporate income tax rate for Hisense subsidiaries is 15% for the years 2020, 2021, and 2022 due to high-tech enterprise certification[186].
海信家电(00921) - 2022 - 中期财报