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spk_0: the day and think it was banned and by local to the china you tie it in national limited first half of twenty twenty one financial results at this time all participants are listen only mode methodist this presentation or the a question and answer session and to ask a question during the session you need to best time
spk_1: wanting a telephone please be advised that to these conference is being recorded
spk_0: if you require any food assistance best i zero now like to attend concerts or with the kevin's these these go ahead sir
spk_2: thank you for joining us today and welcome to join a huge i international ltd twenty twenty first first half year conference call and webcast joining us today are mr wailing oh and mister johnson lou regular can see financial officer see why i respectfully it additionally up live in attendance has to calvin lie nice president of operations the cia before we begin i will remind all this is that the route this call we may make statements that may contain forward looking statements with enemy of the private security for the gateway for mac and like the ninety five words believe expect anticipate project targets optimistic confident that it any to be dead and ten a will or similar russians are intended to identify forward looking statements all seems other the same the restore perfect are sickness it may be d forward looking statements he's forward looking statements include but are not limited to statements concerning the company's operations and financial perform think condition and are based on current expectations police and assumptions which are subject to change at any kind the company cautious that the fleet was either nature in love with can uncertainties an actual results may differ materially depending on a variety of important factors such as government to start exchange regulations competition political economic and social conditions around the world and in china including those disgusting the company's one twenty as under the heading risk factors results of operations and business overview and in other reports filed with the securities and exchange commission from time to time if the cupboard nike pandemic is not effectively controlled our business operations and financial condition may be materially adversely affected due to a deteriorating market for unmoved sales like and i'm slow in china and abroad a potential week mean of the financial condition of our customers potential adverse impact to our suppliers and supply chains are other factors that we can definitely off forward things are applicable only as of the day they are made and the company specifically disclaims any obligation to maintain their update the floor with him information whether of the nature contained in the press release made during today's call or otherwise in the future flicker how will provide a brief overview and summary that mr lu le review the financial results for the twenty twenty one first half year ended june thirtieth area to leave will conduct the question and answer session where the purposes of today called financial results for the first year for twenty twenty one period ended june thirty twenty twenty one are unaudited and they will be presented in rmb and us dollars are the funniest reformation presented is reported using the international financial report standards as issued by the international accounting standards mr hope to begin you're prepared remarks
spk_3: thank you travel
spk_4: the chinese economy continue to flourish the the for top of that if anyone at gdp group i felt myself the same epic that that in that and grew by troubling six percent for it i did it he grew by with thousand and six a deadly weapon group i felt like it within china continue to be the global economy grow for leader in a bit of than if any one if resurgent kind of the group and benefited the not even truck and but market as it it feels increased by almost anything but then according to that effect by the china association up automobile manufacturer in shot see am in upper half of the anything new one a number of a target indian market achieve throng grew up in the first half of funny than one heavy duty truck filled up one million units with a strong for the of the thank you or year growth while medium get it from the hundred eight thousand units so with that and other robot increase off with the one percent year were you on a bar fight field of alaska coach no needy but what are almost ten percent from a year ago while medium duty but field and a light duty but backfield grew by thirty four percent and forty three percent respectively
spk_3: our haiti do the truck didn't feel excluded gatlin far with an electric powered vehicle grew by for the trooper a thin wall above indian and it feels the chief or what they do other than growth our approach in it feels group i see point for fun with some the be quite with and growth and marine and college and rebellion and get it it will be do everything in it grew up in a market for other cultural and give an industrial and good
spk_5: experience a said the one for one person did
spk_4: our revenue increased by that if it with the thin to rmb twelve point six billion off and that not of two billion compared with rmb a ten billion in the same period last year on an overall that it three point eight percent increase in and didn't really feel fear of a year with a more stringent of six and authentic the becoming mandated across china trump them but market the grew from a strong free by of that in a fight on complied week of that natural gas engine room and either to be that a six be compliant and beginning of the the for the one with the villages are required to be less the six a a plan beginning in july that if a new one however the last number of national five complained in vehicles are the remain in a distribution channel and if you that have plenty of to clear the elementary ridley hindering current build of national sick injured who the delight of national five by on june thirtieth accept in some cities their tension
spk_6: have
spk_4: if they do it the expect filled with national think the engine will pick up in a second half of the year
spk_3: national six engine technology is significantly more environmentally three hundred and five and good technology and is essential to china plan to reduce out to reduce air pollution at china is the world's largest automotive market
spk_4: we have built a lush popular when give complying with that you a think that we should send it to for up parrot cut them up and they threaten your was the felt hello current national thick engine salvo capable of meeting that even more stringent than synoptic be ambitious and the with a few modifications national thick be offended that better to be mandated in ready been increase but we already have that analogy and for produces engine we are pleased to report and in hideous if the any be a map that are progressing i'll hybrid power to some is currently available in the marketplace if hardy fifty five kilowatt the hundred what's racist than that other any the for that remain under development for future introduction the author you enter into a new strategy partnership agreement with clunky and long buff the develop new energy when he got faith upon china you tied for new energy poetry system in addition however fighter your child ration if now apply pop up our fun as upstream and unit to help how induce which the national six ambitious and
spk_3: and june thirtieth that if anyone who maintain our financial strain with cash and bank balance of how to be get point down below are your thoughts the hundred seventy five six million after investing almost shoppers and more and rmb in the first half of that if anyone
spk_4: the pit at the one of the test the with and of us all have one thousand people commission in early july funny the new one
spk_3: we have a pathway of fun national league than yeah fuck three and is the for our last couple of base in china and abroad
spk_4: the fact that police i didn't happen and am i think china and we look forward to greater effort failed at our teeth my fifth improve
spk_7: the challenge challenger for his hair for chinese market for commercial vehicle thing is is expected the floor after the strong three buying into put half of the he been one
spk_3: however we're a while what the what the technology and intimate for with the sewage system within china alas happened with it an excellent reputation as a leader in autumn with the technology and the production acumen for commercial vehicle in china
spk_8: with that i will allow come to the thing lou or the foot conference call foul new fearful to thing you may begin your remarks
spk_9: oh do we mean now let me review our off results for twenty twenty one how will you what i'll be proud point six or us dollar to begin on paid leave i'm be ten billion in the same period last year the total number of and geez sold by ponzi you time our main orbiting subsidiary but top twenty twenty one rose by thirty three point eight percent to two hundred eighty five thousand three hundred forty two units compared with two hundred thirteen thousand one hundred eighty two units in the same period last year yeah the increase was mainly due to higher engine shoes kinda heavy duty trucks and of good settlements particularly power generated sex ed a cultural and industrial and juice got coffee was i'd be one point six billion or us dollar two hundred fifty one point four million pompei reef i'll be one point five billion in the same period last year groth merging decrease to trot point nine percent as compare with fourteen point eight percent a year ago the decline in gross margin was mindy attributable to a change in the revenue mix and how you make your costs other are we didn't come increase to our and be hundred and eleven point seven million or us dollar don't pin point three million pompei reef are be high and five point seven million he the same period last year research and development id expensive increased by forty eight point two percent to i'd be three hundred fifteen point seven million on us dollar forty eight point nine million pompei beef i'd be two hundred and thirteen million in the same period last year hi id offensive in for half twenty twenty one would mainly due to an extreme be i'd be activities including the retribution cause last me for one and you model hands higher testing and experimental costs and pornography fee for national sick and cure for engines in addition product under development for strategic partner as well as new energy products contributor to hire i'd be as basis what top twenty one compay the first half twenty twenty the total on the as manager including took the life cause was let me be five fifty point two million or us dollar fifty nine point seven million in footpath twenty twenty one as compared to our and be four hundred and two point seven million representing three point six percent of revenue compared with four percent in the same period last year saudi general and and mister deeds sg and a a spencer's increased by twenty one point five percent two i'm be nine hundred and twenty point one million or us dollar hundred and forty two point four million from i'd be so one hundred fifty seven point four million in the same period last year the increase what may need you to hire one be as basis and an increase in activity level compare be the same period last year accurate a as basis represent a seven point three percent of revenue for for top twenty twenty one compared with some point six percent in the same period last year operating profit decreased by eighteen point five percent to our and be four hundred ninety nine point eight million or us dollar seventy seven point four million from our and be six hundred and thirteen point two million in the same period last year the operating margin was four percent compared with six point two percent he the same period last year funny cause increased to i'll be fifty eight point four million or us dollar pain point six million from i'll be fifty three point two million in a same period last year net profit attributable to equity holders of the company was i'll be two hundred fifty three point seven million all us dollar thirty nine point three million compared with i'll be three hundred and five point seven million in the same period last year
spk_10: deeply embedded the a nice for she will i be six point two one all us dollar ninety six then compare the i'll be some point for a he the same period last year
spk_11: bp and daddy the earnings per share for footpath twenty twenty one and a half three twenty was based on a little the average of forty million eight hundred fifty eight thousand two hundred ninety shit
spk_9: now let me walk you through our banks she has
spk_11: figure twenty twenty one
spk_9: cash and bed but is it will i be five point seven billion or us dollar a college thirty six point six million compared the i'd be six point four billion at the end up twenty twenty two and bills we see both will i be ten point six billion or yet dollar one point six be unpaid this i'd be a point on beating a dead he went very well i'll be three point eight billion or us dollar fine how it might be point five million compared a week i'd be four point five billion at the end up twenty twenty treat a booth payable will i be a point five billion or us dollar one point three billion compared with i'd be some point five billion at the age of twenty twenty
spk_12: short term and long time bank always work i'd be two point four billion or us dollar tree hundred sixty seven point three million pompei these i'm be to point to be good at the end of two need twinkie
spk_2: i would now trying to pull over to kv for comment before we begin our to any
spk_0: i can do please note to do the coven a tv officers out shiny huge yard are remotely calling into the conference call with my a of like delayed provided answers to some questions we apologize for any inconvenience and thank you for your patience with that operator we're ready to begin the q and a session thank you as a reminder to has a question you need to first time wanting a telephone
spk_13: your your question please press the power the husky and please stand by while we compile between a last day
spk_0: once again please spare tire one for your question
spk_14: one moment please for the first question
spk_15: a first question to some the line or william the goes as keel greenwich global your name is open discussion
spk_4: ah hi guys
spk_16: i could you share about what percent of the engine failed in the first half or a light duty
spk_17: okay
spk_4: the the like duty or feel to have just fallen minute
spk_15: yep of before delivering do feel as though you'd be about now
spk_4: we should be about fifty or fifty three percent of the air filter
spk_18: okay
spk_19: eric avatars the gross margin
spk_5: what initiatives are you guys putting in place or new to get those back to somewhere close to more historical novel that attitude and buying quite a bit lately yeah
spk_4: adding be about one of the main reason for the be crying and vn i did that give gross margin
spk_20: i got money
spk_21: returning more
spk_5: up the road to do with via public a lot here
spk_4: added at the had the impact on the make them and are you haven't quite gotten yeah on the clock much
spk_3: a real propelling job mall
spk_4: that have the region the fear of the repave good luck yet though
spk_22: the have the richness of a local economy of failure for the summer fixing do that that is because the that's the fix and do that with mr and mrs said that it's illegal to be fully implemented from for to like you feel the ship in into happen
spk_4: oh what you're going to go forward to to help the profit margin wanted to go back to our supplier to negotiate on uprising gleeful fo initial of and given uniqlo grew up on proof for the next six months or even do that you got that are be going to become a film six and for those of you know good the only for the to the ongoing
spk_23: so we expect to find that i told him than the in the coat and for water photo they be fine in the third or fourth quarter we will a be able to how like what that any reduction to be good should be able to get it up for the whole of a feel for the whole yet so that should be some that relates back to the first half
spk_4: secondly and we will be the are good music the i do to help us who popped out for the fall new and just on this low fixing it
spk_16: we this and this with city but profile information but that elicits into the new plan on the that they will up
spk_4: republic in the last few years though the good youth are the to help others who continue to help of the reduce yeah the the
spk_15: the call to our the and to that the the hit it of a deal will be too
spk_4: the negotiate with a couple of know who tried to increase of uprising
spk_24: it's actually for some of the oh
spk_25: the a lower margin for that to the street or initiative to the believe he can a book a drop my didn't going forward
spk_4: i quickly to the next year okay i'm on the economies of scale tv you talk about that a few times in the past what's ah what's the you know that the unit amount or you know the target where your hit that point and in a will see that the margins improve from them i mean the the paper well when that way to be good this to apply that we have to have other than
spk_15: warning commitments right i phone and wallet
spk_16: in cricket at at that especially now after the implementation of the year
spk_15: a little a thickening it's great for what motivates you feel good movie will be that an except for the fit for to or fellow developing country though with that and the warning have yet to be so far this year we have achieved a while he was ah of feel fulfilled up to eighty five thousand units
spk_16: though is that we should be able to go by to apply the negotiate
spk_4: okay so i mean between everything going to national six know yeah he goes to fired and possibly getting retroactive pricing on that and gross margins in the second have should be quite quite strong correct
spk_26: you usually be better for the national thing is if
spk_0: okay
spk_27: ah at last question is about the he engine that needed to be fixed a warranty related to that he just kind of briefly talk about the issues that that and are all the costs on fixing it and y t ah in the in a staying in the first half or is any that gonna bleed into the second half
spk_28: rebecca up letter that the thing is i love to the have been selling them lot here
spk_0: be giving up your at a club he did you go though two brothers that came out we'll have a lot of them are ready by now
spk_27: i will are going to next who are other six months with billy out to be from by will not be as myself in the first half of it you're all you last you
spk_29: how can i thank you and can once again questions please press time than one
spk_30: and waiting to be announced and to canada request and is to ski
spk_4: questions he spends one once again me a question is this one and waiting to be innings i next question is from the line of casey cgs see i am me is called had something hi image metadata thanks for picking my question either question regarding kind of kind sales trying and seeing me if i had to shift the internet and six ah i'm in in in china
spk_29: in july for just wondering house passed sales trend looking right now i'm ah has a pre on the looking and he coming for now yeah now is it really to the legal field when now up before for cadre of of july the hear that the that the girl at gotta fill up waco make it up i think he has a great thrown very strong effect the other
spk_4: without lot the i am and throw it on and through the for top of the if you go from there are really believe that that i love that have five inventory and if the in the in the distribution i think i'll allow the body could be thy get fully that that get that i figured they look up a little too much with i get to that the deliver that in i'm in there in the distribution so effect the am a dad and of fixing good about the the get up the field the the to be up from what effect it will i like a filled out there competitive with her
spk_31: okay i see and ah i guess on your product mix mentioned dimensional for coffee me song a strong at the top off route
spk_29: do we expect this product mix to remain generally the same in second half am i should think about it
spk_32: yeah it it will be too far away and that of a to continue their fact the the our director mike the growth from in china that the that beat up our
spk_9: the shop it is a tricky the southern china has this year so that the though cause a disruption up in for a lot of the company
spk_33: oh they wanted to be the will continue to grow and to be strong
spk_34: the for the other like the agriculture and in their know that really good enough rigidity would probably be flat for but agriculture is that the to throw the of the strong broken up with but up
spk_35: okay
spk_32: he got it
spk_9: ah and i guess i you mentioned that know on some one off ah items i expenses in the first give us a rough indication of how how much when the on know how how how the must back to the bottom line
spk_36: oh hi are teaching said i so
spk_9: i believe you're referring to the to the reputation costs
spk_4: for the
spk_3: the windy spends right
spk_29: yeah my fish yeah so that that what for the other one and you model
spk_4: that of the vip neutering the the the cost to rectify in all at that most be there has been done right but do have some i've been meaning to be fixed right so that was dumb
spk_37: that one but the and you home modo right
spk_38: rose to have the sub that part of the have cost him his one
spk_0: other than that alone quickly cup however the the other with the loop leave it will to that fact some for the second half and the bill of the month or next year so if if if the love it there are getting but how can any indication of how has notched it's it's one of expenses than ah our be because it's a good in engineering maybe yeah
spk_27: some some some for looking ten off ah how did ginger expenses percentage of revenue and into the second half
spk_39: you will be very much more i did it for how to get a good answer because that in
spk_0: a depend a lot on that are not the other that the other user of the problem and come back to authorities
spk_3: do that came back he ever do that it read the by them
spk_4: okay night
spk_0: thank you
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