Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 4,444,101,000, representing an increase of 10.7% from HKD 4,012,509,000 in the previous year[2] - The operating income for the year was HKD 51,925,000, a decrease of 91.4% compared to HKD 604,426,000 in the prior year[2] - The net loss for the year was HKD 420,614,000, improving from a net loss of HKD 736,396,000 in the previous year[3] - The total comprehensive income for the year was HKD (544,567,000), compared to HKD (825,693,000) in the previous year[5] - Basic and diluted loss per share was HKD 0.94, compared to HKD 1.65 in the previous year[25] - The company reported a significant decrease in financial instruments' fair value loss, from HKD 210,435,000 to HKD 54,670,000[2] - The company reported a loss before tax of HKD 736,394 for the year ended December 31, 2022, highlighting financial difficulties[89] - The loss attributable to equity holders for the year was approximately HKD 414,970,000, a decrease from HKD 733,620,000 in 2021, with basic and diluted loss per share improving to HKD 0.94 from HKD 1.65[167] Revenue Breakdown - Total revenue for the year 2022 was HKD 260,152,000, a significant decrease from HKD 562,586,000 in 2021, representing a decline of approximately 53.8%[31] - The income from securities trading was HKD 7,248,000 in 2022, down from HKD 36,421,000 in 2021, indicating a decrease of about 80.1%[31] - The revenue from manufacturing infant formula and nutritional products dropped to HKD 72,711,000 in 2022 from HKD 182,873,000 in 2021, reflecting a decline of approximately 60.2%[31] - Interest income from margin financing decreased to HKD 5,338,000 in 2022 compared to HKD 12,245,000 in 2021, a reduction of about 56.4%[31] - Interest income from third-party loans was HKD 26,855,000 in 2022, down from HKD 35,743,000 in 2021, representing a decrease of approximately 25%[31] - Revenue from customer A, which pertains to the manufacturing of infant formula and nutritional products, was HKD 62,468,000 in 2022, down from HKD 161,860,000 in 2021[126] - Revenue from customer B, related to wealth and asset management services, decreased to HKD 73,042,000 in 2022 from HKD 137,087,000 in 2021[126] Asset and Liability Changes - Non-current assets decreased to HKD 1,440,704,000 from HKD 1,767,610,000 year-over-year[9] - Current assets decreased to HKD 2,777,116,000 from HKD 3,039,138,000 year-over-year[9] - Total liabilities decreased to HKD 37,550,000 from HKD 78,551,000 year-over-year[10] - The net asset value decreased to HKD 3,869,609,000 from HKD 4,414,176,000 year-over-year[10] - As of December 31, 2022, total assets amounted to HKD 4,217,820, with segment assets contributing HKD 3,743,158[94] - The company reported total liabilities of HKD 348,211, with segment liabilities at HKD 318,153[94] - The total amount of trade and other receivables, net of expected credit loss provisions, was HKD 299,339,000 as of December 31, 2022[138] - The total trade and other payables decreased to HKD 219,260,000 from HKD 318,696,000 year-on-year[157] Risk Management and Strategy - The company has established sufficient risk management procedures to identify and control various risks within its internal and external environments[52] - The company plans to expand its market presence and enhance product offerings as part of its future strategy[1] - New product development and technological advancements are being prioritized to drive growth in the upcoming fiscal year[1] - The company is exploring potential mergers and acquisitions to strengthen its market position[1] - Future guidance indicates a focus on improving operational efficiency and profitability in the next financial period[1] - The company has established strict monitoring measures for outstanding receivables to minimize credit risk[142] - The management regularly reviews overdue accounts to ensure effective credit control[142] - The company has a large and uncorrelated customer base, which limits credit concentration risk[148] Operational Efficiency - The company has implemented strict cost control measures, reducing operating costs from approximately HKD 191,510,000 to about HKD 106,040,000 compared to the previous year[167] - The company recorded depreciation of property, plant, and equipment amounting to HKD 2,069,000 in 2022[125] - The company’s non-current assets acquisition totaled HKD 3,521,000 for the year ended December 31, 2022[125] - The company incurred financing costs of HKD 1,363,000 in 2022, a decrease from HKD 5,811,000 in 2021[127] Market Conditions - The company experienced a significant decline in the Hong Kong IPO market, with only 89 companies listed in 2022, a drop of over 50% compared to the peak in 2018[170] - The total fundraising amount in the Hong Kong IPO market for 2022 was approximately HKD 1,045.7 billion, a nearly 70% decrease year-on-year, marking the lowest level since 2013[170] - The average daily trading amount of Hong Kong stocks shrank to HKD 92.9 billion by September 2022, a decline of nearly 28% compared to January[175] - The Hang Seng Index fell nearly 50% from its high to low between 2021 and 2022, reaching a thirteen-year low below 15,000 points[175] Healthcare and Consumer Products - The healthcare segment's loss significantly decreased from HKD 23,180,000 to HKD 1,210,000, attributed to the increased demand for COVID-19 nucleic acid testing[199] - The infant and maternal consumer products segment generated operating revenue of approximately HKD 72,710,000, down from HKD 182,870,000 in the previous year, with a loss of HKD 160,410,000 compared to a loss of HKD 433,970,000 last year[200] - The impairment loss for the joint venture in the infant and maternal segment was HKD 135,990,000, a decrease from HKD 177,310,000 in the previous year[200] - The group’s healthcare business performance is primarily derived from its associate, New Asia Biotechnology Co., Ltd., which has received laboratory accreditation this year[199]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,991.9 million, a decrease of 11.1% compared to RMB 2,240.7 million in 2021[4] - Gross loss was RMB (5.4) million, with a gross margin of (0.3%) compared to a gross profit of RMB 131.4 million and a gross margin of 5.9% in the previous year[4] - The net loss attributable to owners of the company was RMB (58.9) million, resulting in a net loss margin of (3.0%) compared to a profit of RMB 54.8 million and a net profit margin of 2.4% in 2021[4] - Sales volume decreased by 6.5% to 358,200 tons from 383,230 tons in the previous year[4] - Revenue from cold-rolled steel products sales was RMB 1,302,960,000 for the six months ended June 30, 2022, down from RMB 1,569,980,000 in the same period of 2021, a decrease of about 17.0%[38] - Revenue from galvanized steel products sales increased to RMB 463,653,000 for the six months ended June 30, 2022, compared to RMB 361,033,000 in the same period of 2021, an increase of approximately 28.4%[38] - The company reported a total income tax expense of RMB (22,401,000) for the six months ended June 30, 2022, compared to RMB 14,877,000 for the same period in 2021, indicating a significant increase in tax expenses[44] - The total comprehensive loss attributable to owners for the six months ended June 30, 2022, was RMB (58,938,000), compared to a profit of RMB 54,826,000 for the same period in 2021, reflecting a substantial decline in performance[48] Costs and Expenses - Average processing cost per ton decreased by 31.7% to RMB 396 from RMB 580 in 2021[4] - Financial costs for the six months ended June 30, 2022, amounted to RMB (35,943,000) compared to RMB (26,091,000) for the same period in 2021, representing an increase of approximately 37.5%[43] - Employee benefits expenses totaled RMB 58,286,000 for the six months ended June 30, 2022, up from RMB 43,039,000 in the same period of 2021, marking an increase of approximately 35.5%[46] - Selling expenses decreased to approximately RMB 9.2 million, down RMB 8.1 million or 46.8% from RMB 17.3 million in the first half of 2021, mainly due to reduced shipping costs[126] - Administrative expenses increased to approximately RMB 30.5 million, up RMB 9.1 million or 42.5% from RMB 21.4 million in the first half of 2021, primarily due to increased salaries and business-related expenses[127] Assets and Liabilities - Net asset value as of June 30, 2022, was RMB 530.0 million, a decrease of 9.7% from RMB 587.0 million at the end of 2021[4] - Total borrowings increased by 25.1% to RMB 1,537.8 million from RMB 1,229.6 million at the end of 2021[4] - The debt-to-equity ratio rose to 290.1% from 209.5% in the previous year[4] - As of June 30, 2022, total assets amounted to RMB 1,604,135 thousand, an increase from RMB 1,185,374 thousand as of December 31, 2021, representing a growth of approximately 35.4%[16] - The company’s total liabilities increased to RMB 1,942,582 thousand from RMB 1,414,984 thousand, reflecting a growth of about 37.1%[16] - The company’s non-current liabilities rose slightly to RMB 406,753 thousand from RMB 402,639 thousand, indicating a marginal increase of 0.3%[18] - Trade payables increased to RMB 224,008,000 as of June 30, 2022, compared to RMB 141,520,000 as of December 31, 2021, indicating a growth of approximately 58.2%[71] Cash Flow - Operating cash flow for the period was negative at RMB (246,732) thousand, worsening from RMB (160,452) thousand year-on-year[23] - The company reported a net cash outflow from operating activities of RMB 246,732,000 for the six months ended June 30, 2022[28] - The net cash inflow for the six months ended June 30, 2022, was RMB 37,762,000, compared to RMB 152,417,000 for the same period in 2021, representing a decrease of approximately 75.2%[28] - As of June 30, 2022, the company's cash and bank balances increased by RMB 37.8 million or 168.0% to approximately RMB 60.3 million from RMB 22.5 million as of December 31, 2021[135] Shareholder Information - The company declared a special interim dividend of HKD 0.098 per share, totaling HKD 58,800,000 (approximately RMB 49,022,000) on January 21, 2021[50] - The company did not declare any interim dividend since the end of the reporting period[51] - The total issued share capital of the company as of June 30, 2022, is 600,000,000 shares[165] - The company's issued share capital remained at 600,000,000 shares as of June 30, 2022, unchanged from the previous period[83] Operational Insights - The company is engaged in the production and sale of cold-rolled and galvanized steel products, with a single operating segment identified[37] - The company plans to continue operations for at least the next twelve months based on available bank credit and expected cash flows from operations[29] - The group plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, providing stable revenue sources[151] - The group is considering new business opportunities to enhance revenue diversity and shareholder value[151] Compliance and Governance - The company has adopted the corporate governance code as per the listing rules and complied with applicable provisions during the reporting period[186] - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[192] - The chairman expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[193]

Financial Performance - The Group generated a total turnover of approximately HK$609.71 million for the six months ended June 30, 2022, representing a decrease of 67.22% compared to HK$1,860.15 million in 2021[23]. - Operating income for the same period was approximately HK$77.99 million, a decrease of 76.69% from HK$334.60 million in 2021[23]. - The Group recorded a net loss of approximately HK$123.11 million, compared to a net loss of HK$26.01 million in 2021, with loss attributable to equity holders amounting to approximately HK$121.30 million[23]. - Basic and diluted loss per share was 0.27 Hong Kong cents, compared to a loss per share of 0.07 Hong Kong cents in 2021[23]. - Total comprehensive income for the period was a loss of HK$217,687,000, significantly higher than the loss of HK$27,242,000 in the prior year[100]. - The company reported a net loss for the period of HK$121,303, compared to a loss of HK$123,114 in the previous period[106]. - The loss before taxation for the period was HK$145,733,000, indicating a challenging financial environment for the company[160]. Operating Segments - The Group's financial services business segment contributed total operating income of approximately HK$98.58 million, a decrease of 49.13% or HK$95.22 million over the same period in 2021[30]. - The proprietary trading of securities recorded a net loss of approximately HK$145.73 million during the Period, compared to a net profit of HK$39.76 million in 2021[39]. - The healthcare segment achieved a net profit of approximately HK$4.67 million during the Period, a significant recovery from a net loss of HK$22.94 million in 2021[44]. - The mother-infant-child consumer products segment generated operating income of approximately HK$44.81 million, down from HK$68.44 million in 2021, while net profit increased to approximately HK$3.97 million from HK$0.91 million[46]. - The Group's major operating segments include trading of securities investments, provision of financing services, and manufacture of infant formula and nutritional products[135]. Investment and Market Strategy - The investment portfolio, which includes Hong Kong stocks, US stocks, and A shares, generated substantial returns, outperforming most investment products in the market during the period[11]. - The Group is committed to developing its core business in the Greater China region for long-term growth[10]. - The Group anticipates capturing new market opportunities in wealth management due to the easing of COVID-19 restrictions and successful vaccination programs in Mainland China[51]. - The Group is cautiously optimistic about the global economic recovery in 2022 and plans to expand its market share in the securities margin financing business[52]. - The Group aims to enhance its reputation and explore customer value through service, product, and operation innovations in the financial services sector[17]. Cost Management and Efficiency - The Group's operating costs during the period amounted to approximately 56.45% of the corresponding period of last year, indicating a significant reduction in operational expenses[12]. - The management has implemented revenue-raising and expenditure-cutting measures to improve operational efficiency amidst market challenges[8]. - The Group has restructured and closely monitored underperforming segments, terminating further capital contributions to non-controlling platforms[15]. - The decision to liquidate the European Private Banking business has alleviated financial burdens on the Group[15]. Assets and Liabilities - As of June 30, 2022, the Group's total assets amounted to approximately HK$4,526.11 million, a decrease from HK$4,806.75 million as of December 31, 2021[56]. - The total equity of the Group as of June 30, 2022, was approximately HK$4,196.49 million, down from HK$4,414.18 million as of December 31, 2021[56]. - The Group's loan portfolio size decreased to approximately HK$335.28 million as of June 30, 2022, down from HK$351.27 million as of December 31, 2021, with a credit impairment reversal of HK$7.44 million[38]. - The Group's net current assets were approximately HK$2,661.38 million, with a current ratio of approximately 11.53, up from 9.68 as of December 31, 2021[56]. Employee and Governance - The Group employed 87 employees globally as of June 30, 2022, a decrease from 121 employees as of December 31, 2021, primarily due to company restructuring[71]. - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules during the reporting period[85]. - The Management Committee, established on November 1, 2019, is responsible for the day-to-day operation and implementation of the overall strategy set by the Board[88]. Risk Management - The Group has established sufficient risk management procedures to identify and control various types of risk within the organization[87]. - The Group's treasury policy focuses on managing foreign currency exposure only when the potential financial impact is material[58].

Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, reaching approximately HKD 1.2 billion, representing a year-on-year growth of 15%[3]. - The company’s net profit for the year was approximately HKD 150 million, reflecting a 10% increase compared to the previous year[3]. - Revenue for 2021 increased by 85.9% to approximately RMB 5,293.0 million from RMB 2,847.8 million in 2020[18]. - Gross profit rose by 38.9% to RMB 208.8 million, with a gross margin of 3.9%, down from 5.3%[18]. - Profit attributable to owners increased by 70.3% to approximately RMB 62.0 million, with basic and diluted earnings per share of RMB 10.34[18]. - The total sales volume of processed steel and galvanized steel products increased by 40.2% to approximately 867,445 tons from 618,787 tons in 2020[24]. - The company declared a special interim dividend of HKD 0.098 per share, totaling approximately RMB 49.02 million[27]. - The net profit attributable to shareholders for the same period was approximately RMB 62.0 million, representing a 70.3% increase from RMB 36.4 million in 2020[108]. - The total sales volume of processed steel products and galvanized steel products reached approximately 867,445 tons, an increase of 40.2% from 618,787 tons in 2020[109]. Market Expansion and Future Outlook - The company has outlined its future outlook, projecting a revenue growth of 10-15% for the next fiscal year, driven by market expansion and new product launches[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the region over the next two years[3]. - The company expects continued demand growth for its products and plans to enhance production capacity in the coming years[112]. Investment and R&D - Huajin International is investing in new technology development, allocating approximately HKD 50 million for R&D initiatives in the upcoming year[3]. - The company invested approximately RMB 151.3 million in property, plant, and equipment to enhance production capacity[24]. - The company has established long-term stable business relationships with major suppliers to ensure timely procurement of steel raw materials[161]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the year ending December 31, 2021[48]. - The company emphasizes the importance of effective corporate governance to attract investors and protect shareholder interests[48]. - The board consists of five executive directors and three independent non-executive directors, complying with the requirement of having at least one-third of the board as independent non-executive directors[55]. - The board is responsible for overseeing the company's compliance with legal and regulatory requirements, ensuring effective internal controls are in place[63]. - The company has adopted a corporate governance policy that includes regular reviews and recommendations to enhance governance practices[54]. Financial Position and Debt - Huajin International reported a strong cash flow position, with cash reserves of approximately HKD 300 million, providing a solid foundation for future investments[3]. - Borrowings increased by 28.1% to RMB 1,229.6 million from RMB 959.9 million in 2020[18]. - The debt-to-equity ratio rose to 209.5% from 168.3% in the previous year[18]. - As of December 31, 2021, the net current liabilities were approximately RMB 229.6 million, down from RMB 310.6 million in 2020[110]. - The total bank financing related to bank borrowings and notes payable was approximately RMB 1,327.3 million, with RMB 972.6 million utilized and RMB 354.7 million unutilized as of December 31, 2021[140]. Operational Efficiency - The company is implementing new strategies to improve operational efficiency, aiming for a 5% reduction in operational costs by the end of the next fiscal year[3]. - The management team has extensive experience in procurement and operational management, crucial for the company's supply chain efficiency[45]. Shareholder Communication and Dividends - The company intends to distribute approximately 30% of the net distributable profits for the fiscal year ending December 31 as dividends, subject to shareholder approval[101]. - The company emphasizes the importance of effective communication with investors to enhance shareholder value and market confidence[102]. - The company’s dividend payments will depend on its financial performance, operational needs, cash flow, and other relevant factors[99]. Stock Option Plan - The total number of shares available for issuance under the stock option plan is 60,000,000, representing 10% of the company's issued share capital as of the report date[190]. - The maximum number of shares that can be issued to each eligible person under the stock option plan is limited to 1% of the issued shares within the twelve months preceding the grant date[193]. - The stock option plan will remain effective for a period of ten years from its adoption date, expiring on March 22, 2026[199].

Financial Performance - The Group recorded a turnover of approximately HK$4,012.51 million for the year ended 31 December 2021, a significant increase from HK$1,274.36 million in 2020, representing a growth of approximately 214%[25]. - Operating income for the year was approximately HK$604.43 million, up from HK$528.96 million in 2020, indicating an increase of about 14.3%[25]. - Loss attributable to equity holders was approximately HK$733.62 million, compared to a loss of HK$140.71 million in 2020, marking an increase in loss of approximately 420%[26]. - Basic and diluted loss per share was 1.65 Hong Kong cents, up from a loss per share of 0.32 Hong Kong cents in 2020[26]. - The financial services segment contributed approximately HK$339.48 million in operating income, an increase from HK$277.51 million in 2020, while reducing its loss by approximately 32.26%[36]. - The Group's brokerage business and securities trading experienced considerable growth, contributing to significant income during the year[32]. - The Group's financing services generated an operating income of approximately HK$24.96 million, down from HK$45.14 million in 2020, with a net loss of approximately HK$4.94 million[42]. - The Group's proprietary trading of securities recorded a loss of approximately HK$93.47 million in 2021, a significant decline from a profit of HK$73.43 million in 2020, coinciding with a drop in the Hang Seng Index from approximately 29,100 points to 23,500 points[47]. - The healthcare segment recorded a loss of approximately HK$23.18 million in 2021, an improvement from a loss of HK$157.82 million in 2020, following the disposal of TWCGL[52]. - The mother-infant-child consumer products segment contributed operating income of approximately HK$182.87 million in 2021, an increase from HK$161.79 million in 2020, but incurred a loss of approximately HK$433.97 million compared to a profit of HK$24.55 million in 2020[55]. - The investment holding segment reported a loss of approximately HK$101.35 million in 2021, compared to a profit of HK$68.29 million in 2020, with total segment assets of approximately HK$1,495.06 million[63]. Cost Management and Operational Efficiency - The Group achieved a reduction in employee welfare costs and operating expenses by approximately 27% in 2021 compared to the previous year, and by approximately 63% and 68% compared to 2019 and 2018, respectively[11]. - The Group's management implemented cost-cutting measures and business restructuring to enhance operational efficiency amidst a challenging macro environment[9]. - The Group's strategic focus on optimizing staffing and reducing non-essential expenses contributed to enhanced operational efficiency[11]. - The total employee count decreased to 121 as of December 31, 2021, down from 153 in 2020, primarily due to company restructuring[96]. - Staff costs for the year ended December 31, 2021, were approximately HK$72.74 million, a decrease from HK$145.79 million in 2020[96]. Business Strategy and Market Focus - The Group aims to provide improved securities, insurance brokerage, and wealth management services globally, leveraging its position in Hong Kong as an international financial center[12]. - The Group plans to adopt a more prudent investment approach in 2022, focusing on preserving cash reserves to capitalize on clear market opportunities[18]. - The Group aims to explore new market opportunities in the financial services segment, including securities, asset management, and insurance brokerage, to enhance returns for shareholders[20]. - The Group's diversified portfolio strategy aims to reduce investment concentration risk amid significant global market changes and uncertainties[19]. - The Group's management is confident in achieving better performance in 2022, supported by sufficient cash reserves and optimized management measures[20]. - The Group will continue to focus on sustainable business development to navigate the challenging market environment[19]. Asset Management and Financial Position - The Group's total assets as of December 31, 2021, amounted to approximately HK$4,806.75 million, a decrease from HK$6,926.06 million in 2020[60]. - The Group's bank deposits and cash as of December 31, 2021, were approximately HK$1,737.45 million, representing 36.15% of total assets, compared to 29.49% in 2020[60]. - As of December 31, 2021, the Group's net current assets amounted to approximately HK$2,725.12 million, an increase from HK$2,288.89 million in 2020, with a current ratio of approximately 9.68 compared to 2.56 in 2020[61][64]. - The Group's total equity as of December 31, 2021, was approximately HK$4,414.18 million, down from HK$5,400.88 million in 2020, including non-controlling interests of approximately HK$49.39 million[66][70]. - The Group had no interest-bearing borrowings as of December 31, 2021, making the gearing ratio not applicable for both 2021 and 2020[62][67]. - The Group recorded a total capital commitment of approximately HK$56.65 million as of December 31, 2021, down from HK$66.96 million in 2020[75][78]. Management and Governance - Mr. Zhang Zhenyi has over 18 years of experience in financial, risk, and investment management, currently serving as CFO and executive director since April 21, 2020[105]. - Ms. Han Ruixia has more than 12 years of experience in finance and risk management, appointed as executive director since April 16, 2020[106]. - Ms. Hui Mei Mei has over 22 years of experience in property development and 15 years in management of listed companies, serving as a non-executive director since October 5, 2016[109]. - Mr. Tian Ren Can has over 23 years of experience in finance and investment, appointed as an independent non-executive director since April 26, 2016[110]. - Mr. Wang Cong, appointed as an independent non-executive director since December 1, 2018, holds a Ph.D. in Aeronautics and is a co-inventor of multiple patents[114]. - Mr. Wu Xu'an has over 18 years of experience in tax, auditing, and business management, appointed as an independent non-executive director since March 12, 2020[115]. - The company has a diverse board with members holding advanced degrees in finance, economics, and engineering, enhancing its strategic planning capabilities[109][110][114]. - The company emphasizes the importance of risk management and financial oversight through its experienced executive team and independent directors[105][106][110]. Dividends and Donations - The Group did not recommend payment of a final dividend for the Year, consistent with the previous year (2020: nil)[127]. - Charitable donations made by the Group during the Year amounted to HK$5,000, a decrease from HK$30,000 in 2020[136].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 2,240.7 million, an increase of 146.1% compared to RMB 910.4 million in 2020[3] - Gross profit reached RMB 131.4 million, up 429.8% from RMB 24.8 million in the previous year, with a gross margin of 5.9%[3] - The company reported a profit attributable to owners of RMB 54.8 million, compared to a loss of RMB 14.0 million in the previous year[3] - Basic earnings per share for the period was RMB 9.14, a significant improvement from a loss of RMB 2.33 per share in 2020[3] - The total comprehensive income for the six months ended June 30, 2021, was RMB 54,826 thousand, compared to a loss of RMB (14,001) thousand for the same period in 2020, indicating a turnaround in performance[55] - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 54.8 million, compared to a loss of approximately RMB 14.0 million in the same period of 2020[135] Sales and Volume - Sales volume increased by 84.0% to 383,230 tons from 208,299 tons in the same period last year[3] - Sales of cold-rolled steel products amounted to RMB 1,569,980,000, up from RMB 628,770,000, representing a growth of 149.5% year-over-year[45] - The total sales volume of processed steel products and galvanized steel products was 383,230 tons, an increase of 174,931 tons or 84.0% compared to 208,299 tons in the first half of 2020[105] - Sales expenses increased to approximately RMB 17.3 million in the first half of 2021, a rise of RMB 6.1 million or 54.5% compared to RMB 11.2 million in the first half of 2020[129] Assets and Liabilities - The net asset value as of June 30, 2021, was RMB 576.7 million, reflecting a slight increase of 1.1% from RMB 570.4 million at the end of 2020[4] - Total borrowings rose by 42.1% to RMB 1,363.7 million from RMB 959.9 million at the end of 2020[4] - The company's debt-to-equity ratio increased to 236.5% from 168.3% at the end of 2020[4] - As of June 30, 2021, total assets minus current liabilities amounted to RMB 1,055,741 thousand, an increase from RMB 906,216 thousand in 2020, representing a growth of approximately 16.4%[19] Cash Flow - Cash and cash equivalents increased by RMB 152,417 thousand during the six months ended June 30, 2021, compared to a decrease of RMB 15,126 thousand in the prior year[30] - The company generated a net cash outflow from operating activities of RMB 91,269,000 for the six months ended June 30, 2021[32] - The company’s net cash used in financing activities was RMB 327,758 thousand, a turnaround from a cash outflow of RMB 2,747 thousand in the same period of 2020[30] Investments and Capital Expenditure - The group acquired property, plant, and equipment with a construction cost of RMB 103,215 thousand during the six months ended June 30, 2021, down from RMB 149,029 thousand in the same period of 2020[61] - Capital expenditure for properties, plants, and equipment was approximately RMB 103.2 million in the first half of 2021, with total capital commitments of about RMB 91.0 million as of June 30, 2021[106] Shareholder Information - As of June 30, 2021, the company has a total of 600,000,000 shares issued, with major shareholders holding 75.00% of the equity[163] - Mr. Xu and Mr. Luo each hold 450,000,000 shares, representing 75.00% of the company's issued share capital[161] - The company has granted share options totaling 6,000,000 shares to Mr. Chen, representing 1.00% of the issued share capital[168] Future Outlook - The company aims to continue expanding its market presence and enhancing product offerings in the upcoming periods[3] - The company anticipates continued growth in product demand, necessitating ongoing capacity enhancements through investments in new production facilities[106] - The group plans to install new production facilities to enhance capacity and flexibility, focusing on long-term growth and stability[154]

Huajin International Holdings Limited 華津國際控股有限公司 Annual Report 2020 年報 Huajin International Holdings Limited 華津國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock Code: 2738 （於開曼群島註冊成立的有限公司） 股票代號：2738 年 報 華津國際控股有限公司 / 2020年年報 頁次 公司資料 2 釋義 3-5 財務摘要 6 主席報告 7-8 董事及高級管理層 9-11 企業管治報告 12-22 管理層討論及分析 23-29 董事會報告 30-46 獨立核數師報告 47-51 綜合損益及其他全面收益表 52 綜合財務狀況報表 53 綜合權益變動表 54 綜合現金流量表 55-56 綜合財務報表附註 57-117 財務概要 118 目 錄 公司資料 | --- | --- | |--------------------------------|--------------------------- ...

Revenue and Sales Performance - Revenue for the six months ended June 30, 2020, was RMB 910.4 million, a decrease of 1.8% compared to RMB 927.3 million in the same period of 2019[4] - Total revenue for the six months ended June 30, 2020, was RMB 910,412,000, a decrease of 1.0% from RMB 927,349,000 for the same period in 2019[46] - Sales volume increased by 5.5% to 208,299 tons, compared to 197,407 tons in the previous year[4] - Sales of cold-rolled steel products amounted to RMB 628,770,000, down 2.0% from RMB 643,963,000 in the previous year[41] - Sales of galvanized steel products increased significantly to RMB 153,258,000, up 41.6% from RMB 108,184,000 in the prior year[41] - Revenue from customers in China was RMB 907,971,000, a decrease of 1.5% from RMB 921,806,000 in the same period last year[46] - The total sales volume of processed steel and galvanized steel products was 208,299 tons, an increase of 10,892 tons or 5.5% from 197,407 tons in the first half of 2019[106][109] Profitability and Loss - Gross profit dropped to RMB 24.8 million, representing a significant decline of 56.0% from RMB 56.4 million year-on-year[4] - The gross profit margin decreased to 2.7%, down from 6.1% in the previous year[4] - The company reported a loss attributable to owners of the company of RMB 14.0 million, a decline of 233.3% compared to a profit of RMB 10.5 million in the same period last year[4] - The company reported a net loss before tax of RMB 17,200 thousand for the six months ended June 30, 2020, compared to a profit of RMB 16,267 thousand in the same period of 2019[25] - The company reported a net loss of RMB 14,001,000 for the six months ended June 30, 2020, compared to a profit of RMB 10,476,000 in the same period of 2019[55] - The gross profit for the first half of 2020 was approximately RMB 24.8 million, down by about RMB 31.6 million or 56.0% from approximately RMB 56.4 million in the same period of 2019, resulting in a gross margin of 2.7%[121] Financial Position and Assets - Net asset value as of June 30, 2020, was RMB 520.0 million, a decrease of 2.6% from RMB 534.0 million at the end of 2019[4] - Current assets increased to RMB 616,315 thousand from RMB 510,469 thousand, reflecting a growth of about 21% year-over-year[17] - Total liabilities increased to RMB 1,198,924 thousand as of June 30, 2020, compared to RMB 1,012,328 thousand at the end of 2019, indicating a rise of approximately 18.4%[19] - The company's total equity decreased to RMB 519,994 thousand as of June 30, 2020, down from RMB 533,995 thousand at the end of 2019, reflecting a decline of approximately 2.6%[19] - Total borrowings increased by 6.1% to RMB 839.4 million, compared to RMB 790.8 million at the end of 2019[4] - The company's cash and cash equivalents decreased to RMB 23,612,000 as of June 30, 2020, down from RMB 31,821,000 in the previous year[30] - The total value of pledged assets for borrowings was RMB 901,589 thousand, representing a 22.2% increase from RMB 737,477 thousand in the previous period[90] Cash Flow and Financing - The company's cash flow from operating activities showed a net outflow of RMB 13,979 thousand for the six months ended June 30, 2020, a significant decrease from a net inflow of RMB 234,364 thousand in the same period of 2019[25] - The company reported a total of RMB 145,261,000 in trade payables and other payables as of June 30, 2020, compared to RMB 89,390,000 in the previous period[77] - The company repaid loans amounting to RMB 347,171,000 during the first half of 2020, a significant reduction from RMB 693,410,000 in the same period of 2019[30] - The company anticipates that all currently utilized financing credits will be renewed upon maturity, ensuring continued operational funding[31] - The total financing credit available to the company as of June 30, 2020, was approximately RMB 793,913,000, with RMB 687,909,000 utilized and RMB 106,004,000 unutilized, reflecting a strong liquidity position[31] Operational Challenges and Future Outlook - The company expects to continue facing challenges in the market but aims to improve operational efficiency and explore new business opportunities[4] - The company has plans for future expansion and product development, although specific details were not disclosed in the financial summary[19] - The board anticipates significant growth in operational performance for the second half of 2020 compared to the first half, despite a loss in the first half[147] - The company aims to maintain its leading position in cold-rolled carbon steel processing in Guangdong Province, supported by improvements in product quality and production efficiency from the new production line[147] Employee and Management Information - As of June 30, 2020, the group had a total of 858 full-time employees, an increase from 845 as of December 31, 2019[143] - Total employee costs for the first half of 2020 amounted to approximately RMB 35.4 million, down from RMB 37.9 million in the first half of 2019[143] - The total remuneration for directors and key management personnel was RMB 1,845 thousand, slightly up from RMB 1,805 thousand in the same period last year[100] Corporate Governance and Shareholder Information - The company expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[178] - Major shareholders, including Mr. Xu and Mr. Luo, collectively hold 75.00% of the company's issued share capital, with each holding 450,000,000 shares[149] - The company has not granted any stock options to employees as of June 30, 2020[143] - The company maintained a public float in compliance with the listing rules as of June 30, 2020[176] - The company’s financial statements for the six months ended June 30, 2020, were reviewed by the audit committee and external auditors, confirming compliance with applicable accounting standards[177]

Financial Performance - Huajin International Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2019, representing a year-on-year increase of 15%[1] - The company achieved a net profit of HKD 150 million, which is a 10% increase compared to the previous year[1] - Revenue for 2019 decreased by 25.7% to RMB 2,162.6 million from RMB 2,909.3 million in 2018[40] - Gross profit for 2019 was RMB 114.5 million, down 20.9% from RMB 144.7 million in 2018, with a gross margin of 5.3%[33] - Basic earnings per share increased by 186.0% to RMB 3.06 from RMB 1.07 in 2018[33] - Net profit attributable to shareholders increased by 187.5% to RMB 18.4 million from RMB 6.4 million in 2018[40] - The company's attributable profit for the year was RMB 18.4 million, an increase of 187.5% compared to the previous year[133] - Total revenue for the year ended December 31, 2019, was RMB 2,162.6 million, down from RMB 2,909.3 million in the previous year, reflecting a decrease of approximately 25.6%[141] - The cost of sales decreased to approximately RMB 2,048.1 million in 2019, down by RMB 716.5 million or 25.9% from RMB 2,764.6 million in 2018[145] - Other income, gains, and losses increased to approximately RMB 14.0 million in 2019, up by RMB 7.8 million or 125.8% from RMB 6.2 million in 2018, primarily due to the sale of an 80% equity interest in a subsidiary[153] Market Expansion and Strategy - User data indicated a growth in customer base by 20%, reaching a total of 500,000 active users[1] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[1] - Future guidance estimates a revenue growth of 20% for the upcoming fiscal year, driven by new product lines and market expansion[1] - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the future[58] Product Development and Investment - New product development includes the launch of a premium line of metal products, expected to contribute an additional HKD 200 million in revenue in 2020[1] - Huajin International is investing HKD 50 million in technology upgrades to enhance production efficiency by 30%[1] - The company invested approximately RMB 182.2 million in property, plant, and equipment to enhance production capacity[41] - Capital expenditures for property, plant, and equipment, and land use rights amounted to approximately RMB 189.5 million, funded by internal resources and borrowings[134] Operational Efficiency and Cost Management - The company has set a target to reduce operational costs by 15% through improved supply chain management[1] - The company plans to expand production capacity and reduce unit production costs to enhance profitability[44] - The average utilization rates for cold-rolled processing and galvanized processing were approximately 73.6% and 29.8%, respectively, indicating lower operational efficiency due to various factors[133] - The company aims to improve profit margins through increased production scale and cost reduction strategies following the commissioning of a new production base in the second quarter of 2020[134] Corporate Governance and Management - The company has established a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[56][57] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, meeting the requirement for independent representation[82] - The company has established an Audit Committee consisting of three independent non-executive directors, ensuring compliance with the listing rules and corporate governance standards[102] - The company’s board diversity policy considers various factors including professional experience, skills, gender, age, cultural and educational background, and service tenure when selecting candidates for the board[111] - The company maintains appropriate insurance coverage for directors and senior management to protect against legal actions, reviewed annually for adequacy[92] Sustainability and Compliance - Huajin International is committed to sustainability, aiming for a 50% reduction in carbon emissions by 2025[1] - The company is actively involved in the recycling industry through its subsidiary Jiangmen Hairun, indicating a commitment to sustainability[51] - The board is responsible for leading and controlling the company, ensuring effective supervision of business strategies and performance[87] - The directors have confirmed the effectiveness of the internal control system as of December 31, 2019[89] Employee and Customer Relations - The total employee cost for the group was approximately RMB 75.2 million, down from RMB 85.6 million in 2018, with a total of 845 employees as of December 31, 2019[177] - The company has implemented internal training programs to enhance employee skills and loyalty, aiming to provide promotion opportunities[194] - The company serves approximately 800 to 900 customers across various industries, including light industry hardware, home appliances, and furniture[195] - The company relies on short-term orders from customers, making it difficult to predict future purchase volumes[187] Risk Management - The company faces operational risks unique to the steel processing industry, including potential industrial accidents despite safety measures[189] - The board believes that the risk management and internal control systems are effective, with ongoing improvements planned through independent reviews[128]

Revenue and Profitability - Revenue for the six months ended June 30, 2019, was RMB 927.3 million, a decrease of 35.0% compared to RMB 1,426.7 million in 2018[4] - The company reported a profit attributable to owners of the company of RMB 10.5 million, a decline of 24.5% from RMB 13.9 million in the previous year[4] - Basic earnings per share decreased by 24.6% to RMB 1.75 from RMB 2.32 in 2018[4] - The total comprehensive income for the period was RMB 10.4 million, down from RMB 14.3 million in 2018[17] - The company reported a profit of RMB 10,476 thousand for the period, compared to RMB 13,945 thousand in the previous period, reflecting a decrease of approximately 25.5%[28] - The company's net profit for the six months ended June 30, 2019, was RMB 10,476,000, a decrease of 25.5% compared to RMB 13,945,000 for the same period in 2018[112] Sales and Production - Sales volume for the period was 197,407 tons, down 34.9% from 303,442 tons in 2018[4] - Sales of cold-rolled steel products amounted to RMB 643,963,000, down 36.5% from RMB 1,015,358,000 in the previous year[91] - The average selling price of processed steel products decreased from approximately RMB 4,424 per ton in the first half of 2018 to RMB 4,245 per ton in the first half of 2019[171] - The total sales volume of processed steel and galvanized steel products was approximately 197,407 tons, a decrease of 34.9% from 303,442 tons in the first half of 2018[164] - The average utilization rates for cold-rolled processing and galvanized processing were approximately 46.3% and 19.1%, respectively, significantly lower than 66.4% and 43.6% in the same period of 2018[164] Costs and Expenses - Gross profit for the same period was RMB 56.4 million, down 25.8% from RMB 76.0 million, with a gross margin of 6.1% compared to 5.3% in 2018[4] - The cost of sales decreased to approximately RMB 870.9 million in the first half of 2019, a reduction of 35.5% from RMB 1,350.7 million in the same period of 2018[176] - Direct material costs accounted for over 87% of the total sales cost in the first half of 2019, down from 89% in the same period of 2018, primarily due to a decline in sales of processed steel and galvanized steel products[180] - The company's administrative expenses increased to approximately RMB 19.6 million in the first half of 2019, up about RMB 1.9 million or 10.7% from RMB 17.7 million in the same period of 2018[189] - The company's sales expenses decreased to approximately RMB 8.5 million in the first half of 2019, down about RMB 6.3 million or 42.6% from RMB 14.8 million in the same period of 2018[186] Financial Position - Net asset value increased by 1.8% to RMB 596.4 million as of June 30, 2019, compared to RMB 586.0 million at the end of 2018[6] - Total borrowings decreased by 14.1% to RMB 728.5 million from RMB 848.2 million[6] - The company's debt-to-equity ratio improved to 122.1% from 144.7%[6] - Current assets decreased from RMB 921,356 thousand to RMB 862,050 thousand, a decline of approximately 6.4%[22] - Total liabilities decreased from RMB 1,066,837 thousand to RMB 1,133,753 thousand, indicating a reduction in net current liabilities from RMB (279,285) thousand to RMB (234,198) thousand[23] - The total borrowings as of June 30, 2019, amounted to RMB 728,532,000, down from RMB 848,238,000 as of December 31, 2018, indicating a decrease of about 14.1%[149] Cash Flow - Operating cash flow before working capital changes decreased from RMB 73,167 thousand to RMB 59,067 thousand, a decline of about 19.3%[32] - Cash and cash equivalents decreased from RMB 72,465 thousand to RMB 31,821 thousand, a reduction of approximately 56%[35] - New borrowings raised amounted to RMB 573,704 thousand, while repayments totaled RMB (693,410) thousand, indicating a net cash outflow from financing activities[36] - The company's cash and bank balances decreased by approximately RMB 40.7 million or 56.1% to about RMB 31.8 million as of June 30, 2019, from RMB 72.5 million as of December 31, 2018[196] Financing and Liabilities - The company obtained an additional RMB 250,000,000 in financing after the reporting period[38] - The company has a policy for short-term leases, recognizing lease payments as expenses on a straight-line basis over the lease term[47] - The company recognized lease liabilities amounting to RMB 3,784,000 as of January 1, 2019, following the application of HKFRS 16[72] - The current portion of lease liabilities is RMB 350,000, while the non-current portion is RMB 3,434,000[73] - The company reported a lease liability of RMB 3,434,000 as a non-current liability as of January 1, 2019[88] Taxation and Other Income - The income tax expense for the period was RMB 5,791,000, an increase from RMB 3,712,000 in the previous year[99] - The company expects to maintain its preferential tax rate of 15% for certain subsidiaries recognized as high-tech enterprises[100] - Other income accounted for approximately 8.9% of total revenue in the first half of 2019, up from 4.7% in the same period of 2018[174] Investments and Capital Expenditure - The company invested approximately RMB 78.0 million in properties, plants, and equipment during the first half of 2019[166] - The company acquired property, plant, and equipment at a cost of RMB 78,008,000, compared to RMB 90,166,000 in the same period last year[117] - The capital expenditure contracted but not provided for as of June 30, 2019, was RMB 197,891,000, slightly down from RMB 204,350,000 in 2018[152] Employee and Related Party Transactions - Total employee benefits expenses amounted to RMB 37,875,000, down 7.1% from RMB 40,961,000 in the previous year[105] - Related party payables decreased from RMB 34,047,000 in 2018 to RMB 7,604,000 in 2019, a significant decline of about 77.7%[143]