XINGYE ALLOY(00505)

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兴业合金(00505) - 2024 - 年度财报
2025-04-29 08:57
Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 8,053.4 million, a 27.4% increase from RMB 6,323.2 million in the previous year[10]. - The profit attributable to shareholders rose to RMB 241.2 million, reflecting a 28.7% increase from RMB 187.4 million in 2023, primarily due to rising copper prices and increased sales volume[10]. - In 2024, the group's copper processing business achieved revenue of RMB 8,049 million, a 27.5% increase from 2023, with sales volume reaching 166,401 tons, up 19.5%[16]. - The total sales volume for the copper business reached 166,401 tons, a 19.5% increase from 139,259 tons in 2023, contributing to a gross profit of RMB 761.6 million, up 24.8% from the previous year[23]. - Other income amounted to RMB 35.4 million, an increase of RMB 8.7 million from 2023, primarily due to increased government subsidies[24]. Market Conditions - In 2024, copper prices experienced significant volatility, reaching a historical high of USD 11,104.5 per ton before closing the year at USD 8,781.5 per ton, a 2.6% annual increase[11]. - The copper processing industry faces challenges from increased trade barriers and geopolitical tensions, which may lead to price uncertainties[12]. - The group anticipates a decline of over 10% in copper strip exports by 2025 due to domestic export tax rebate policies and U.S. tariff policies[15]. Strategic Initiatives - The company plans to implement a pragmatic and stable annual operational strategy for 2025, focusing on resource optimization and enhancing shareholder value[7]. - The company aims to respond to internal and external pressures while striving to achieve its goal of becoming a world-class copper processing enterprise[7]. - The group plans to enhance R&D investment and focus on high value-added products to improve competitiveness in response to market challenges[15]. - The company has adopted flexible pricing strategies and effective cost-cutting measures to navigate competitive pressures and maintain profitability[6]. Corporate Governance - The company has adopted the Corporate Governance Code and confirmed compliance with the standards set forth in the listing rules[50]. - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with the minimum requirements of the listing rules[52]. - The board is committed to high levels of corporate governance, which is considered key to the company's success[48]. - The company has established a nomination policy to identify and nominate suitable candidates for the board[64]. Environmental and Sustainability Efforts - The company emphasizes environmental protection and resource recycling as fundamental operational principles, aiming to reduce environmental impact[45]. - The company aims to reduce unit water consumption by 40% by 2025 compared to 2018 levels[130]. - The company plans to cut greenhouse gas emissions per unit product by 50% by 2025 compared to 2018 levels[130]. - The company has established a climate change and sustainability task force in 2024 to enhance governance on climate-related issues[132]. Employee Engagement and Development - The company established "Xingye Happy Home" in 2015 to enhance employee cohesion and sense of belonging, contributing to stable and sustainable development[51]. - Starting from October 2024, the company will launch skill competitions across various departments to enhance employee operational skills[200]. - Over 150 employees will participate in the competitions to showcase their skills[200]. Risk Management - The board is responsible for maintaining a robust risk management and internal control system, which is reviewed for effectiveness annually[85]. - The company has established a department for risk monitoring and internal audit, conducting quarterly audits of the risk management and internal control systems[86]. - The company has adopted a whistleblowing policy since March 29, 2012, to ensure transparency and accountability regarding suspected misconduct[90]. Financial Management - The net financial cost for the group was RMB 16.6 million, a shift from a net financial income of RMB 3.8 million in 2023, primarily due to increased foreign exchange losses and interest expenses on borrowings[28]. - The income tax expense rose to RMB 76.6 million from RMB 35.9 million in 2023, with the effective tax rate increasing to 24.1% from 16.1% due to reduced deductions for qualified R&D expenses[29]. - As of December 31, 2024, the group had net current assets of RMB 1,195.4 million, up from RMB 860.2 million in 2023, and maintained a debt-to-capital ratio of 34.8%[31][32].
兴业合金(00505) - 2024 - 年度业绩
2025-03-31 08:35
Financial Performance - For the fiscal year ending December 31, 2024, the total revenue reached RMB 8,053,401 thousand, representing a 27.4% increase from RMB 6,323,174 thousand in 2023[3] - Gross profit for the same period was RMB 761,552 thousand, up 24.8% from RMB 610,334 thousand in the previous year[3] - Operating profit increased to RMB 334,800 thousand, a 52.2% rise compared to RMB 219,748 thousand in 2023[4] - Net profit attributable to equity shareholders was RMB 241,217 thousand, reflecting a 28.7% increase from RMB 187,447 thousand in the prior year[4] - Basic and diluted earnings per share for 2024 were both RMB 0.27, compared to RMB 0.21 in 2023, marking a 28.6% increase[4] - The company reported a total comprehensive income of RMB 242,299 thousand for 2024, compared to RMB 188,344 thousand in 2023, indicating a growth of 28.7%[5] - Shareholders' profit increased from RMB 187.4 million in 2023 to RMB 241.2 million in 2024, reflecting a growth of 28.7% primarily due to rising copper prices and increased sales volume of copper products[51] Revenue Breakdown - Revenue from copper-related products increased to RMB 7,699,973,000 in 2024 from RMB 6,023,716,000 in 2023, representing a growth of 28%[13] - Revenue from mainland China rose to RMB 7,197,971,000 in 2024, compared to RMB 5,694,305,000 in 2023, reflecting a growth of 26.4%[18] - The copper processing business achieved revenue of RMB 8,049.0 million in 2024, with sales volume reaching 166,401 tons, marking increases of 27.5% and 19.5% respectively compared to 2023[56] - The production and sales of high-precision copper strips generated revenue of RMB 7,700.0 million, up 27.8% from RMB 6,023.7 million in 2023, with sales volume increasing by 18.1% to 111,169 tons[56] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 4,202,613 thousand, an increase from RMB 3,341,358 thousand in 2023[6] - Current assets increased to RMB 4,202,613 thousand, while current liabilities rose to RMB 3,007,210 thousand, resulting in a net current asset value of RMB 1,195,403 thousand[6] - Non-current assets totaled RMB 1,471,454 thousand, up from RMB 1,298,209 thousand in the previous year[6] - The company had a net current asset value of RMB 1,195.4 million as of December 31, 2024, compared to RMB 860.2 million in the previous year[69] Costs and Expenses - The cost of inventory increased to RMB 7,287,173,000 in 2024 from RMB 5,646,782,000 in 2023, representing a rise of 29%[24] - Employee costs rose to RMB 256,254,000 in 2024 from RMB 230,257,000 in 2023, reflecting an increase of 11.3%[22] - Distribution expenses rose to RMB 67.9 million, an increase of RMB 10.8 million from RMB 57.1 million in 2023, attributed to higher distribution service fees and freight costs[64] - Administrative expenses increased to RMB 366.9 million, up RMB 27.2 million from RMB 339.7 million in 2023, mainly due to higher consulting service fees and labor costs[65] Credit and Provisions - The company incurred a credit loss provision of RMB 10,425,000 in 2024, compared to RMB 658,000 in 2023, showing a significant increase in credit risk[20] - The company reported a net loss of RMB 27.3 million from other losses, an increase of RMB 6.8 million compared to the previous year, mainly due to increased credit loss provisions[63] Research and Development - Research and development expenses amounted to RMB 186,410,000 in 2024, slightly up from RMB 185,121,000 in 2023, indicating continued investment in innovation[24] - The company plans to increase R&D investment to focus on high value-added products and expand overseas production bases to mitigate tariff barriers[55] Market Outlook - The company anticipates a 10% decline in copper strip exports in 2025 due to changes in domestic export tax rebate policies and U.S. government tariff policies[55] - The copper market in 2025 is expected to face uncertainties due to global economic divergence and geopolitical tensions, while demand from the renewable energy sector is projected to support copper consumption growth[53] Employee and Corporate Governance - The company has 1,757 employees as of December 31, 2024, and regularly reviews its compensation policy to ensure competitive employment terms[78] - The audit committee, composed of three independent non-executive directors, reviewed the audited financial statements for the year ending December 31, 2024[85] - The company emphasizes environmental protection and energy conservation as fundamental principles in its operations, including resource recycling initiatives[79] Shareholder Information - The company did not have any single customer contributing more than 10% of total revenue for both 2024 and 2023, indicating a diversified customer base[14] - The company had no dividends declared for the year ended December 31, 2024, consistent with 2023[44] - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[87]
兴业合金(00505) - 2024 - 中期财报
2024-09-27 08:43
Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 3,593,506 thousand, an increase of 28.0% compared to RMB 2,809,295 thousand for the same period in 2023[4] - Gross profit for the same period was RMB 430,096 thousand, representing a gross margin of approximately 11.97%, up from RMB 285,841 thousand in 2023[4] - Operating profit increased to RMB 195,912 thousand, a 62.0% rise from RMB 120,950 thousand in the previous year[4] - Net profit attributable to equity shareholders was RMB 140,937 thousand, up 30.8% from RMB 107,726 thousand in 2023[4] - Basic and diluted earnings per share for the period were RMB 15.97, compared to RMB 12.13 in the same period last year, reflecting a growth of 31.4%[4] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 4,111,015 thousand, an increase of 23.0% from RMB 3,341,358 thousand at the end of 2023[6] - Current assets increased to RMB 1,215,439 thousand, up 41.3% from RMB 860,205 thousand at the end of 2023[6] - The company’s cash and cash equivalents rose to RMB 700,931 thousand, compared to RMB 418,750 thousand at the end of 2023, marking a 67.2% increase[6] - Non-current liabilities increased to RMB 496,447 thousand, up from RMB 193,763 thousand at the end of 2023, indicating a significant rise in financial obligations[7] - The company’s total equity attributable to equity shareholders was RMB 2,085,672 thousand, an increase from RMB 1,961,661 thousand at the end of 2023, reflecting a growth of 6.3%[7] Cash Flow - For the six months ended June 30, 2024, the company reported a net cash outflow from operating activities of RMB 302,843,000, compared to RMB 184,668,000 for the same period in 2023[10] - The company incurred a net cash outflow from investing activities of RMB 77,202,000 for the six months ended June 30, 2024, compared to a net cash inflow of RMB 3,809,000 in the previous year[11] - Financing activities generated a net cash inflow of RMB 662,247,000 for the six months ended June 30, 2024, compared to RMB 343,935,000 in the same period of 2023[11] Revenue Sources - Revenue from high-precision copper strips amounted to RMB 3,435,293,000, up 28.7% from RMB 2,670,276,000 in the previous year[16] - The company reported a total comprehensive income of RMB 141,145,000 for the six months ended June 30, 2024, compared to RMB 140,937,000 for the same period in 2023[9] - The company reported no single customer contributing more than 10% of total revenue during the six months ended June 30, 2024[19] Costs and Expenses - The cost of inventory for the six months ended June 30, 2024, was RMB 3,161,144,000, compared to RMB 2,520,220,000 in the same period of 2023[23] - The company incurred a financial cost of RMB 27,740,000 for the six months ended June 30, 2024, compared to RMB 18,979,000 in the previous year[22] - Administrative expenses rose by 10.5% to RMB 167.4 million, attributed to increased labor costs and consulting fees[68] Market Conditions - The average price of copper on the London Metal Exchange (LME) reached a historical high of USD 11,104 per ton in May 2024, with a year-on-year increase of 15.8%[55] - The average price of copper on the Shanghai Futures Exchange (SHFE) was RMB 79,025 per ton as of June 30, 2024, reflecting a year-on-year increase of 16.9%[55] - The demand for conventional copper strips has slightly decreased, while high-precision copper strips are driven by the growth in the new energy industry[56] Production and Sales - In the first half of 2024, the group's copper strip business achieved a total production of 76,758 tons and total sales of 74,122 tons, representing increases of 22.1% and 21.0% respectively compared to the same period in 2023[58] - The sales revenue for the copper strip business reached RMB 3,590.7 million, a 28.2% increase from RMB 2,801.7 million in the same period of 2023[63] - The net profit for the copper business was RMB 143.4 million, up 32.0% from RMB 108.6 million in the same period of 2023, primarily due to increased sales volume and copper prices[58] Shareholder Information - As of June 30, 2024, the total number of issued shares is 899,558,173[91] - Director Hu Changyuan holds 274,200,000 shares, representing approximately 30.48% of the total shares[90] - The company has a total of 81,111,595 stock options available under the 2016 Stock Option Plan as of June 30, 2024[94] - The company did not declare an interim dividend for the six months ending June 30, 2024, consistent with the previous period[108] Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the reporting period[105] - The company’s board has confirmed compliance with the standard code of conduct throughout the reporting period[106] - There were no changes in director information that required disclosure under the listing rules from the last annual report to the date of this interim report[110]
兴业合金(00505) - 2024 - 中期业绩
2024-08-30 08:33
Financial Performance - The company reported revenue of RMB 3,593,506 thousand for the six months ended June 30, 2024, representing a 13.5% increase from RMB 3,163,410 thousand in the same period of 2023[1] - Gross profit for the period was RMB 430,096 thousand, up from RMB 285,841 thousand, indicating a significant increase in profitability[1] - Operating profit rose to RMB 195,912 thousand, compared to RMB 120,950 thousand in the previous year, reflecting a growth of 62%[1] - Net profit for the period was RMB 141,135 thousand, an increase of 30.5% from RMB 107,886 thousand in the prior year[2] - Basic and diluted earnings per share increased to RMB 15.97, up from RMB 12.13, marking a 31.5% rise[2] - Total revenue for the six months ended June 30, 2024, was RMB 3,593,506,000, up 28% from RMB 2,809,295,000 in the previous year[10] - Revenue from high-precision copper strip sales reached RMB 3,435,293,000, an increase of 28.6% compared to RMB 2,670,276,000 in the same period last year[10] - The net profit for the copper business in the first half of 2024 was RMB 143.4 million, up from RMB 108.6 million in the same period of 2023[39] - Other income increased to RMB 26.8 million, up from RMB 14.0 million year-on-year, primarily due to increased government subsidies[45] - The company's net profit attributable to shareholders was RMB 140.9 million, an increase of RMB 33.2 million from RMB 107.7 million in the previous year[51] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 4,111,015 thousand, compared to RMB 3,341,358 thousand at the end of 2023, showing a growth of 23%[4] - Current assets increased to RMB 4,111,015 thousand, with inventory rising to RMB 1,532,074 thousand from RMB 1,319,351 thousand, indicating a 16.1% increase[4] - The company's non-current assets were valued at RMB 1,370,368 thousand, up from RMB 1,298,209 thousand, reflecting a growth of 5.5%[4] - The company’s total equity increased to RMB 2,089,360 thousand from RMB 1,964,651 thousand, representing a growth of 6.4%[5] - Total interest-bearing borrowings as of June 30, 2024, were RMB 1,960,669,000, a significant increase of 63.3% from RMB 1,200,679,000 as of December 31, 2023[28] - The company reported a decrease in trade payables to RMB 1,168,844,000, down 3.7% from RMB 1,213,057,000 as of December 31, 2023[31] - The total value of mortgaged assets is RMB 626.8 million, an increase from RMB 485.8 million as of December 31, 2023[56] - The debt-to-equity ratio is 41.0%, up from 32.1% as of December 31, 2023[55] Inventory and Receivables - As of June 30, 2024, total inventory amounted to RMB 1,532,074,000, an increase of 16.1% from RMB 1,319,351,000 as of December 31, 2023[20] - Trade and other receivables, net of credit loss provisions, reached RMB 895,856,000, up 26.6% from RMB 707,226,000 as of December 31, 2023[22] - The aging analysis of trade receivables shows that amounts within three months increased to RMB 669,021,000 from RMB 527,251,000, reflecting a growth of 26.9%[24] - The provision for inventory write-downs was RMB 17,929,000 as of June 30, 2024, slightly down from RMB 18,185,000 as of December 31, 2023[20] Operational Highlights - For the first half of 2024, the company's copper strip business achieved a total production of 76,758 tons and total sales of 74,122 tons, representing increases of 22.1% and 21.0% respectively compared to the same period in 2023[39] - The sales revenue for the copper strip business reached RMB 3,590.7 million, an increase of 28.2% year-on-year, with copper product sales contributing RMB 3,435.3 million, processing income of RMB 129.5 million, and copper trading income of RMB 25.9 million, reflecting increases of 28.6%, 18.6%, and 16.7% respectively[39] - The overall gross margin for the copper business improved from 10.0% in the previous year to 12.0% in the current period[44] Research and Development - Research and development expenses amounted to RMB 80,252,000, slightly down from RMB 84,870,000 in the previous year[15] Shareholder Information - The company has decided not to declare or distribute dividends for the six-month period ending June 30, 2024, consistent with the previous year[36] - The board of directors did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous period[70] Employee and Corporate Governance - The company employed a total of 1,706 employees as of June 30, 2024, an increase from 1,578 employees as of December 31, 2023[64] - The company has no significant contingent liabilities as of June 30, 2024[59] - The company has a good credit standing and maintains strong relationships with major lending banks, ensuring sufficient financial resources for operational needs[1] Market and Economic Conditions - The average price of copper on the LME for the first half of 2024 was USD 9,641 per ton, a year-on-year increase of 15.8%[38] - The average price of copper on the SHFE for the first half of 2024 was RMB 79,025 per ton, a year-on-year increase of 16.9%[38] Other Financial Information - The company recorded a net loss of RMB 60.5 million from metal futures contracts for the six months ended June 30, 2024, compared to a loss of RMB 3.1 million for the same period in 2023[61] - The company recorded a net foreign exchange loss of RMB 5.4 million during the reporting period, compared to a net gain of RMB 5.0 million for the same period in 2023[63] - The company has not entered into any interest rate swaps to hedge against interest rate risk[62] - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[3] - There were no significant post-reporting period events up to the date of this announcement[71]
兴业合金(00505) - 2023 - 年度财报
2024-04-29 08:36
Financial Performance - For the fiscal year ending December 31, 2023, the total revenue recorded by Xingye Alloy Materials Group Limited was RMB 6,323.2 million, representing a 1.4% increase compared to RMB 6,238.5 million in 2022[16]. - The profit attributable to shareholders decreased from RMB 216.6 million in 2022 to RMB 187.4 million in 2023, a decline of 13.5%[16]. - The group sold a total of 139,259 tons of products in 2023, maintaining sales volume compared to the previous year[12]. - The group recorded a net loss of RMB 16.8 million from metal futures contracts in 2023, compared to a net gain of RMB 12.7 million in 2022[16]. - The group achieved a gross profit of RMB 610.3 million, up 3.8% from RMB 587.0 million in 2022, primarily due to reduced processing costs and lower inventory impairment provisions[32]. - Other income decreased to RMB 26.7 million, down RMB 1.4 million from the previous year, mainly due to a lack of material insurance compensation recorded in 2022[34]. - The group recorded other losses of RMB 20.5 million, a significant change from other income of RMB 11.4 million in 2022, primarily due to losses from metal futures contracts[35]. - Distribution expenses decreased to RMB 57.1 million from RMB 61.1 million in 2022, attributed to reduced distribution service fees[36]. - Administrative expenses increased to RMB 339.7 million from RMB 334.1 million in 2022, mainly due to higher travel costs[37]. - Financial income netted RMB 3.8 million, a decrease from RMB 17.1 million in 2022, primarily due to reduced foreign exchange gains[39]. - The effective tax rate increased to 16.1% from 13.1% in 2022, due to increased taxable profits from a subsidiary[40]. - The game business generated revenue of RMB 10.8 million in 2023, down from RMB 13.6 million in 2022, with a net loss of RMB 4.9 million compared to a loss of RMB 0.2 million in the previous year[30]. Market Outlook - For 2024, the expected core price fluctuation range for copper is projected to be USD 7,500 to USD 9,000 per ton, with domestic copper prices expected to range from RMB 62,000 to RMB 72,000 per ton[18]. - The anticipated macroeconomic recovery in 2024 is expected to be supported by interest rate cuts in major economies and continued domestic consumption stimulus policies[13]. - The copper processing industry is expected to face intensified competition due to a mismatch between new capacity release and overall demand growth[29]. Business Strategy - The company plans to enhance its organizational optimization and management efficiency to strengthen its core competitiveness and industry position in 2024[13]. - The group aims to expand its overseas market orders and maintain high-value product market share amidst increasing competition in the domestic copper processing industry[12]. - The group plans to enhance its product structure by increasing the proportion of high-end products to meet the growing demand in sectors such as new energy vehicles and electronics[21]. - The group is focusing on digital transformation by implementing various information technology projects to support the transition to a digital factory[28]. - The group is actively optimizing its management and organizational structure to improve efficiency and adapt to changing market demands[24]. Employee and Corporate Governance - As of December 31, 2023, the group had 1,578 employees, with a focus on competitive compensation and annual training programs for skill enhancement[56]. - The company emphasizes environmental protection and resource recycling in its operations, adhering strictly to environmental regulations[57]. - The board is committed to high levels of corporate governance, ensuring accountability and transparency to meet stakeholder expectations[60]. - The company has adopted the Corporate Governance Code and confirmed compliance with the standards set forth in the listing rules[61][62]. - The company has established a culture focused on employee well-being, customer satisfaction, and shareholder value since 2015[67]. - The company has a clear written authority framework for management to report to the board on daily operations[71]. - The company is dedicated to innovation and integrity in providing quality products to its customers[63]. - The company has not reported any confirmed violations of labor regulations or incidents of child or forced labor in 2023[94]. Community Engagement and Social Responsibility - The company actively engages in social performance initiatives, including community support and employee development programs[134]. - The company donated over 4,000 yuan worth of books to Dongyi Primary School and provided 10 printers valued at 10,000 yuan to Bailu Group as part of its community investment initiatives[134]. - Total charitable contributions rose to 578,900 CNY in 2023, significantly higher than 120,000 CNY in 2022[125]. - Employee participation in volunteer activities decreased to 280 individuals in 2023 from 550 in 2022[125]. Innovation and Development - In 2023, the company launched over 50 technical transformation projects to enhance competitiveness and support the development of high value-added products[25]. - The number of patents granted increased to 12 in 2023, up from 8 in 2022[124]. - The company conducted a freedom-to-operate (FTO) analysis for copper alloy patents C70250, C64750, C19900, and C18140, identifying no potential patent infringement risks[80]. Shareholder and Financial Management - The company reported a distributable reserve of RMB 787,604,000 as of December 31, 2023[162]. - The top five customers accounted for approximately 15.3% of total sales revenue, while the largest customer contributed about 5.7%[179]. - The top five suppliers represented around 54.3% of total procurement, with the largest supplier accounting for approximately 29.2%[179]. - The company has established several contractual agreements to ensure operational control and financial performance flow into Hefei Yueyou[194]. - The company has complied with all disclosure requirements under the Listing Rules regarding related party transactions[159].
兴业合金(00505) - 2023 - 年度业绩
2024-03-28 08:37
Financial Performance - For the year ended December 31, 2023, the total revenue was RMB 6,323,174 thousand, an increase from RMB 6,238,504 thousand in 2022, representing a growth of approximately 1.36%[2] - The gross profit for the year was RMB 610,334 thousand, compared to RMB 587,947 thousand in the previous year, indicating a growth of about 3.93%[2] - The net profit attributable to equity shareholders for the year was RMB 187,447 thousand, down from RMB 216,607 thousand in 2022, reflecting a decrease of approximately 13.48%[5] - The basic and diluted earnings per share for the year were both RMB 0.21, compared to RMB 0.24 in the previous year, showing a decline of 12.5%[3] - The total comprehensive income for the year was RMB 188,344 thousand, down from RMB 221,671 thousand in 2022, representing a decrease of about 15.06%[6] - The company reported a decrease in other income to RMB 26,688 thousand from RMB 28,114 thousand in 2022, a decline of about 5.06%[2] - The group reported a net financial income of RMB 3,833,000 in 2023, down from RMB 17,115,000 in 2022, showing a decrease of about 77.6%[46] - The company confirmed a deferred tax liability of RMB 6,000,000 related to the distribution of retained earnings from its Chinese subsidiaries[54] - The income tax expense increased by RMB 3.3 million to RMB 35.9 million for the year ended December 31, 2023, with an effective tax rate rising to 16.1% from 13.1% in 2022[110] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 4,779,563 thousand, compared to RMB 4,071,352 thousand in 2022, indicating an increase of approximately 17.3%[20] - The total liabilities as of December 31, 2023, were RMB 2,814,912 thousand, up from RMB 2,569,822 thousand in 2022, reflecting an increase of about 9.53%[20] - The net asset value attributable to equity shareholders was RMB 1,961,661 thousand, compared to RMB 1,782,785 thousand in the previous year, showing an increase of approximately 10.03%[20] - As of December 31, 2023, the company's trade payables and notes payable amounted to RMB 1,213,057,000, a decrease from RMB 1,279,053,000 in 2022[59] - The total contract liabilities recognized as of December 31, 2023, were RMB 29,999,000, included in the beginning balance of contract liabilities[60] - The group's net current assets as of December 31, 2023, were RMB 860.2 million, down from RMB 903.4 million as of December 31, 2022[111] - The total amount of trade and other payables rose from RMB 407,977,000 in 2022 to RMB 572,107,000 in 2023, an increase of about 40.3%[157] Revenue Breakdown - The group's revenue from copper-related products reached RMB 6,312,421,000 in 2023, compared to RMB 6,224,911,000 in 2022, reflecting an increase of approximately 1.4%[32] - Revenue from online games was RMB 10,753,000 in 2023, a decrease from RMB 13,593,000 in 2022, indicating a decline of about 20.7%[32] - The group's copper processing business achieved revenue of RMB 6,312.4 million, with sales volume of 139,259 tons, representing a slight increase of 1.4% in revenue and a slight decrease of 0.03% in sales volume compared to 2022[75] - Revenue from the manufacturing and sales of high-precision copper strips was RMB 6,023.7 million, an increase of 2.3% from RMB 5,887.0 million in 2022, with sales volume of 94,104 tons, up 3.1% from 91,236 tons in the same period last year[75] - The group's copper processing service revenue decreased by 11.5% to RMB 231.9 million in 2023, with processing volume down 6.2% to 41,215 tons compared to 2022[75] Operational Highlights - The company continues to focus on the manufacturing and sales of high-precision copper strips and has expanded its business to include online gaming development and operations since 2016[9] - The management plans to continue optimizing organizational structure and product mix to enhance competitiveness in the face of increasing market challenges[70] - The group initiated over 50 technical improvement projects in 2023 to enhance competitiveness and support the development of high-value-added products[77] - The group has maintained a good relationship with major lending banks, ensuring sufficient financial resources to meet operational and debt repayment needs[111] - The group has implemented strict environmental regulations for suppliers, ensuring compliance with environmental standards[107] Market Outlook - The company anticipates that the demand for high-end copper strip products will increase due to the rapid development of industries such as new energy vehicles and electronics[74] - For 2024, the company anticipates copper prices to fluctuate between USD 7,500 and USD 9,000 per ton, and domestic copper prices to range from RMB 62,000 to RMB 72,000 per ton[180] Shareholder Information - The company has no dividends declared for equity shareholders for both 2023 and 2022[168] - The group recorded a profit attributable to equity shareholders of RMB 187.4 million for the year, compared to RMB 216.6 million in 2022, resulting in basic earnings per share based on a weighted average of 881,188,754 shares[129] - The diluted earnings per share also reflected a profit of RMB 187.4 million, with adjusted shares outstanding of 881,198,895[130] Investment and Expenditures - The group invested RMB 282.4 million in property, plant, and equipment for the year ended December 31, 2023, primarily funded through internal resources and bank loans[101] - As of December 31, 2023, the group has future capital expenditures of approximately RMB 324.5 million contracted but not yet provided for, mainly for the construction and capacity expansion of the copper processing business[102] Other Financial Metrics - The capital debt ratio as of December 31, 2023, was 32.1%, a slight decrease from 33.0% in the previous year[99] - The weighted average number of ordinary shares (basic) decreased from 891,143,672 in 2022 to 881,188,754 in 2023, a reduction of approximately 1.1%[135] - The company recognized an inventory provision of RMB 18,185,000 in 2023, up from RMB 15,289,000 in 2022, indicating an increase of about 12.4%[147] - The cash amount of bank acceptance bills discounted was RMB 87,387,000 in 2023, significantly higher than RMB 22,780,000 in 2022, marking an increase of approximately 283.5%[149] - The net trade receivables and notes receivable after deducting credit loss provisions increased from RMB 407,977,000 in 2022 to RMB 572,107,000 in 2023, representing a growth of about 40.3%[141]
兴业合金(00505) - 2023 - 中期财报
2023-09-28 08:42
Financial Performance - In the first half of 2023, the company recorded a total revenue of RMB 7.6 million, an increase from RMB 4.3 million in the same period of 2022, reflecting a growth of approximately 76.7%[31]. - The company's net loss for the first half of 2023 was RMB 0.7 million, a significant improvement compared to a net loss of RMB 2.0 million in the same period of 2022[31]. - The company reported other losses of RMB 6.3 million in the first half of 2023, compared to other income of RMB 41.3 million in the same period of 2022, primarily due to gains from metal futures contracts recorded in 2022[34]. - For the six months ended June 30, 2023, the company reported a profit of RMB 107,886,000, a decrease of 9.0% compared to RMB 119,566,000 for the same period in 2022[113]. - The total comprehensive income for the period was RMB 109,135,000, down from RMB 121,736,000 in the previous year[112]. - Revenue for the six months ended June 30, 2023, was RMB 2,809,295 thousand, a decrease of 12.9% compared to RMB 3,222,331 thousand for the same period in 2022[123]. - Operating profit for the period was RMB 120,950 thousand, down 13.1% from RMB 139,077 thousand in the previous year[123]. - Net profit attributable to equity shareholders was RMB 107,726 thousand, a decrease of 10.4% compared to RMB 119,447 thousand in the same period last year[123]. - The company reported a total comprehensive income of RMB 109,135 thousand for the period, down from RMB 121,736 thousand in the previous year[132]. Revenue Sources - The network gaming business generated revenue of RMB 7.6 million, accounting for 0.3% of the total revenue, compared to RMB 4.3 million in the same period of 2022[33]. - Revenue from copper-related products decreased to RMB 2,670,276,000 from RMB 3,037,965,000, a decline of approximately 12.1%[166]. - Revenue from online gaming operations was RMB 7,613,000, an increase from RMB 4,306,000 in the previous year, representing a growth of approximately 76.5%[166]. - The company did not have any single customer contributing more than 10% of total revenue during the reporting periods[181]. Expenses and Losses - The group recorded a net loss of approximately RMB 3.1 million from metal futures contracts for the six months ended June 30, 2023, compared to a net gain of approximately RMB 40.0 million in the same period of 2022[42]. - The company incurred RMB 105,881,000 in payments for the purchase of property, plant, and equipment, up from RMB 52,804,000 in the previous year[99]. - The company reported a loss from the sale of property, plant, and equipment amounting to RMB 1,247,000 for the six months ended June 30, 2023, compared to a loss of RMB 17,000 in the previous year[179]. - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 84,870,000, down from RMB 105,836,000 in the previous year, a decrease of about 19.8%[173]. Assets and Liabilities - As of June 30, 2023, the company had outstanding bank loans and other borrowings of approximately RMB 1,195.6 million, with 94.2% of interest-bearing borrowings being short-term[38]. - The group had a debt-to-equity ratio of 31.1%, down from 33.0% as of December 31, 2022[52]. - Total liabilities increased to RMB 2,613,288 thousand from RMB 2,222,433 thousand, indicating a rise of 17.6%[126]. - The net asset value as of June 30, 2023, was RMB 1,883,519 thousand, up from RMB 1,785,530 thousand at the end of 2022, showing an increase of 5.5%[129]. - Non-current assets totaled RMB 1,135,440 thousand as of June 30, 2023, compared to RMB 1,045,676 thousand at the end of 2022, reflecting an increase of 8.6%[126]. - Current assets amounted to RMB 3,472,688 thousand, an increase from RMB 3,125,809 thousand at the end of 2022, representing a growth of 11.1%[126]. Cash Flow - The net cash used in operating activities was RMB (181,795,000), compared to RMB 325,430,000 generated in the same period last year[99]. - The net cash used in operating activities was HKD (184,668) million, compared to HKD 296,091 million in the previous period[67]. - The net cash generated from financing activities was RMB 343,935,000, an increase from RMB 168,862,000 in the prior year[102]. - Cash and cash equivalents increased by RMB 163,076,000 during the period, compared to an increase of RMB 419,982,000 in the same period last year[102]. - The company’s cash and cash equivalents stood at RMB 484,613,000 as of June 30, 2023, compared to RMB 665,131,000 at the same date last year[102]. Shareholder Information - Major shareholders include Dynamic Empire Holdings Limited with 274,200,000 shares, representing 30.48% of the total issued shares[72][73]. - The total number of share options available under the 2016 share option plan as of June 30, 2023, was 81,111,595 shares[69]. - The company has not granted any share options under the 2016 share option plan since its adoption, indicating no expected issuance of shares related to share options[81]. - The share award plan has resulted in zero shares being granted to selected employees during the reporting period[71]. - The trustee holds 21,265,000 shares under the share award plan since its adoption date until June 30, 2023[71]. Taxation - The effective tax rate for the first half of 2023 was 14%, an increase from 11% in the same period of 2022, attributed to increased taxable profits from a subsidiary[36]. - The actual tax rate for the six months ended June 30, 2023, was 14%, up from 11% in the previous year, primarily due to increased taxable profits from a subsidiary[176]. Market Conditions - The company is facing challenges in the copper market due to high inflation and geopolitical conflicts, impacting demand for industrial metals[26]. Investments and Capital Expenditures - The group invested approximately RMB 105.9 million in property, plant, and equipment during the six months ended June 30, 2023, primarily funded through internal resources and bank loans[54]. - The group has future capital expenditures contracted but not yet provided for amounting to RMB 466.2 million, mainly for the construction and capacity expansion of the copper processing business[55].
兴业合金(00505) - 2023 - 中期业绩
2023-08-31 08:31
[Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the Group's financial performance, including profit or loss and other comprehensive income, for the interim period [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2023, Group revenue decreased by 12.8%, profit for the period was down 9.8%, and basic EPS was RMB 12.13 cents Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2023 (RMB thousand) | 2022 (RMB thousand) | | :------------- | :------------------ | :------------------ | | Revenue | 2,809,295 | 3,222,331 | | Cost of sales | (2,523,454) | (2,946,403) | | Gross profit | 285,841 | 275,928 | | Other income | 14,027 | 11,246 | | Distribution expenses | (21,042) | (30,833) | | Administrative expenses | (151,541) | (158,599) | | Other gains and losses, net | (6,335) | 41,335 | | Operating profit | 120,950 | 139,077 | | Finance income | 23,087 | 14,461 | | Finance costs | (18,979) | (18,655) | | Net finance income/(costs) | 4,108 | (4,194) | | Profit before tax | 125,058 | 134,883 | | Income tax expense | (17,172) | (15,317) | | Profit for the period | 107,886 | 119,566 | | Attributable to equity holders of the Company | 107,726 | 119,447 | | Attributable to non-controlling interests | 160 | 119 | | Basic earnings per share (RMB cents) | 12.13 | 13.36 | | Diluted earnings per share (RMB cents) | 12.13 | 13.36 | [Other Comprehensive Income](index=3&type=section&id=Other%20Comprehensive%20Income) Total comprehensive income for H1 2023 decreased to RMB 109,135 thousand, primarily due to lower profit for the period Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--------------------------------- | :------------------ | :------------------ | | Profit for the period | 107,886 | 119,566 | | Exchange differences on translation of financial statements of overseas operations | 1,249 | 2,170 | | Total comprehensive income for the period | 109,135 | 121,736 | | Attributable to equity holders of the Company | 108,975 | 121,617 | | Attributable to non-controlling interests | 160 | 119 | | Total comprehensive income for the period | 109,135 | 121,736 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, total assets increased by 9.5% to RMB 4,608,128 thousand, with net current assets at RMB 859,400 thousand Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | **Non-current assets** | | | | Property, plant and equipment | 981,608 | 922,420 | | Right-of-use assets | 64,895 | 67,007 | | Deposits for purchase of property, plant and equipment | 61,432 | 24,900 | | Deferred tax assets | 20,015 | 23,859 | | Other non-current assets | 7,490 | 7,490 | | **Total non-current assets** | **1,135,440** | **1,045,676** | | **Current assets** | | | | Inventories | 1,257,705 | 1,229,301 | | Trade and other receivables | 581,158 | 546,898 | | Derivative financial instruments | 2,946 | 935 | | Restricted bank deposits | 967,957 | 720,133 | | Bank deposits with original maturity over three months | 178,309 | 311,683 | | Cash and cash equivalents | 484,613 | 316,859 | | **Total current assets** | **3,472,688** | **3,125,809** | | **Current liabilities** | | | | Trade and other payables | 1,386,757 | 1,456,706 | | Interest-bearing borrowings | 1,195,588 | 745,050 | | Derivative financial instruments | 4,517 | 10,599 | | Lease liabilities | 1,200 | 1,999 | | Income tax payable | 25,226 | 8,079 | | **Total current liabilities** | **2,613,288** | **2,222,433** | | **Net current assets** | **859,400** | **903,376** | | **Total assets less current liabilities** | **1,994,840** | **1,949,052** | | **Non-current liabilities** | | | | Interest-bearing borrowings | 73,301 | 117,739 | | Lease liabilities | 615 | 995 | | Deferred income | 31,405 | 38,788 | | Deferred tax liabilities | 6,000 | 6,000 | | **Total non-current liabilities** | **111,321** | **163,522** | | **Net assets** | **1,883,519** | **1,785,530** | | **Capital and reserves** | | | | Share capital | 80,774 | 80,774 | | Reserves | 1,799,840 | 1,702,011 | | Total equity attributable to equity holders of the Company | 1,880,614 | 1,782,785 | | Non-controlling interests | 2,905 | 2,745 | | **Total equity** | **1,883,519** | **1,785,530** | [Notes to the Unaudited Interim Financial Results](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Results) This section provides detailed notes and disclosures supporting the unaudited interim financial results [Reporting Entity and Background Information](index=6&type=section&id=Reporting%20Entity%20and%20Background%20Information) Xingye Alloy Materials Group Limited, incorporated in the Cayman Islands and listed in Hong Kong, primarily manufactures copper strips, trades raw materials, provides processing services, and operates online gaming - The Group's principal activities include manufacturing and selling high-precision copper strips, trading raw materials, providing processing services, and developing, publishing, and operating online games[14](index=14&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared under IAS 34, applying the same accounting policies as the 2022 annual financial statements - Interim financial information is prepared in accordance with IAS 34 'Interim Financial Reporting' and follows the same accounting policies as the 2022 annual financial statements[15](index=15&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) Amendments to IFRS, including IFRS 17 and IAS 1, 8, 12, effective this period, had no material impact on the Group's results or financial position - Amendments to IFRS effective for the first time this accounting period had no material impact on the Group's results or financial position for the current or prior periods[17](index=17&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from copper product-related businesses, with online gaming contributing a smaller portion, operating as a single integrated segment - The Group's principal activities are manufacturing and selling high-precision copper strips, trading raw materials, providing processing services, and developing, publishing, and operating online games[19](index=19&type=chunk) - The Group has only one operating segment, which is the integrated operation of copper products and online gaming businesses[27](index=27&type=chunk) [Disaggregation of Revenue](index=7&type=section&id=Disaggregation%20of%20Revenue) For H1 2023, copper product-related revenue was RMB 2,801,682 thousand, and online gaming revenue was RMB 7,613 thousand, with Mainland China as the primary geographical source Revenue from Contracts with Customers by Major Product or Service Line (For the six months ended June 30) | Product or service line | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--------------- | :------------------ | :------------------ | | Sales of high-precision copper strips | 2,670,276 | 3,037,965 | | Processing service fees | 109,177 | 132,818 | | Trading of raw materials | 22,229 | 47,242 | | **Total copper product-related** | **2,801,682** | **3,218,025** | | Publishing and operating online games | 2,480 | 4,146 | | Others (online games) | 5,133 | 160 | | **Total online gaming-related** | **7,613** | **4,306** | | **Total revenue** | **2,809,295** | **3,222,331** | Revenue by Geographical Location of Customers (For the six months ended June 30) | Geographical location | 2023 (RMB thousand) | 2022 (RMB thousand) | | :------- | :------------------ | :------------------ | | Mainland China | 2,516,118 | 2,746,352 | | Hong Kong, China | 46,428 | 50,565 | | Bangladesh | 32,821 | 48,115 | | South Korea | 32,582 | 62,958 | | Taiwan, China | 27,344 | 64,656 | | India | 17,634 | 33,470 | | Thailand | 15,808 | 24,073 | | Vietnam | 15,702 | 20,219 | | United States | 9,905 | 16,177 | | Other regions | 94,953 | 155,746 | | **Total revenue** | **2,809,295** | **3,222,331** | - The Group has a diversified customer base, with no single customer contributing over 10% of total revenue[26](index=26&type=chunk) [Other Gains and Losses, Net](index=9&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) For H1 2023, the Group recorded other net losses of RMB 6,335 thousand, compared to net gains of RMB 41,335 thousand in the prior period, mainly due to metal futures contracts shifting from gains to losses Other Gains and Losses, Net (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--------------------------------- | :------------------ | :------------------ | | (Credit loss allowance)/reversal of credit loss allowance for trade and other receivables | (1,482) | 1,419 | | Loss on disposal of property, plant and equipment | (1,247) | (17) | | Net (loss)/gain on metal futures contracts | (3,071) | 40,029 | | Others | (535) | (96) | | **Total** | **(6,335)** | **41,335** | [Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) For H1 2023, profit before tax was RMB 125,058 thousand, a decrease from RMB 134,883 thousand in the prior period, with net finance income shifting from a cost to income Items Included in/(Deducted from) Profit Before Tax (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :------------------- | :------------------ | :------------------ | | Interest income from bank deposits | 18,042 | 12,854 | | Net foreign exchange gains | 5,045 | 1,607 | | **Finance income** | **23,087** | **14,461** | | Interest expense on interest-bearing borrowings | (18,880) | (19,406) | | Interest on lease liabilities | (49) | (98) | | Less: Capitalized interest expense | 860 | 849 | | Net interest expense recognized in profit or loss | (18,069) | (18,655) | | Loss on forward foreign exchange contracts and option contracts | (910) | – | | **Finance costs** | **(18,979)** | **(18,655)** | | **Net finance income/(costs)** | **4,108** | **(4,194)** | | Cost of inventories | 2,520,220 | 2,945,004 | | Research and development expenses | 84,870 | 105,836 | | Depreciation – property, plant and equipment | 49,878 | 50,907 | | Depreciation – right-of-use assets | 1,323 | 1,740 | | Government grants | 13,799 | 9,559 | - For the six months ended June 30, 2023, borrowing costs were capitalized at an annual rate of 3.2% to 4.3% (2022: 4.3%)[35](index=35&type=chunk) [Income Tax](index=11&type=section&id=Income%20Tax) For H1 2023, income tax expense was RMB 17,172 thousand, with a consolidated effective tax rate of 14%, up from 11% due to increased taxable profit from a Chinese subsidiary Income Tax Expense (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :------------------- | :------------------ | :------------------ | | Current tax | | | | Provision for the period | 17,651 | 39,556 | | Over-provision in prior years | (4,323) | (9,917) | | **Total current tax** | **13,328** | **29,639** | | Deferred tax | | | | Origination and reversal of temporary differences | 3,844 | (14,322) | | **Total income tax** | **17,172** | **15,317** | - The Group's consolidated effective tax rate for the six months ended June 30, 2023, was **14%** (2022: 11%), primarily due to increased taxable profit from a Chinese subsidiary[39](index=39&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) For H1 2023, basic earnings per share were RMB 12.13 cents, with diluted EPS being identical due to no dilutive potential shares Earnings Per Share Data (For the six months ended June 30) | Indicator | 2023 | 2022 | | :------------------- | :------------------ | :------------------ | | Profit attributable to ordinary equity holders of the Company (RMB thousand) | 107,726 | 119,447 | | Weighted average number of ordinary shares outstanding (shares) | 887,732,926 | 893,872,173 | | Basic earnings per share (RMB cents) | 12.13 | 13.36 | | Diluted earnings per share (RMB cents) | 12.13 | 13.36 | - As of June 30, 2023, diluted earnings per share were the same as basic earnings per share due to no dilutive potential shares during the period[42](index=42&type=chunk) [Inventories](index=12&type=section&id=Inventories) As of June 30, 2023, total inventories were RMB 1,257,705 thousand, an increase from 2022 year-end, with a RMB 7,536 thousand provision for inventories below net realizable value Inventories Composition (As at reporting date) | Inventory category | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------- | :------------------------- | :-------------------------- | | Raw materials | 211,294 | 143,959 | | Work in progress | 779,576 | 836,733 | | Finished goods | 266,611 | 248,387 | | Others | 224 | 222 | | **Total** | **1,257,705** | **1,229,301** | - As of June 30, 2023, a provision of **RMB 7,536 thousand** was made for inventories where net realizable value was below carrying amount (December 31, 2022: RMB 15,289 thousand)[43](index=43&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2023, total trade and other receivables increased to RMB 581,158 thousand, with the aging of trade receivables and bills receivable primarily within three months Trade and Other Receivables Composition (As at reporting date) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--------------------------------- | :------------------------- | :-------------------------- | | Trade receivables and bills receivable, net of credit loss allowance | 434,303 | 407,977 | | Deposits for metal futures contracts | 67,725 | 88,577 | | Receivables under metal futures contracts | 2,959 | – | | Other receivables, net of credit loss allowance | 1,957 | 649 | | Recoverable VAT | 34,674 | 25,042 | | Prepayments | 39,540 | 24,653 | | **Total** | **581,158** | **546,898** | Aging Analysis of Trade Receivables and Bills Receivable (As at reporting date) | Aging | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | Within 3 months | 406,244 | 396,685 | | Over 3 months but less than 6 months | 24,300 | 10,727 | | Over 6 months but less than 1 year | 3,299 | 110 | | Over 1 year | 460 | 455 | | **Total** | **434,303** | **407,977** | - The Group grants credit periods to customers ranging from **7 to 90 days**[49](index=49&type=chunk) [Trade and Other Payables](index=14&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2023, total trade and other payables decreased to RMB 1,386,757 thousand, with the aging of trade payables and bills payable primarily within three months Trade and Other Payables Composition (As at reporting date) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | Trade payables and bills payable | 1,234,833 | 1,279,053 | | Employee benefits payable | 53,812 | 73,961 | | Payables for purchase of property, plant and equipment | 34,155 | 39,036 | | Accrued expenses and others | 24,359 | 34,657 | | Contract liabilities | 39,598 | 29,999 | | **Total** | **1,386,757** | **1,456,706** | Aging Analysis of Trade Payables and Bills Payable (As at reporting date) | Aging | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | Within 3 months | 1,181,995 | 1,141,499 | | Over 3 months but less than 6 months | 41,371 | 15,235 | | Over 6 months but less than 1 year | 2,824 | 106,777 | | Over 1 year | 8,643 | 15,542 | | **Total** | **1,234,833** | **1,279,053** | [Interest-bearing Borrowings](index=15&type=section&id=Interest-bearing%20Borrowings) As of June 30, 2023, total interest-bearing borrowings were RMB 1,268,889 thousand, mostly short-term, with secured bank loans bearing interest at 0.30% to 5.79% and unsecured at 3.05% Repayment Schedule of Interest-bearing Borrowings (As at reporting date) | Category | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | **Current** | | | | Short-term secured bank loans | 239,968 | 227,200 | | Unsecured bank loans | 70,000 | 50,000 | | Bank advances under discounted bills | 831,570 | 467,850 | | Current portion of non-current secured bank loans | 54,051 | – | | **Total current** | **1,195,588** | **745,050** | | **Non-current** | | | | Secured bank loans | 73,301 | 117,739 | | **Total** | **1,268,889** | **862,789** | Repayment Term Analysis of Interest-bearing Borrowings (As at reporting date) | Term | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :------------------- | :------------------------- | :-------------------------- | | Within 1 year | 1,195,588 | 745,050 | | Over 1 year but less than 2 years | 27,526 | 80,500 | | Over 2 years but less than 5 years | 45,775 | 37,239 | | **Total** | **1,268,889** | **862,789** | - Secured bank loans bore interest at annual rates ranging from **0.30% to 5.79%** (December 31, 2022: 0.30% to 5.65%), while unsecured bank loans bore interest at **3.05%** per annum (December 31, 2022: 3.85%)[54](index=54&type=chunk) [Share Award Scheme](index=16&type=section&id=Share%20Award%20Scheme) The Company adopted a share award scheme in 2016 to reward employees, with the trustee having purchased 42,651,000 shares at a total cost of HKD 44,608,000 as of June 30, 2023 - The Company adopted a share award scheme on April 18, 2016, to recognize and reward eligible employees for their contributions to the Group's business growth and development[55](index=55&type=chunk) Share Award Scheme Held Shares Details | Item | June 30, 2023 | December 31, 2022 | | :------------------- | :------------ | :------------- | | Average purchase price (HKD) | 1.05 | 1.02 | | Number of shares held | 21,265,000 | 9,937,000 | | Value (RMB thousand) | 20,743 | 9,597 | - As of June 30, 2023, the trustee had purchased **42,651,000 Company shares** at a total cost of **HKD 44,608,000** (equivalent to RMB 38,684,000)[55](index=55&type=chunk) [Dividends](index=17&type=section&id=Dividends) For the six months ended June 30, 2023, the Company neither declared nor paid dividends, and the Board decided not to pay any interim dividend - For the six months ended June 30, 2023, no dividends were declared or paid, and the Board decided not to pay any dividend for the interim period[67](index=67&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's performance, market conditions, business developments, and financial position [Market and Industry Review](index=18&type=section&id=Market%20and%20Industry%20Review) In H1 2023, the global economy faced high inflation, geopolitical conflicts, and trade disputes, with major economies experiencing weak recovery, impacting the copper market and domestic copper strip industry - In H1 2023, the global economy encountered multiple challenges including high inflation, geopolitical conflicts, and trade disputes led by China and the US, with major Western economies still in a tightening cycle and economic recovery remaining weak[63](index=63&type=chunk) - The LME three-month copper average price in June 2023 was **USD 8,391/tonne**, a 7.1% decrease year-on-year but a 1.6% increase month-on-month; the H1 average was **USD 8,721/tonne**, down 10.5% year-on-year[71](index=71&type=chunk) - Domestic copper prices generally followed international trends but were stronger due to RMB depreciation, fluctuating between **RMB 62,680 and RMB 70,500/tonne** in H1[71](index=71&type=chunk) [Copper Processing Business Market Review](index=18&type=section&id=Copper%20Processing%20Business%20Market%20Review) In H1 2023, the copper market saw significant price volatility due to high interest rates and weak demand, with the domestic copper strip industry facing intense competition and low capacity utilization - High USD interest rates significantly increased the cost of capital for investors holding copper futures or inventory, also exerting considerable pressure on USD-denominated copper prices[63](index=63&type=chunk) - Copper prices showed volatile fluctuations in H1 2023, with the LME three-month copper average price at **USD 8,721/tonne**, a 10.5% decrease year-on-year[71](index=71&type=chunk) - Copper strip capacity utilization was the lowest among other copper sub-industries, highlighting intense industry competition[65](index=65&type=chunk) [Online Gaming Business Industry Review](index=21&type=section&id=Online%20Gaming%20Business%20Industry%20Review) In H1 2023, China's gaming market sales revenue decreased by 2.39% to RMB 144.3 billion, while the number of game users increased by 0.35% to 668 million China Gaming Industry Report (H1 2023) | Indicator | Data | Year-on-year change | | :--------------- | :----------- | :------- | | Market sales revenue | RMB 144.3 billion | -2.39% | | Number of game users | 668 million | +0.35% | [Business Review](index=19&type=section&id=Business%20Review) In H1 2023, the Group's copper strip business saw decreases in production, sales, and revenue, with net profit down 10.7%, while online gaming revenue grew 76.7% and net loss significantly narrowed - The Group's copper strip business achieved a total production volume of **62,879 tonnes** and total sales volume of **61,234 tonnes**, representing decreases of **9.7% and 8.4%** respectively compared to H1 2022[72](index=72&type=chunk) - Copper strip business sales revenue reached **RMB 2,801.7 million**, a **12.9% decrease** from H1 2022, with copper business net profit at **RMB 108.6 million**, down **10.7%** year-on-year[72](index=72&type=chunk) - Online gaming business achieved total revenue of **RMB 7.6 million**, a **76.7% increase** from RMB 4.3 million in H1 2022, with net loss significantly narrowing to **RMB 0.7 million** from RMB 2.0 million in H1 2022[79](index=79&type=chunk) [Copper Processing Business Review](index=19&type=section&id=Copper%20Processing%20Business%20Review) In H1 2023, the Group's copper strip business experienced declines in production, sales volume, and revenue, with net profit decreasing by 10.7% year-on-year, mainly due to lower sales volume and copper prices Copper Strip Business Production and Sales Volume (For the six months ended June 30) | Indicator | 2023 (tonnes) | 2022 (tonnes) | Year-on-year change | | :----- | :---------- | :---------- | :------- | | Total production | 62,879 | 69,658 | -9.7% | | Total sales | 61,234 | 66,828 | -8.4% | Copper Strip Business Sales Revenue (For the six months ended June 30) | Revenue category | 2023 (RMB million) | 2022 (RMB million) | Year-on-year change | | :----------- | :-------------------- | :-------------------- | :------- | | Copper product sales revenue | 2,670.3 | 3,038.0 | -12.1% | | Processing service income | 109.2 | 132.8 | -17.8% | | Copper trading income | 22.2 | 47.2 | -53.0% | | **Total** | **2,801.7** | **3,218.0** | **-12.9%** | - In H1 2023, the Group's copper business achieved a net profit of **RMB 108.6 million**, a **10.7% decrease** compared to RMB 121.6 million in H1 2022, primarily due to lower sales volume and copper prices[72](index=72&type=chunk) [Online Gaming Business Review](index=21&type=section&id=Online%20Gaming%20Business%20Review) In H1 2023, online gaming total revenue grew 76.7%, and net loss significantly narrowed, primarily due to revenue contributions from the new self-developed game 'Let's Cultivate Immortals' Online Gaming Business Financial Performance (For the six months ended June 30) | Indicator | 2023 (RMB million) | 2022 (RMB million) | Year-on-year change | | :------- | :-------------------- | :-------------------- | :------- | | Total revenue | 7.6 | 4.3 | +76.7% | | Net loss | (0.7) | (2.0) | Loss narrowed | - Revenue growth was primarily driven by the contribution from the new self-developed game project 'Let's Cultivate Immortals'[79](index=79&type=chunk) [Business Development](index=20&type=section&id=Business%20Development) During the period, the Group optimized its sales and marketing system, advanced production line upgrades, strengthened talent development, completed quality initiatives, and successfully developed 5 new products, with 1 customer-certified - The Group engaged a leading international consulting firm to systematically design and optimize its sales and marketing system, forming a new marketing structure integrating sales, development, service, technical support, market research, and key account management[74](index=74&type=chunk) - As of the reporting period, a total of **4 equipment units** have commenced trial operation, with remaining equipment in production or installation as planned[74](index=74&type=chunk) - The Group successfully developed **5 new products**, with **1 product** having passed customer certification and secured effective orders, and completed performance improvements or new specification trials for **7 products**[75](index=75&type=chunk) [Outlook](index=21&type=section&id=Outlook) Looking ahead to H2 2023, downstream industries related to copper strips are expected to rebound, and the Group's management is confident in seizing opportunities, while the online gaming business will focus on cost reduction and distinctive offerings amid market challenges - In H2 2023, downstream industries related to copper strips, such as consumer electronics, automotive, and home appliances, are expected to experience a sustained rebound[77](index=77&type=chunk) - The Group's management believes that despite intense industry competition, by leveraging continuous innovation and improved management capabilities, the Group is confident and capable of seizing this round of opportunities to achieve its operational targets[77](index=77&type=chunk) - The Group's gaming business will face severe challenges from a declining gaming market and intensified competition from large gaming companies, thus focusing on cost reduction and offering distinctive products and services[80](index=80&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) In H1 2023, total revenue decreased by 12.8%, copper business gross margin rose to 10.0%, other gains shifted to losses, expenses decreased, net finance income turned positive, and profit attributable to shareholders declined - During the reporting period, the Group recorded total sales revenue of **RMB 2,809.3 million**, a **12.8% decrease** compared to H1 2022[82](index=82&type=chunk) - The Group's overall gross margin for the copper business increased from **8.5%** in H1 2022 to **10.0%** in the reporting period, mainly due to lower average copper prices and reduced material input costs per tonne[83](index=83&type=chunk) - Profit attributable to company shareholders was **RMB 107.7 million**, a decrease of **RMB 11.7 million** from RMB 119.4 million in H1 2022[91](index=91&type=chunk) [Revenue and Gross Profit](index=22&type=section&id=Revenue%20and%20Gross%20Profit) Total revenue decreased by 12.8% to RMB 2,809.3 million, with copper business revenue down 12.9% but gross margin rising to 10.0% due to lower copper prices and material costs, while online gaming revenue grew to RMB 7.6 million - The Group recorded total sales revenue of **RMB 2,809.3 million**, a **12.8% decrease** compared to H1 2022[82](index=82&type=chunk) - Total revenue from the copper business was **RMB 2,801.7 million**, a **12.9% decrease** compared to H1 2022[82](index=82&type=chunk) - The overall gross margin for the copper business increased from **8.5%** in H1 2022 to **10.0%** in the reporting period, primarily due to lower average copper prices and reduced material input costs per tonne compared to H1 2022[83](index=83&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) Other income increased by RMB 2.8 million to RMB 14.0 million, primarily due to increased government grants - The Group's other income was **RMB 14.0 million**, an increase of **RMB 2.8 million** from RMB 11.2 million in H1 2022, mainly due to increased government grants[84](index=84&type=chunk) [Other Gains and Losses, Net (Financial Review)](index=23&type=section&id=Other%20Gains%20and%20Losses%2C%20Net%20%28Financial%20Review%29) The Group recorded other losses of RMB 6.3 million, compared to gains of RMB 41.3 million in H1 2022, primarily due to metal futures contracts shifting from gains to losses - The Group recorded other losses of **RMB 6.3 million**, compared to other gains of **RMB 41.3 million** in H1 2022, primarily due to net gains of RMB 40.0 million from metal futures contracts in 2022[86](index=86&type=chunk) [Distribution Expenses](index=23&type=section&id=Distribution%20Expenses) The ratio of distribution expenses to revenue decreased to 0.7%, mainly due to reduced service fees - The ratio of distribution expenses to revenue decreased to **0.7%** from 1.0% in H1 2022, primarily due to reduced service fees[87](index=87&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 4.7% to RMB 151.5 million, mainly due to reduced research and development expenses - The Group's administrative expenses decreased by **4.7%** to **RMB 151.5 million** from RMB 158.6 million in H1 2022, due to reduced research and development expenses[88](index=88&type=chunk) [Finance Income/Costs, Net](index=23&type=section&id=Finance%20Income%2FCosts%2C%20Net) The Group recorded net finance income of RMB 4.1 million, compared to net finance costs of RMB 4.2 million in H1 2022, primarily due to increased bank deposit interest income and net foreign exchange gains - The Group recorded net finance income of **RMB 4.1 million**, compared to net finance costs of **RMB 4.2 million** in H1 2022, primarily due to increased bank deposit interest income and net foreign exchange gains[89](index=89&type=chunk) [Income Tax (Financial Review)](index=23&type=section&id=Income%20Tax%20%28Financial%20Review%29) Income tax expense was RMB 17.2 million, with a consolidated effective tax rate of 14%, up from 11% due to increased taxable profit from a Chinese subsidiary - The Group's income tax expense was **RMB 17.2 million** (H1 2022: RMB 15.3 million), with a consolidated effective tax rate of **14%** (H1 2022: 11%), primarily due to increased taxable profit from a Chinese subsidiary[90](index=90&type=chunk) [Profit Attributable to Company Shareholders](index=23&type=section&id=Profit%20Attributable%20to%20Company%20Shareholders) Profit attributable to company shareholders was RMB 107.7 million, a decrease of RMB 11.7 million from RMB 119.4 million in H1 2022 - Profit attributable to company shareholders was **RMB 107.7 million**, a decrease of **RMB 11.7 million** from RMB 119.4 million in H1 2022[91](index=91&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=24&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2023, net current assets were RMB 859.4 million, with short-term interest-bearing borrowings accounting for 94.2% of the total, and a gearing ratio of 31.1%, indicating sufficient financial resources - As of June 30, 2023, the Group recorded net current assets of **RMB 859.4 million**, primarily due to increased restricted bank deposits and cash and cash equivalents compared to the prior period[93](index=93&type=chunk) - As of June 30, 2023, short-term interest-bearing borrowings accounted for **94.2%** of total interest-bearing borrowings[93](index=93&type=chunk) - As of June 30, 2023, the gearing ratio (calculated as net debt divided by total capital) was **31.1%** (December 31, 2022: 33.0%)[95](index=95&type=chunk) [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of June 30, 2023, the Group pledged assets with a total carrying amount of RMB 493.4 million as collateral for bank loans and credit, primarily including inventories, property, plant and equipment, and right-of-use assets - As of June 30, 2023, the Group pledged assets with a total carrying amount of **RMB 493.4 million** (December 31, 2022: RMB 503.1 million) as collateral for its bank loans and credit[96](index=96&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) For H1 2023, the Group invested approximately RMB 105.9 million in property, plant and equipment, primarily funded by internal resources and bank borrowings - For the six months ended June 30, 2023, the Group invested approximately **RMB 105.9 million** in property, plant and equipment, primarily funded by internal resources and bank borrowings[97](index=97&type=chunk) [Capital Commitments](index=25&type=section&id=Capital%20Commitments) As of June 30, 2023, the Group had contracted but unprovided future capital expenditure of RMB 466.2 million, primarily for plant construction and capacity expansion in its copper processing business - As of June 30, 2023, the Group had contracted but unprovided future capital expenditure of **RMB 466.2 million**, primarily for plant construction and capacity expansion in its copper processing business[99](index=99&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2023, the Group had no significant contingent liabilities - As of June 30, 2023, the Group had no significant contingent liabilities[100](index=100&type=chunk) [Market Risks](index=25&type=section&id=Market%20Risks) The Group faces price, interest rate, and foreign exchange risks, utilizing futures contracts for copper price hedging and forward foreign exchange contracts for currency risk, but not interest rate swaps - The Group is exposed to various market risks, including price risk, interest rate risk, and foreign exchange risk[101](index=101&type=chunk) [Price Risk](index=25&type=section&id=Price%20Risk) The Group faces raw material price fluctuation risk, hedging copper prices using SHFE and LME futures contracts, and recorded a net loss of RMB 3.1 million from metal futures contracts in H1 2023 - The Group is exposed to raw material price fluctuation risk, with cathode copper, alloy scrap, zinc, tin, nickel, and other metals being key raw materials for its products[102](index=102&type=chunk) - The Group uses copper futures contracts on SHFE and LME to hedge against copper price fluctuations[102](index=102&type=chunk) - For the six months ended June 30, 2023, the Group recorded a net loss of approximately **RMB 3.1 million** from metal futures contracts, compared to a net gain of approximately RMB 40.0 million in H1 2022[102](index=102&type=chunk) [Interest Rate Risk](index=25&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk primarily relates to fluctuations in bank borrowing rates, which lenders may adjust, and the Group has not entered into any interest rate swaps to hedge this risk - The Group's market risk from interest rate changes primarily relates to fluctuations in bank borrowing rates[103](index=103&type=chunk) - The Group has not entered into any interest rate swaps to hedge interest rate risk[103](index=103&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign currency-denominated export sales and raw material purchases create foreign exchange exposure, which is hedged using forward foreign exchange contracts and options, resulting in net foreign exchange gains but net losses from hedging contracts in the period - The Group's export sales and certain raw material purchases are denominated in foreign currencies (primarily USD), thus exposing the Group to foreign exchange risk[105](index=105&type=chunk) - The Group uses forward foreign exchange contracts and options to hedge its foreign exchange risk[105](index=105&type=chunk) - During the reporting period, the Group recorded net foreign exchange gains of **RMB 5.0 million**, compared to RMB 1.6 million in H1 2022, while also recording net losses of **RMB 0.9 million** from forward foreign exchange and option contracts in 2023[105](index=105&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section covers additional disclosures including employee information, corporate governance, and post-reporting period events [Employees and Incentive Schemes](index=26&type=section&id=Employees%20and%20Incentive%20Schemes) As of June 30, 2023, the Group employed 1,552 staff, offering competitive compensation and incentives through training and share schemes, with no share options granted or exercised under the 2016 scheme during the period - As of June 30, 2023, the Group employed a total of **1,552 employees** (December 31, 2022: 1,457 employees)[114](index=114&type=chunk) - Employee benefits include salaries, pensions, medical insurance plans, and other applicable social insurance, with promotions and salary increases based on employee performance evaluations[114](index=114&type=chunk) - During the reporting period, no share options under the 2016 share option scheme were granted, exercised, lapsed, cancelled, or outstanding[115](index=115&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Company's Board Audit Committee reviewed the Group's accounting policies and practices with management, discussing financial reporting matters, including the interim results and report for the review period - The Company's Board Audit Committee reviewed the Group's accounting policies and practices with management and discussed financial reporting matters, including the interim results and interim report prepared in accordance with relevant accounting standards for the review period[111](index=111&type=chunk) [Compliance with Corporate Governance Code](index=27&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) During the reporting period, the Company consistently complied with the code provisions set out in Part 2 of Appendix 14 to the Listing Rules of The Stock Exchange of Hong Kong Limited - During the reporting period, the Company consistently complied with the code provisions set out in Part 2 of Appendix 14 to the Listing Rules of The Stock Exchange of Hong Kong Limited[112](index=112&type=chunk) [Compliance with Model Code for Securities Transactions](index=27&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) Following specific inquiries, all Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2023 - Following specific inquiries to all Directors, they confirmed compliance with the standard requirements set out in the Model Code for the six months ended June 30, 2023[117](index=117&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For H1 2023, the share award scheme trustee purchased 11,328,000 Company shares for HKD 12,547,000; otherwise, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities - For the six months ended June 30, 2023, the trustee of the share award scheme purchased a total of **11,328,000 Company shares** on the Stock Exchange for a total consideration of **HKD 12,547,000** (equivalent to RMB 11,146,000)[118](index=118&type=chunk) - Other than the aforementioned purchases under the share award scheme, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[118](index=118&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Company's Board of Directors did not declare an interim dividend for the six months ended June 30, 2023 - The Company's Board of Directors did not declare an interim dividend for the six months ended June 30, 2023 (H1 2022: nil)[119](index=119&type=chunk) [Events After Reporting Period](index=27&type=section&id=Events%20After%20Reporting%20Period) There were no significant events after the reporting period up to the date of this announcement - There were no significant events after the reporting period up to the date of this announcement[120](index=120&type=chunk) [Publication of 2023 Interim Results Announcement and Interim Report](index=28&type=section&id=Publication%20of%202023%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement is available on the Company's website and HKEXnews website, and the 2023 interim report will be published and dispatched to shareholders in due course - This results announcement is available on the Company's website (www.xingyealloy.com) and the HKEXnews website (www.hkexnews.hk)[122](index=122&type=chunk) - The Company's 2023 interim report will be published on the Company's website and the HKEXnews website, and will be dispatched to the Company's shareholders in due course[122](index=122&type=chunk)
兴业合金(00505) - 2022 - 年度财报
2023-04-27 08:34
Audit Committee and External Auditor - The audit committee held 2 meetings in the fiscal year ending December 31, 2022, with all members attending both meetings[1][7] - The company paid approximately RMB 2.46 million for audit services and RMB 33,000 for non-audit services to KPMG in 2022[24] - The audit committee is responsible for reviewing the scope, results, and cost-effectiveness of audits, as well as the independence and objectivity of the external auditor[2][12] - The audit committee is authorized to have full access to management and receive reasonable resources to perform its duties effectively[13] - The company has appointed KPMG as its external auditor for the fiscal year ending December 31, 2022, until the conclusion of the next annual general meeting[36] Board Governance and Diversity - The company has established a formal, transparent process for appointing new directors, with the nomination committee responsible for identifying and recommending suitable candidates[6][17] - The company has implemented a board diversity policy since August 28, 2013, and achieved gender diversity at the board level since May 2016[18][22] - The company has a diversified board policy, considering factors such as gender, age, cultural and educational background, professional experience, and skills for board appointments[40] - The board of directors includes three independent non-executive directors, ensuring balanced power and authority within the group[125] - The nomination committee, consisting of three independent non-executive directors, held at least one formal meeting during the fiscal year ended December 31, 2022[126] Risk Management and Internal Controls - The risk management and internal control system is designed to provide reasonable but not absolute assurance against material misstatement or loss[24] - The audit committee oversees the design, implementation, and monitoring of the risk management and internal control systems[24] - The company has established a department responsible for risk monitoring and internal audit, with quarterly reviews of risk management and internal control systems[43] - The Board of Directors has reviewed the effectiveness of the risk management and internal control systems and deemed them effective and comprehensive[44] - The company has implemented strict procedures and internal controls for handling and disseminating inside information, adhering to the guidelines issued by the Securities and Futures Commission[91] Financial Performance and Position - The company's financial statements for 2022 were prepared on a going concern basis, with appropriate and consistent accounting policies adopted[19] - Net current assets increased to RMB 903.4 million as of December 31, 2022, compared to RMB 686.4 million as of December 31, 2021[101] - Capital gearing ratio decreased to 33.0% as of December 31, 2022, from 33.9% as of December 31, 2021[102] - Total assets pledged for bank credit amounted to RMB 503.1 million as of December 31, 2022, down from RMB 617.1 million as of December 31, 2021[103] - The company did not conduct any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year ended December 31, 2022[97] - The company's profit attributable to shareholders decreased by RMB 60.4 million to RMB 216.6 million in 2022[134] - As of December 31, 2022, the company had short-term bank loans and other borrowings of RMB 745.1 million, with 40.0% of the debt being secured[135] - The company invested RMB 134.1 million in property, plant, and equipment in 2022, funded through internal resources and bank loans[136] - The company's income tax expense decreased by RMB 43.9 million from RMB 76.5 million in 2021 to RMB 32.6 million in 2022, with the effective tax rate dropping to 13.1% from 21.6% due to 100% additional deduction for qualified R&D expenses[188] ESG and Sustainability - The company's ESG report excludes the gaming business segment, which accounted for 0.22% of revenue in 2022[60] - The company has established a top-down ESG governance framework, with the Board of Directors taking overall responsibility for ESG matters[65] - The company's ESG report is prepared in accordance with the Hong Kong Stock Exchange's ESG Reporting Guide and the GRI Standards[62] - The company has a whistleblowing and anti-corruption policy, with further disclosures available in the ESG section of the annual report[77] - The company's ESG report covers the period from January 1, 2022, to December 31, 2022, with some information appropriately traced back to previous years for clarity and comparability[80] - The company has a strong focus on environmental sustainability, with dedicated recycling facilities to reuse metals and other resources in production[104] - The company increased its recycled copper imports by 50.4% in 2022 compared to 2021, effectively addressing raw material supply difficulties caused by domestic pandemic conditions and reducing the proportion of new material usage to lower production costs[193] - The company shifted its raw material procurement supply chain center from Shanghai to Ningbo and Jiangxi near Zhejiang regions, with Shanghai taking a secondary position, to reduce logistics costs and ensure supply timeliness during the Shanghai pandemic outbreak[193] Corporate Governance and Compliance - The company has adopted an anti-corruption policy effective from July 5, 2022, emphasizing zero tolerance for corrupt practices[31] - The company has a whistleblowing policy in place since March 29, 2012, to address concerns related to financial reporting, internal controls, or other corporate misconduct[51] - The company has a procedure for shareholders to nominate candidates for directorship, with details available on the company's website[48] - The company has a clear process for shareholders to request an extraordinary general meeting, with provisions for reimbursement of reasonable expenses if the Board fails to convene the meeting[55] - The company has maintained compliance with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Hong Kong Stock Exchange[108] - The company's charter documents, including the Memorandum and Articles of Association, are available on its website and the Stock Exchange's website, with no changes in 2022[58] - The company's Board of Directors guarantees the accuracy of the report's content, with no false statements, misleading information, or significant omissions[89] - The company updated its "Core Shareholder Protection Standards" to ensure fair and transparent related-party transactions[152] Remuneration and Compensation - The remuneration committee aims to hold at least 2 meetings annually to review and recommend compensation policies for directors and senior management[14] - The company has established a formal and transparent policy for director remuneration, with salary ranges between RMB 1,000,001 to RMB 3,000,000[128] - The company's executive directors' compensation includes fixed and variable elements, with the variable portion based on performance and approved by the board[143] Investor Relations and Communication - The Board of Directors maintains regular communication with institutional investors and analysts to keep them informed about the company's strategies, operations, management, and plans[54] - The company has implemented a disclosure policy to ensure timely, accurate, and detailed disclosure of significant information, with management controls to identify and assess potential insider information[45] - The company uses its website to communicate important information to shareholders, including announcements, circulars, annual reports, and interim reports[69] - The company adheres to strict information disclosure and investor relationship management practices, ensuring shareholders' rights to information and participation[147] Operational and Financial Highlights - Funnytime achieved revenue of RMB 13.6 million in 2022, a 30.8% increase from 2021, with a net loss of RMB 0.2 million, a 92.9% reduction from the previous year, driven by the launch of two new games[129] - The company's other expenses decreased by RMB 60.7 million to RMB 1.3 million in 2022, primarily due to a RMB 59.7 million net loss on derivative financial instruments in 2021[131] - Administrative expenses increased by RMB 20.1 million to RMB 334.1 million in 2022, mainly due to higher R&D costs[133] - The company has foreign exchange risk exposure due to exports and imports denominated in foreign currencies, and uses forward foreign exchange contracts and options to hedge this risk[139] - The company's chairman and CEO roles are separated, with Mr. Hu Changyuan serving as chairman and Mr. Hu Minglie as CEO[141] Employee Training and Development - The company organized a total of 19,505 training sessions, covering 103,354.5 class hours in 2022, focusing on safety, quality, and operational skills[162] - The employee turnover rate for probationary employees decreased by 2% year-on-year in 2022, marking a continuous decline for three years[162] - The company implemented a "mentorship system" for production staff, enhancing skill levels and reducing turnover[162] - The company established the "Xingye Craftsman" award, recognizing 10 employees with the title in January 2022[170] Safety and Environmental Compliance - The company conducted 9 safety and environmental inspections in 2022, including checks on hazardous chemicals and electrical safety[168] - No work-related deaths, fires, explosions, or chemical poisoning incidents occurred during the reporting period[169] - The company conducted monthly inspections on hazardous chemical storage to ensure compliance with government regulations[168] Community Engagement and Social Responsibility - The company donated 15 sets of school uniforms and over 30,000 RMB worth of supplies to underprivileged students in 2022[171] - Employees accumulated over 1,700 volunteer hours participating in community service activities, including pandemic relief efforts[171]
兴业合金(00505) - 2022 - 年度业绩
2023-03-31 09:25
[Financial Statements](index=1&type=section&id=Financial%20Statements) [Consolidated Income Statement](index=1&type=section&id=Consolidated%20Income%20Statement) The Group's total revenue for 2022 was RMB 6.239 billion, a 10.2% decrease from RMB 6.950 billion in 2021, with profit for the year at RMB 217 million, down 21.8% year-on-year, and basic earnings per share decreasing from RMB 0.32 to RMB 0.24 | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 6,238,504 | 6,949,881 | -10.2% | | Gross Profit | 587,947 | 790,468 | -25.6% | | Operating Profit | 232,302 | 368,410 | -36.9% | | Profit Before Tax | 249,417 | 353,862 | -29.5% | | Profit for the Year | 216,826 | 277,343 | -21.8% | | Profit Attributable to Equity Holders of the Company | 216,607 | 276,977 | -21.8% | | Basic Earnings Per Share (RMB) | 0.24 | 0.32 | -25.0% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for 2022 was RMB 222 million, a decrease from RMB 276 million in 2021, primarily due to lower profit for the year, partially offset by positive exchange differences | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Year | 216,826 | 277,343 | | Exchange differences on translation of financial statements of overseas operations | 4,845 | (881) | | **Total Comprehensive Income for the Year** | **221,671** | **276,462** | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) At the end of 2022, the Group's total assets increased to RMB 4.171 billion, and net assets increased to RMB 1.786 billion, indicating a solid financial position, with net current assets significantly rising from RMB 686 million to RMB 903 million | Indicator | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,045,676 | 967,917 | | Current Assets | 3,125,809 | 2,605,024 | | **Total Assets** | **4,171,485** | **3,572,941** | | Current Liabilities | 2,222,433 | 1,918,608 | | Non-current Liabilities | 163,522 | 85,462 | | **Total Liabilities** | **2,385,955** | **2,004,070** | | **Net Assets** | **1,785,530** | **1,568,871** | | Net Current Assets | 903,376 | 686,416 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Financial statements are prepared in accordance with all applicable IFRS and Hong Kong Companies Ordinance requirements, with new and revised IFRS effective during the year having no significant impact on the Group's results or financial position - Financial statements strictly comply with International Financial Reporting Standards and Hong Kong Companies Ordinance disclosure requirements[35](index=35&type=chunk) - New and revised IFRS first applied this year had no significant impact on the Group's financial position[37](index=37&type=chunk)[47](index=47&type=chunk) [Revenue and Segment Reporting](index=6&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's total revenue primarily derived from copper products business, reaching RMB 6.225 billion, with network gaming contributing RMB 13.6 million, and Mainland China being the main revenue source, accounting for 85.8% of total revenue, with the Group determining it has only one operating segment based on internal financial reporting Revenue by Business Segment | Business Segment | 2022 Revenue (RMB thousands) | 2021 Revenue (RMB thousands) | | :--- | :--- | :--- | | Copper Product Related | 6,224,911 | 6,939,542 | | Network Gaming Related | 13,593 | 10,339 | | **Total** | **6,238,504** | **6,949,881** | Revenue by Geographical Region | Region | 2022 Revenue (RMB thousands) | 2021 Revenue (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 5,350,135 | 6,195,644 | | Other Countries and Regions | 888,369 | 754,237 | - According to IFRS 8, the Group has determined it has only one operating segment, thus segment assets and liabilities are not presented[54](index=54&type=chunk)[68](index=68&type=chunk) [Key Income Statement Items](index=8&type=section&id=Key%20Income%20Statement%20Items) In 2022, other income increased to RMB 40.85 million, mainly due to higher government grants and derivative financial instrument gains, while other expenses significantly decreased to RMB 1.34 million due to large derivative financial instrument losses in 2021, and net finance income shifted from a net cost of RMB 14.55 million in 2021 to a net income of RMB 17.12 million, primarily benefiting from increased interest income and foreign exchange gains - Other income increased from **RMB 15.41 million** to **RMB 40.85 million**, primarily due to increased government grants and a net gain of **RMB 12.74 million** from derivative financial instruments[56](index=56&type=chunk) - Other expenses significantly decreased from **RMB 62.03 million** to **RMB 1.34 million**, mainly due to a net loss of **RMB 59.71 million** from derivative financial instruments recorded in 2021[73](index=73&type=chunk) - Financial position shifted from net cost to net income, primarily due to increased bank deposit interest income and net foreign exchange gains[59](index=59&type=chunk) - Research and development expenses for the year were **RMB 199.9 million**, an increase from **RMB 189.8 million** in the prior year, included in administrative expenses[77](index=77&type=chunk) [Income Tax](index=11&type=section&id=Income%20Tax) The Group's income tax expense for 2022 was RMB 32.59 million, a significant decrease from RMB 76.52 million in 2021, with the effective tax rate falling from 21.6% to 13.1%, primarily because two major subsidiaries enjoyed a 100% super deduction tax incentive for eligible R&D expenses Income Tax Expense | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Current Tax | 37,786 | 64,393 | | Deferred Tax | (5,195) | 12,126 | | **Total Income Tax** | **32,591** | **76,519** | - The decrease in effective tax rate was primarily due to tax incentives for R&D expense super deduction enjoyed by major subsidiaries[172](index=172&type=chunk) [Earnings Per Share (EPS)](index=12&type=section&id=Earnings%20Per%20Share%20(EPS)) Basic and diluted earnings per share for 2022 were both RMB 0.24, lower than RMB 0.32 in 2021, primarily reflecting the decrease in profit attributable to ordinary equity holders of the Company Earnings Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (RMB thousands) | 216,607 | 276,977 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 891,143,672 | 852,683,874 | | **Basic Earnings Per Share (RMB)** | **0.24** | **0.32** | [Key Balance Sheet Items](index=13&type=section&id=Key%20Balance%20Sheet%20Items) At the end of 2022, the Group's inventory book value was RMB 1.229 billion, trade and other receivables increased to RMB 547 million, total interest-bearing borrowings were RMB 863 million, of which RMB 745 million were repayable within one year, and trade and other payables significantly increased to RMB 1.457 billion Key Balance Sheet Figures | Item | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | | :--- | :--- | :--- | | Inventories | 1,229,301 | 1,217,711 | | Trade and Other Receivables | 546,898 | 461,169 | | Interest-bearing Borrowings | 862,789 | 862,787 | | Trade and Other Payables | 1,456,706 | 1,062,213 | - At the end of 2022, inventories with a book value totaling **RMB 330 million** and bills receivable of **RMB 2.5 million** were pledged as collateral for bank loans[98](index=98&type=chunk)[100](index=100&type=chunk) [Equity-settled Share-based Transactions](index=19&type=section&id=Equity-settled%20Share-based%20Transactions) The Group incentivizes employees through a share award scheme, with the trustee purchasing 9.701 million company shares and transferring 5.45 million vested shares to directors and employees in 2022, and the Group recognized RMB 4.916 million in employee service costs for the year Share Award Scheme Share Movement | Share Award Scheme Held Shares Movement | Number of Shares | | :--- | :--- | | As at December 31, 2021 | 5,450,000 | | Vested and transferred during the year | (5,450,000) | | **As at December 31, 2022** | **–** | - In 2022, the trustee purchased a total of **9,701,000** shares of the Company on the Stock Exchange under the share award scheme for a total consideration of **HKD 11,174,000**[17](index=17&type=chunk) - Employee service costs of **RMB 4,916,000** were recognized in the consolidated income statement for the year 2022[128](index=128&type=chunk) [Management Discussion & Analysis](index=22&type=section&id=Management%20Discussion%20%26%20Analysis) [Overall Business Review](index=22&type=section&id=Overall%20Business%20Review) In 2022, facing slowing global economic demand and copper price volatility, the Group's total revenue decreased by 10.2% year-on-year to RMB 6.239 billion, and profit attributable to shareholders decreased by 21.8% to RMB 217 million Key Financial Indicators | Financial Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenue (RMB millions) | 6,238.5 | 6,949.9 | -10.2% | | Profit Attributable to Shareholders (RMB millions) | 216.6 | 277.0 | -21.8% | [Copper Processing Business](index=22&type=section&id=Copper%20Processing%20Business) As a core business, copper processing faced market downturn pressure in 2022, with revenue decreasing by 10.3% year-on-year to RMB 6.225 billion and sales volume declining by 14.1%, leading the Group to optimize supply chains, enhance production efficiency, and explore new product application areas like new energy vehicles to address challenges Copper Processing Business Indicators | Copper Processing Business Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (RMB millions) | 6,224.9 | 6,939.5 | -10.3% | | Sales Volume (tons) | 139,307 | 162,158 | -14.1% | - The Group actively responded to market challenges by implementing multiple measures, including: - Optimizing procurement supply chain, increasing recycled copper imports to reduce costs[134](index=134&type=chunk) - Enhancing on-site production management, implementing a self-management production system[135](index=135&type=chunk) - Intensifying customer visits, exploring new clients[136](index=136&type=chunk) - Successfully entering the new energy vehicle material application field, achieving significant order growth[136](index=136&type=chunk) [Gaming Business](index=25&type=section&id=Gaming%20Business) The Group's network gaming business performed well in 2022, with revenue increasing by 30.8% year-on-year to RMB 13.6 million and net loss significantly narrowing by 92.9% to RMB 0.2 million, primarily due to the launch of two new game products during the year Gaming Business Indicators | Gaming Business Indicator | 2022 (RMB millions) | 2021 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 13.6 | 10.4 | +30.8% | | Net Loss | (0.2) | (2.8) | -92.9% | [Financial Review](index=26&type=section&id=Financial%20Review) This section details financial performance, with revenue and gross profit decline primarily due to reduced copper product sales, administrative expenses rising due to increased R&D investment, other income increasing and other expenses significantly decreasing mainly related to derivative financial instruments, and improved net finance income and lower effective tax rate being positive aspects of the annual financials - Gross profit decreased by **25.6%**, mainly due to reduced sales volume of copper products[168](index=168&type=chunk) - Administrative expenses increased by **RMB 20.1 million**, primarily due to increased R&D expenses[153](index=153&type=chunk) - Other expenses decreased by **RMB 60.7 million**, mainly because a net loss of **RMB 59.7 million** from derivative financial instruments was recorded in 2021[151](index=151&type=chunk) - Financial position shifted from net cost to net income, primarily due to increased bank deposit interest income and net foreign exchange gains[178](index=178&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained strong liquidity, recording net current assets of RMB 903 million at the end of 2022, possessing sufficient bank credit facilities and cash reserves, with a gearing ratio of 33.0%, consistent with the prior year, indicating a stable financial structure - At the end of 2022, the Group had available but undrawn bank credit facilities of **RMB 1.3997 billion** and bank balances and cash totaling **RMB 1.3487 billion**[157](index=157&type=chunk) - Gearing ratio (calculated as net debt divided by total capital) was **33.0%**, largely consistent with **33.9%** in 2021[175](index=175&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Capital Commitments and Expenditures](index=28&type=section&id=Capital%20Commitments%20and%20Expenditures) At the end of 2022, the Group's contracted but unprovided capital expenditures were approximately RMB 451 million, primarily for plant construction and capacity expansion in the copper processing business, and during the year, the Group invested RMB 134 million in purchasing property, plant, and equipment - As of December 31, 2022, the Group's future capital expenditure commitments were approximately **RMB 450.5 million**[1](index=1&type=chunk) - For the year ended December 31, 2022, the Group invested **RMB 134.1 million** in purchasing property, plant and equipment[21](index=21&type=chunk) [Employee and Environmental Policies](index=29&type=section&id=Employee%20and%20Environmental%20Policies) As of the end of 2022, the Group had 1,457 employees, regularly reviews remuneration policies, provides competitive benefits, and offers annual training programs, while in environmental aspects, the Group promotes resource recycling and strictly requires suppliers to comply with environmental regulations - As of December 31, 2022, the Group had **1,457** employees, with **1,405** in copper business and **52** in network gaming business[15](index=15&type=chunk) - The Group emphasizes environmental protection and energy conservation, establishing recycling workshops for resource recovery and strictly complying with relevant laws and regulations in China, Cayman Islands, and Hong Kong[16](index=16&type=chunk) [Corporate Governance and Compliance](index=30&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the company consistently complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers, with the audit committee reviewing the annual financial statements, and the company also maintained sufficient public float - All directors confirmed compliance with the Model Code for Securities Transactions by Directors during the year[5](index=5&type=chunk) - The Company has complied with the code provisions in the Corporate Governance Code throughout the year[6](index=6&type=chunk) - The audit committee, comprising three independent non-executive directors, has reviewed the annual audited financial statements[8](index=8&type=chunk) [Dividends and Shareholder Information](index=31&type=section&id=Dividends%20and%20Shareholder%20Information) The Board does not recommend a final dividend for the year ended December 31, 2022, and to determine eligibility for attending the Annual General Meeting, share transfer registration will be suspended from June 13 to 16, 2023 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2022[11](index=11&type=chunk) - To determine eligibility for attending the Annual General Meeting, the Company will suspend share transfer registration from June 13 to 16, 2023[18](index=18&type=chunk)