Financial Performance - Revenue decreased from RMB 48,620 million in 2022 to RMB 46,260 million in 2023, and is projected to decline further to RMB 42,957 million in 2024, representing a year-over-year decrease of 4.7% in 2023 and 2.8% in 2024[6]. - Profit attributable to owners of the Company fell from RMB 808 million in 2022 to a loss of RMB 160 million in 2023, with a projected recovery to RMB 149 million in 2024[6]. - EBITDA decreased from RMB 2,357 million in 2022 to RMB 1,279 million in 2023, with an expected increase to RMB 1,500 million in 2024[6]. - The adjusted profit for the year (a non-HKFRS measure) dropped from RMB 513 million in 2022 to RMB 4 million in 2023, with an expected recovery to RMB 266 million in 2024[6]. - The Company reported a loss before income tax of RMB 315 million in 2023, compared to a profit of RMB 756 million in 2022, with a projected profit of RMB 228 million in 2024[6]. - The overall gross profit increased by approximately 147.1% to approximately RMB 1.77 billion, marking a significant turnaround from a net loss to a net profit[48]. - The net profit for 2024 was approximately RMB 225 million, an increase of approximately 214.5% compared to the net loss of approximately RMB 196 million in 2023[48]. - The consolidated gross profit for 2024 was RMB 1,027 million, an increase of approximately 165.4% compared to RMB 387 million in 2023[117]. - The gross profit per tonne of steel products increased from RMB 50 in 2023 to RMB 143 in 2024, reflecting an increase of 186.0%[120]. Sales and Production - The average selling price per tonne of self-manufactured steel products decreased from RMB 3,974 in 2022 to RMB 3,557 in 2023, and is projected to decline further to RMB 3,432 in 2024[18]. - Total sales volume of self-manufactured steel products increased from 7,102,000 tonnes in 2022 to 7,733,000 tonnes in 2023, but is expected to decrease to 7,169,000 tonnes in 2024[13]. - H-section steel products accounted for 46.1% of total sales volume in 2024, with a sales volume of 3,302,000 tonnes, down 8.3% from 3,600,000 tonnes in 2023[109]. - Strips and strip products represented 40.5% of total sales volume in 2024, with a sales volume of 2,900,000 tonnes, down 3.8% from 3,014,000 tonnes in 2023[109]. - The total sales volume for 2024 was 7,169,000 tonnes, a decrease of approximately 7.3% from 2023's 7,733,000 tonnes[107]. - The Group's annual production output capability of steel products was more than 10 million tonnes in 2024[110]. Market and Industry Trends - In 2024, the total profit of the iron and steel industry in China was approximately RMB 29.19 billion, representing a year-on-year decrease of approximately 54.6%[40]. - The national production volume of pig iron, crude steel, and steel products in 2024 was approximately 852 million tonnes, 1.005 billion tonnes, and 1.400 billion tonnes respectively, with decreases of approximately 2.3% and 1.7% for pig iron and crude steel, while steel products saw an increase of approximately 1.1% compared to 2023[40]. - The global economy is expected to continue a slow recovery in 2025, benefiting from declining inflation and easing monetary policies, but faces challenges such as trade protectionism and geopolitical tensions[79]. - The iron and steel industry anticipates improved downstream demand and rising product prices, with no significant decline in annual steel consumption expected in 2025[80]. Strategic Initiatives - The Company plans to focus on improving operational efficiency and exploring new market opportunities to enhance profitability in the upcoming years[6]. - The Group aims to enter the Fortune Global 500, focusing on specialization, industry chain extension, and high-tech development[33]. - The Group aims to enhance core competitiveness through digitalization, lean management, and the development of high-value-added products, with several green and low-carbon factory projects expected to launch in 2025[83]. - The Group plans to diversify its business by expanding into trading steel products, precast components, and recycling solid waste residues[88]. - The Group is committed to achieving carbon neutrality by 2050, investing in emission-reduction technologies and environmental protection projects[92]. Environmental and Sustainability Efforts - Jinxi Limited achieved an annual emission reduction of approximately 1.10 million tonnes of carbon dioxide, 53 tonnes of nitrogen oxide, and 26 tonnes of sulfur dioxide in 2024[45]. - The self-generated electricity rate for Jinxi Limited increased to approximately 52.4%, while externally purchased electricity was reduced by approximately 260 million kWh per year[45]. - Policies in the iron and steel industry are focusing on energy efficiency improvement, green and low-carbon transformation, and achieving carbon peak by 2027[43]. - Jinxi Limited was rated as a "Grade A in Environmental Protection Performance Rating" enterprise, being the second enterprise in Tangshan City to achieve this[60]. - The Group has implemented various green energy projects, resulting in a reduction of approximately 1.1 million tonnes of CO2 emissions annually[61]. Financial Position and Investments - As of December 31, 2024, the Group had unutilized banking facilities of approximately RMB 14.5 billion, an increase from RMB 13.9 billion in 2023[136][138]. - The current ratio of the Group was 1.3 times as of December 31, 2024, compared to 1.2 times in 2023, while the gearing ratio was 50.2%, slightly up from 50.1% in 2023[139][144]. - Cash and cash equivalents amounted to approximately RMB 3,516 million as of December 31, 2024, down from RMB 3,618 million in 2023[140][144]. - The debt-to-capital ratio of the Group increased to 65.8% in 2024 from 63.0% in 2023[142][145]. - The Group reported investment gains from steel products, iron ore, and related raw materials derivative financial instruments of approximately RMB22 million for the year ended 31 December 2024, compared to losses of approximately RMB40 million in 2023[156][159]. Dividends and Shareholder Returns - The Group proposed a final dividend of HK$0.01 per ordinary share and a special dividend of HK$0.05 per ordinary share for 2024[75]. - The Group aims to assess the possibility of increasing dividend distribution to reward shareholders for their support[96]. - The Board proposed a final dividend of approximately HK$37 million (approximately RMB34 million) and a special dividend of approximately HK$186 million (approximately RMB172 million) for the year ended 31 December 2024[157][160].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表明，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 （於百慕達註冊成立的有限公司） （股份代號：581） 2024 年年度業績公告 財務摘要 | | 截至12月31日止年度 | | | | --- | --- | --- | --- | | | 2024年 | 2023年 | 變化 | | 銷售量（噸） | | | | | －自行生產的鋼鐵產品 | 717萬 | 773萬 | (7.3%) | | －鋼鐵產品貿易 | 11萬 | 20萬 | (45.0%) | | | 728萬 | 793萬 | (8.2%) | | 收入（人民幣） | | | | | －銷售自行生產的鋼鐵產品 | 246.0億 | 275.1億 | (10.6%) | | －銷售電力設備 | 43.3億 | 38.8億 | 11.7% | | －房地產 | 1.0億 | 2.5億 | (60.6%) | | －鋼鐵產品、鐵礦石及 | | | | | 相關原材料貿易及其他 | 139.3 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 22,565 million, a slight increase of 2.3% compared to RMB 22,059 million in the same period of 2023[5]. - Gross profit for the same period was RMB 900 million, up from RMB 719 million in 2023, reflecting a gross margin improvement[5]. - Profit for the period attributable to owners of the Company was RMB 94 million, a significant decrease of 66.7% from RMB 282 million in 2023[5]. - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.03, down from RMB 0.08 in 2023[5]. - The Group recorded a revenue of approximately RMB 22.57 billion for the six months ended June 30, 2024, representing an increase of approximately 2.3% compared to the same period last year[40]. - The overall gross profit increased by approximately 14.4% to approximately RMB 6.43 billion for the same period[40]. - The interim net profit was approximately RMB 123 million, a decrease of approximately 55.4% compared to RMB 276 million for the corresponding period last year[41]. - The Group's EBITDA for the period decreased from approximately RMB 1.05 billion to approximately RMB 815 million[41]. - For the six months ended June 30, 2024, the profit for the period was approximately RMB 123,029,000, a decrease of 55.5% compared to RMB 276,135,000 for the same period in 2023[102]. - The adjusted profit for the period was RMB 123,029,000, down 43.7% from RMB 218,430,000 in the previous year[102]. Sales and Production - Average selling price per tonne of self-manufactured steel products decreased to RMB 3,505 in 2024 from RMB 3,599 in 2023, indicating a decline of 2.6%[12]. - Total sales volume of self-manufactured steel products for the six months ended June 30, 2024, was 3,762,000 tonnes, a decrease of 3.1% compared to 3,881,000 tonnes in 2023[18]. - The sales volume of H-section steel products decreased to 1,614,000 tonnes in 2024 from 1,945,000 tonnes in 2023, a decline of 17.0%[18]. - In the first half of 2024, the Group's total sales volume of self-manufactured steel products was approximately 3.76 million tonnes, a decrease of approximately 3.1% compared to 3.88 million tonnes in the corresponding period of 2023[63][64]. - The sales of H-section steel products amounted to approximately 1.61 million tonnes, accounting for 42.9% of total sales volume, which represents a decrease of 17.0% compared to the previous year[66]. Market Conditions - The overall business environment of China's iron and steel industry in the first half of 2024 improved compared to the second half of 2023, but still maintained a pattern of "strong supply, weak demand, low prices, and high costs"[32]. - The demand for steel used in engineering machinery decreased due to the drag from the real estate sector, contributing to the overall weakness in downstream demand for steel products[31]. - The outlook for the iron and steel industry indicates that downstream demand will remain low, but infrastructure investment growth is expected to rebound in the second half of 2024[83]. - The overall business environment for the iron and steel industry is expected to face uncertainties in the second half of 2024, but the development trend is anticipated to gradually improve[83]. Strategic Initiatives - The Group aims to adopt a "specialisation, industry chain extension, high-tech and high-end" strategy for transformation and upgrading, focusing on innovation-driven high-quality development[31]. - The Group plans to enhance its core competitiveness by improving efficiency, reducing costs, and increasing the proportion of high value-added products[84]. - The Group will continue to promote the development of various steel products, including H-section steel and marine steel, while expanding its trading business in steel products and raw materials[84]. - The Group is exploring technology solutions for carbon reduction and investing in equipment upgrades to achieve better cost efficiency and reduce emissions[89]. - The Group aims to enhance energy efficiency and low-carbon transformation capabilities in the iron and steel industry, with policies focusing on energy efficiency improvement and carbon peaking[39]. Financial Position - The Company reported a net asset value of RMB 24,933 million as of June 30, 2024, a slight decrease from RMB 24,978 million as of December 31, 2023[9]. - Total assets increased to RMB 52,215 million as of June 30, 2024, up from RMB 50,030 million as of December 31, 2023[9]. - The Group's financial position remains sound, and it will strive to make effective use of its resources for future growth[31]. - As of June 30, 2024, the Group had unutilised banking facilities of approximately RMB 15.1 billion, an increase from RMB 13.9 billion as of December 31, 2023[104]. - The current ratio as of June 30, 2024 was approximately 1.4 times, up from 1.2 times as of December 31, 2023[109]. - The cash and cash equivalents of the Group amounted to approximately RMB 5,347 million as of June 30, 2024, compared to RMB 3,618 million as of December 31, 2023[110]. - The debt-to-capital ratio as of June 30, 2024 was approximately 71.0%, an increase from 63.0% as of December 31, 2023[112]. - Consolidated interest expenses for the six months ended June 30, 2024 were approximately RMB 280 million, compared to RMB 241 million for the same period in 2023[113]. Investment and Dividends - The Group did not recommend the distribution of an interim dividend for 2024 due to current challenges in the iron and steel industry[44]. - The Group will evaluate the possibility of increasing dividend distributions to reward shareholders under appropriate circumstances[90]. - The Board proposed a special dividend of approximately HK$ 186 million (equivalent to approximately RMB 170 million) for the year ended December 31, 2023, which was approved by shareholders[127]. - The Group's strategy includes specialization, industry chain extension, and high-tech development to drive transformation and upgrading[93]. Real Estate and Construction - The Group recorded revenue and operating profit from its real estate business of approximately RMB 23 million and RMB 4 million, respectively, in the first half of 2024[58][61]. - A provision of approximately RMB 201 million was made for impairment of properties under development and held for sale related to the real estate industry in second-and-lower-tier cities in the PRC for the financial year ended December 31, 2023[97]. - The Group expects the real estate market in the PRC to gradually stabilize due to various market stabilization measures introduced by the government[98]. - The Group has a project under construction with a gross floor area of approximately 248,000 m², expected to be completed in 2029[81]. Environmental and Regulatory Compliance - The NDRC and other ministries issued a "Special Action Plan for Energy Conservation and Carbon Reduction in the Iron and Steel Industry" in May 2024, aiming to regulate crude steel production and reduce energy consumption intensity[34]. - By the end of 2025, the target is to increase the proportion of electric arc furnace steel production to 15% of total crude steel production and achieve 30% of production at or above benchmark energy efficiency levels[34]. - The Group will actively explore new models and paths that align with green development concepts to promote sustainable development[31]. - The Group is committed to green, low-carbon, and sustainable development through effective capital and asset allocation[95].

香港 交易 及結 算所 有限 公司 及香港 聯合 交易 所 有限公 司對 本公 告之 內 容概不 負責 ，對 其準 確性 或完 整性 亦不 發表 任何 聲明， 並明 確表 明 ，概不 對因 本公 告全 部 或任何 部份 內容 而產 生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA ORIENTAL GROUP COMPANY LIMITED 中國東 方 集團控 股 有限公 司 * （於百慕達註冊成立的有限公司） （股份代號：581） 有關 2023 年年報 之補充公告 茲提述中國東方集團控股有限公司* (「本公司」)於 2024 年 4 月 30 日刊發 的截至 2023 年 12 月 31 日止財務年度(「2023 財年」)的年報(「2023 年年 報」)。除本公告另有界定外，本公告所用詞與 2023 年年報所界定者具有 相同涵義。 本公司謹此補充以下有關購股權計劃的資料。 有關購股權計劃的補充資料 於 2023 財年内可就購股權計劃授出的購股權而發行的股份總數除以 2023 財 年已發行股份的加權平均數為約 0.56%。於 2023 年年報日期，2013 年購股 權計劃項下可供發行的股份總數為 ...

Revenue and Profitability - For the six months ended June 30, 2024, total revenue reached RMB 22.57 billion, an increase of 2.3% compared to RMB 22.06 billion in the same period of 2023[5]. - Revenue from power equipment sales rose by 18.4% to RMB 1.92 billion, compared to RMB 1.62 billion in the same period last year[2]. - The total comprehensive income for the period amounted to RMB 124,919 million, a decrease from RMB 280,047 million in the previous period, representing a decline of approximately 55.4%[7]. - Profit attributable to equity holders of the company was RMB 94,063 million, down from RMB 282,255 million, indicating a decrease of about 66.7%[7]. - The net profit for the six months ended June 30, 2024, was RMB 123,029 thousand, compared to RMB 276,135 thousand for the same period in 2023, showing a significant decline[21]. - The company reported a net profit of approximately RMB 400 million from its real estate business in the first half of 2024[57]. - The group recorded revenue of approximately RMB 13.19 billion for the first half of 2024, a decrease of about 5.6% from RMB 13.97 billion in the same period of 2023[60]. Costs and Expenses - EBITDA for the six months ended June 30, 2024, was RMB 815 million, a decrease of 22.4% from RMB 1.05 billion in the previous year[3]. - The average selling price of steel products decreased due to weak downstream demand, impacting overall profitability[55]. - The production costs remained relatively high due to a greater decline in steel product prices compared to raw material prices[55]. - The total financial costs for the six months ended June 30, 2024, were RMB 272,819 thousand, slightly higher than RMB 269,682 thousand in the previous year[27]. Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 52.21 billion, reflecting a 4.4% increase from RMB 50.03 billion at the end of 2023[3]. - The total liabilities increased to RMB 27,281,777 million from RMB 25,052,387 million, reflecting an increase of approximately 8.9%[9]. - The equity attributable to equity holders of the company was RMB 24,933,102 million, a slight decrease from RMB 24,977,785 million, indicating a decline of about 0.2%[9]. - The debt-to-capital ratio increased to 71.0% from 63.0% in the previous year, indicating a higher leverage position[3]. Cash Flow and Financing - Cash and cash equivalents at the end of the period were RMB 5,347,021 million, up from RMB 4,666,094 million, indicating an increase of approximately 14.6%[10]. - Net cash generated from operating activities was RMB 1,253,428 million, compared to RMB 598,770 million in the previous period, representing an increase of about 109.5%[10]. - The company reported a net cash inflow from financing activities of RMB 883,641 million, down from RMB 1,370,715 million, representing a decrease of approximately 35.7%[10]. Research and Development - Research and development expenses increased to RMB 192.68 million, up from RMB 167.24 million in the same period last year[5]. - The company plans to continue developing high-value-added products and expanding sales channels, focusing on H-beams, marine angle steel, and other products[67]. Market and Industry Outlook - The outlook for the steel industry indicates that downstream demand is expected to gradually improve in the second half of 2024, with no significant risk of a decline in overall steel consumption[66]. - The steel industry in China saw a 5.4% year-on-year increase in infrastructure investment, while real estate new construction area decreased by about 23.7%[54]. Corporate Governance and Compliance - The company acknowledges the importance of good corporate governance practices and has complied with the relevant codes during the reporting period[189]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's interim consolidated financial statements for the six months ending June 30, 2024[192]. Employee and Operational Metrics - As of June 30, 2024, the group employed approximately 11,700 long-term employees and about 100 temporary workers[185]. - Employee costs include basic salaries and benefits, with a contribution of approximately 2.09% of employee wages to work injury insurance[186]. Investment Strategy and Performance - The company is focusing on expanding its private equity fund offerings, with several funds showing positive returns and fair value increases[120]. - The investment strategy includes a focus on companies with competitive advantages in their respective industries, such as real estate and steel[171][172].

Financial Performance - Revenue for 2023 decreased to RMB 46,260 million, down 5.0% from RMB 48,620 million in 2022[3] - Gross profit for 2023 was RMB 717 million, a significant decline of 59.1% compared to RMB 1,753 million in 2022[3] - EBITDA for 2023 dropped to RMB 1,279 million, down 45.7% from RMB 2,357 million in 2022[3] - The company reported a loss before income tax of RMB 315 million for 2023, compared to a profit of RMB 756 million in 2022[3] - Profit attributable to owners of the company for 2023 was a loss of RMB 160 million, a decrease from a profit of RMB 808 million in 2022[3] - The Group's overall net loss was approximately RMB 196 million, representing a decrease of approximately 124.2% compared to a net profit of RMB 811 million last year[39] - The adjusted profit for the year 2023 was approximately RMB 4.4 million, reflecting the company's resilient performance amid a challenging market environment[96] Sales and Production - Total sales volume of self-manufactured steel products in 2023 was 7,733,000 tonnes, an increase of 8.8% from 7,102,000 tonnes in 2022[12] - Revenue from self-manufactured steel products decreased by approximately 2.5% to RMB 27.51 billion in 2023, with export revenue contributing RMB 764 million[66][67] - The average selling price per tonne of self-manufactured steel products decreased to RMB 3,557 in 2023, down 10.5% from RMB 3,974 in 2022[17] - The average gross profit per tonne for self-manufactured steel products was RMB 50 in 2023, a decline of 70.1% from RMB 167 in 2022[20] - The Group sold approximately 3.60 million tonnes of self-manufactured H-section steel products, maintaining its leading position in the PRC H-section steel market since 2009[47] Cost Management and Efficiency - The Group has continued to reduce costs and improve efficiency, increase marketing promotion and investment in environmental protection, and strengthen product research and development[39] - The Group implemented a process cost reduction plan across procurement, logistics, and production to enhance cost efficiency amid a weak domestic steel market[47] Investments and Assets - The company made a provision of RMB 201 million for impairment of properties under development and held for sale, due to ongoing financial pressures in the real estate market[95] - The Group's net assets decreased slightly to RMB 24,978 million in 2023 from RMB 25,285 million in 2022[3] - As of December 31, 2023, the Group had unutilized banking facilities of approximately RMB13.9 billion, slightly up from RMB13.6 billion in 2022[104][106] Dividends and Shareholder Returns - The Group proposed a special dividend of HK$0.05 per ordinary share to celebrate its 20th anniversary of listing, considering the current challenges in the steel industry[43] - The Board proposed a special dividend of approximately HK$186 million (approximately RMB169 million), representing HK$0.05 per ordinary share for the year ended 31 December 2023[124] Market Outlook and Strategy - The Group anticipates that the business environment for the iron and steel industry will face uncertainties in 2024, but overall development trends are expected to gradually improve[83][85] - The Group plans to enhance core competitiveness by focusing on low carbon and energy consumption development, improving efficiency, and increasing the proportion of high value-added products[84][86] Financial Assets and Investments - The Group's financial strategy includes entering into futures or options contracts to mitigate price volatility of steel products and iron ore[127] - The financial assets at fair value through profit or loss reflect the Group's strategy in managing investment risks and returns effectively[146] - The overall performance of the financial investment products indicates a mixed outcome, with both realized and unrealized losses affecting the group's financial health[148]

Investment Rating - The report maintains a "Buy" rating for China Oriental Group (0581) [4] Core Views - The company's performance in Q4 2023 fell short of expectations due to weakened demand and significant cost pressures, leading to a decline in profitability for steel products. Additionally, the real estate business has been adversely affected by the ongoing downturn in the property market [2] - For 2023, the company reported revenue of 46.26 billion RMB, a year-on-year decrease of 4.85%, and a net profit (excluding minority interests) of -160 million RMB, a year-on-year decline of 119.78%. The net profit forecasts for 2024 and 2025 have been revised down to 312 million RMB and 415 million RMB, respectively, with a new forecast for 2026 set at 529 million RMB [2][3] - The steel production for 2023 was 7.73 million tons, an increase of 8.87% year-on-year, but the gross profit per ton of steel dropped to 50 RMB, a decrease of 70.06% year-on-year, primarily due to falling steel prices [2] - The real estate segment reported a loss, with a gross profit of -99 million RMB in 2023, a year-on-year decline of 198%, and a total operating loss of 149 million RMB [2] - The company maintains a relatively high dividend yield, with dividends per share of 0.10 and 0.05 HKD for 2022 and 2023, respectively, resulting in dividend yields of 8.70% and 4.81% [2] Financial Summary - For 2023, the company achieved a revenue of 46,260 million RMB, with a gross profit margin decline of 4.85% [3] - The net profit for 2023 was -160 million RMB, reflecting a significant year-on-year decrease of 119.78% [3] - The projected net profits for 2024, 2025, and 2026 are 312 million RMB, 415 million RMB, and 529 million RMB, respectively [3]

Financial Performance - Revenue rose by 7.2% to RMB 79.3 billion, with a decline in revenue from self-produced steel products by 2.5% to RMB 27.51 billion[2] - EBITDA decreased by 45.7% to RMB 1.279 billion, with an EBITDA margin dropping to 2.8% from 4.8%[3] - The company reported a net loss attributable to equity holders of RMB 1.60 billion, a decline of 119.8% compared to a profit of RMB 808 million in the previous year[3] - The total comprehensive loss for the year amounted to RMB (190,714) thousand, compared to a total comprehensive income of RMB 834,134 thousand in the previous year[7] - The company reported a loss before tax of RMB 314,571,000 for the year ended December 31, 2023, compared to a profit of RMB 755,731,000 for the year ended December 31, 2022, indicating a significant decline in performance[40] - The company reported a net loss for the year of RMB (196,212) thousand, compared to a profit of RMB 811,355 thousand in the previous year[20] - The adjusted annual profit for 2023 was approximately RMB 4.4 million, reflecting the group's resilience in a challenging market environment[86] - The company reported an adjusted annual profit of RMB 4.44 million for the year ended December 31, 2023, compared to RMB 512.56 million in 2022, reflecting a significant decline[87] Production and Sales - Steel production volume increased by 8.9% to 7.73 million tons, while trading volume decreased by 33.3% to 200,000 tons[2] - The total sales volume for 2023 was 7.733 million tons, an increase of approximately 8.9% compared to 2022[76] - The company sold approximately 3.6 million tons of self-produced H-beam products in 2023, maintaining its leadership position in the Chinese H-beam market since 2009[72] - Sales of H-beam products amounted to RMB 12,946,577 thousand, down from RMB 15,409,767 thousand in the previous year, reflecting a decrease of about 16.0%[18] - The steel segment generated revenue of RMB 46,013,691 thousand, while the real estate segment contributed RMB 246,047 thousand, resulting in a total operating loss of RMB 112,477 thousand for the year[20] Assets and Liabilities - The total assets increased by 4.2% to RMB 50.03 billion, while the debt-to-capital ratio rose to 63.0% from 56.7%[3] - Current assets increased to RMB 27,948,717 thousand from RMB 25,312,357 thousand year-on-year, indicating a growth of approximately 10%[8] - The company's cash and cash equivalents rose to RMB 3,618,030 thousand, up from RMB 2,124,697 thousand, reflecting a significant increase of 70%[8] - Total liabilities increased to RMB 25,052,387 thousand from RMB 22,738,943 thousand, representing an increase of approximately 10.2%[9] - The company's long-term borrowings rose to RMB 13,089,962 thousand from RMB 12,116,624 thousand, indicating an increase of about 8%[9] - The equity attributable to the company's equity holders decreased to RMB 24,977,785 thousand from RMB 25,284,647 thousand year-on-year[9] Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.05 per share, an increase of 66.7% from the previous year[3] - The company proposed a special dividend of approximately RMB 168,815,000 for the year ended December 31, 2023, which is pending approval at the upcoming annual general meeting[44] - The company plans to distribute a special dividend of HKD 0.05 per ordinary share for the year 2023, celebrating its 20th anniversary of listing[72] Research and Development - Research and development expenses increased slightly to RMB 353.9 million, compared to RMB 345.9 million in the previous year[5] - The company incurred research and development expenses of RMB 51,516,000 for the year ended December 31, 2023, down from RMB 67,830,000 in 2022, reflecting a reduction in R&D investment[40] Market Conditions and Future Outlook - The steel industry in China is expected to maintain a dynamic balance in supply and demand, with fixed asset investment remaining stable and economic benefits significantly improving in 2023[71] - The company plans to continue focusing on the steel manufacturing and trading business while evaluating opportunities for market expansion and potential acquisitions[16] - The company aims to enhance operational efficiency and sustainability through cost reduction, marketing promotion, and increased investment in environmental protection and product R&D[71] - The steel industry is expected to face uncertainties in 2024, but the group anticipates a gradual improvement in the overall development trend[82] Financial Costs and Taxation - The total financial costs decreased to RMB (425,060) thousand in 2023 from RMB (559,673) thousand in 2022, showing a reduction of 24%[34] - The current income tax expense for the year was RMB 70,480 thousand, down from RMB 178,141 thousand in 2022, representing a decrease of 60.5%[35] - The effective tax rate for the group was calculated at 33.29% for the year ended December 31, 2023, compared to 18.63% in 2022, reflecting changes in tax regulations and profitability[39] Impairments and Provisions - The impairment provision for property, plant, and equipment was RMB (249,842) thousand in 2023, compared to RMB (166,893) thousand in 2022, reflecting a significant increase in impairment[33] - The group has made a provision of RMB 201 million for impairment of receivables related to properties under development and for sale in China's second-tier and lower cities due to ongoing financial pressures in the real estate market[85] Investment Strategy - The company is focusing on investments in emerging industries with high growth potential, such as new generation information technology and high-end equipment manufacturing[150] - The investment strategy includes a macro-hedging approach based on comprehensive economic analysis and evaluation of supply and demand conditions for various commodities[149] - The company aims to maximize expected returns while controlling risks through quantitative investment strategies, including statistical arbitrage and hedging[151]

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------------------------------------------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CHINA ORIENTAL GROUP COMPANY LIMITED 中 國 東 方 集 團 控 股 有 限 公 司 * | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INTERIM REPORT 中期報告 * For iden ...

Financial Performance - Steel product sales volume increased by 16.8% to 3.88 million tons, while trading volume rose by 12.7% to 3.98 million tons compared to the same period last year[2]. - Revenue from self-produced steel products decreased by 4.6% to RMB 13.97 billion, while revenue from power equipment sales increased by 8.1% to RMB 1.62 billion[2]. - EBITDA dropped by 53.8% to RMB 1.05 billion, with an EBITDA margin of 4.8% compared to 9.1% in the previous year[3]. - Net profit for the period fell by 77.6% to RMB 276.14 million, with earnings per share decreasing by 75.0% to RMB 0.08[3]. - For the six months ended June 30, 2023, total sales amounted to RMB 22,058,731 thousand, a decrease from RMB 24,998,775 thousand for the same period in 2022, representing a decline of approximately 7.8%[20]. - The company reported a net profit of RMB 276,135 thousand for the six months ended June 30, 2023, compared to RMB 1,230,020 thousand for the same period in 2022, reflecting a significant decrease[22]. - The profit before tax for the six months ended June 30, 2023, was RMB 266,002 thousand, a significant decrease from RMB 1,490,097 thousand in the same period of 2022, representing a decline of approximately 82.1%[31]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 0.08, down from RMB 0.32 in the same period of 2022, indicating a decrease of 75%[32]. - Revenue for the first half of 2023 was approximately RMB 22.06 billion, down about 11.8% year-on-year[58]. Assets and Liabilities - Total assets increased by 3.0% to RMB 49.46 billion as of June 30, 2023, compared to RMB 48.02 billion at the end of 2022[3]. - Total liabilities as of June 30, 2023, were RMB 24,011,717 thousand, up from RMB 22,738,943 thousand at the end of 2022, indicating an increase of about 5.6%[10]. - The company's equity attributable to owners increased to RMB 25,447,565 thousand from RMB 25,284,647 thousand, showing a growth of approximately 0.65%[10]. - Cash and cash equivalents at the end of the period increased to RMB 4,666,094 thousand from RMB 2,124,697 thousand, marking a significant rise of approximately 119.5%[11]. - The company's long-term bank deposits decreased to RMB 1,590,000 thousand from RMB 2,090,000 thousand, a decline of approximately 23.9%[9]. - The total borrowings as of June 30, 2023, reached RMB 14.60 billion, up from RMB 13.44 billion as of December 31, 2022, representing an increase of approximately 8.7%[48]. Revenue Breakdown - The total revenue from the steel division was RMB 21,975,108 thousand, while the real estate division contributed RMB 83,623 thousand to the total revenue[22]. - The revenue from H-beam steel products was RMB 7,055,205 thousand, down from RMB 8,422,123 thousand in the previous year, reflecting a decrease of about 16.2%[20]. - The iron ore revenue decreased to RMB 4,570,854 thousand from RMB 6,182,948 thousand, marking a decline of approximately 26.0%[20]. - The real estate segment generated revenue of RMB 83,623 thousand, significantly up from RMB 32,206 thousand, indicating an increase of approximately 159.0%[20]. Cost and Profitability - The gross profit margin for self-produced steel products decreased by 64.4% to RMB 145 per ton[2]. - The company reported a significant decline in gross profit from trading steel products and related materials, down 92.5% to RMB 0.19 billion[2]. - Gross profit for the first half of 2023 was approximately RMB 562 million, a decrease of about 58.5% from RMB 1.35 billion in the same period of 2022, with a gross margin of 4.0%[65]. - The average selling price of self-produced steel products fell by 18.3% to approximately RMB 3,599 per ton[58]. - The average cost per ton of steel products was RMB 3,454, leading to a gross profit per ton of RMB 145, a decrease of 64.4% from RMB 407 in the same period of 2022[66]. Dividends and Shareholder Returns - The company did not declare an interim dividend, compared to HKD 0.07 per share in the same period last year[3]. - The total dividend paid for the six months ended June 30, 2023, was RMB 101,521 thousand, compared to RMB 284,532 thousand in the same period of 2022, reflecting a reduction of approximately 64.3%[34]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, contrasting with the interim dividend of approximately RMB 2.29 billion paid in the same period of 2022[35]. Research and Development - Research and development expenses increased to RMB 167.24 million from RMB 156.17 million, reflecting a focus on innovation[6]. - The company’s research and development expenses remained relatively stable, with a slight decrease from RMB 35,067 thousand in 2022 to RMB 35,002 thousand in 2023[31]. Market Outlook and Strategy - The outlook for the second half of 2023 indicates a complex international environment with slowing economic growth and inflation pressures, but infrastructure construction is expected to continue to drive demand[69]. - The group anticipates a slight decline in both steel supply and demand in 2023, with a cautious optimism for gradual improvement in the overall development trend[70]. - The company is focusing on cost reduction and efficiency improvement through various measures, including procurement and logistics optimization[59]. - The company is currently evaluating the comprehensive impact of new accounting standards and interpretations that will take effect from January 1, 2024[18]. Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 598,770 thousand, compared to RMB 563,267 thousand for the same period in 2022, reflecting an increase of about 6.5%[11]. - The company reported a net cash inflow from financing activities of RMB 1,370,715 thousand for the first half of 2023, compared to RMB 1,163,405 thousand in the same period of 2022, an increase of about 17.9%[11]. Inventory and Receivables - Inventory decreased to RMB 4,704,751 thousand from RMB 6,089,732 thousand, representing a decline of approximately 22.7%[9]. - Trade receivables increased to RMB 3,188,592 thousand from RMB 2,818,200 thousand, reflecting a growth of about 13.1%[9]. - The accounts receivable and contract assets as of June 30, 2023, totaled RMB 4,070,106 thousand, an increase from RMB 3,460,253 thousand as of December 31, 2022, indicating a growth of about 17.6%[37]. Investment and Financial Assets - The total fair value of financial assets measured at fair value through profit or loss is RMB 4,844,270 thousand as of June 30, 2023, slightly up from RMB 4,828,414 thousand as of December 31, 2022[40]. - The company has not disclosed any significant events affecting its operations since the balance sheet date[81]. - The company has reallocated its currency assets to reduce the impact of RMB/USD exchange rate fluctuations[78]. Corporate Governance - The company has complied with the corporate governance code during the six months ended June 30, 2023, with the exception of the separation of the roles of Chairman and CEO[189]. - The audit committee reviewed the group's financial information for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards and regulations[192].