Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of RMB 141,496,000, a decrease of 87.38% compared to RMB 1,119,215,000 for the same period in 2022[2] - The cost of sales for the same period was RMB 159,773,000, down from RMB 1,159,825,000, resulting in a gross loss of RMB 18,277,000, an improvement from a gross loss of RMB 40,610,000 in 2022[2] - The company recorded a net loss attributable to owners of RMB 496,374,000 for the six months ended June 30, 2023, compared to a net loss of RMB 523,586,000 for the same period in 2022, indicating a slight improvement[2] - The company reported a total operating loss of RMB 496,374 thousand for the six months ended June 30, 2023, compared to a loss of RMB 520,617 thousand for the same period in 2022, indicating an improvement of about 4.67%[19] - The company recorded a net loss of RMB 356,359 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 370,504 thousand for the same period in 2022, indicating a reduction of about 3.81%[19] Assets and Liabilities - Total non-current assets as of June 30, 2023, amounted to RMB 603,082,000, a decrease from RMB 619,573,000 as of December 31, 2022[3] - Current assets increased to RMB 1,382,604,000 as of June 30, 2023, compared to RMB 1,778,498,000 at the end of 2022, primarily driven by an increase in inventory[3] - The company reported total liabilities of RMB 5,183,213,000 as of June 30, 2023, compared to RMB 5,097,225,000 at the end of 2022, indicating a slight increase in financial obligations[3] - The net current liabilities increased to RMB (3,800,609,000) as of June 30, 2023, compared to RMB (3,318,727,000) at the end of 2022, reflecting a worsening liquidity position[3] - The company had cash and cash equivalents of approximately RMB 12,287,000 as of June 30, 2023, with short-term debts amounting to RMB 1,598,910,000[8] Bankruptcy and Restructuring - The company is undergoing debt restructuring for its subsidiaries, Copper Xin and Jin Xun Huan, under the Chinese Bankruptcy Law, with the first creditors' meeting held on March 28, 2023[8] - The company submitted a voluntary bankruptcy restructuring application for its subsidiary, Tai Yue, on May 18, 2023, which was accepted by the court on May 24, 2023[9] - The company faces significant uncertainty regarding its ability to continue as a going concern due to ongoing litigation and frozen bank accounts[8] - The company has initiated a restructuring process for its subsidiary, Hubei Rongsheng, as of September 12, 2023, under the relevant bankruptcy laws[10] - The company is actively seeking new financing arrangements, including issuing convertible bonds worth RMB 400 million, subject to certain conditions[10] Operational Performance - The company continues to focus on the production and trading of copper, aluminum, and related products as its main business[5] - The company has made efforts to improve operational performance and cash flow through cost control measures and working capital management[10] - The group produced 21,282 tons of recycled copper products and sold 21,058 tons, achieving a sales revenue of RMB 1,450 million during the year ending May 31, 2024[40] - The group's communication cable and power distribution businesses have not resumed operations due to a lack of operating funds and poor real estate market conditions, but recovery is expected as the market stabilizes[40] Market and Economic Outlook - The outlook for the copper industry remains optimistic, particularly due to the emphasis on sustainable economic transformation and advancements in information technology, including 5G deployment[41] - The government has implemented a series of supportive policies to address economic stagnation, including a 20 basis point cut in the seven-day reverse repurchase rate and a 50 basis point reduction in the reserve requirement ratio[42] - The company anticipates benefiting from the expected growth in copper demand, despite potential short-term negative impacts from the bankruptcy restructuring of its subsidiary[43] - The company remains confident in the long-term business outlook, believing that demand for its products, especially copper, will continue to be strong[43] Compliance and Governance - The financial report is prepared in accordance with the International Financial Reporting Standards, ensuring consistency with the previous year's accounting policies[7] - The company has adhered to corporate governance principles and has complied with all relevant rules as of June 30, 2023[71] - The company has confirmed compliance with the standards for directors' securities trading as of June 30, 2023[72] - There have been changes in the board of directors, including the appointment of new independent non-executive directors and the resignation of an executive director[73] Employee and Social Responsibility - The group aims to enhance its social responsibility by employing disabled individuals and providing them with appropriate working conditions[48] - Employee costs for the six months ended June 30, 2023, were RMB 13,779,000, down from RMB 21,287,000 in the same period of 2022[28] - The group employed 340 employees as of June 30, 2023, down from 507 employees at the end of 2022[48] Legal Proceedings - The company is currently involved in multiple legal proceedings related to bank loans and trade payables, which may result in the freezing of certain bank accounts and the seizure of properties and inventories[68] - The company faces a civil ruling from the Hunan Province court regarding a debt of approximately RMB 11.9 million, leading to a bankruptcy restructuring application on July 21, 2023[10] Financial Instruments and Risk Management - The company has not entered into any financial instruments to hedge its foreign exchange risks as of June 30, 2023, despite having some borrowings denominated in Hong Kong dollars[63] - As of June 30, 2023, the company had no outstanding copper futures contracts, indicating a strategy to mitigate copper price volatility risks[62]

智通财经APP讯，中国金属利用(01636)公布2022年经审核全年业绩，营业额较2021年减少69.0%至人民币23.92亿元，净亏损约47.63亿元，同比扩大4888.8%;每股亏损1.1元。 公告称，营业额减少主要因为电解铜贸易及再生铜产品销售减少。主因是工业生产及建筑活动减少，以致于2022年铜的需求显著减少。 亏损增加主要是由于 2021年度1.516亿元的毛利转为2022年度2.88亿元的毛损。同时额外税务附加费增加至人民币6620万元，坏账拨备净值增加至人民币21.19亿元及垫付供应商款项减值增加至19.485亿元。 值得注意的是，独立核数师并无就该集团的综合财务报表发表意见。 ...

Financial Performance - Revenue decreased by 69.0% to RMB 2,391.7 million compared to RMB 7,719.4 million in 2021[3] - The company reported a loss attributable to shareholders of RMB 4,763.2 million for the year, compared to a loss of RMB 95.5 million in 2021[3] - Loss per share was RMB 1.10, compared to RMB 0.03 in the previous year[3] - The company experienced a significant increase in financial losses, with a pre-tax loss of RMB 4,761.2 million compared to RMB 54.1 million in 2021[4] - The group reported a significant impairment of RMB 1,948,484,000 related to advances to suppliers, highlighting financial strain[27] - The loss for the year ended December 31, 2022, was RMB 4,763.2 million, significantly higher than the loss of RMB 95.5 million for the year ended December 31, 2021, primarily due to the shift from gross profit to gross loss[98] Assets and Liabilities - Total assets decreased from RMB 6,733,999 thousand in 2021 to RMB 2,398,071 thousand in 2022, a decline of approximately 64.4%[5] - Current assets dropped significantly from RMB 6,040,338 thousand in 2021 to RMB 1,778,498 thousand in 2022, representing a decrease of about 70.5%[5] - The company reported a total equity of RMB (2,702,000) thousand in 2022, compared to RMB 1,709,397 thousand in 2021, reflecting a negative equity position[7] - The company recorded net losses of approximately RMB 4,763,152,000 and RMB 95,477,000 for the years ended December 31, 2022, and 2021, respectively[11] - As of December 31, 2022, the company's net current liabilities were approximately RMB 3,318,727,000, and net debt was approximately RMB 2,702,000,000[11] Debt and Restructuring - The company is undergoing debt restructuring involving its wholly-owned subsidiaries, Copper Xin and Jin Xun Huan, under the Chinese Bankruptcy Law[12] - The first creditors' meeting for the restructuring of Copper Xin and Jin Xun Huan was held on March 28, 2023[12] - The company submitted a voluntary bankruptcy restructuring application for its indirect wholly-owned subsidiary, Tai Yue, on May 18, 2023[14] - The company received a civil ruling from the Yuxian Court regarding Tai Yue's bankruptcy restructuring acceptance on May 24, 2023[14] - The group is undergoing debt restructuring aimed at reducing the debt levels of its subsidiaries[68] Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 11,953 thousand in 2021 to RMB 2,391 thousand in 2022, a decline of approximately 80%[5] - The company is actively seeking alternative financing arrangements to obtain new funds and improve cash flow[18] - The company is facing challenges in cash flow management and maintaining sufficient liquidity due to the tightening of working capital conditions[78] - As of December 31, 2022, the company had cash and cash equivalents of RMB 261,000, indicating a significant liquidity position despite ongoing legal disputes[61] Revenue Streams - The group reported total revenue of RMB 2,391,709,000, with external sales contributing RMB 2,385,928,000 from the recycled copper products segment[27] - Revenue from recycled copper products for the year ended December 31, 2022, was approximately RMB 2,383.3 million, down 66.4% from RMB 7,089.8 million for the year ended December 31, 2021, with sales volume dropping from 131,864 tons to 44,241 tons, a decline of 66.4%[90] - The total income from VAT refunds and government subsidies was RMB 232,119 thousand, contributing positively to the financial results[28] - The company received government subsidies totaling RMB 12,591,000 in 2022, a substantial increase from RMB 3,600,000 in 2021, reflecting enhanced support from local authorities[40] Operational Challenges - The company failed to repay approximately RMB 231,720,000 of convertible bonds and RMB 981,661,000 of bank loans and other borrowings as of December 31, 2022[11] - The company is currently negotiating with creditors regarding outstanding debts, but has not received sufficient evidence to confirm the recoverability of overdue receivables[73] - The economic environment has led to significant financial difficulties for many suppliers and customers, resulting in increased asset impairment and bad debt provisions[78] Corporate Governance - The audit committee, composed of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ended December 31, 2022[137] - The company has complied with the corporate governance code as per the listing rules as of December 31, 2022[139] - The company has faced non-compliance issues with listing rules regarding the number of independent non-executive directors and the composition of the audit committee[142] Future Outlook - The company expects strong demand for copper driven by China's "14th Five-Year Plan," particularly in new infrastructure, new energy vehicles, and high-tech electronic equipment[87] - The company plans to continue focusing on market expansion and new product development to enhance future performance[28] - The company is committed to maintaining employee welfare and contributing to the local community during the restructuring process[80]

Financial Performance - The company reported a revenue of RMB 1,119,215,000 for the first half of 2022, a decrease of 66.3% compared to RMB 3,355,148,000 in the same period of 2021[8]. - The net loss for the first half of 2022 was approximately RMB 523,600,000, compared to a net loss of RMB 72,063,000 in the first half of 2021[8][16]. - For the six months ended June 30, 2022, the company's revenue was RMB 1,119,215,000, a decrease of 66.6% compared to RMB 3,355,148,000 for the same period in 2021[25]. - The company reported a loss of RMB 523,600,000 for the six months ended June 30, 2022, compared to a loss of RMB 72,100,000 for the same period in 2021, indicating a significant increase in losses[30]. - The gross loss for the period was RMB 40,610 thousand, compared to a gross profit of RMB 35,250 thousand in the previous year[152]. - The company incurred a pre-tax loss of RMB 520,617 thousand, significantly higher than the pre-tax loss of RMB 53,132 thousand in the prior year, indicating a substantial decline in financial performance[152]. - The net loss attributable to the owners of the company was RMB 523,586 thousand, compared to a net loss of RMB 72,063 thousand in the same period last year[152]. - Basic loss per share was RMB 0.12, compared to RMB 0.02 in the previous year, reflecting a worsening financial position[152]. - The financial costs increased to RMB 125,834 thousand from RMB 78,658 thousand, highlighting rising expenses impacting profitability[152]. Assets and Liabilities - Cash and cash equivalents decreased by 41.23% to RMB 7,025,000 from RMB 11,953,000 as of December 31, 2021[8]. - Total assets slightly decreased by 0.44% to RMB 6,704,053,000 from RMB 6,733,999,000 as of December 31, 2021[8]. - Total liabilities increased by 1.60% to RMB 5,105,159,000 from RMB 5,024,602,000 as of December 31, 2021[8]. - The total interest-bearing borrowings as of June 30, 2022, amounted to RMB 1,442,294,000, a decrease from RMB 1,799,964,000 as of December 31, 2021[32]. - The debt-to-equity ratio improved from 105.3% to 90.2% as of June 30, 2022, primarily due to the issuance of ordinary shares to settle convertible bonds[81][82]. - As of June 30, 2022, the net value of assets pledged for bank loans and other financing was RMB 2,185.2 million, compared to RMB 2,024.8 million as of December 31, 2021[83]. - The total equity of the company was RMB 1,598,894 thousand, reflecting a decline in reserves and retained earnings[164]. Inventory and Receivables - Inventory increased by RMB 645,800,000 to RMB 835,300,000 as of June 30, 2022, compared to RMB 189,500,000 as of December 31, 2021[78]. - Inventory turnover days increased to 80.0 days for the six months ended June 30, 2022, compared to 12.2 days for the year ended December 31, 2021[78]. - Trade receivables and notes receivable decreased by RMB 842,700,000 to RMB 1,468,800,000 as of June 30, 2022, down from RMB 2,311,500,000 as of December 31, 2021[79]. - Accounts receivable turnover days increased to 305.7 days for the six months ended June 30, 2022, compared to 105.0 days for the year ended December 31, 2021[79]. - As of June 30, 2022, trade payables and notes payable increased by RMB 495 million to RMB 1,838.7 million, compared to RMB 1,343.7 million as of December 31, 2021, with accounts payable turnover days rising from 58.2 days to 248.3 days[80]. Business Strategy and Future Outlook - The company plans to undergo a debt restructuring process to address its current debt issues, which was initiated by a voluntary bankruptcy reorganization application submitted to the court[16][17]. - Future business prospects will depend on the speed of recovery of the Chinese economy, influenced by the COVID-19 pandemic and the recovery of the construction and real estate sectors[18]. - The company aims to maintain employee welfare and contribute to the local community as part of its social responsibility during the restructuring process[17]. - The company is committed to creating value for its shareholders despite the challenging environment[19]. - The company plans to focus on the sales of recycled copper products, leading to a complete cessation of sales in electrolytic copper trading[26]. Shareholder Structure and Governance - The company has a significant shareholder structure, with major stakeholders holding substantial percentages of shares, including 11.89% by Mr. Yu Jianqiu and 6.92% by Mr. Huang Weiping[100][112]. - The largest single shareholder is Mianyang Fule Investment Co., Ltd., holding 16.02% of the shares, followed by Hengfu Investment Co., Ltd. with 12.44%[112][117]. - The company has established a stock option plan, with options granted to directors, including 3,000,000 shares to Ms. Zhu Yufen[105][106]. - The company is actively seeking suitable candidates to fill the vacancies of independent non-executive directors to comply with listing rules[145]. - The audit committee currently consists of only two members, which is below the minimum requirement set by the listing rules[145]. - The company has acknowledged the need to improve its governance structure following the resignation of two independent non-executive directors[145]. Cash Flow and Investment Activities - The company recorded a net cash flow from operating activities of RMB 150,595 thousand, a significant improvement from a net outflow of RMB (313,313) thousand in the prior year[179]. - The company’s investment activities resulted in a net cash outflow of RMB (181,483) thousand, indicating significant capital expenditures[179]. - The company’s financing activities generated RMB 17,800 thousand from bank loans and other borrowings[179]. Other Financial Information - The company reported other income and gains of RMB 63,700 thousand, down from RMB 126,579 thousand in the same period of 2021, indicating a decline in additional revenue sources[152]. - The company recognized government grants and subsidies amounting to RMB 119,241 thousand[197]. - The company reported a foreign exchange loss of RMB 23.9 million due to the conversion of liabilities from HKD to RMB[87].

Financial Performance - In 2021, the Group recorded a net loss of approximately RMB 95.5 million, a decrease in revenue by 53.8% compared to 2020 due to the impact of COVID-19 on various industries[16] - The Group recorded a net loss of approximately RMB 95.5 million, primarily due to a 53.8% decrease in revenue in 2021 compared to 2020, largely impacted by the after-effects of COVID-19 on the housing construction and engineering infrastructure industries[31] - The loss per share amounted to RMB 0.03, compared to RMB 0.15 in 2020, indicating a significant decline in financial performance[33] - Revenue for the year ended December 31, 2021, amounted to RMB 7,719.4 million, representing a decrease of 53.8% from RMB 16,698.5 million for the year ended December 31, 2020[42] - Revenue from trading of electrolytic copper amounted to RMB 554.8 million for the year ended December 31, 2021, representing a decrease of 93.5% from RMB 8,516.2 million for the year ended December 31, 2020[43] - Sales volume of electrolytic copper decreased by 95.8% from 216,325 metric tons for the year ended December 31, 2020, to 9,108 metric tons for the year ended December 31, 2021[46] - Revenue from recycled copper products amounted to RMB 7,089.8 million for the year ended December 31, 2021, representing a decrease of 11.3% from RMB 7,990.9 million for the year ended December 31, 2020[51] - Sales volume of recycled copper products decreased by 28.2% from 183,742 metric tons for the year ended December 31, 2020, to 131,864 metric tons for the year ended December 31, 2021[54] - Gross profit for the year ended December 31, 2021, was RMB 151.6 million, compared to RMB 62.6 million for the year ended December 31, 2020, with a gross profit margin of 2.0%[52] - Other income for the year ended December 31, 2021, was RMB 269.9 million, compared to other expenses of RMB 33.3 million for the year ended December 31, 2020[53] Market Outlook - The Chinese government set a GDP growth target of 5.5% for 2022, anticipating an increase in demand for basic metals as economies reopen globally[18] - The Group expects strong demand for copper driven by new infrastructure construction, new energy vehicles, and high-tech appliances, aligning with China's manufacturing goals during the 14th Five-Year Plan[19] - Strong demand for copper is anticipated to continue, particularly in new infrastructure construction, new energy vehicles, and high-tech home appliances[32] - The strategic advancement of carbon neutrality initiatives is expected to further drive demand for copper in various sectors[32] - The State Council of the PRC issued a circular promoting green, low-carbon development, which is expected to create unprecedented opportunities for the resource recycling industry[20] - The State Council of the PRC issued a circular to promote a green, low-carbon economy, which is expected to create unprecedented opportunities for the resource recycling industry[37] Capital Structure and Financing - In Q1 2021, the Group completed a new issuance of shares to Mianyang Fule Investment Co., Ltd, and in Q1 2022, to Huarong International Holdings Limited and Prosper Rich Investments Limited to reduce debts[21] - The Group anticipates that improved capital structure from new shareholders will enhance operational and financial performance[21] - The Group completed new share issuances to reduce debts, enhancing its financial position and operational performance[38] - The company has ongoing discussions with Mianyang Science Technology City Development Investment (Group) Co., Ltd. regarding a potential subscription for shares exceeding RMB 300 million[107] - The outstanding principal amount of convertible bonds issued to Huarong was amended from HK$390.0 million to approximately HK$227.7 million as of December 31, 2021[73] - The maturity date of the Huarong convertible bonds shall be extended to December 31, 2022, or December 31, 2023, subject to prior written notice and consent from Huarong[74] - The company has agreed to amend the terms of the convertible bonds, including the release of 78,000,000 Shares out of the 278,000,000 Shares charged in favor of Huarong[79] - The company has conditionally agreed to set off the subscription consideration against the outstanding principal amount and accrued interests under the convertible bonds on a dollar-for-dollar basis[85][94] Operational Performance - Selling and distribution expenses for the year ended December 31, 2021, were RMB 18.2 million, representing a decrease of 15.7% from RMB 21.6 million for the year ended December 31, 2020[55] - Administrative expenses for the year ended December 31, 2021, were RMB 132,000,000, down 18.9% from RMB 162,700,000 for the year ended December 31, 2020, mainly due to a reduction in professional fees during the operational suspension period[57] - Finance costs for the year ended December 31, 2021, were RMB 221.5 million, representing an increase of 30.3% from RMB 170.0 million for the year ended December 31, 2020[56] - The company experienced a reduction in financial expenses and bad debt provisions, which increased by RMB 51,500,000 and RMB 56,600,000 respectively during the year[57] - The loss for the year ended December 31, 2021, was RMB 95,500,000, a significant reduction from a loss of RMB 387,200,000 for the year ended December 31, 2020, attributed to the absence of goodwill impairment losses and an increase in gross profit of RMB 89,000,000[57] Inventory and Receivables - As of December 31, 2021, the Group's cash and cash equivalents amounted to RMB 12.0 million, a decrease from RMB 47.3 million as of December 31, 2020[95] - The Group's inventories decreased by RMB 127.3 million to RMB 189.5 million as of December 31, 2021, compared to RMB 316.8 million as of December 31, 2020[95] - Trade and bills receivables increased by RMB 181.8 million to RMB 2,311.5 million as of December 31, 2021, up from RMB 2,129.7 million as of December 31, 2020[96] - Trade and bills receivables turnover days increased to 105.0 days in 2021, compared to 36.3 days in 2020, primarily due to customers' tight liquidity caused by COVID-19[96] - Trade payables increased by RMB 275.1 million to RMB 1,343.7 million, with payable turnover days rising to 58.2 days from 17.9 days in 2020[102] Strategic Initiatives - The company is investing in new technology development, allocating $10 million for R&D in renewable energy solutions[178] - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[178] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $30 million earmarked for potential deals[178] - The company has successfully reduced operational costs by 5% through efficiency improvements in production processes[178] - Future guidance includes maintaining a gross margin of at least 25% despite rising raw material costs[178] Business Model and Operations - The Group is a manufacturer of recycled copper products, also known as copper semis, in Southwest China[198] - The Group's principal activities include manufacturing and trading of copper products, indicating a diversified business model[198] - The Group has been operational in the copper industry for several years, showcasing its experience and market presence[198] - The Group's focus on recycled copper products aligns with global sustainability trends, potentially increasing market demand[198] - The Group entered into trading activities of electrolytic copper starting in 2015[200] - The Group's activities are subject to the Hong Kong Companies Ordinance, ensuring compliance with regulatory requirements[200]

Financial Performance - For the six months ended June 30, 2021, the company's revenue was RMB 3,355,148,000, a decrease from RMB 10,186,358,000 in the same period of 2020[10] - The net loss attributable to shareholders for the six months ended June 30, 2021, was RMB 72,063,000, significantly improved from a loss of RMB 156,150,000 in the same period of 2020[10] - For the six months ended June 30, 2021, the total revenue was RMB 3,355,148,000, a decrease of 67.1% compared to RMB 10,186,358,000 for the same period in 2020[20] - The revenue from copper products was RMB 3,285,500,000, down 67.7% from RMB 10,165,400,000 in the previous year, reflecting a 74.3% decline in sales volume from 257,664 tons to 66,404 tons[21] - The loss for the six months ended June 30, 2021, was RMB 72,100,000, a reduction from RMB 156,200,000 in the same period of 2020[25] - Gross profit for the same period was RMB 35,250,000, compared to a gross loss of RMB 58,842,000 in 2020, indicating a significant improvement[134] - The company's total assets as of June 30, 2021, were RMB 1,694,773,000, an increase from RMB 1,501,018,000 at the end of 2020[143] - The net current assets increased to RMB 961,147,000 from RMB 724,273,000, reflecting improved liquidity[143] Cash Flow and Liquidity - Cash and cash equivalents decreased by 47.6% to RMB 24,805,000 as of June 30, 2021, compared to RMB 47,321,000 at the end of 2020[10] - The current ratio as of June 30, 2021, was 1.2, while the quick ratio was 0.9, indicating a decrease in liquidity compared to December 31, 2020[49] - The company reported a net cash outflow of RMB 9,190,000 for the period, with cash and cash equivalents at RMB 24,805,000 as of June 30, 2021[160] Revenue Streams - Sales of power distribution cables increased by 38.7% to RMB 13,300,000 from RMB 9,600,000 in the previous year[24] - Sales of communication cables surged by 428.5% to RMB 46,200,000 from RMB 8,800,000 in the previous year[24] - The recycling steel products segment generated external sales of RMB 3,295,610 thousand, while the communication cable segment generated RMB 46,249 thousand[175] - The total revenue for the first half of 2021 reached RMB 3,355,148 thousand, with a significant contribution from the sales of recycled copper products at RMB 2,856,319 thousand[198] Government Support and Subsidies - The increase in value-added tax refunds was 178.8%, rising from RMB 23.1 million to RMB 64.5 million[25] - Government subsidies increased by 160.5% from RMB 21.0 million to RMB 54.8 million[25] - The group received VAT refunds and government subsidies amounting to RMB 44,467 thousand during the reporting period[187] Debt and Financing - The total interest-bearing borrowings as of June 30, 2021, amounted to RMB 1,856,823,000, slightly down from RMB 1,885,709,000 at the end of 2020[26] - The weighted average effective interest rate for bank and other borrowings was 7.90% as of June 30, 2021[26] - The company aims to enhance its financial position through the issuance of convertible bonds, allowing for lower financing costs[72] Employee and Operational Metrics - As of June 30, 2021, the company had approximately 665 employees, with employee costs amounting to RMB 23,700,000 for the six months ended June 30, 2021[16] - The company plans to implement stricter accounts receivable management in the second half of 2021 to improve cash flow[15] Shareholder Information - Major shareholders include Quaetus Capital Pte Ltd and Kwek Steven Poh Song, each holding 280,312,902 shares, representing 8.54% of the company[92] - The company’s chairman, Yu Jianqiu, holds 532,794,400 shares, accounting for 16.22% of the total shares[80] - The company reported a total of 310,317,000 shares held by Youyang Technology Development Investment (Group) Limited, representing 9.45% of the total shares[100] Future Outlook and Strategic Initiatives - The company aims to continue expanding its market presence and investing in new technologies to enhance operational efficiency and product offerings[162] - Future outlook includes potential growth in the sales of recycled copper products, driven by increasing demand in various industries[199] - The company is exploring strategic acquisitions to bolster its market position and expand its operational capabilities[199] - Continued investment in research and development is planned to innovate new products and improve existing technologies[199]

Financial Performance - The Group recorded a net loss of approximately RMB 387.2 million for the year ended 31 December 2020, primarily due to a 30.9% decrease in copper product sales compared to 2019[15]. - Revenue for the year ended December 31, 2020, was RMB 16,698.5 million, a decrease of 30.5% from RMB 24,012.7 million in 2019[39]. - Revenue from trading of electrolytic copper decreased by 49.1% to RMB 8,516.2 million, with sales volume dropping 45.6% from 397,327 metric tons in 2019 to 216,325 metric tons in 2020[40]. - Revenue from recycled copper products increased by 11.2% to RMB 7,990.9 million, driven by a 7.3% increase in sales volume from 171,228 metric tons in 2019 to 183,742 metric tons in 2020[42]. - Gross profit for the year was RMB 62.6 million, compared to a gross loss of RMB 257.9 million in 2019, resulting in a gross profit margin of 0.4%[43]. - The loss for the year was RMB 387.2 million, compared to a loss of RMB 217.3 million in 2019, largely due to increased provisions for doubtful debts and decreased VAT refunds[52]. - The tight liquidity situation of customers has led to an increase in the bad debt provision ratio, impacting financial performance[30]. - The Group's subsidiaries have faced unsatisfactory performance due to production delays, resulting in a larger amount of goodwill impairment[30]. Market Outlook - The copper price dropped to RMB 35,300 per ton in early 2020 due to COVID-19 but rebounded to RMB 59,640 per ton by the end of the year, the highest level since 2013[14]. - The International Monetary Fund (IMF) predicts a global economic growth of 5.5% in 2021, with China's economy expected to grow by 8.1%[19]. - The demand for copper is anticipated to increase due to new infrastructure projects, new energy vehicles, and high-tech appliances, positioning the Company to benefit from this trend[20]. - The gradual recovery from the pandemic in major regions is expected to sustain copper demand, supporting the Company's market position[14]. - The Group expects China's economy to continue improving, with a projected GDP growth of 8.1% in 2021, supported by the rollout of COVID-19 vaccines[22]. - The Chinese government is expected to introduce stimulus measures during the 14th Five-Year Plan to support the resource recycling industry, providing unprecedented opportunities for the Company[21]. - The Chinese government's guidance on establishing a green low-carbon circular economy is anticipated to create unprecedented opportunities for the metal resource utilization sector[22]. Strategic Initiatives - The Company plans to broaden its product range and pursue further vertical integration in response to favorable market conditions[7]. - The Group aims to strengthen its innovation and R&D capabilities to improve product quality and service levels, thereby increasing market share[26]. - The Company is well positioned to become a leading integrated recycled copper product supplier in China, leveraging its advantages in raw material supply and governmental policies[7]. - The Group plans to expand its business footprint gradually to create long-term value for shareholders[26]. Financial Position - The capital structure as of December 31, 2020, consisted mainly of shareholders' equity and interest-bearing borrowings, with no material seasonality in borrowing requirements[54]. - As of December 31, 2020, the Group's total interest-bearing borrowings increased by RMB 187.1 million to RMB 1,885.7 million compared to RMB 1,698.6 million as of December 31, 2019[67]. - The Group's cash and cash equivalents amounted to RMB 47.3 million as of December 31, 2020, down from RMB 64.7 million as of December 31, 2019[63]. - Trade and bills receivables increased by RMB 940.7 million to RMB 2,129.7 million as of December 31, 2020, with turnover days increasing to 36.3 days from 15.7 days in 2019[63]. - The Group's inventories decreased by RMB 247.0 million to RMB 316.8 million as of December 31, 2020, compared to RMB 563.8 million as of December 31, 2019[63]. - Trade and bills payables increased by RMB 508.7 million to RMB 1,068.6 million as of December 31, 2020, with payable turnover days increasing to 17.9 days from 8.3 days in 2019[66]. - The debt to equity ratio increased to 126.7% as of December 31, 2020, compared to 1.1 in 2019, mainly due to the increase in interest-bearing borrowings and a net loss for the year[73]. Management and Governance - The management discussion and analysis section provides insights into the overall business strategy and performance outlook[129]. - The company has appointed several experienced directors, enhancing its strategic and operational capabilities[140][142][148]. - The management team has a strong background in both operational and financial aspects, which is expected to drive future growth[140][142][148]. - The company aims to improve financial reporting and transparency under the guidance of its experienced finance director[142]. - The board includes members with extensive experience in various industries, enhancing strategic decision-making[148]. Shareholder Information - As of December 31, 2020, Mr. Yu Jiangiu holds 6,204,000 shares, representing approximately 0.24% of the company's total shares[174]. - Mr. Huang Weiping has a significant interest in controlled corporations, holding 532,794,400 shares, which is approximately 20.25% of the total shares[174]. - The company has not granted any rights to acquire shares or debentures to directors or their immediate family members during the year ended December 31, 2020[183]. - The company has not disclosed any significant transactions or contracts involving directors that would impact the group's business during the year[170]. - The interests of directors and chief executives in the company's shares and associated corporations were recorded as required by the SFO[175]. Operational Highlights - The Group is a manufacturer of recycled copper products, also known as copper semis, in Southwest China[158]. - The Group's principal activities include the manufacturing of recycled copper products and trading of electrolytic copper[158]. - The company primarily funded its capital expenditures through internal channels[118]. - The group had no significant acquisitions or disposals of subsidiaries or associates during the reporting period[118]. - The company is actively involved in the environmental technology sector, indicating a commitment to sustainable practices[140].

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was RMB 11,694,871,000, an increase of 14.8% compared to RMB 10,186,358,000 for the same period in 2019[11] - The net loss attributable to shareholders for the six months ended June 30, 2020, was RMB (156,150,000), compared to a profit of RMB 44,026,000 in the same period of 2019[12] - The net loss margin for the six months ended June 30, 2020, was (1.53)%, compared to a profit margin of 0.38% in the same period of 2019[21] - For the six months ended June 30, 2020, the total revenue was RMB 10,186,400,000, a decrease of 12.9% compared to RMB 11,694,900,000 for the same period in 2019[33] - The company reported a loss of RMB 156,200,000 for the six months ended June 30, 2020, compared to a profit of RMB 44,000,000 for the same period in 2019[38] - Basic and diluted loss per share for the period was RMB (0.06), compared to earnings of RMB 0.02 per share in the previous year[167] Financial Position - Total assets increased by 18.1% to RMB 6,141,237,000 as of June 30, 2020, compared to RMB 5,200,642,000 as of December 31, 2019[17] - Total liabilities rose by 32.8% to RMB 4,501,356,000 as of June 30, 2020, up from RMB 3,390,555,000 as of December 31, 2019[18] - Total equity decreased by 9.4% to RMB 1,639,881,000 as of June 30, 2020, compared to RMB 1,810,087,000 as of December 31, 2019[19] - Cash and cash equivalents decreased by 27.3% to RMB 47,051,000 as of June 30, 2020, down from RMB 64,703,000 as of December 31, 2019[16] - The company's net current assets decreased to RMB 658,338 thousand from RMB 860,795 thousand in the previous year[173] - Net assets as of June 30, 2020, were RMB 1,639,881 thousand, down from RMB 1,810,087 thousand as of December 31, 2019, indicating a decline of about 9.4%[175] Cash Flow and Liquidity - Cash flow from operating activities for the six months ended June 30, 2020, was RMB 325,755 thousand, compared to a cash outflow of RMB 145,055 thousand for the same period in 2019[191] - The company reported a net cash outflow of RMB 17,709 thousand in cash and cash equivalents for the six months ended June 30, 2020[191] - As of June 30, 2020, the company had bank loans and other borrowings amounting to RMB 493,500 thousand, with repayments of RMB 456,709 thousand during the period[191] Inventory and Receivables - Inventory increased by RMB 807,000,000 to RMB 1,370,800,000, with inventory turnover days rising from 7.5 days to 17.1 days[50] - Trade receivables decreased by RMB 71,900,000 to RMB 1,117,100,000, with turnover days increasing from 15.7 days to 20.5 days[51] Debt and Financing - Total interest-bearing borrowings increased by RMB 116,900,000 to RMB 1,815,500,000 as of June 30, 2020, compared to RMB 1,698,600,000 as of December 31, 2019[51] - The debt-to-equity ratio increased to 110.7 as of June 30, 2020, compared to 107.8 on December 31, 2019, due to an increase in interest-bearing bank and other borrowings[56] - The company has a total of RMB 300,000,000 in entrusted loans from Mianyang Science and Technology City Development Investment (Group) Co., Ltd. (Kefa) with no repayment required until further agreement[52] Operational Challenges and Management Actions - The company anticipates a challenging operating environment for the second half of 2020 due to the ongoing impact of COVID-19[26] - The management is implementing a series of financing plans to strengthen financial stability and prepare for future opportunities[28] - The company is monitoring the impact of COVID-19 on its financial condition and operational performance[105] Shareholder Information - Major shareholders include Quaetus Capital Pte Ltd holding 280,312,902 shares (10.65%) and Black Horse Capital Asset Management Ltd holding 153,828,000 shares (5.85%) as of June 30, 2020[121][122] - The company’s chairman and executive director, Mr. Yu Jianqiu, holds 645,722,400 shares, representing 24.54% of the total[111] - The company’s major shareholder, China Huarong Asset Management Co., Ltd., holds 499,316,077 shares, representing 19.10%[127] Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the listing rules, with the roles of chairman and CEO currently held by the same individual, Yu Jianqiu[151] - The board has implemented measures to remind directors of trading restrictions during blackout periods to prevent future violations of the code of conduct[156] - The audit committee has reviewed the unaudited interim financial report for the six months ended June 30, 2020[161] Accounting and Reporting - The interim financial report includes unaudited condensed consolidated financial data and notes, which are essential for understanding the group's financial position and performance since the full-year financial statements for 2019[196] - The accounting policies adopted for the interim financial data are consistent with those used for the annual consolidated financial statements for the year ended December 31, 2019, with certain revised International Financial Reporting Standards applied for the current period[197] - The report emphasizes the importance of compliance with International Financial Reporting Standards in the preparation of financial statements[197]

C Z A gg China Metal Resources Utilization Limited 中國金屬資源利用有限公司 (a company incorporated under the laws of Cayman Islands with limited liability) (根據開曼群島法律註冊成立的有限公司) Stock Code 股份代號：1636 中期報告 Interim Report 2019 | --- | --- | |-------|--------------------------| | | | | | 目錄 | | 2 | 公司資料 | | 3 | 財務摘要 | | 4 | 管理層討論及分析 | | 16 | 其他資料 | | 27 | 中期簡明綜合損益表 | | 28 | 中期簡明綜合全面收益表 | | 29 | 中期簡明綜合財務狀況表 | | 31 | 中期簡明綜合權益變動表 | | 33 | 中期簡明綜合現金流量表 | | 34 | 中期簡明綜合財務資料附註 | 本中期報告的中、英文本已登載於本公司網站 http://www.cmru.com.cn/ 。股東如已選擇收 ...

源 ANNUAL R China Metal Resources Utilization Limited 中國金屬資源利用有限公司 (a company incorporated under the laws of Cayman Islands with limited liability) (根據開曼群島法律註冊成立的有限公司) Stock Code 股份代號 : 1636 e Contents 目錄 Corporate Profile 02 公司概況 Chairman's Statement 03 主席報告 Management Discussion and Analysis 05 管理層討論及分析 Directors and Senior Management 21 董事及高級管理層 Report of the Directors 27 董事會報告 Corporate Governance Report 58 企業管治報告 Independent Auditor's Report 79 獨立核數師報告 Consolidated Statement of Profit or Loss 92 綜合損益表 C ...