Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, reaching HKD 1.2 billion, representing a 15% year-over-year growth[3]. - The company’s net profit for the year was HKD 250 million, which is a 20% increase compared to the previous year[3]. - In 2024, the company's revenue was approximately RMB 5,896.7 million, a decrease of RMB 693.2 million or 10.5% compared to 2023's revenue of RMB 6,589.9 million[13]. - The gross profit for 2024 was RMB 31.7 million, down 89.3% from RMB 296.6 million in 2023, resulting in a gross margin of only 0.5%[13]. - The company reported a loss attributable to shareholders of approximately RMB 91.0 million in 2024, compared to a profit of RMB 85.7 million in 2023[16]. - Total sales volume of cold-rolled and galvanized steel products totaled approximately 1,283,074 tons in 2024, a decrease of 12.7% from 1,470,387 tons in 2023[16]. - The company's net asset value decreased by 17.7% to RMB 423.8 million in 2024, down from RMB 514.7 million in 2023[13]. - The debt level increased by 10.2% to RMB 2,510.4 million in 2024, compared to RMB 2,277.9 million in 2023[13]. - The debt-to-asset ratio rose to 67.5% in 2024 from 60.1% in 2023, indicating increased financial leverage[14]. Market Strategy and Growth - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[3]. - Huajin plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[3]. - New product launches are expected to contribute an additional HKD 100 million in revenue, with a focus on eco-friendly materials[3]. - The company is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HKD 200 million allocated for this purpose[3]. Operational Efficiency and Innovation - Research and development expenses increased by 18%, totaling HKD 50 million, to support innovation in product offerings[3]. - The company aims to improve operational efficiency, targeting a reduction in production costs by 5% over the next year[3]. - The company invested approximately RMB 604.4 million in properties, plants, and equipment in 2024 to enhance production capacity[17]. Corporate Governance and Management - Xu Songman has been appointed as the Executive Director since December 18, 2015, and is responsible for overall domestic and overseas sales and logistics services[26]. - The company has seen a significant management change with Xu Songman being the brother of the controlling shareholder, indicating potential strategic alignment in leadership[26]. - Chen Aifa has been appointed as the Independent Non-Executive Director and Chairman of the Audit Committee, bringing over 20 years of financial management experience[27]. - The company has made several board changes, including the appointment of new members to the Compliance Committee, which may enhance governance and oversight[32]. - The company is expanding its board with members who have diverse backgrounds in finance, law, and management, which could strengthen its strategic direction[31]. - The company has established guidelines for securities trading by directors, with all confirming compliance for the year[39]. - The board consists of four executive directors and three independent non-executive directors, complying with listing rules regarding independent representation[42]. - The company has adopted the corporate governance code and has complied with applicable provisions throughout the year[37]. Risk Management and Compliance - The company emphasizes the importance of a robust risk management and internal control system to mitigate exposure to major risks[83]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to undertake[82]. - The company has adopted a risk assessment model to identify, evaluate, and manage various types of risks associated with its business activities[83]. - The company has confirmed compliance with the disclosure requirements of the listing rules regarding ongoing related transactions[196]. Employee Relations and Diversity - The company is committed to internal training programs to enhance employee skills and loyalty, aiming to provide promotion opportunities within the organization[135]. - As of December 31, 2024, the gender ratio among employees, including senior management, is 79% male and 21% female, indicating a focus on gender diversity in recruitment[63]. - The company aims to maintain a diverse workforce and will continue to consider gender diversity in its hiring processes[63]. Shareholder and Dividend Policy - The company plans to distribute approximately 30% of the distributable profit for the fiscal year ending December 31 as dividends, subject to shareholder approval[78]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2024[140]. - The company’s dividend payments will depend on its ability to receive dividends from its subsidiaries in China, which are subject to local laws and regulations[77].

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的內 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 示 概 不 就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任 何 損 失 承 擔 任 何 責 任。 HUAJIN INTERNATIONAL HOLDINGS LIMITED 華津國際控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2738） 截 至2024年12月31日止年度 之全年業績 華 津 國 際 控 股 有 限 公 司（「本 公 司」，連 同 其 附 屬 公 司 統 稱「本 集 團」）之 董 事（「董 事」）會（「董 事 會」）欣 然 公 佈 下 述 根 據 香 港 財 務 報 告 準 則 編 製 之 本 集團截至2024年12月31日止年度的綜合業績並連同截至2023年12月31日 止 年 度 的 比 較 數 據。 截 至2024年12月31日止年度 – 1 – 綜合損益及其他全面收益表 | | | | | | | | | | | | | 2024年 | 2023年 | | -- ...

Revenue and Sales Performance - Revenue increased by 7.7% to RMB 3,206.5 million compared to RMB 2,976.8 million in the same period last year[4] - Total revenue for the six months ended June 30, 2024, was RMB 3,206,463,000, up from RMB 2,976,775,000 in the same period in 2023[24] - Revenue from cold-rolled steel products increased to RMB 1,669,663,000 in 2024 from RMB 1,572,966,000 in 2023, while revenue from galvanized steel products decreased to RMB 1,148,899,000 from RMB 1,178,601,000[24] - Revenue from customers in China (including Hong Kong) accounted for RMB 3,173,171,000 in 2024, compared to RMB 2,972,129,000 in 2023, while revenue from Southeast Asia increased to RMB 33,292,000 from RMB 4,646,000[27] - Revenue for the first half of 2024 increased by RMB 229.7 million or 7.7% to RMB 3,206.5 million compared to RMB 2,976.8 million in the same period of 2023[67] - Domestic sales in China contributed over 98.9% of revenue, with the remaining portion coming from sales to Southeast Asian customers[70] Profitability and Margins - Gross profit decreased by 32.4% to RMB 94.2 million, with a gross margin of 2.9%, down from 4.7% in the previous year[4] - Net profit attributable to the company's owners dropped by 57.1% to RMB 39.4 million, with a net profit margin of 0.5%, down from 1.3%[4] - Gross profit decreased to RMB 94.2 million in the first half of 2024 from RMB 139.3 million in the same period of 2023, with the gross profit margin dropping to 2.9% from 4.7%[77] - Net profit attributable to the company's owners decreased to RMB 16,885,000 in the first half of 2024, compared to RMB 39,446,000 in the same period in 2023[31] - The company's profit attributable to owners was approximately RMB 16.9 million in the first half of 2024, compared to RMB 39.4 million in the same period in 2023, with a net profit margin of 0.5% in 2024, down from 1.3% in 2023[85] Sales Volume and Pricing - Sales volume increased by 3.5% to 678,887 tons, while the average processing fee per ton decreased by 0.5% to RMB 439[4] - Total sales volume of cold-rolled steel and galvanized steel products increased by 23,059 tons or 3.5% to 678,887 tons in the first half of 2024 compared to 655,828 tons in the same period of 2023[67] - Cold-rolled steel product sales volume increased by 36,381 tons or 9.5% to 419,978 tons in the first half of 2024, while galvanized steel product sales volume decreased by 13,322 tons or 4.9% to 258,909 tons[70] - The average selling price of cold-rolled steel products decreased from RMB 4,249 per ton in the first half of 2023 to RMB 4,137 per ton in the first half of 2024, while the average selling price of galvanized steel products increased from RMB 4,329 per ton to RMB 4,437 per ton[70] Financial Position and Liabilities - Net asset value increased by 3.3% to RMB 531.9 million, with net asset value per share rising by 3.5% to RMB 0.89[4] - Total borrowings increased by 26.6% to RMB 2,882.7 million, leading to a gearing ratio of 542.0%, up from 442.6%[4] - Property, plant, and equipment increased to RMB 1,783.2 million from RMB 1,402.3 million, reflecting significant capital investment[10] - Trade receivables and other receivables rose to RMB 1,490.5 million, indicating an increase in credit sales[10] - Current liabilities increased to RMB 2,670.4 million, with short-term borrowings rising to RMB 1,845.2 million[10] - The company's cash and bank balances decreased to RMB 52.0 million from RMB 98.4 million, reflecting reduced liquidity[10] - Non-current liabilities increased to RMB 1,052,612 thousand as of June 30, 2024, compared to RMB 1,028,911 thousand at the end of 2023[11] - Net asset value rose to RMB 531,884 thousand as of June 30, 2024, up from RMB 514,749 thousand at the end of 2023[11] - The company's equity attributable to owners increased to RMB 529,960 thousand as of June 30, 2024, from RMB 512,825 thousand at the end of 2023[11] - The company's current liabilities exceeded its current assets by RMB 510,737,000 as of June 30, 2024, with contracted but unprovided capital commitments of RMB 185,794,000, of which RMB 156,517,000 is expected to be paid within the next 12 months[15] - The total bank financing for the company, including bank borrowings and bills payable, was approximately RMB 1,779,420,000 as of June 30, 2024, with RMB 1,129,200,000 utilized and RMB 650,220,000 unused[15] - The company's total borrowings increased to RMB 2.882 billion as of June 30, 2024, up from RMB 2.277 billion as of December 31, 2023, with fixed-rate borrowings accounting for RMB 2.636 billion[46] - Short-term borrowings (due within one year) increased to RMB 1.615 billion as of June 30, 2024, compared to RMB 1.145 billion as of December 31, 2023[46] - The company's secured borrowings increased to RMB 1.39 billion as of June 30, 2024, up from RMB 1.219 billion as of December 31, 2023[46] - The company's non-current liabilities related to borrowings decreased to RMB 928.724 million as of June 30, 2024, from RMB 952.563 million as of December 31, 2023[46] - The company's total borrowings increased to approximately RMB 2,882.7 million as of June 30, 2024, compared to RMB 2,277.9 million as of December 31, 2023, with a gearing ratio of 5.42 times, up from 4.43 times[87] Cash Flow and Liquidity - Operating cash flow before working capital changes was RMB 72,001 thousand for the six months ended June 30, 2024[13] - Net cash used in operating activities was RMB 603,779 thousand for the six months ended June 30, 2024[13] - Net cash used in investing activities was RMB 396,883 thousand for the six months ended June 30, 2024[14] - Net cash generated from financing activities was RMB 954,332 thousand for the six months ended June 30, 2024[14] - Cash and cash equivalents decreased by RMB 46,330 thousand during the six months ended June 30, 2024[14] - The company raised new borrowings of RMB 1,579,675 thousand during the six months ended June 30, 2024[14] - Repayment of borrowings amounted to RMB 557,231 thousand during the six months ended June 30, 2024[14] - The company generated a net cash outflow of RMB 46,330,000 and a net operating cash outflow of RMB 603,779,000 for the six months ended June 30, 2024[15] - The company's bank balances and cash decreased by RMB 46.4 million or 47.2% to approximately RMB 52.0 million as of June 30, 2024, compared to December 31, 2023, while restricted bank deposits increased by RMB 107.4 million or 43.4% to RMB 355.1 million[85] Expenses and Costs - Financial costs for the six months ended June 30, 2024, were RMB 53,216,000, up from RMB 35,072,000 in the same period in 2023, primarily due to increased interest expenses on borrowings[28] - The company's income tax expense for the six months ended June 30, 2024, was RMB 2,592,000, down from RMB 8,831,000 in the same period in 2023[29] - Employee benefits expenses increased to RMB 70,288,000 in the first half of 2024, up from RMB 60,445,000 in the same period in 2023[30] - Property, plant, and equipment depreciation amounted to RMB 51,120,000 in the first half of 2024, compared to RMB 45,873,000 in the same period in 2023[30] - Direct materials accounted for 92.1% of the cost of sales in the first half of 2024, primarily due to increased sales of cold-rolled steel products and hot-rolled steel coils[75] - Other income, other gains, and losses increased to approximately RMB 24.5 million in the first half of 2024, up by RMB 22.5 million or 1,125.0% compared to the same period in 2023, primarily due to VAT credits, unrealized gains from commodity futures contracts, and penalty income from scrap steel sales[78] - Sales expenses decreased to approximately RMB 16.8 million in the first half of 2024, down by RMB 17.1 million or 50.4% compared to the same period in 2023, mainly due to reduced delivery costs[79] - Administrative expenses increased to approximately RMB 36.9 million in the first half of 2024, up by RMB 9.9 million or 36.7% compared to the same period in 2023, driven by increases in salaries, employee compensation, consumables, and depreciation of right-of-use assets[80] - Investment income was approximately RMB 6.1 million in the first half of 2024, compared to RMB 0.5 million in the same period in 2023, mainly due to realized gains from commodity futures contracts[82] - Financial costs increased to approximately RMB 53.2 million in the first half of 2024, up by RMB 18.1 million or 51.6% compared to the same period in 2023, primarily due to higher borrowing levels[83] Receivables and Payables - Trade receivables increased to RMB 108,186,000 as of June 30, 2024, up from RMB 82,279,000 as of December 31, 2023[35] - Notes receivable surged to RMB 432,395,000 as of June 30, 2024, compared to RMB 234,474,000 as of December 31, 2023[35] - Trade receivables aged within 30 days increased to RMB 92,128,000 as of June 30, 2024, up from RMB 70,339,000 as of December 31, 2023[37] - Notes receivable aged between 121 to 180 days increased significantly to RMB 211,470,000 as of June 30, 2024, compared to RMB 47,254,000 as of December 31, 2023[37] - The company transferred receivables worth RMB 294.1 million as of June 30, 2024, compared to RMB 175.4 million as of December 31, 2023, with full recourse arrangements similar to previous periods[39] - Trade payables decreased to RMB 103.223 million as of June 30, 2024, from RMB 109.671 million as of December 31, 2023[40] - Trade payables aged within 30 days decreased to RMB 44.449 million as of June 30, 2024, from RMB 48.305 million as of December 31, 2023[42] - The company's total trade payables (excluding endorsed bills) decreased to RMB 76.146 million as of June 30, 2024, from RMB 106.104 million as of December 31, 2023[42] Capital Expenditures and Investments - The company acquired property, plant, and equipment with construction costs of RMB 432,236,000 in the first half of 2024, a significant increase from RMB 79,547,000 in the same period in 2023[34] - The company obtained a new land use right for RMB 41,613,000 in the first half of 2024, compared to RMB 25,710,000 in the same period in 2023[34] - Capital commitments for the acquisition of property, plant, and equipment amounted to RMB 185,794 thousand as of June 30, 2024[54] - Capital commitments for property, plant, and equipment amounted to RMB 185.8 million as of June 30, 2024, down from RMB 257.4 million as of December 31, 2023[69] - The company completed the construction of the Huajin Wharf No. 3 berth in early 2024 and obtained a port operation license, with the second phase of the wharf project expected to be completed and accepted around September 10, 2024[92] - The company plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, while the wharf business is expected to broaden income sources, reduce transportation costs, and improve distribution and storage efficiency[92] Share Capital and Ownership - The company's issued share capital remained unchanged at 600 million shares with a nominal value of HKD 6 million as of June 30, 2024[48] - The company had 25,272,720 share options outstanding under its share option plan as of June 30, 2024, with no changes during the period[49] - The company granted a total of 25,272,720 share options as of June 30, 2024, with an exercise price of HKD 2.75 per share[53] - The fair value of share options granted, determined using the binomial model, was HKD 11,598,000[53] - Xu Songqing holds 391,500,000 shares, representing 65.25% of the company's issued share capital[93] - Luo Canwen holds 54,000,000 shares, representing 9.00% of the company's issued share capital[93] - Haiyi Limited, controlled by Intrend Ventures, holds 391,500,000 shares, representing 65.25% of the company's issued share capital[97] - Zhongcheng Limited, controlled by Luo Canwen, holds 54,000,000 shares, representing 9.00% of the company's issued share capital[97] - The company's total issued share capital as of June 30, 2024, is 600,000,000 shares[94] - Xu Songqing, Xu Jianhong, Luo Canwen, and Xu Songman each hold 1,818,181 shares, representing 0.30% of the company's issued share capital[95] - The company has a total of 7,272,724 unexercised share options as of June 30, 2024[100] - The total number of share options granted and outstanding as of June 30, 2024, is 25,272,720[101] - No share options were exercised or granted during the six months ended June 30, 2024[102] Dividends and Shareholder Returns - The company did not declare any interim dividend for the period ending June 30, 2024, consistent with the same period in 2023[32] - The company did not declare an interim dividend for the six months ended June 30, 2024[108] Corporate Governance and Compliance - The company maintained the required public float as per listing rules during the six months ended June 30, 2024[111] - The audit committee reviewed the unaudited condensed consolidated financial statements and confirmed they were prepared in accordance with applicable accounting standards[112] Company Information and Contacts - The company's registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1–1111, Cayman Islands[115] - The company's headquarters in China is situated in Jiangmen City, Xinhui District, Guangdong Province[115] - The main business location in Hong Kong is at 14 Science Museum Road, Tsim Sha Tsui East, New Man Sang Centre, Block A, 5th Floor, Room 18[115] - The company's stock code is 2738[115] - The company's website is www.huajin-hk.com[115] - The company's auditor is Deloitte Touche Tohmatsu, a registered public interest entity auditor[115] - The company's primary bank relationships include Agricultural Bank of China Jiangmen Xinhui Branch, Jiangmen Rural Commercial Bank, and Guangzhou Bank Jiangmen Branch[115] - The company's share registrar in Hong Kong is United Securities Registration Limited, located at 338 King's Road, North Point, Hong Kong[115] - The company's board of directors includes executive directors Xu Songqing (Chairman), Xu Jianhong (Vice Chairman), and Luo Fengwen (CEO)[115] - The company's audit committee is chaired by Sun Duowei, with members Ou Qiyuan and Ye Yating[115] Financial Assets and Liabilities - The fair value of financial assets measured at fair value through profit or loss (futures products) was RMB 3,021 thousand as of June 30, 2024[59] - The fair value of financial assets measured at fair value through other comprehensive income (private equity investments) was RMB 1,799 thousand as of June 30, 2024[59] - Total assets pledged as collateral for borrowings amounted to RMB 1,941,528 thousand as of June 30, 2024[56] Remuneration and Compensation - Total remuneration for directors and key

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 3,206,463,000, an increase of 7.7% compared to RMB 2,976,775,000 for the same period in 2023[2] - The gross profit for the same period was RMB 94,189,000, down 32.3% from RMB 139,340,000 in the previous year[2] - The net profit attributable to the owners of the company was RMB 16,885,000, a decrease of 57.3% from RMB 39,446,000 in the prior year[2] - Basic and diluted earnings per share were both RMB 2.81, down from RMB 6.57 in the same period last year[2] - Financial costs for the six months ended June 30, 2024, totaled RMB 51,492 thousand, compared to RMB 32,606 thousand for the same period in 2023, indicating a significant increase in financial expenses[12] - The income tax expense for the period was RMB 2,592 thousand, a decrease from RMB 8,831 thousand in the previous year, reflecting a reduction in tax liabilities[13] - Employee benefits expenses increased to RMB 70,288 thousand from RMB 60,445 thousand, representing a rise of 16.4% year-on-year[14] - The company incurred administrative expenses and financial costs that contributed to the decrease in net profit for the first half of 2024[39] - Gross profit decreased to approximately RMB 94.2 million in the first half of 2024, down from RMB 139.3 million in the same period of 2023, resulting in a gross margin of about 2.9%[45] - Net profit attributable to the company was approximately RMB 16.9 million in the first half of 2024, down from RMB 39.4 million in the same period of 2023, resulting in a net profit margin of about 0.5%[52] Revenue Sources - Sales of cold-rolled steel products amounted to RMB 1,669,663 thousand, up from RMB 1,572,966 thousand, reflecting a growth of 6.2%[10] - The group generated revenue primarily from customers located in China (including Hong Kong) amounting to RMB 3,173,171 thousand, which is a 6.7% increase from RMB 2,972,129 thousand in the previous year[11] - The total sales volume of cold-rolled steel products and galvanized steel products combined was 678,887 tons in the first half of 2024, an increase of 23,059 tons or 3.5% from 655,828 tons in the first half of 2023[39] - Sales of cold-rolled steel products contributed RMB 1,737.6 million, accounting for 54.2% of total revenue, while galvanized steel products generated RMB 1,148.9 million, representing 35.8% of total revenue[41] Assets and Liabilities - As of June 30, 2024, total assets were RMB 4,254,846,000, compared to RMB 3,787,675,000 as of December 31, 2023[3] - The company had current liabilities exceeding current assets by RMB 510,737,000 as of June 30, 2024[5] - The company’s non-current liabilities included bank loans due after one year amounting to RMB 1,037,461,000, an increase from RMB 1,011,520,000 at the end of 2023[4] - The company’s total equity increased to RMB 531,884,000 from RMB 514,749,000 at the end of 2023[4] - The company reported a total of RMB 1,490,489,000 in receivables as of June 30, 2024, compared to RMB 1,311,308,000 as of December 31, 2023, reflecting an increase of approximately 13.7%[18] - The company reported fixed-rate borrowings of RMB 1,390,941,000 as of June 30, 2024, an increase of 14.1% from RMB 1,219,202,000 as of December 31, 2023[27] - Total borrowings increased to RMB 2,882,682,000 as of June 30, 2024, up 26.5% from RMB 2,277,902,000 at the end of 2023[27] Cash Flow and Financing - The company reported a net cash outflow of RMB 46,330,000 and an operating cash outflow of RMB 603,779,000 for the six months ended June 30, 2024[5] - As of June 30, 2024, the group's bank balance and cash decreased by approximately RMB 46.4 million or 47.2% to about RMB 52.0 million from RMB 98.4 million as of December 31, 2023[53] - The group's restricted bank deposits increased by approximately RMB 107.4 million or 43.4% to about RMB 355.1 million as of June 30, 2024, compared to RMB 247.7 million as of December 31, 2023[53] - The group had a total bank financing of approximately RMB 1,779.4 million as of June 30, 2024, compared to RMB 1,649.8 million as of December 31, 2023[54] Corporate Governance - The company has maintained compliance with the corporate governance principles as outlined in the Listing Rules Appendix C1, as of June 30, 2024[67] - The Audit Committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, confirming they are prepared in accordance with applicable accounting standards[70] - The company emphasizes the importance of effective corporate governance standards to ensure stable and transparent operations, which can attract investors and enhance shareholder value[66] Dividends and Share Capital - The company did not declare an interim dividend for the period ending June 30, 2024, consistent with the previous year[17] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[40] - The company’s issued share capital remained at 600,000,000 shares as of June 30, 2024, unchanged from the previous reporting period[29] Operational Developments - The group completed the construction of Wharf No. 3 at Huajin Wharf in early 2024 and obtained the port operation permit on January 23, 2024[62] - The main business of cold-rolled and galvanized steel processing services will continue to provide stable revenue sources for the group[62] - The second phase of Huajin Wharf construction is expected to be completed around September 10, 2024[62]

Financial Performance - Huajin International Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2023, representing a year-on-year increase of 15%[2]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[2]. - The company's revenue for 2023 was approximately RMB 6,589.9 million, an increase of 41.3% compared to RMB 4,663.6 million in 2022[12]. - The net profit attributable to the owners of the company for 2023 was approximately RMB 85.7 million, recovering from a loss of RMB 165.3 million in 2022[12]. - The company's gross profit for 2023 was approximately RMB 296.6 million, compared to a gross loss of approximately RMB 20.1 million in 2022[115]. - In 2023, the gross profit margin was approximately 4.5%, compared to a gross loss margin of about 0.4% in 2022[116]. - The sales cost for 2023 increased to approximately RMB 6,293.3 million, an increase of RMB 1,609.6 million or 34.4% from RMB 4,683.7 million in 2022[109]. Operational Highlights - User data indicated a growth in active users by 25%, reaching a total of 500,000 users by the end of 2023[2]. - The company has launched a new product line that is expected to contribute an additional HKD 100 million in revenue in the next fiscal year[2]. - Sales volume of cold-rolled and galvanized steel products reached approximately 1,470,387 tons, a 53.5% increase from 958,126 tons in 2022[12]. - The average processing cost per ton increased by 24.4% to RMB 418 from RMB 336 in 2022[12]. - The company aims to enhance its production capacity and operational efficiency through significant investments in properties, plants, and equipment, totaling approximately RMB 389.2 million in 2023[17]. Strategic Outlook - The company provided a positive outlook for 2024, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion[2]. - Huajin International is investing HKD 50 million in R&D for new technologies aimed at enhancing operational efficiency[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[2]. - Huajin International is considering strategic acquisitions to bolster its supply chain, with a budget of up to HKD 200 million allocated for potential deals[2]. Corporate Governance - The board emphasizes the importance of high corporate governance standards for stable and transparent operations, which attract investors and protect shareholder interests[39]. - The company has adhered to the corporate governance code throughout the year ending December 31, 2023[39]. - The management team includes experienced professionals with over 15 years in accounting and finance, ensuring effective oversight and strategic direction[36]. - The board consists of independent non-executive directors who contribute to audit, remuneration, and nomination committees, enhancing governance practices[30][31]. - The company has a strong focus on effective internal controls and independent policies to ensure accountability and transparency[39]. Risk Management - The company emphasizes the importance of effective risk management and internal control systems to mitigate exposure to major risks[93]. - There were no significant changes in the nature or scope of major risks that could adversely affect the company's financial condition or operations during the reporting period[93]. - The internal control system covers key financial, operational, and compliance monitoring to safeguard assets from unauthorized use[95]. - The board is responsible for evaluating and determining the nature and extent of risks the group is willing to accept[92]. Shareholder Information - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[22]. - The company plans to propose a dividend distribution of approximately 30% of the net distributable profits for the fiscal year ending December 31, subject to shareholder approval[87]. - As of December 31, 2023, the company's distributable reserves amounted to approximately RMB 1.729 billion, a decrease from RMB 1.771 billion as of December 31, 2022[159]. - The total number of shares available for issuance under the share option scheme is capped at 60 million shares, representing 10% of the issued share capital post-listing[171]. Diversity and Inclusion - The company plans to appoint a female director by December 31, 2024, to enhance gender diversity on the board[69]. - As of December 31, 2023, the gender ratio among employees is 79% male and 21% female, with ongoing efforts to improve gender diversity in recruitment[70]. - The company has adopted a board diversity policy that considers various factors, including professional experience, skills, and gender[67]. Related Party Transactions - Significant related party transactions are detailed in the consolidated financial statements[200]. - The company has not entered into any significant transactions or arrangements that would create a conflict of interest for its directors[193]. - The independent non-executive directors confirmed that the controlling shareholders have fully complied with the non-competition agreement for the year ending December 31, 2023[199].

Financial Performance - The company reported its consolidated performance for the year ended December 31, 2023, with a focus on clarifying discrepancies in the Chinese and English versions of the announcement[1] Leadership - The board of directors includes key executives such as Chairman Xu Songqing and CEO Luo Canwen, indicating strong leadership continuity[2]

Sales Volume and Revenue - Sales volume of cold-rolled steel products increased to approximately 886,949 tons in 2023, up 44.2% from 614,740 tons in 2022[5] - Sales volume of galvanized steel products increased to approximately 583,438 tons in 2023, up 69.9% from 343,386 tons in 2022[5] - Total sales volume of cold-rolled and galvanized steel products reached approximately 1,470,387 tons in 2023, up 53.5% from 958,126 tons in 2022[5] - Revenue from cold-rolled steel products sales increased to RMB 3,573,976 thousand in 2023, up from RMB 2,655,077 thousand in 2022[62] - Revenue from galvanized steel products sales rose to RMB 2,498,571 thousand in 2023, compared to RMB 1,553,571 thousand in 2022[62] - Total revenue for 2023 reached RMB 6,589,901 thousand, up from RMB 4,663,563 thousand in 2022[62] - Revenue in 2023 increased by RMB 1,926.3 million or 41.3% to RMB 6,589.9 million compared to RMB 4,663.6 million in 2022[101] - Revenue from sales of cold-rolled steel products and galvanized steel products increased by RMB 1,926.3 million or 41.3% to RMB 6,589.9 million in 2023 from RMB 4,663.6 million in 2022[116] - Revenue from sales increased to RMB 6,589.9 million in 2023 from RMB 4,663.6 million in 2022[191] Average Selling Prices - Average selling price of cold-rolled steel products decreased to RMB 4,174 per ton in 2023 from RMB 4,644 per ton in 2022[17] - Average selling price of galvanized steel products decreased to RMB 4,282 per ton in 2023 from RMB 4,524 per ton in 2022[17] Cost of Sales and Gross Profit - Direct materials accounted for over 92% of the cost of sales in 2023, up from 90% in 2022[30] - Gross profit margin was approximately 4.5% in 2023, compared to a gross loss margin of 0.4% in 2022[32] - Direct material costs accounted for 92.2% of total cost of sales in 2023 (2022: 90.4%), with utilities expenses increasing by RMB 53.1 million or 28.6% to RMB 238.6 million[137][138] - The company recorded a gross profit of approximately RMB 296.6 million in 2023, compared to a gross loss of RMB 20.1 million in 2022, driven by increased sales volume, higher average processing fees, and lower unit sales costs[140] - Gross profit improved to RMB 296.6 million in 2023 from a loss of RMB 20.1 million in 2022[191] Capital Expenditures and Investments - Capital commitments for the acquisition of property, plant, and equipment were approximately RMB 257.4 million as of December 31, 2023, up from RMB 90.9 million as of December 31, 2022[4] - The company invested approximately RMB 389.2 million in property, plant, and equipment and construction costs in 2023[3] - Capital expenditures for property, plant, and equipment increased from RMB 90,895 thousand in 2022 to RMB 257,440 thousand in 2023[99] - The company had committed capital expenditures of RMB 257,440,000 as of December 31, 2023, with RMB 199,099,000 to be paid within the next 12 months[193] Financial Costs and Borrowings - Financial costs increased to approximately RMB 80.6 million in 2023, up 1.5% from RMB 79.4 million in 2022[23] - The company's capital borrowing costs for the year ended December 31, 2023, were capitalized at an annual rate of 5.87%[43] - Financial costs for borrowing interest expenses rose to RMB 80,423 thousand in 2023, compared to RMB 79,272 thousand in 2022[83] - The company's total borrowings as of December 31, 2023, amounted to approximately RMB 2,277.9 million, compared to RMB 1,516.1 million as of December 31, 2022[198] Taxation and Subsidies - The company's two major subsidiaries in China have been recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of 15% from 2022 to 2024[34] - The company's Hong Kong profits tax is calculated at 16.5% of the estimated taxable profits for the two years mentioned[45] - The company's deferred income includes a subsidy of RMB 33,000,000, with RMB 3,300,000 recognized in the income statement for the year ended December 31, 2023[41] - Income tax expense for the year was RMB 15,681 thousand in 2023, compared to a tax credit of RMB 32,119 thousand in 2022[84] - Income tax expenses were RMB 15.7 million in 2023, compared to an income tax credit of RMB 32.1 million in 2022[177] Trade Receivables and Payables - Trade receivables and notes amounted to RMB 233,499 thousand in 2023, up from RMB 113,174 thousand in 2022[72] - Trade receivables from customer contracts increased to RMB 82,279 thousand in 2023, up from RMB 50,260 thousand in 2022, with a credit loss provision of RMB 3,385 thousand[76] - Notes receivable surged to RMB 234,474 thousand in 2023, compared to RMB 116,802 thousand in 2022[76] - Trade receivables increased to RMB 78,894 thousand in 2023 from RMB 49,038 thousand in 2022, with the majority (RMB 70,339 thousand) within 30 days[118] - Notes receivable increased significantly to RMB 234,474 thousand in 2023 from RMB 116,802 thousand in 2022, with the largest portion (RMB 61,337 thousand) in the 61-90 days category[118] - Trade payables decreased from RMB 135,557 thousand in 2022 to RMB 106,104 thousand in 2023[93] - Total trade payables, notes payable, and other payables increased from RMB 382,845 thousand in 2022 to RMB 386,288 thousand in 2023[108] - Overdue trade receivables over 90 days increased slightly from RMB 2,078 thousand in 2022 to RMB 2,293 thousand in 2023[105] Employee and Administrative Expenses - Employee benefits expenses increased to RMB 123,007 thousand in 2023, up from RMB 116,654 thousand in 2022[88] - Total employee costs, including director remuneration, amounted to RMB 123.0 million in 2023, up from RMB 116.7 million in 2022[161] - Administrative expenses decreased to RMB 58.6 million in 2023, down by RMB 6.2 million or 9.6% compared to RMB 64.8 million in 2022, mainly due to reduced share-based payments and business-related expenses[153] Net Profit and Loss - Net profit attributable to owners in 2023 was RMB 85.7 million, compared to a net loss of RMB 165.3 million in 2022[101] - The company's attributable profit in 2023 was RMB 85.7 million, compared to an attributable loss of RMB 165.3 million in 2022[155] - Net profit for the year was RMB 85.5 million in 2023, compared to a loss of RMB 165.3 million in 2022[191] Cash Flow and Bank Balances - Bank balances and cash increased by RMB 82.3 million or 511.2% to RMB 98.4 million as of December 31, 2023, compared to RMB 16.1 million in 2022[145] - Restricted bank deposits increased by RMB 58.3 million or 30.8% to RMB 247.7 million as of December 31, 2023, compared to RMB 189.4 million in 2022[145] - The company generated a net cash outflow of RMB 82,265,000 and a net operating cash outflow of RMB 371,976,000 for the year ended December 31, 2023[193] - The company's bank balances and cash increased to RMB 98,386,000 as of December 31, 2023, from RMB 16,093,000 as of December 31, 2022[200] Inventory and Consumables - Cost of inventories recognized as expenses rose to RMB 6,295,708 thousand in 2023, compared to RMB 4,681,334 thousand in 2022[88] - Consumables increased to RMB 82.4 million in 2023, up by RMB 3.3 million or 4.2% compared to RMB 79.1 million in 2022, driven by increased production activities of cold-rolled and galvanized steel products[169] Other Income and Gains - Other income, primarily from sales of hot-rolled steel products and processing services, accounted for 5.9% of total revenue in 2023 (2022: 5.5%)[135] - Other income, other gains, and losses increased to RMB 8.8 million, a 95.6% increase from RMB 4.5 million in 2022[170] - The company recognized investment gains of RMB 0.2 million from commodity futures contracts in 2023, compared to a loss of RMB 0.7 million in 2022[176] Financial Position and Ratios - The company's reserves increased to RMB 507,826 thousand in 2023 from RMB 420,339 thousand in 2022[65] - Net current liabilities decreased to RMB 266.7 million as of December 31, 2023, from RMB 452.1 million as of December 31, 2022[125] - The group's net current liabilities decreased to RMB 266.7 million in 2023 from RMB 452.1 million in 2022, while net asset value increased to RMB 514.7 million from RMB 425.3 million[181] - The current ratio improved to 88.1% in 2023 from 76.5% in 2022[181] - The company's equity value as of December 31, 2023, was approximately RMB 514.7 million, up from RMB 425.3 million as of December 31, 2022[198] - The company's asset-liability ratio, calculated as total borrowings divided by total equity, was approximately 4.43x as of December 31, 2023, compared to 3.56x as of December 31, 2022[198] - The company's current liabilities exceeded current assets by RMB 266,735,000 as of December 31, 2023[193] - The company's total assets less current liabilities amounted to RMB 1,543,660,000 as of December 31, 2023, compared to RMB 874,623,000 as of December 31, 2022[200] - The company's inventory, trade receivables, and other receivables increased to RMB 1,311,308,000 as of December 31, 2023, from RMB 1,145,641,000 as of December 31, 2022[200] Customer and Geographic Revenue - Customer A contributed RMB 1,084,556 thousand, accounting for over 10% of the total revenue in 2023[63] - Revenue from China (including Hong Kong) accounted for RMB 6,557,538 thousand in 2023, compared to RMB 4,642,217 thousand in 2022[75] - Revenue from Southeast Asia increased to RMB 32,363 thousand in 2023, up from RMB 21,346 thousand in 2022[75] - Domestic sales in the Chinese market (including Hong Kong) contributed over 99.5% of revenue in 2023, with the remaining portion from sales to Southeast Asian customers[129] Product Warranty and Customer Returns - The company's product warranty allows customers to return defective products within 15 days for free repair or replacement[38] Financial Reporting and Accounting Policies - The company's financial statements are prepared on a going concern basis, with sufficient financial resources to meet obligations[48] - The company's application of new and revised Hong Kong Financial Reporting Standards had no significant impact on its financial position or performance[49] - The company's deferred tax assets and liabilities related to lease arrangements were recognized as of January 1, 2022[50] - The company's accounting policy disclosures have been clarified to ensure significant policies are not obscured by non-significant ones[52] Dividends - No dividends were declared or paid in either 2023 or 2022[90] Sales Expenses - Sales expenses increased to RMB 69.0 million in 2023, up by RMB 29.6 million or 75.1% compared to RMB 39.4 million in 2022, primarily due to higher delivery costs from increased product sales[142] Depreciation - Depreciation of property, plant, and equipment decreased to RMB 76,851 thousand in 2023 from RMB 91,326 thousand in 2022[88] Prepayments and Government Grants - Prepayments to suppliers decreased to RMB 811,352 thousand in 2023 from RMB 857,483 thousand in 2022[76] - Government grants increased significantly to RMB 8,203 thousand in 2023, up from RMB 4,165 thousand in 2022[81] Contract Liabilities - Contract liabilities increased from RMB 454,141 thousand in 2022 to RMB 586,844 thousand in 2023[94] Credit Period - The company's credit period for long-term customers with good credit quality remains at 90 days, unchanged from 2022[103] Product Revenue Breakdown - Sales of cold-rolled steel products accounted for 56.2% of total revenue in 2023 (2022: 61.2%), while galvanized steel products increased to 37.9% of revenue (2022: 33.3%)[136] - Cold-rolled steel products revenue increased to RMB 375 million, up from RMB 379 million in the previous year[170] - Galvanized steel products revenue decreased to RMB 483 million, down from RMB 259 million in the previous year[170] Net Profit Margin - Net profit margin in 2023 was 1.3%, compared to a net loss margin of 3.5% in 2022[145] Sales Cost - Sales cost increased to RMB 6,293.3 million in 2023, up by RMB 1,609.6 million or 34.4% compared to RMB 4,683.7 million in 2022[168]

Sales Performance - In the first half of 2023, the total sales volume of cold-rolled and galvanized steel products reached 655,828 tons, an increase of 297,628 tons or 83.1% compared to 358,200 tons in the same period of 2022[5] - Revenue for the six months ended June 30, 2023, was RMB 2,976.8 million, an increase of 49.4% compared to RMB 1,991.9 million in the same period of 2022[90] - Revenue from cold-rolled steel products sales reached RMB 1,572,966,000 for the six months ended June 30, 2023, compared to RMB 1,302,960,000 for the same period in 2022, representing an increase of approximately 20.7%[126] - Revenue from galvanized steel products sales was RMB 1,178,601,000 for the six months ended June 30, 2023, significantly up from RMB 463,653,000 in the same period of 2022, indicating a growth of approximately 154.0%[126] - Total revenue generated from customers in China (including Hong Kong) was RMB 2,972,129,000 for the six months ended June 30, 2023, compared to RMB 1,974,402,000 in the same period of 2022, reflecting an increase of approximately 50.6%[128] Financial Performance - Gross profit for the first half of 2023 was approximately RMB 139.3 million, a significant recovery from a gross loss of RMB 5.4 million in the same period of 2022[17] - The company reported a profit attributable to owners of approximately RMB 39.4 million in the first half of 2023, compared to a loss of RMB 58.9 million in the same period of 2022[23] - The net profit margin for the first half of 2023 was approximately 1.3%, improving from a net loss margin of 3.0% in the first half of 2022[24] - Basic earnings per share improved to RMB 6.57 from a loss of RMB 9.82 in the previous year[90] - For the six months ended June 30, 2023, the company reported a profit before tax of RMB 48,277,000, a significant improvement from a loss of RMB 81,339,000 in the same period of 2022[108] Cost and Expenses - The cost of sales increased to approximately RMB 2,837.4 million, up by RMB 840.1 million or 42.1% from RMB 1,997.3 million in the first half of 2022[10] - Direct materials accounted for over 91.5% of the cost of sales in the first half of 2023, up from 90.2% in the same period of 2022[13] - The total employee cost for the first half of 2023 was approximately RMB 60.4 million, compared to RMB 58.3 million in the first half of 2022[40] - Utility expenses increased to approximately RMB 106.8 million in the first half of 2023, up RMB 30.3 million or 39.6% from RMB 76.5 million in the same period of 2022[200] Cash Flow and Liquidity - Cash and cash equivalents increased by RMB 31.5 million or 195.7% to approximately RMB 47.6 million as of June 30, 2023, compared to RMB 16.1 million at the end of 2022[25] - The company generated a net cash inflow of RMB 31,472,000 for the six months ended June 30, 2023, compared to RMB 37,762,000 in the same period of 2022[113] - The company’s operating cash flow for the six months ended June 30, 2023, was RMB 1,132,000, a recovery from a negative cash flow of RMB 246,732,000 in the same period of 2022[110] - The company believes it has sufficient working capital to meet its current liabilities and anticipated business expansion needs[193] Debt and Liabilities - The total borrowings of the group as of June 30, 2023, were approximately RMB 1,410.5 million, a decrease from RMB 1,516.1 million as of December 31, 2022[27] - The group's current liabilities net amount was approximately RMB 268.0 million, down from RMB 452.1 million as of December 31, 2022[27] - The debt-to-equity ratio as of June 30, 2023, was approximately 3.02 times, down from 3.56 times as of December 31, 2022[27] - The company’s total liabilities decreased from RMB 1,516,105,000 as of December 31, 2022, to RMB 1,410,503,000 as of June 30, 2023, reflecting a decrease of 7%[165] Shareholder Information - As of June 30, 2023, the company had a total issued share capital of 600,000,000 shares, with major shareholder Haiyi Limited holding 391,500,000 shares, representing 65.25% of the issued capital[51] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[7] - The company did not exercise any share options during the six months ended June 30, 2023, with a total of 25,272,720 options remaining unexercised[56] Operational Strategy - The group plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, providing stable revenue sources[41] - The management is considering new business opportunities to enhance revenue diversity and shareholder value[41] - The company continues to focus on business development and expansion strategies to support long-term growth[62] Asset Management - Total assets as of June 30, 2023, amounted to RMB 2,905,736 thousand, an increase from RMB 2,796,767 thousand as of December 31, 2022[102] - The company's asset-to-liability ratio decreased to 301.5% from 356.5%[90] - The total equity attributable to the owners of the company increased to RMB 465,669 thousand from RMB 425,338 thousand, indicating a strengthening of the company's financial position[104] Market Conditions - The average selling price of cold-rolled steel products decreased from RMB 5,192 per ton in the first half of 2022 to RMB 4,249 per ton in the first half of 2023[197] - The average selling price of galvanized steel products also fell from RMB 5,443 per ton in the first half of 2022 to RMB 4,329 per ton in the first half of 2023[197]

Financial Performance - Huajin International Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2022, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of HKD 150 million, which is a 10% increase compared to the previous year[1]. - The company's revenue for 2022 was approximately RMB 4,663.6 million, a decrease of RMB 629.4 million or 11.9% compared to RMB 5,293.0 million in 2021[15]. - The net loss attributable to the company's owners for 2022 was approximately RMB 165.3 million, compared to a profit of RMB 62.0 million in 2021[19]. - The total sales volume of processed steel and galvanized steel products in 2022 was approximately 958,126 tons, an increase of about 90,681 tons or 10.5% from 867,445 tons in 2021[19]. - The average selling price of processed steel products decreased to RMB 4,644 per ton in 2022 from RMB 5,516 per ton in 2021, while the average selling price of galvanized steel products decreased to RMB 4,524 per ton from RMB 5,888 per ton[112]. - The sales volume of galvanized steel products increased to approximately 343,386 tons in 2022, a significant increase of about 185,717 tons or 117.8% compared to 157,669 tons in 2021[111]. - The company incurred construction costs of approximately RMB 181.3 million for the acquisition of properties, plants, and equipment in 2022[108]. - The company’s financial condition and profitability will influence future dividend declarations, alongside operational and capital needs[89]. Strategic Initiatives - The company has set a revenue guidance of HKD 1.5 billion for the next fiscal year, projecting a growth of 25%[1]. - Huajin International is investing HKD 200 million in new product development, focusing on sustainable materials[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[1]. - Huajin International is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HKD 300 million allocated for this purpose[1]. - The company aims to enhance its revenue diversity and shareholder value through new business opportunities and market expansion[21]. Corporate Governance - The company emphasizes high standards of corporate governance to ensure stable and transparent operations, attracting investors and protecting shareholder interests[39]. - The board has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the year ending December 31, 2022[39]. - The board consists of four executive directors and three independent non-executive directors, complying with the listing rules regarding independent director representation[47]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[65]. - The Audit Committee consists of three independent non-executive directors and has held three meetings during the year ended December 31, 2022[68]. - The company ensures that all directors participate in continuous professional development to stay informed about their responsibilities[60]. - The roles of Chairman and CEO are separated to ensure a balance of power and authority within the company[63]. - The company has arranged appropriate insurance coverage for directors and senior management against legal actions[61]. - The company has established an internal control system to ensure compliance with relevant laws and regulations, with no significant internal control weaknesses identified during the review period[101]. Risk Management - The company emphasizes the importance of effective risk management and internal control systems to mitigate exposure to significant risks, with no major changes in risk nature or scope identified during the reporting year[98]. - The board is responsible for overseeing the effectiveness of the risk management and internal control systems, which are designed to ensure operational efficiency and safeguard assets[98]. - The company has established a clear management structure for risk management, utilizing a risk assessment model to identify and manage significant risks[98]. Shareholder Relations - The company maintains open communication with shareholders, providing a platform for them to express opinions and engage with the board[93]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of their request[87]. - The company intends to distribute approximately 30% of the distributable profits for the fiscal year ending December 31 as dividends, subject to shareholder approval[91]. - The company did not recommend a final dividend for the year ended December 31, 2022, but declared a special interim dividend of HKD 0.098 per share, totaling HKD 58.8 million (approximately RMB 49.02 million) in January 2021[161]. Employee and Diversity Initiatives - The company plans to appoint a female director by March 31, 2024, to enhance gender diversity on the board[75]. - As of December 31, 2022, the employee gender ratio was 79.9% male and 20.1% female, indicating a need for continued focus on gender diversity in hiring[76]. - The total employee cost for the group in 2022 was approximately RMB 116.7 million, up from RMB 110.7 million in 2021, including share-based payment expenses of approximately RMB 4.1 million[145]. - The group employed a total of 1,170 full-time employees as of December 31, 2022, compared to 1,155 employees in 2021[145]. Supplier and Customer Relations - The company has established long-term stable business relationships with major raw material suppliers, which is crucial for timely purchases at market prices[158]. - The total amount of raw materials purchased from the top five suppliers accounted for approximately 71.9% of total purchases, down from 79.1% in 2021[162]. - Revenue from the top five customers represented approximately 23.7% of total revenue, an increase from 17.0% in 2021[162]. - The group relies heavily on customer demand for its products, which are primarily sold to manufacturers in various industries, including light industry hardware and home appliances[152].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,991.9 million, a decrease of 11.1% compared to RMB 2,240.7 million in 2021[4] - Gross loss was RMB (5.4) million, with a gross margin of (0.3%) compared to a gross profit of RMB 131.4 million and a gross margin of 5.9% in 2021[4] - The net loss attributable to owners of the company was RMB (58.9) million, resulting in a net loss margin of (3.0%) compared to a profit of RMB 54.8 million and a net profit margin of 2.4% in 2021[4] - Sales volume decreased by 6.5% to 358,200 tons from 383,230 tons in the previous year[4] - The company reported a pre-tax loss of RMB 81,339 thousand for the six months ended June 30, 2022, compared to a profit of RMB 69,703 thousand for the same period in 2021[23] - The company reported a total comprehensive loss of RMB (58,938,000) for the six months ended June 30, 2022, compared to a profit of RMB 54,826,000 for the same period in 2021, indicating a substantial decline in performance[48] Assets and Liabilities - Net asset value as of June 30, 2022, was RMB 530.0 million, a decrease of 9.7% from RMB 587.0 million at the end of 2021[4] - Total borrowings increased by 25.1% to RMB 1,537.8 million from RMB 1,229.6 million at the end of 2021[4] - The debt-to-equity ratio rose to 290.1% from 209.5% in the previous year[4] - As of June 30, 2022, total assets amounted to RMB 1,604,135 thousand, an increase from RMB 1,185,374 thousand as of December 31, 2021, representing a growth of approximately 35.4%[16] - Trade receivables and other receivables increased significantly to RMB 1,211,423 thousand from RMB 870,814 thousand, marking an increase of about 39.1%[16] - Non-current liabilities increased slightly to RMB 406,753 thousand from RMB 402,639 thousand, reflecting a marginal rise of 1.1%[18] Cash Flow and Financing - Operating cash flow for the period was negative at RMB 246,732 thousand, worsening from a negative RMB 160,452 thousand in the previous year[23] - The net cash inflow for the six months ended June 30, 2022, was RMB 37,762,000, a decrease from RMB 152,417,000 in the same period of 2021, representing a decline of approximately 75.7%[25] - The company’s cash and cash equivalents increased to RMB 60,306 thousand from RMB 22,547 thousand, representing a significant increase of approximately 167.5%[16] - The company’s net current liabilities were approximately RMB 338.4 million, compared to RMB 229.6 million as of December 31, 2021[106] - The net cash generated from financing activities was RMB 369,134,000, slightly down from RMB 396,941,000 in the same period of 2021[25] Sales and Revenue Breakdown - Sales of cold-rolled steel products amounted to RMB 1,302,960,000, a decrease of 17.0% compared to RMB 1,569,980,000 in the previous year[38] - The company reported a significant increase in sales of galvanized steel products, reaching RMB 463,653,000, up 28.5% from RMB 361,033,000 in the same period of 2021[38] - The average selling price of processed steel products decreased from RMB 5,207 per ton in the first half of 2021 to RMB 5,192 per ton in the first half of 2022[111] - The average selling price of galvanized steel products decreased from RMB 5,728 per ton in the first half of 2021 to RMB 5,443 per ton in the first half of 2022[111] Expenses and Costs - Employee benefits expenses totaled RMB 58,286,000 for the six months ended June 30, 2022, up from RMB 43,039,000 in the same period of 2021, marking a 35.5% increase[46] - Selling expenses decreased to approximately RMB 9.2 million, down RMB 8.1 million or 46.8% from RMB 17.3 million in the first half of 2021, mainly due to reduced shipping costs[126] - Administrative expenses increased to approximately RMB 30.5 million, up RMB 9.1 million or 42.5% from RMB 21.4 million in the first half of 2021, primarily due to increased salaries and business-related expenses[127] - The total sales cost decreased to approximately RMB 1,997.3 million, down RMB 112.0 million or 5.3% from RMB 2,109.3 million in the first half of 2021[115] Shareholder Information - The company declared a special interim dividend of HKD 0.098 per share, totaling HKD 58,800,000 (approximately RMB 49,022,000) on January 21, 2021[50] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[184] - The total issued share capital of the company as of June 30, 2022, is 600,000,000 shares[165] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and complied with applicable provisions during the reporting period[186] - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[192] - The chairman expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[193]