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]

Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a growth of 15% compared to the previous year[3]. - The company’s net profit for the year was HKD 300 million, which is an increase of 20% year-over-year[3]. - Revenue for 2021 increased by 85.9% to approximately RMB 5,293.0 million from RMB 2,847.8 million in 2020[18]. - Gross profit rose by 38.9% to RMB 208.8 million, with a gross margin of 3.9%, down from 5.3% in the previous year[18]. - Profit attributable to owners increased by 70.3% to approximately RMB 62.0 million, with basic and diluted earnings per share of RMB 10.34[18]. - The total sales volume of processed steel and galvanized steel products increased by 40.2% to approximately 867,445 tons from 618,787 tons in 2020[24]. - The average selling price of processed steel products rose from approximately RMB 4,155 per ton in 2020 to RMB 5,516 per ton in 2021[114]. - The average selling price of galvanized steel products increased from approximately RMB 4,456 per ton in 2020 to RMB 5,888 per ton in 2021[114]. - The cost of sales increased to approximately RMB 5,084.3 million in 2021, up RMB 2,386.9 million or 88.5% from RMB 2,697.4 million in 2020[119]. - Financial costs rose to approximately RMB 56.4 million in 2021, an increase of RMB 21.6 million or 62.1% from RMB 34.8 million in 2020, due to higher borrowing levels and interest rates[133]. Market Expansion and Strategy - User data indicated a rise in active customers by 25%, reaching a total of 500,000 users[3]. - Huajin International is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the region[3]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10-15%[3]. - New product launches are expected to contribute an additional HKD 100 million in revenue in the upcoming year[3]. - The company plans to continue focusing on cold-rolled and galvanized steel processing services as its main business for stable revenue[26]. - The company plans to continue investing in production capacity to meet the anticipated increase in market demand for its products[112]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules appendix 14, ensuring compliance throughout the year ending December 31, 2021[48]. - The company has a commitment to high standards of corporate governance, which is crucial for attracting investors and protecting shareholder interests[48]. - The company emphasizes the importance of effective corporate governance practices for stable and transparent operations[48]. - The board consists of five executive directors and three independent non-executive directors, complying with the requirement of having at least one-third of the board as independent non-executive directors[55]. - All directors confirmed compliance with the standards set out in the Listing Rules Appendix 10 regarding securities trading during the year ended December 31, 2021[51]. - The board is responsible for overseeing the management and operations of the group, ensuring compliance with applicable laws and regulations[63]. - The company has implemented sufficient measures to ensure corporate governance practices are in line with the Corporate Governance Code[54]. - The company has a focus on enhancing shareholder value through effective governance and operational strategies[48]. Board and Management - Xu Songman has been appointed as an executive director since December 18, 2015, and is responsible for overall domestic and overseas sales and logistics services[36]. - The company has a strong management team with over 30 years of experience in accounting, auditing, and financial management[39]. - The company’s board includes independent non-executive directors with diverse backgrounds, contributing to effective governance[38]. - The company has made several board appointments and changes, reflecting its dynamic management structure[43]. - The financial director has over 15 years of professional accounting experience, supporting the company's financial management[45]. - All directors participated in continuous professional development activities to ensure their contributions to the board remain informed and relevant[68]. Shareholder Engagement and Dividends - A special interim dividend of HKD 0.098 per share was declared, totaling approximately HKD 58.8 million (around RMB 49.0 million)[27]. - The company intends to distribute approximately 30% of the distributable profits for the financial year ended December 31 as dividends, subject to shareholder approval[101]. - The company emphasizes the importance of effective communication with investors to enhance shareholder value and market confidence[102]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[97]. Employee and Operational Insights - The total employee cost for the group in 2021 was approximately RMB 110.7 million, an increase from RMB 82.7 million in 2020, reflecting a growing workforce of 1,155 employees compared to 989 in the previous year[149]. - The group provided services to approximately 1,060 customers across various industries, indicating a diverse customer base and reduced reliance on any single customer or industry[160]. - The group currently has no foreign currency hedging policy but closely monitors foreign exchange risks due to sales to overseas customers settled in USD[141]. Investment and Acquisitions - The company is actively pursuing strategic acquisitions to enhance its product offerings and market reach, with a budget of HKD 200 million allocated for this purpose[3]. - The group did not engage in any significant acquisitions or disposals during the reporting period, except for the sale of 95% equity in three subsidiaries in August 2021[143]. - The company entered into investment agreements in August 2021, selling 95% equity in three subsidiaries for a total cash consideration of RMB 9.5 million[109]. Sustainability and Social Responsibility - The management highlighted a commitment to sustainability initiatives, aiming to reduce carbon emissions by 25% over the next five years[3]. - The company made charitable donations totaling RMB 150,000 in the fiscal year ending December 31, 2021, compared to RMB 30,000 in 2020[167].

Revenue and Profitability - Revenue for the six months ended June 30, 2021, was RMB 2,240.7 million, an increase of 146.1% compared to RMB 910.4 million in 2020[3] - The company reported a profit attributable to owners of RMB 54.8 million, a turnaround from a loss of RMB 14.0 million in 2020[3] - Basic earnings per share for the period were RMB 9.14, compared to a loss per share of RMB 2.33 in the previous year[3] - The total comprehensive income for the six months ended June 30, 2021, was RMB 54,826 thousand, compared to a loss of RMB (14,001) thousand for the same period in 2020, indicating a turnaround in performance[55] - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 54.8 million, compared to a loss of approximately RMB 14.0 million in the same period of 2020[135] Sales and Volume - Sales volume increased by 84.0% to 383,230 tons compared to 208,299 tons in the same period last year[3] - Sales of cold-rolled steel products amounted to RMB 1,569,980,000, up from RMB 628,770,000, representing a growth of 149.5% year-over-year[45] - The total sales volume of processed steel products and galvanized steel products was 383,230 tons, an increase of 174,931 tons or 84.0% compared to 208,299 tons in the first half of 2020[105] - Sales volume of processed steel products increased by 85.4% to 320,197 tons in the first half of 2021, up from 172,689 tons in the same period of 2020[109] Gross Profit and Margins - Gross profit reached RMB 131.4 million, representing a significant increase of 429.8% from RMB 24.8 million in the previous year, with a gross margin of 5.9%[3] - The company's gross profit for the first half of 2021 was approximately RMB 131.4 million, a substantial increase of RMB 106.6 million or 429.8% compared to RMB 24.8 million in the first half of 2020, with a gross profit margin of 5.9%[125] Financial Position and Assets - Net asset value as of June 30, 2021, was RMB 576.7 million, a slight increase of 1.1% from RMB 570.4 million at the end of 2020[4] - Total assets decreased from RMB 1,385,189 thousand to RMB 1,137,223 thousand, a decline of approximately 18%[19] - Cash and cash equivalents increased to RMB 198.8 million from RMB 46.2 million at the end of 2020[18] - The total equity increased from RMB 570,413 thousand to RMB 576,699 thousand, reflecting a growth of about 1%[22] Liabilities and Borrowings - Total borrowings rose by 42.1% to RMB 1,363.7 million from RMB 959.9 million at the end of 2020[4] - The debt-to-equity ratio increased to 236.5% from 168.3%[4] - Non-current liabilities increased from RMB 335,803 thousand to RMB 479,042 thousand, representing a rise of approximately 42%[22] - The total borrowings increased to RMB 1,363,668,000 as of June 30, 2021, compared to RMB 959,880,000 as of December 31, 2020, reflecting a 42% rise[84] Cash Flow and Operating Activities - Cash generated from operating activities showed a significant improvement, with a net cash outflow of RMB (91,269) thousand compared to RMB (13,979) thousand in the prior period[27] - The company reported a net cash outflow from operating activities of RMB 91,269,000 for the six months ended June 30, 2021[32] - The company reported a net increase in cash and cash equivalents of RMB 152,417 thousand, compared to a decrease of RMB (15,126) thousand in the previous year[30] Capital Expenditures and Commitments - The group has a capital commitment of RMB 90,990,000, with RMB 86,050,000 due within the next twelve months[32] - Capital expenditures for properties, plants, and equipment amounted to approximately RMB 103.2 million in the first half of 2021, with total capital commitments of about RMB 91.0 million as of June 30, 2021[106] Shareholder Information and Equity Structure - As of June 30, 2021, the company has a total of 600,000,000 shares issued, with major shareholders holding 75.00% of the equity[163] - Mr. Xu and Mr. Luo each hold 450,000,000 shares, representing 75.00% of the company's issued share capital[161] - Big Thrive Limited holds 391,500,000 shares, accounting for 65.25% of the company's issued share capital[173] - The company has granted share options totaling 6,000,000 shares to Mr. Chen, representing 1.00% of the issued share capital[168] Employee Costs and Management Compensation - The group’s employee costs for the first half of 2021 totaled approximately RMB 43.0 million, compared to RMB 35.4 million in the same period of 2020[151] - The total remuneration for directors and other key management personnel during the reporting period was RMB 3,289 thousand, an increase from RMB 1,845 thousand in the same period of 2020[103] Future Plans and Market Strategy - The company plans to continue expanding its market presence and product offerings in the cold-rolled steel processing sector[105] - The group plans to install new production facilities, including continuous hot-dip galvanizing and pickling lines, to enhance capacity and flexibility[154] - The company plans to continue investing in expanding production capacity to meet the growing demand for its products in the coming years[106] Risks and Compliance - The group faced foreign exchange risks due to sales to overseas customers settled in USD, with no current hedging policies in place[142] - The company maintains compliance with the Hong Kong Stock Exchange's disclosure requirements regarding shareholder interests[173]

Financial Performance - Huajin International Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2020, representing a year-on-year increase of 15%[15]. - The company achieved a net profit of HKD 250 million, which is a 20% increase compared to the previous year[15]. - Revenue for 2020 reached RMB 2,847.8 million, an increase of 31.7% from RMB 2,162.6 million in 2019[23]. - Gross profit for 2020 was RMB 150.3 million, up 31.3% from RMB 114.5 million in 2019, maintaining a gross margin of 5.3%[23]. - Profit attributable to shareholders increased by 97.8% to RMB 36.4 million in 2020, compared to RMB 18.4 million in 2019[23]. - Basic earnings per share rose by 98.4% to RMB 6.07 from RMB 3.06 in 2019[23]. - The company reported a net profit attributable to shareholders of approximately RMB 36.4 million, an increase of RMB 18.0 million or 97.8% compared to RMB 18.4 million in the previous year[139]. - The total bank balance and cash increased to approximately RMB 46.2 million, up RMB 7.5 million or 19.4% from RMB 38.7 million in 2019[140]. Market Expansion and Strategy - User data indicated a growth in active customers by 30%, reaching a total of 500,000 users by the end of 2020[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[15]. - New product launches are expected to contribute an additional HKD 100 million in revenue in 2021, with a focus on eco-friendly materials[15]. - The company plans to enhance production capacity with the new 950mm acid rolling production line, increasing annual processing capacity from 750,000 tons to 1,350,000 tons[26]. - The company expects continued demand for its products and plans to enhance production capacity, which is anticipated to drive business growth and improve net profit margins in the coming years[109]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and transparency in operations[49]. - The board of directors is committed to high standards of corporate governance, which is crucial for attracting investors and protecting shareholder interests[49]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, complying with the requirement of at least one-third independent non-executive directors[56]. - The roles of chairman and CEO are separated to ensure a balance of power and authority within the company[71]. - The company has established a code of conduct applicable to directors and employees, ensuring compliance with legal and regulatory requirements[55]. Risk Management - The company emphasizes the importance of effective risk management and internal controls to mitigate exposure to significant risks[104]. - The internal control system is reviewed annually by the board and audit committee to ensure compliance with relevant laws and regulations[105]. - The company has established a risk assessment model to identify and manage various types of risks associated with its business activities[105]. - Financial risks include market risks such as currency and interest rate risks, as well as credit and liquidity risks[165]. Employee and Operational Insights - As of December 31, 2020, the group employed 989 full-time employees, an increase from 845 employees in 2019[151]. - The total employee cost for 2020 was approximately RMB 82.7 million, up from RMB 75.2 million in 2019, reflecting a year-over-year increase of about 6.5%[151]. - The group has implemented internal training programs to enhance employee skills and promote loyalty, aiming to provide advancement opportunities[170]. Sales and Production Metrics - Total sales volume of processed steel and galvanized steel products increased by 31.3% to approximately 618,787 tons in 2020[23]. - The sales volume of processed steel products rose by 140,782 tons or 35.5% to 536,912 tons, while galvanized steel products increased by 6,703 tons or 8.9% to 81,875 tons for the year ended December 31, 2020[113]. - The average processing cost per ton decreased by 42.1% to RMB 283 from RMB 489 in 2019[23]. - Direct materials accounted for over 89.7% of the sales cost, with a significant increase due to higher sales volumes from the new factory launched in the second half of 2020[121]. Dividend and Financial Reserves - The board decided not to recommend a final dividend for the year ended December 31, 2020[29]. - The company plans to propose a dividend distribution of approximately 30% of the distributable net profit for the fiscal year ending December 31, subject to shareholder approval[100]. - The distributable reserves as of December 31, 2020, were approximately RMB 1,791 million, slightly down from RMB 1,800 million in 2019[188].