XJJW(600888)2024-08-29 09:05Financial Performance - Revenue for the first half of 2024 reached 3.608 billion yuan, an increase of 11.29% year-on-year[11] - Net profit attributable to shareholders of the listed company was 640.46 million yuan, a decrease of 22.12% year-on-year[11] - Basic earnings per share (EPS) for the reporting period was 0.4744 yuan, a decrease of 22.99% compared to the same period last year[12] - Operating cash flow for the first half of 2024 was 367.08 million yuan, a decrease of 12.63% year-on-year[11] - Weighted average return on equity (ROE) was 6.43%, a decrease of 2.98 percentage points compared to the same period last year[12] - Total operating revenue for the first half of 2024 reached 3,608,371,007.54 RMB, an increase from 3,242,391,168.27 RMB in the same period of 2023[109] - Total operating costs for the first half of 2024 were 3,393,198,584.10 RMB, up from 2,938,148,439.36 RMB in the first half of 2023[109] - Net profit for the period was 642.02 million yuan, down from 828.24 million yuan in the previous year, a decrease of 22.5%[111] - Basic earnings per share (EPS) were 0.4744 yuan, compared to 0.6160 yuan in the same period last year, a drop of 23.0%[112] - Total comprehensive income was 622.12 million yuan, down from 824.85 million yuan, a decrease of 24.6%[112] - Operating income for the parent company was 4.19 billion yuan, up from 3.91 billion yuan, an increase of 7.1%[113] - Net profit for the parent company was 561.66 million yuan, down from 689.42 million yuan, a decrease of 18.5%[113] - Basic EPS for the parent company was 0.4150 yuan, compared to 0.5164 yuan in the previous year, a decline of 19.6%[114] Assets and Liabilities - Total assets as of the end of the reporting period were 17.016 billion yuan, an increase of 1.78% compared to the end of the previous year[11] - The company's total equity attributable to shareholders of the listed company was 10.309 billion yuan, an increase of 6.92% compared to the end of the previous year[11] - Total assets amounted to 17.016 billion yuan, with 7.525 billion yuan in current assets and 9.491 billion yuan in non-current assets[45] - Total liabilities of the company as of June 30, 2024, amounted to RMB 6,612,932,268.70, with current liabilities of RMB 3,850,565,623.97 and non-current liabilities of RMB 2,762,366,644.73[100] - Total assets increased to RMB 17,016,335,654.08 as of June 30, 2024, compared to RMB 16,719,034,078.24 at the end of 2023[104] - Current assets rose to RMB 7,525,105,101.90 from RMB 6,802,200,055.28, driven by increases in accounts receivable and prepayments[101] - Accounts receivable grew to RMB 542,507,659.08, up from RMB 382,202,267.18, reflecting higher sales activity[101] - Prepayments surged to RMB 490,193,973.77 from RMB 168,554,140.88, indicating increased advance payments for future goods or services[101] - Long-term equity investments decreased slightly to RMB 2,959,423,706.20 from RMB 3,055,693,463.80[102] - Fixed assets increased to RMB 5,655,188,841.01 from RMB 5,534,260,827.53, reflecting ongoing capital expenditures[102] - Total liabilities decreased to RMB 6,612,932,268.70 from RMB 6,982,469,807.12, primarily due to reductions in short-term and long-term borrowings[103] - Shareholders' equity rose to RMB 10,403,403,385.38 from RMB 9,736,564,271.12, driven by retained earnings growth[104] - Retained earnings increased to RMB 4,283,695,271.04 from RMB 3,808,171,669.73, reflecting strong profitability[104] - Cash and cash equivalents decreased to RMB 2,823,941,128.95 from RMB 3,061,883,192.27, likely due to increased investments or repayments[101] Cash Flow - Operating cash flow from sales of goods and services increased to RMB 3,137,954,914.09 in H1 2024, up 12.5% from RMB 2,789,744,965.60 in H1 2023[115] - Net cash flow from operating activities decreased to RMB 367,076,063.78 in H1 2024, down 12.6% from RMB 420,149,034.63 in H1 2023[115] - Net cash flow from investing activities increased significantly to RMB 235,687,826.84 in H1 2024, up 135.1% from RMB 100,255,317.07 in H1 2023[116] - Net cash flow from financing activities was negative at RMB -1,046,691,849.43 in H1 2024, compared to RMB -674,546,648.40 in H1 2023[116] - Cash and cash equivalents decreased by RMB 443,650,660.52 in H1 2024, compared to a decrease of RMB 151,239,815.31 in H1 2023[116] - Parent company's operating cash flow from sales of goods and services increased to RMB 2,932,808,348.26 in H1 2024, up 7.7% from RMB 2,722,021,576.06 in H1 2023[117] - Parent company's net cash flow from operating activities decreased to RMB 433,214,298.04 in H1 2024, down 21.5% from RMB 551,537,005.41 in H1 2023[117] - Parent company's net cash flow from investing activities increased significantly to RMB 326,046,664.63 in H1 2024, up 494.5% from RMB 54,838,922.27 in H1 2023[117] - Parent company's net cash flow from financing activities was negative at RMB -1,068,405,438.96 in H1 2024, compared to RMB -662,011,272.24 in H1 2023[118] - Parent company's cash and cash equivalents decreased by RMB 308,867,178.00 in H1 2024, compared to a decrease of RMB 52,733,135.65 in H1 2023[118] Industry and Market Trends - In the first half of 2024, the added value of large-scale electronic information manufacturing increased by 13.3% year-on-year, with significant growth in the production of household appliances and consumer electronics[17] - The production of new energy vehicles in the first half of 2024 reached 4.929 million units, a year-on-year increase of 30.1%, with the penetration rate of new energy vehicles reaching 35.2%[18] - The domestic production of alumina in the first half of 2024 was 41.327 million tons, a year-on-year increase of 1.8%, while the production of electrolytic aluminum was 21.552 million tons, a year-on-year increase of 6.9%[18] - The company's high-performance aluminum alloy products are widely used in transportation, construction, power, and electronics, with increasing demand from high-end manufacturing sectors[18] - The company's electronic new materials business is supported by national policies, including the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Replacement" issued in March 2024[19] - The "2024-2025 Energy Conservation and Carbon Reduction Action Plan" emphasizes strict control over new capacity in the aluminum industry and promotes the development of the recycled metal industry[20] Product and Business Operations - The company's main products include high-purity aluminum, electronic aluminum foil, and electrode foil, which are widely used in industries such as industrial control, electronic equipment, and automotive manufacturing[21] - The company's high-purity aluminum products, with a purity of over 99.9%, are used in electronic aluminum foil, aerospace aluminum alloys, and semiconductor target materials[22] - The company's aluminum and alloy products are deeply processed from primary aluminum and high-purity aluminum, used in electronic consumer goods, automotive engines, and construction decoration[22] - The automotive industry is a significant driver for aluminum electrolytic capacitors, with each electric vehicle requiring at least 4 high-voltage, large-capacity capacitors for battery charging, voltage conversion, and inverter circuits[23] - The demand for aluminum electrolytic capacitors in digital TVs is approximately double that of traditional TVs[23] - Aluminum and alloy products are widely used in high-voltage and ultra-high-voltage power cables due to their high conductivity and low resistance[24] - Aluminum and alloy products are extensively used in aerospace for their lightweight, high strength, and corrosion resistance, including in aircraft structures and rocket fuel tanks[24] - The company operates on a "production based on sales" model, organizing production according to customer orders and operational plans[27] - The company has a complete industrial chain from energy to high-purity aluminum, high-purity aluminum/alloy products, electronic aluminum foil, and electrode foil, which reduces costs and ensures product quality consistency[31] - The company has a high-purity aluminum liquid production capacity of 78,000 tons and an annual electronic aluminum foil production capacity of 30,000 tons, making it one of the largest high-purity aluminum R&D and production bases globally[33] - The company has passed ISO9001 quality management system certification, ISO14001 environmental management system certification, and CNAS national laboratory certification, ensuring high product quality and market reputation[34] - The company's high-purity aluminum and high-voltage electronic aluminum foil products have successfully dominated the domestic market and significantly expanded internationally, with a stable customer base and pricing initiative[35] - In H1 2024, the company's electronic aluminum foil product sales revenue increased by 45.77% year-over-year, driven by high product quality and market recognition[37] - The company's operating income in H1 2024 reached RMB 3,608,371,007.54, a year-over-year increase of 11.29%[37] - Operating costs increased by 15.97% year-over-year to RMB 3,120,267,549.59 in H1 2024[37] - The company's investment activities generated a net cash flow of RMB 235,687,826.84 in H1 2024, a 135.09% increase year-over-year, primarily due to land expropriation compensation[38] - The company's electronic new materials segment achieved a revenue of RMB 1,636,275,176.98 in H1 2024, with a gross margin of 15.47%, a decrease of 3.57 percentage points year-over-year[40] - The alloy products segment saw a revenue increase of 71.50% year-over-year to RMB 1,365,317,955.13 in H1 2024, with a gross margin increase of 2.24 percentage points[40] - The company's interest income in H1 2024 increased by 67.04% year-over-year to RMB 12,164,972.51, driven by increased cash holdings from convertible bond issuance[39] - The company's asset disposal income surged to RMB 47,617,460.96 in H1 2024, a 12,620.64% increase year-over-year, due to government land expropriation compensation[39] - The company's R&D expenses decreased by 11.35% year-over-year to RMB 20,458,334.77 in H1 2024[37] - Aluminum products revenue decreased by 47.44% to 277,612,477.79 yuan, with a 2.70 percentage point decrease in gross margin[41] - Electronic aluminum foil revenue increased by 45.77% to 331,381,781.62 yuan, with a 0.79 percentage point decrease in gross margin[41] - Electrode foil revenue decreased by 6.93% to 745,324,309.85 yuan, with a 7.09 percentage point decrease in gross margin[41] - High-purity aluminum revenue increased by 15.66% to 559,569,085.51 yuan, with a 2.17 percentage point decrease in gross margin[41] - Alloy products revenue increased by 71.50% to 1,365,317,955.13 yuan, with a 2.24 percentage point increase in gross margin[41] - Domestic revenue increased by 13.77% to 3,506,341,481.47 yuan, with a 3.88 percentage point decrease in gross margin[41] - Overseas revenue decreased by 36.37% to 102,029,526.07 yuan, with a 2.29 percentage point increase in gross margin[41] Risk Management and Hedging - The company's hedging activities resulted in a loss of 109.27 million yuan in the first half of 2024, primarily due to price fluctuations in alumina and electrolytic aluminum[49] - The company's hedging strategy involved the use of futures and options for alumina, electrolytic aluminum, and steel products, ensuring stable production and operations[49] - The company's hedging activities are funded by internally generated cash flows, not by external financing such as loans or raised capital[49] - The company identified key risks in its hedging activities, including price volatility, liquidity risk, and operational risks, and implemented strict internal controls to mitigate these risks[49] - The company's hedging activities are strictly limited to hedging against price risks related to its physical operations, with no speculative trading allowed[49] - The company has established a hedging management team to oversee daily supervision and management of hedging operations, including the chairman, vice president, CFO, and relevant personnel[51] - In 2024, the company plans to conduct hedging and forward foreign exchange transactions for alumina, aluminum, and steel products to mitigate market risks[53] Environmental and Social Responsibility - The company's annual pollutant emission limits include 1,227.48 tons of sulfur dioxide, 330 tons of nitrogen oxides, 200 tons of particulate matter, 40 tons of fluoride, 21.31 tons of ammonia nitrogen, and 61.01 tons of COD[64] - In the reporting period, the company emitted 166.67 tons of sulfur dioxide, 154.13 tons of nitrogen oxides, 44.37 tons of particulate matter, 0.72 tons of fluoride, 5.29 tons of ammonia nitrogen, and 22.64 tons of COD[64] - The company transferred and treated 1,877.02 tons of repair slag, 1,027.93 tons of carbon slag, and 352.67 tons of dust ash during the reporting period[64] - The company's pollution prevention facilities achieved a dust removal efficiency of 99%, desulfurization efficiency of 98%, and denitrification efficiency of 91%[67] - The company has established an environmental emergency response plan, which has been reviewed by experts and filed with the environmental protection bureau[67] - The company implemented an environmental self-monitoring program, covering air, wastewater, and soil monitoring, using both automatic and third-party manual monitoring methods[68] - The company reduced carbon dioxide emissions by 21,455 tons through energy-saving and carbon reduction measures, including equipment upgrades and green energy utilization[70] - The company invested 17.8 million yuan in energy-saving and carbon reduction projects, resulting in a decrease in power supply coal consumption by 4gce/kWh and an annual saving of 7,600tce[70] Corporate Governance and Shareholder Information - The company's registered address and office address remain unchanged at No. 18 Kashi East Road, High-tech Zone, Urumqi, Xinjiang[9] - The company's stock is listed on the Shanghai Stock Exchange with the stock code 600888[11] - The company's website and email address remain unchanged as http://www.joinworld.com and Xjjw600888@joinworld.com, respectively[9] - The company held its second interim shareholders' meeting on February 8, 2024, approving proposals related to hedging and forward foreign exchange transactions[59] - The company repurchased and canceled 28,000 restricted shares and 56,000 stock options due to the departure of incentive recipients Yang Kang and Lyu Dongqin[62] - The company repurchased and canceled 35,000 restricted shares and 70,000 stock options due to the departure of incentive recipients Huang Yuhan and Yuan Jianhua[63] - The exercise price of the company's 2021 restricted stock and stock option plan was adjusted to 9.43 yuan per share for the initial grant and 8.96 yuan per share for the reserved portion[63] - The company's major shareholders and controlling entities have consistently fulfilled their commitments to avoid engaging in competing businesses, as per their long-term pledges[72][73] - The company's total revenue from related party transactions reached RMB 76,206.09 million, with significant contributions from sales of aluminum alloy products and services[76] - The company's highest daily deposit limit with its related financial institution was RMB 100,000, with a deposit interest rate range of 0.25%[77] - The company's loan balance with its related financial institution remained at RMB 20,000.00, with a loan interest rate range of 3.35% to 4.00%[78] - The company's sales to related parties accounted for 44.34% of total sales, with the majority coming from power coal transactions[75] - The company's total related party transactions for transportation and handling services amounted to RMB 3,217.82 million, representing 60.15% of total transactions[75] - The company's sales of aluminum alloy products and services to related parties reached RMB 49,952.46 million, accounting for 15.23% of total sales[75] - The company's total related party transactions for industrial silicon and chemical raw materials amounted to RMB 2,207.26 million, representing 32.34% of total transactions[75] - The company's