Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 24,504,930 thousand, a decrease from RMB 24,800,954 thousand for the same period in 2022, representing a decline of approximately 1.2%[3] - The gross profit for the same period in 2023 was RMB 464,229 thousand, down from RMB 700,880 thousand in 2022, indicating a decrease of about 33.7%[3] - Operating profit for the six months ended June 30, 2023, was RMB 137,645 thousand, compared to RMB 300,851 thousand in 2022, reflecting a decline of approximately 54.3%[3] - The net profit attributable to equity holders for the period was RMB 7,323 thousand, significantly lower than RMB 149,114 thousand in the previous year, marking a decrease of around 95.1%[3] - The company's earnings per share (EPS) for the six months ended June 30, 2023, was RMB 0.01, down from RMB 0.12 in the same period of 2022, a decline of 91.7%[3] - The company's net profit for the six months ended June 30, 2023, was approximately RMB 11,600 thousand, down from RMB 158,500 thousand for the same period in 2022, primarily due to a decrease in gross profit[49] - The company reported a comprehensive income of RMB 11.63 million for the period, a significant decrease of 92.7% compared to RMB 158.49 million in the same period last year[93] Accounts and Liabilities - Accounts payable increased to RMB 580,018 thousand as of June 30, 2023, from RMB 429,690 thousand at the end of 2022, representing an increase of approximately 35.0%[2] - The aging analysis of trade payables shows that RMB 599,004 thousand (98.2%) of payables were due within 6 months as of June 30, 2023, compared to RMB 451,200 thousand (96.1%) in the previous year[2] - The debt-to-asset ratio increased to 70.54% as of June 30, 2023, from 65.05% as of December 31, 2022[62] - The total liabilities increased to approximately RMB 10.93 billion, up from RMB 9.27 billion in the previous year[102] - The group's current liabilities exceeded current assets by approximately RMB 317,918 thousand as of June 30, 2023, indicating potential liquidity concerns[108] - As of June 30, 2023, the company recorded a net current liability of approximately RMB 318,000 thousand[151] Revenue and Sales Volume - The stainless steel processing business saw sales volume increase from approximately 865,358 tons for the six months ended June 30, 2022, to approximately 956,613 tons for the same period in 2023, representing a growth of about 10.5%[72] - The carbon steel processing business experienced a sales volume increase from approximately 1,755,596 tons for the six months ended June 30, 2022, to approximately 2,225,500 tons for the same period in 2023, marking a growth of about 26.8%[72] - The total processing volume for stainless steel rose from approximately 1,379,928 tons in the first half of 2022 to approximately 1,547,745 tons in the first half of 2023, an increase of about 12.2%[72] - The total processing volume for carbon steel increased from approximately 1,924,192 tons in the first half of 2022 to approximately 2,333,674 tons in the first half of 2023, reflecting a growth of about 21.3%[72] - Revenue for the six months ended June 30, 2023, was approximately RMB 24.55 billion, slightly down by about 1.2% from approximately RMB 24.81 billion for the same period in 2022[72] Corporate Governance and Strategy - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations[51] - The company aims to maintain high standards of corporate governance to enhance shareholder value and protect the interests of shareholders and other stakeholders[76] - The company is committed to providing low-cost, fast delivery, and high-quality materials and manufacturing services to downstream customers[82] - The company aims to enhance profitability through improved customer service, operational efficiency, and technological innovation[84] - Significant investments in advanced processing equipment and technology have been made to boost manufacturing capabilities and product premium[84] - The company is expanding production capacity in key regions to strengthen regional competitive advantages[84] Cash Flow and Financial Management - Operating cash flow for the six months ended June 30, 2023, was RMB (392,600) thousand, compared to RMB (197,148) thousand for the same period in 2022, indicating a significant increase in cash outflow[107] - Net cash used in operating activities was RMB (555,773) thousand for the six months ended June 30, 2023, compared to RMB (412,724) thousand in the previous year, reflecting a worsening cash position[107] - Total financing cash flow net amount was RMB 768,642 thousand for the six months ended June 30, 2023, down from RMB 816,284 thousand in the same period of 2022[107] - The cost of financing increased to RMB 151,615 thousand for the six months ended June 30, 2023, compared to RMB 108,170 thousand in the same period of 2022, reflecting higher interest expenses[131] - Interest income increased to RMB (32,304) thousand for the six months ended June 30, 2023, compared to RMB (26,655) thousand in the previous year, indicating improved financial management[131] Inventory and Employee Expenses - Inventory changes showed a positive shift with a change of RMB 60,003 thousand for the six months ended June 30, 2023, compared to a negative change of RMB (222,911) thousand in the previous year[130] - The company reported a decrease in employee benefits expenses, which totaled RMB 479,615 thousand for the six months ended June 30, 2023, down from RMB 528,828 thousand in the same period of 2022[130] Shareholder Returns - The company does not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[23] - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[64] - The weighted average number of ordinary shares issued remained constant at 1,274,528 thousand shares for both 2023 and 2022[145] - The diluted earnings per share for the six months ended June 30, 2023, was RMB 0.01, down from RMB 0.12 in 2022, indicating a decrease of 91.7%[145]
大明国际(01090) - 2023 - 中期业绩