Financial Performance - For the first half of 2023, the company's profit decreased by approximately RMB 76.5 million or 50.7% to about RMB 74.5 million, primarily due to a reduction in overall gross profit and gross margin [8]. - Revenue for the same period fell by approximately RMB 100.5 million or 5.8% to about RMB 1,619.8 million, mainly due to a decline in the average selling price of urea [8]. - Gross profit decreased by approximately RMB 126.0 million or 50.3% to about RMB 124.4 million, primarily due to a decline in revenue from urea sales as the average selling price dropped compared to the same period in 2022 [17]. - Gross margin fell from approximately 14.6% for the six months ended June 30, 2022, to about 7.7% during the reporting period [22]. - Net profit for the period decreased by approximately RMB 76.5 million or 50.7% to about RMB 74.5 million, primarily due to a reduction in gross profit [28]. - Profit before tax decreased to RMB 100,335 thousand, down 52.7% from RMB 211,956 thousand in the previous year [75]. - Basic and diluted earnings per share were both RMB 11.4, down from RMB 23.8 in the previous year [75]. Revenue Breakdown - The average selling price of urea decreased by approximately 13.8% to about RMB 2,213 per ton, down from RMB 2,566 per ton in the same period last year [8]. - Urea sales volume increased by approximately 11.3% compared to the same period last year, but revenue from urea decreased by approximately RMB 56.9 million or 4.0% to about RMB 1,372.9 million [12]. - Revenue from automotive urea solution increased slightly by approximately RMB 0.9 million or 0.9% to about RMB 104.0 million, despite a decrease in sales volume due to weaker demand [13]. - Methanol revenue decreased by approximately RMB 5.1 million or 6.6% to about RMB 72.6 million, attributed to a decline in the average selling price [15]. - Revenue from other products fell by approximately RMB 39.5 million or 36.0% to about RMB 70.2 million, primarily due to decreased demand for liquid ammonia [15]. - Other income for the six months ended June 30, 2023, totaled RMB 9,849,000, compared to RMB 2,830,000 for the same period in 2022, indicating a significant increase [108]. Costs and Expenses - The company's cost of sales increased by approximately RMB 25.4 million or 1.7% to about RMB 1,495.3 million, mainly due to rising electricity and manufacturing costs [16]. - Administrative expenses decreased by approximately RMB 5.3 million or 17.7% to about RMB 24.6 million, mainly due to a reduction in provisions for other receivables [24]. - Total employee costs, including director remuneration, were approximately RMB 61.2 million for the reporting period, compared to RMB 61.8 million for the six months ended June 30, 2022 [40]. - Current tax expense in China for the six months ended June 30, 2023, was RMB 22,377,000, a decrease from RMB 56,579,000 in the same period of 2022 [122]. Assets and Liabilities - As of June 30, 2023, the group had net assets of approximately RMB 1,653.1 million, an increase from approximately RMB 1,620.4 million as of December 31, 2022 [32]. - Cash and bank balances increased to approximately RMB 624.0 million as of June 30, 2023, compared to RMB 535.5 million as of December 31, 2022 [33]. - Total assets as of June 30, 2023, amounted to RMB 1,864,955 thousand, a decrease from RMB 1,869,115 thousand as of December 31, 2022 [76]. - Current liabilities decreased to RMB 176,866 thousand from RMB 212,096 thousand at the end of 2022 [76]. - The total non-current liabilities amounted to RMB 34,986 thousand, a decrease from RMB 36,591 thousand as of December 31, 2022, representing a reduction of approximately 4.4% [77]. - The trade payables as of June 30, 2023, totaled RMB 39,935,000, a decrease of 20.3% from RMB 50,062,000 as of December 31, 2022 [136]. Market Outlook and Strategy - The outlook for the second half of 2023 indicates potential challenges and opportunities in the urea and chemical industry due to international market fluctuations and raw material prices [34]. - The group plans to continue its growth strategy by increasing production capacity, enhancing product quality, and exploring acquisition opportunities to achieve sustainable development [34]. Shareholder Information - As of June 30, 2023, Mr. Wang Zhihe held 460,000,000 shares, representing approximately 74.08% of the company's issued shares [42]. - Major shareholders include Sino-Coal Holding with 279,680,000 shares (45.04%) and Bloom Ocean with 180,320,000 shares (29.04%) as of June 30, 2023 [45]. - The board decided not to declare an interim dividend for the reporting period [60]. - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to no interim dividend declared for the same period in 2022 [124]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with the relevant provisions throughout the reporting period [62]. - The interim condensed consolidated financial statements were authorized for publication on August 22, 2023 [87]. - The financial statements have not been audited but have been reviewed by a certified public accountant firm [92]. Capital Expenditures - The acquisition of property, plant, and equipment commitments amounted to RMB 31,113,000 as of June 30, 2023, an increase from RMB 20,566,000 as of December 31, 2022 [147]. - The company incurred capital expenditures of approximately RMB 42,690,000 for property, plant, and equipment during the six months ended June 30, 2023, compared to RMB 35,094,000 for the same period in 2022 [127].
东光化工(01702) - 2023 - 中期财报