Revenue and Profitability - Revenue for the six months ended June 30, 2019, was RMB 927.3 million, a decrease of 35.0% compared to RMB 1,426.7 million in 2018[4] - The company reported a profit attributable to owners of the company of RMB 10.5 million, a decline of 24.5% from RMB 13.9 million in the previous year[4] - Basic earnings per share decreased by 24.6% to RMB 1.75 from RMB 2.32 in 2018[4] - The total comprehensive income for the period was RMB 10.4 million, down from RMB 14.3 million in 2018[17] - The company reported a profit of RMB 10,476 thousand for the period, compared to RMB 13,945 thousand in the previous period, reflecting a decrease of approximately 25.5%[28] - The company's net profit for the six months ended June 30, 2019, was RMB 10,476,000, a decrease of 25.5% compared to RMB 13,945,000 for the same period in 2018[112] Sales and Production - Sales volume for the period was 197,407 tons, down 34.9% from 303,442 tons in 2018[4] - Sales of cold-rolled steel products amounted to RMB 643,963,000, down 36.5% from RMB 1,015,358,000 in the previous year[91] - The average selling price of processed steel products decreased from approximately RMB 4,424 per ton in the first half of 2018 to RMB 4,245 per ton in the first half of 2019[171] - The total sales volume of processed steel and galvanized steel products was approximately 197,407 tons, a decrease of 34.9% from 303,442 tons in the first half of 2018[164] - The average utilization rates for cold-rolled processing and galvanized processing were approximately 46.3% and 19.1%, respectively, significantly lower than 66.4% and 43.6% in the same period of 2018[164] Costs and Expenses - Gross profit for the same period was RMB 56.4 million, down 25.8% from RMB 76.0 million, with a gross margin of 6.1% compared to 5.3% in 2018[4] - The cost of sales decreased to approximately RMB 870.9 million in the first half of 2019, a reduction of 35.5% from RMB 1,350.7 million in the same period of 2018[176] - Direct material costs accounted for over 87% of the total sales cost in the first half of 2019, down from 89% in the same period of 2018, primarily due to a decline in sales of processed steel and galvanized steel products[180] - The company's administrative expenses increased to approximately RMB 19.6 million in the first half of 2019, up about RMB 1.9 million or 10.7% from RMB 17.7 million in the same period of 2018[189] - The company's sales expenses decreased to approximately RMB 8.5 million in the first half of 2019, down about RMB 6.3 million or 42.6% from RMB 14.8 million in the same period of 2018[186] Financial Position - Net asset value increased by 1.8% to RMB 596.4 million as of June 30, 2019, compared to RMB 586.0 million at the end of 2018[6] - Total borrowings decreased by 14.1% to RMB 728.5 million from RMB 848.2 million[6] - The company's debt-to-equity ratio improved to 122.1% from 144.7%[6] - Current assets decreased from RMB 921,356 thousand to RMB 862,050 thousand, a decline of approximately 6.4%[22] - Total liabilities decreased from RMB 1,066,837 thousand to RMB 1,133,753 thousand, indicating a reduction in net current liabilities from RMB (279,285) thousand to RMB (234,198) thousand[23] - The total borrowings as of June 30, 2019, amounted to RMB 728,532,000, down from RMB 848,238,000 as of December 31, 2018, indicating a decrease of about 14.1%[149] Cash Flow - Operating cash flow before working capital changes decreased from RMB 73,167 thousand to RMB 59,067 thousand, a decline of about 19.3%[32] - Cash and cash equivalents decreased from RMB 72,465 thousand to RMB 31,821 thousand, a reduction of approximately 56%[35] - New borrowings raised amounted to RMB 573,704 thousand, while repayments totaled RMB (693,410) thousand, indicating a net cash outflow from financing activities[36] - The company's cash and bank balances decreased by approximately RMB 40.7 million or 56.1% to about RMB 31.8 million as of June 30, 2019, from RMB 72.5 million as of December 31, 2018[196] Financing and Liabilities - The company obtained an additional RMB 250,000,000 in financing after the reporting period[38] - The company has a policy for short-term leases, recognizing lease payments as expenses on a straight-line basis over the lease term[47] - The company recognized lease liabilities amounting to RMB 3,784,000 as of January 1, 2019, following the application of HKFRS 16[72] - The current portion of lease liabilities is RMB 350,000, while the non-current portion is RMB 3,434,000[73] - The company reported a lease liability of RMB 3,434,000 as a non-current liability as of January 1, 2019[88] Taxation and Other Income - The income tax expense for the period was RMB 5,791,000, an increase from RMB 3,712,000 in the previous year[99] - The company expects to maintain its preferential tax rate of 15% for certain subsidiaries recognized as high-tech enterprises[100] - Other income accounted for approximately 8.9% of total revenue in the first half of 2019, up from 4.7% in the same period of 2018[174] Investments and Capital Expenditure - The company invested approximately RMB 78.0 million in properties, plants, and equipment during the first half of 2019[166] - The company acquired property, plant, and equipment at a cost of RMB 78,008,000, compared to RMB 90,166,000 in the same period last year[117] - The capital expenditure contracted but not provided for as of June 30, 2019, was RMB 197,891,000, slightly down from RMB 204,350,000 in 2018[152] Employee and Related Party Transactions - Total employee benefits expenses amounted to RMB 37,875,000, down 7.1% from RMB 40,961,000 in the previous year[105] - Related party payables decreased from RMB 34,047,000 in 2018 to RMB 7,604,000 in 2019, a significant decline of about 77.7%[143]
茂宸集团(00273) - 2019 - 中期财报