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 the previous year[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] - Revenue from cold-rolled steel products sales was RMB 1,302,960,000 for the six months ended June 30, 2022, down from RMB 1,569,980,000 in the same period of 2021, a decrease of about 17.0%[38] - Revenue from galvanized steel products sales increased to RMB 463,653,000 for the six months ended June 30, 2022, compared to RMB 361,033,000 in the same period of 2021, an increase of approximately 28.4%[38] - The company reported a total income tax expense of RMB (22,401,000) for the six months ended June 30, 2022, compared to RMB 14,877,000 for the same period in 2021, indicating a significant increase in tax expenses[44] - The total comprehensive loss attributable to owners for the six months ended June 30, 2022, was RMB (58,938,000), compared to a profit of RMB 54,826,000 for the same period in 2021, reflecting a substantial decline in performance[48] Costs and Expenses - Average processing cost per ton decreased by 31.7% to RMB 396 from RMB 580 in 2021[4] - Financial costs for the six months ended June 30, 2022, amounted to RMB (35,943,000) compared to RMB (26,091,000) for the same period in 2021, representing an increase of approximately 37.5%[43] - 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 an increase of approximately 35.5%[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] 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] - The company’s total liabilities increased to RMB 1,942,582 thousand from RMB 1,414,984 thousand, reflecting a growth of about 37.1%[16] - The company’s non-current liabilities rose slightly to RMB 406,753 thousand from RMB 402,639 thousand, indicating a marginal increase of 0.3%[18] - Trade payables increased to RMB 224,008,000 as of June 30, 2022, compared to RMB 141,520,000 as of December 31, 2021, indicating a growth of approximately 58.2%[71] Cash Flow - Operating cash flow for the period was negative at RMB (246,732) thousand, worsening from RMB (160,452) thousand year-on-year[23] - The company reported a net cash outflow from operating activities of RMB 246,732,000 for the six months ended June 30, 2022[28] - The net cash inflow for the six months ended June 30, 2022, was RMB 37,762,000, compared to RMB 152,417,000 for the same period in 2021, representing a decrease of approximately 75.2%[28] - As of June 30, 2022, the company's cash and bank balances increased by RMB 37.8 million or 168.0% to approximately RMB 60.3 million from RMB 22.5 million as of December 31, 2021[135] 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 declare any interim dividend since the end of the reporting period[51] - The total issued share capital of the company as of June 30, 2022, is 600,000,000 shares[165] - The company's issued share capital remained at 600,000,000 shares as of June 30, 2022, unchanged from the previous period[83] Operational Insights - The company is engaged in the production and sale of cold-rolled and galvanized steel products, with a single operating segment identified[37] - The company plans to continue operations for at least the next twelve months based on available bank credit and expected cash flows from operations[29] - The group plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, providing stable revenue sources[151] - The group is considering new business opportunities to enhance revenue diversity and shareholder value[151] Compliance and Governance - 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]
茂宸集团(00273) - 2022 - 中期财报