Financial Performance - Revenue for the six months ended June 30, 2021, reached RMB 17,247 million, a 48.5% increase from RMB 11,628 million in the same period of 2020[3] - Gross profit for the same period was RMB 24,985 million, up from RMB 17,021 million in 2020, reflecting a 46.3% increase[3] - Profit for the period attributable to owners of the Company was RMB 1,571 million, compared to RMB 775 million in 2020, marking a 102.6% increase[3] - Basic earnings per share for the period was RMB 0.42, compared to RMB 0.21 in the same period last year, representing a 100% increase[3] - EBITDA for the six months ended June 30, 2021, was RMB 2,641 million, compared to RMB 1,516 million in 2020, reflecting a 74.1% increase[3] - The Group's gross profit increased by approximately 85.6% to approximately RMB 1,960 million, and net profit for the interim period was approximately RMB 1,616 million, representing an increase of approximately 105.5% over the corresponding period last year[19] - EBITDA increased to approximately RMB 2.64 billion from approximately RMB 1.52 billion in the corresponding period last year, with basic earnings per share of RMB 0.42[19] Sales and Production - The average selling price per tonne of self-manufactured steel products increased to RMB 4,454 in 2021 from RMB 3,191 in 2020, a rise of 39.6%[7] - Total sales volume of self-manufactured steel products for the six months ended June 30, 2021, was 3,872,000 tonnes, compared to 3,644,000 tonnes in 2020, an increase of 6.2%[11] - The average unit price of self-manufactured steel products increased by 39.6% to approximately RMB 4,454 per tonne, while sales volume increased by 6.3% to approximately 3.87 million tonnes[19] - The sales volume of strips and strip products surged by 230.3% to 1,450 thousand tonnes, compared to 439 thousand tonnes in 2020[40] - The sales volume of H-section steel products increased by 9.8% to 1,595 thousand tonnes, up from 1,452 thousand tonnes in the previous year[40] Assets and Liabilities - The total assets of the company increased to RMB 49,169 million as of June 30, 2021, up from RMB 44,524 million at the end of 2020, a growth of 16.8%[4] - The net assets value per share (excluding non-controlling interests) increased to RMB 5.94 as of June 30, 2021, from RMB 5.56 at the end of 2020[4] - The Group's borrowings amounted to RMB 13.491 billion with fixed interest rates ranging from 0.24% to 7.50% per annum as of June 30, 2021[67] - The debt-to-capital ratio of the Group was 61.1% as of June 30, 2021, an increase from 48.4% on December 31, 2020[69] - The Group's capital commitments as of June 30, 2021, were approximately RMB 877 million, slightly down from RMB 886 million on December 31, 2020[69] Dividends - The Board declared an interim dividend of HK$0.10 per ordinary share and a special dividend of HK$0.05 per ordinary share[24] - The Group declared an interim dividend of HKD 0.10 per share and a special dividend of HKD 0.05 per share for the first half of 2021[25] - The proposed interim dividend is HK$372.3 million (approximately RMB309.3 million), representing HK$0.10 per ordinary share[76] Market Position and Strategy - The Group was ranked 278th in the top 2021 Fortune China 500 companies[21] - The Group's annual steel production capacity is maintained at approximately 10 million tonnes, with a focus on high added-value products[26] - The Group plans to enhance competitiveness by improving production efficiency, reducing costs, and developing high value-added products[57] - The Group is actively expanding its market-based steel products and raw materials trading business, as well as developing new materials using steel slag[58] Environmental and Operational Efficiency - The Group has implemented effective cost control mechanisms despite significant increases in raw material prices during the first half of the year[20] - The Group has ongoing projects under construction with a total gross floor area of approximately 390,000 m², expected to be completed in 2022 and 2023[52] - The Group continues to invest in environmental protection projects to achieve further emission reductions and improve environmental performance[59] - The completion of the Equipment Upsizing Project in 2020 has eliminated adverse impacts on operational efficiency, contributing to improved performance in the steel segment[44] Investment and Financial Management - As of June 30, 2021, the Group held financial assets at fair value through profit or loss of approximately RMB 4,293 million, accounting for 8.7% of total assets[78] - The Group's structured bank deposits were nil as of June 30, 2021, down from RMB 1,000 million as of December 31, 2020[71] - The Group's investment gains from iron ore and steel products future contracts amounted to approximately RMB 101 million, compared to investment losses of approximately RMB 29 million in the corresponding period of 2020[74] - The Group entered into foreign currency forward contracts to mitigate the impact of RMB/USD exchange rate fluctuations during the six months ended June 30, 2021[73] Economic Outlook - Demand for steel is expected to remain stable, with infrastructure investment anticipated to be more active in the second half of 2021[55] - The Chinese government is formulating a five-year plan for the steel industry (2021-2025) to achieve sustainable development and strict regulation of new steel production capacity[54]
中国东方集团(00581) - 2021 - 中期财报