Financial Performance - The company reported an operating loss of approximately RMB 34.7 million for the first half of 2020, a decrease of about 103.0% compared to a profit of RMB 178.9 million in the same period of 2019[10]. - Total sales for the first half of 2020 amounted to RMB 989.4 million, a decrease of approximately 31.5% from RMB 1,444.0 million in the same period of 2019[12]. - The overall financial performance of the company declined due to production interruptions caused by the pandemic and delays in customer resumption of work[10]. - The group recorded a revenue of approximately RMB 989.4 million, a decrease of about 31.5% compared to RMB 1,444.0 million in the same period of 2019[15]. - The total gross profit was approximately RMB 72.6 million, a decrease of about 72.8% from RMB 266.8 million in the first half of 2019, with a gross margin decline attributed to lower sales prices[18]. - EBITDA decreased by approximately 75.6% to about RMB 53.1 million from RMB 217.9 million in the first half of 2019[23]. - The group incurred a loss of approximately RMB 34.7 million, compared to a profit of about RMB 117.0 million in the same period of 2019[23]. - The company reported a loss before tax of RMB 53,486 thousand, compared to a profit of RMB 143,824 thousand in the previous year, reflecting a negative swing of approximately 137.2%[55]. - Total comprehensive loss for the period was RMB 35,618 thousand, contrasting with a total comprehensive income of RMB 117,032 thousand in 2019, marking a decline of around 130.4%[55]. - Basic and diluted loss per share for the period was RMB (0.02), compared to earnings of RMB 0.10 per share in the same period last year[55]. Revenue Breakdown - Revenue from oil-specific pipes decreased by approximately 38.9% to RMB 535.9 million, compared to RMB 877.1 million in the same period of 2019[12]. - Revenue from other oil pipes increased by approximately 16.4% to RMB 211.1 million, compared to RMB 181.3 million in the same period of 2019[12]. - Revenue from pipe blanks decreased by approximately 37.1% to RMB 242.4 million, compared to RMB 385.6 million in the same period of 2019[12]. - Domestic sales accounted for 91.4% of total sales, amounting to RMB 904.7 million, while international sales accounted for 8.6%, amounting to RMB 84.7 million[12]. - The company experienced a 21.1% decrease in export revenue, which fell to RMB 84.7 million from RMB 107.3 million in the same period of 2019[14]. - Revenue from mainland China for the six months ended June 30, 2020, was RMB 904,721,000, a decline of 32.3% compared to RMB 1,336,726,000 in 2019[75]. Cost and Expenses - The cost of sales amounted to approximately RMB 916.8 million, down about 22.1% from RMB 1,177.2 million in the same period of 2019, primarily due to a decline in sales volume[17]. - Administrative expenses rose to approximately RMB 65.2 million, an increase of about 5.7% from RMB 61.7 million in the first half of 2019[19]. - Financial costs increased by approximately 37.7% to RMB 48.2 million from RMB 35.0 million in the same period of 2019, mainly due to interest on capitalized project loans[20]. - The company reported a financing cost of RMB 48,203 thousand for the period, which is a significant increase from RMB 35,038 thousand in the previous year[55]. - The company’s administrative expenses totaled RMB 65,186 thousand, an increase from RMB 61,728 thousand in the previous year[55]. Cash Flow and Liquidity - Net cash generated from operating activities was RMB 384,413 thousand, significantly up from RMB 74,043 thousand in the previous year[68]. - Cash and cash equivalents decreased by RMB 102,724 thousand, compared to an increase of RMB 214,421 thousand in the previous year[68]. - The company reported a net cash outflow from financing activities of RMB 453,192 thousand, compared to a net inflow of RMB 360,244 thousand in the previous year[68]. - The company had cash and cash equivalents of RMB 469,981 thousand as of June 30, 2020, down from RMB 572,067 thousand at the beginning of the year[68]. - The company’s total liabilities decreased, indicating improved financial stability despite the reported losses[56]. Impact of COVID-19 - The COVID-19 pandemic has led to a decline in sales and prices of oil-specific pipe products, resulting in a temporary suspension of production activities until the situation began to stabilize[113]. - The company has taken emergency measures in response to the pandemic, including reassessing product demand and adjusting production activities based on market fluctuations[113]. - The company has implemented various measures to mitigate the impact of the pandemic, including reassessing product demand and prices, and expanding the supplier base[14]. - The company remains optimistic about the eventual control of the COVID-19 pandemic and continues to monitor the situation closely[113]. - The exact timing and scope of business recovery remain uncertain and depend on the development of the pandemic[113]. Investments and Capital Expenditures - The company invested approximately RMB 22.5 million in property, plant, and equipment, a decrease of RMB 246.6 million compared to RMB 269.1 million in the first half of 2019[24]. - The company allocated RMB 339.2 million for Phase II expansion, with RMB 200.0 million already utilized as of June 30, 2020[30]. - The company has capital commitments related to property, plant, and equipment amounted to RMB 173,688 thousand, a decrease of 12.5% from RMB 198,474 thousand as of December 31, 2019[109]. Corporate Governance - The company has established five board committees to oversee specific matters, ensuring compliance with corporate governance codes[33]. - The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2020, confirming it was prepared in accordance with applicable accounting standards[33]. - The company has adopted a set of codes for securities trading by directors, ensuring compliance with the standards set forth in the listing rules[33]. Shareholder Information - The company’s major shareholder, Mr. Meng Fanyong, owns approximately 80.6% of Shengxing Limited[39]. - The company’s major shareholder, Ms. Luo Yumei, holds 706,353,600 shares, equivalent to 47.1% of the total issued shares[41]. - The company has a total of 42,300,000 stock options outstanding as of June 30, 2020, with a weighted average exercise price of HKD 0.477[107]. - The company proposed no interim dividend for the six months ended June 30, 2020, compared to a dividend of zero for the same period in 2019[103].
达力普控股(01921) - 2020 - 中期财报