Financial Performance - Revenue for the six months ended June 30, 2023, was approximately RMB 7,951 million, a decrease of about 4.1% compared to the same period last year[2]. - Gross profit for the period was approximately RMB 22 million, compared to a gross loss of approximately RMB 419 million in the same period last year[2]. - The net loss attributable to the company's owners was approximately RMB 504 million, an improvement from a net loss of RMB 650 million in the same period last year[2]. - Basic and diluted loss per share was approximately RMB 0.42, compared to RMB 0.54 in the same period last year[2]. - The company reported a pre-tax loss of RMB 425 million for the period, compared to a pre-tax loss of RMB 648 million in the same period last year[3]. - Other income and gains for the period were RMB 152 million, slightly down from RMB 164 million in the same period last year[3]. - The group reported a pre-tax loss of RMB 425,970 thousand for the first half of 2023, compared to a pre-tax loss of RMB 648,490 thousand in the same period of 2022, showing an improvement in financial performance[17][18]. - The company incurred a loss of RMB 504,331 thousand for the six months ended June 30, 2023, compared to a loss of RMB 650,036 thousand for the same period in 2022, reflecting a reduction in losses[27]. - The company’s electricity and steam revenue was approximately RMB 2,039,000,000, a decrease of about 28.5% year-on-year due to reduced demand[59]. Assets and Liabilities - Total current assets amounted to RMB 15,240 million, a decrease from RMB 16,143 million as of December 31, 2022[5]. - Total current liabilities were RMB 6,902 million, down from RMB 7,658 million as of December 31, 2022[5]. - The company's total equity attributable to owners was RMB 16,807 million as of June 30, 2023, compared to RMB 17,312 million at the end of 2022[6]. - Non-current assets were valued at RMB 9,047 million, a decrease from RMB 9,361 million as of December 31, 2022[4]. - Total assets as of June 30, 2023, were RMB 24,288,685 thousand, a decrease from RMB 25,504,185 thousand as of December 31, 2022[21]. - The carrying amount of right-of-use assets was approximately RMB 309,993,000 as of June 30, 2023, down from RMB 320,323,000 as of December 31, 2022[31]. - The total accounts payable as of June 30, 2023, was RMB 694,318,000, down 28.4% from RMB 968,611,000 as of December 31, 2022[41]. - The company’s bank borrowings amounted to approximately RMB 1,259,000,000 as of June 30, 2023, a decrease of 16.6% from RMB 1,511,000,000 as of December 31, 2022[43]. Cash Flow - For the six months ended June 30, 2023, the company reported a net cash outflow from operating activities of RMB (1,376,033) thousand, compared to RMB (642,339) thousand for the same period in 2022[8]. - The net decrease in cash and cash equivalents was RMB (1,292,054) thousand, compared to RMB (784,695) thousand in the same period of 2022[8]. - The company ended the period with cash and cash equivalents of RMB 10,109,959 thousand, down from RMB 10,781,134 thousand at the end of June 2022[8]. - As of June 30, 2023, the group's cash and cash equivalents were approximately RMB 10,110 million, a decrease of about 11.3% from approximately RMB 11,402 million at the end of 2022[73]. Revenue Breakdown - Revenue from cotton yarn sales increased to RMB 2,847,688 thousand, up 15.1% from RMB 2,474,531 thousand in 2022[15]. - Revenue from fabric sales was RMB 2,644,879 thousand, slightly up from RMB 2,619,927 thousand in 2022[15]. - Revenue from denim sales rose to RMB 419,628 thousand, an increase of 21.1% from RMB 346,261 thousand in 2022[15]. - Revenue from electricity and steam sales decreased to RMB 2,038,947 thousand, down 28.5% from RMB 2,852,315 thousand in 2022[15]. - The textile segment generated external revenue of RMB 5,912,195 thousand, while the power and steam segment generated RMB 2,671,414 thousand, indicating a significant drop in the power and steam segment compared to RMB 3,478,704 thousand in the previous year[17][18]. - Textile product revenue was approximately RMB 5,912,000,000, an increase of about 8.7% year-on-year, driven by a recovering domestic market[59]. Operational Efficiency - The company is advancing automation and smart manufacturing projects to enhance production efficiency[52]. - The company has initiated key national projects focused on automation technology in the textile industry[53]. - The average utilization hours of the power generation units decreased by 578 hours to approximately 1,787 hours compared to the same period last year[65]. - The gross profit from electricity and steam sales decreased by approximately 32.9% to about RMB 108 million, with a gross profit margin of 5.3%, down 0.3 percentage points year-on-year[66]. Research and Development - Research and development costs amounted to RMB 201,946 thousand for the first half of 2023, down from RMB 318,850 thousand in the same period of 2022, suggesting a reduction in investment in R&D[25]. - The group spent approximately RMB 345,490,000 on property, plant, and equipment for the six months ended June 30, 2023, compared to RMB 260,955,000 for the same period in 2022, representing a 32.4% increase[28]. Governance and Compliance - The company did not declare any dividends for the six months ended June 30, 2023, consistent with the previous year[26]. - An audit committee was established to review the financial reporting process and internal controls, consisting of three independent non-executive directors[91]. - The remuneration committee approved the remuneration proposals for directors and senior management for the fiscal year 2023[92]. - A nomination committee was formed to review the board's structure and recommend changes as necessary[93]. - The company adhered to the principles of the Corporate Governance Code during the six months ended June 30, 2023[94]. Market Outlook - The outlook for the second half of 2023 indicates uncertainty in global economic recovery, with a focus on enhancing domestic demand in the textile industry[80]. - The group plans to strengthen industrial upgrading and innovation to achieve high-quality development, while maintaining a balance between domestic and international sales[80]. - The group aims to explore markets along the "Belt and Road" initiative and enhance production automation and green production levels[80]. - The group will optimize product structure based on market demand, leveraging its integrated advantages in production, learning, and research[80].
魏桥纺织(02698) - 2023 - 中期业绩