Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 910.4 million, a decrease of 1.8% compared to RMB 927.3 million in the same period of 2019[4] - Gross profit dropped to RMB 24.8 million, representing a significant decline of 56.0% from RMB 56.4 million year-on-year[4] - The gross profit margin decreased to 2.7%, down from 6.1% in the previous year[4] - The company reported a loss attributable to owners of RMB 14.0 million, a decline of 233.3% compared to a profit of RMB 10.5 million in the same period last year[4] - The company reported a significant decrease in EBITDA, which fell to RMB 27.3 million, down 56.7% from RMB 63.1 million in the previous year[4] - The company reported a loss before tax of RMB 17,200 thousand for the six months ended June 30, 2020, compared to a profit of RMB 16,267 thousand in the same period of 2019[25] - The company reported a net loss of RMB 14,001,000 for the six months ended June 30, 2020, compared to a profit of RMB 10,476,000 in the same period of 2019[55] - The net loss attributable to shareholders for the first half of 2020 was approximately RMB 14.0 million, compared to a profit of RMB 10.5 million in the same period of 2019[130] Sales and Production - Sales volume increased by 5.5% to 208,299 tons, compared to 197,407 tons in the prior year[4] - Sales of cold-rolled steel products amounted to RMB 628,770,000, down 2.0% from RMB 643,963,000 year-on-year[41] - Sales of galvanized steel products increased significantly to RMB 153,258,000, up 41.6% from RMB 108,184,000 in the previous year[41] - The total sales volume of processed steel and galvanized steel products increased by 10,892 tons or 5.5%, reaching 208,299 tons in the first half of 2020, compared to 197,407 tons in the same period of 2019[106][109] - The average selling price of processed steel products decreased from approximately RMB 4,245 per ton in the first half of 2019 to approximately RMB 4,036 per ton in the first half of 2020[109] - The sales cost increased to approximately RMB 885.6 million in the first half of 2020, an increase of approximately RMB 14.7 million or 1.7% compared to RMB 870.9 million in the same period of 2019[113] Assets and Liabilities - Net asset value as of June 30, 2020, was RMB 520.0 million, a decrease of 2.6% from RMB 534.0 million at the end of 2019[4] - Total borrowings increased by 6.1% to RMB 839.4 million, compared to RMB 790.8 million at the end of 2019[4] - The debt-to-equity ratio rose to 161.4%, up from 148.1% at the end of 2019[4] - The total liabilities increased to RMB 1,198,924 thousand as of June 30, 2020, compared to RMB 1,012,328 thousand at the end of 2019, reflecting a rise of approximately 18.4%[19] - The company’s current liabilities exceeded its current assets by RMB 65,869,000 as of June 30, 2020[30] - The company’s net asset value decreased to RMB 519,994 thousand from RMB 533,995 thousand, indicating a decline of about 2.6%[19] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2020, was negative at RMB 13,979 thousand, a significant decline from positive cash flow of RMB 234,364 thousand in the prior year[25] - The company reported a significant increase in prepaid expenses to RMB 274,759,000, compared to RMB 134,926,000 in the previous period, marking a growth of 103.6%[63] - The company experienced a decrease in cash and cash equivalents, with a net reduction of RMB 15,126,000, compared to RMB 40,775,000 in the previous year[28] - The company’s cash and cash equivalents as of June 30, 2020, were RMB 23,612,000, down from RMB 31,821,000 in the previous year[28] - The company reported a net cash outflow from financing activities of RMB 2,747,000, compared to RMB 165,946,000 in the same period of 2019[28] Operational Impact and Future Outlook - The company’s operational activities were impacted by the COVID-19 pandemic, leading to a temporary shutdown of factory operations for about two weeks[34] - The company plans to focus on expanding its market presence and enhancing product development strategies in the upcoming quarters[19] - The board anticipates significant growth in operational performance for the second half of 2020 compared to the first half, despite a loss in the first half[147] - The company’s major operations are focused on the production and sale of cold-rolled steel products and galvanized steel products, primarily in China[40] - The new production line began trial production on June 6, 2020, and is expected to contribute to the company's operational performance in the second half of 2020[106] Shareholder and Governance - The company did not declare any dividends for the six months ended June 30, 2020, compared to a total of RMB 70,340,000 in dividends declared for the same period in 2019[56] - The company’s directors believe that it has sufficient financial resources to meet its financial obligations as they fall due in the foreseeable future[33] - The company has adopted the corporate governance code as per the listing rules and has complied with its applicable provisions[171] - The company expressed gratitude to shareholders, customers, suppliers, and directors for their support and contributions during the reporting period[178]
华津国际控股(02738) - 2020 - 中期财报