Financial Performance - For the six months ended June 30, 2021, the company's revenue was RMB 3,035.4 million, a decrease of 9.0% compared to RMB 3,336.6 million in the same period of 2020[12]. - Gross profit increased by 30.2% to RMB 606.5 million, with a gross margin of 20.0%, up from 14.0% in the previous year[12]. - Net profit for the period rose by 42.0% to RMB 342.9 million, resulting in a basic earnings per share of RMB 0.63, a 50.0% increase from RMB 0.42[12]. - The company reported a profit before tax of RMB 463.4 million, a 40.3% increase from RMB 330.4 million in the previous year[44]. - The net profit attributable to the company for the period was RMB 342.9 million, representing a 42.0% increase compared to RMB 241.5 million in the same period of 2020[47]. - Basic earnings per share increased by 50.0% to RMB 0.63 from RMB 0.42 in the previous year[47]. - The total comprehensive income for the period increased by approximately RMB 99.5 million or about 40.9% year-on-year[62]. - The coke segment's performance increased by approximately RMB 82.1 million or about 20.2% year-on-year, with an average coke price increase of 35.2%[63]. Assets and Liabilities - The company’s total assets increased by 10.8% to RMB 7,082.0 million as of June 30, 2021, compared to RMB 6,391.0 million at the end of 2020[12]. - As of June 30, 2021, total assets amounted to RMB 4,830,198 thousand, an increase from RMB 4,397,292 thousand as of December 31, 2020, representing a growth of approximately 9.8%[192]. - The company's non-current assets reached RMB 3,674,001 thousand, up from RMB 2,947,248 thousand, indicating a significant increase of about 24.7%[192]. - Current liabilities increased to RMB 2,251,834 thousand from RMB 1,993,737 thousand, reflecting a rise of approximately 12.9%[192]. - The total equity attributable to owners of the company was RMB 3,129,246 thousand, compared to RMB 2,900,128 thousand, marking an increase of around 7.9%[192]. - The company's cash and cash equivalents decreased to RMB 488,790 thousand from RMB 1,355,149 thousand, a decline of approximately 64.0%[192]. - Inventory levels decreased significantly to RMB 164,945 thousand from RMB 370,945 thousand, a reduction of about 55.6%[192]. - Trade and other receivables increased to RMB 363,462 thousand from RMB 298,118 thousand, representing a growth of approximately 22.0%[192]. Investments and Capital Expenditures - The company plans to upgrade two existing 4.3-meter coke ovens to advanced 7.65-meter ovens, increasing annual capacity from 1.2 million tons to 1.8 million tons, with a total investment of approximately RMB 2.45 billion[36]. - An investment of approximately RMB 178 million is planned for a new wastewater treatment project with a capacity of 180 cubic meters per hour, utilizing advanced Israeli reverse osmosis technology, expected to be fully operational in Q4 2021[39]. - The investment cash outflow for the first half of 2021 was approximately RMB 1,376.1 million, mainly due to purchases of property, plant, and equipment[71]. - The company had capital commitments of RMB 1,396.5 million for property, plant, and equipment as of June 30, 2021, up from RMB 897.9 million as of December 31, 2020[90]. Market and Pricing Dynamics - The demand for the company's products is primarily driven by the domestic steel and chemical industries, with coking coal being a key raw material[16]. - The market prices of the company's products are influenced by various factors, including domestic and global economic cycles, as well as the supply and demand dynamics of coal and coking products[17]. - In the first half of 2021, the average selling price of coke increased by 35.2% year-on-year to approximately RMB 2,380 per ton, while the average cost of coking coal only rose by 8.5%, resulting in an 82.3% expansion in the price difference between coke products and raw materials[26]. - The average selling prices of key products in 2021 compared to 2020 showed significant increases, with pure benzene rising from RMB 3,434.80 to RMB 5,517.70 per ton, a 60.5% increase[23]. Corporate Governance and Shareholder Information - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[124]. - The company has adhered to all provisions of the listing rules and corporate governance codes as of June 30, 2021[120]. - The company has established a robust internal control system through internal and third-party audits to enhance corporate governance[118]. - Major shareholders with 5% or more equity include Jinma Hong Kong and Jinma Coking, each holding 162,000,000 non-listed foreign shares, which is 40.50% of the relevant class and 30.26% of the total issued share capital[150]. - The company declared a final dividend of RMB 0.20 per share, totaling RMB 107,084,000, paid in June 2021[112]. - The board proposed an interim dividend of RMB 0.10 per share for the six months ended June 30, 2021, subject to shareholder approval[112]. Operational Performance and Efficiency - The company plans to continue investing in production and environmental sustainability to maintain profit growth and improve service levels for Chinese steel and chemical enterprises[11]. - The company’s operational performance is significantly affected by the prices of raw materials, particularly coal, and regulatory changes in the coal industry may impact supply and pricing[24]. - The employee cost for the six months ended June 30, 2021, was approximately RMB 93.9 million, compared to RMB 58.5 million for the same period last year, representing an increase of approximately 60%[166]. - The total number of employees as of June 30, 2021, was 1,890, including 17 senior management, 96 middle management, and 1,777 general staff[166]. Risk Management and Credit Exposure - The company faces significant credit risk concentration, with over 46% and 71% of credit risk concentrated in the five largest outstanding balances as of June 30, 2021, and December 31, 2020, respectively[105]. - The expected credit loss impairment increased by approximately RMB 9.9 million or about 1,180.7% year-on-year, primarily reflecting an increase in provisions for expected credit losses on accounts receivable[51]. - The company does not enter into long-term fixed-price procurement contracts for coal, relying instead on fair negotiation based on market prices at the time of order[24].
金马能源(06885) - 2021 - 中期财报