胜利管道(01080) - 2024 - 中期业绩

Financial Highlights and Interim Results Announcement Financial Highlights As of June 30, 2024, the company's revenue increased by 3.5% year-on-year, and gross profit margin significantly improved by 6.8 percentage points to 11.0%. Loss attributable to owners of the company narrowed substantially to RMB 23.716 million, but the Board did not recommend an interim dividend 2024 Interim Performance Key Financial Indicators | Indicator | 2024 Interim | 2023 Interim | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | approx. RMB 333,604,000 | approx. RMB 322,269,000 | +3.5% | | Gross Profit Margin | approx. 11.0% | approx. 4.2% | +6.8 percentage points | | Loss for the Period Attributable to Owners of the Company | approx. RMB 23,716,000 | approx. RMB 57,348,000 | Loss narrowed by 58.6% | | Basic Loss Per Share | approx. 0.61 cents | approx. 1.48 cents | Loss narrowed | | Interim Dividend | Not recommended | None | - | Unaudited Condensed Consolidated Financial Statements Financial statements show gross profit increased by 169.0% year-on-year due to controlled sales costs, and pre-tax loss significantly narrowed from RMB 57.924 million to RMB 24.086 million. However, other comprehensive loss of RMB 25.589 million was recorded due to fair value adjustment of a financial asset. Total assets and net assets decreased, and cash and cash equivalents significantly reduced Statement of Profit or Loss and Other Comprehensive Income During the review period, revenue was RMB 334 million, up 3.5% year-on-year. Gross profit significantly increased to RMB 36.794 million from RMB 13.677 million in the prior period. Administrative expenses decreased, but total comprehensive loss for the period was RMB 49.70 million due to a fair value loss of RMB 25.589 million on a financial asset designated at fair value through other comprehensive income Condensed Consolidated Statement of Profit or Loss Key Items (RMB thousands) | Item | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 333,604 | 322,269 | | Sales and Services Costs | (296,810) | (308,592) | | Gross Profit | 36,794 | 13,677 | | Administrative Expenses | (39,763) | (48,913) | | Finance Costs | (6,601) | (6,821) | | Loss Before Tax | (24,086) | (57,924) | | Loss for the Period | (24,106) | (57,944) | | Other Comprehensive Loss | (25,589) | – | | Total Comprehensive Loss for the Period | (49,695) | (57,944) | | Loss Attributable to Owners of the Company | (23,716) | (57,348) | Statement of Financial Position As of June 30, 2024, the Group's total assets were RMB 959 million, a decrease from RMB 1.084 billion at the end of 2023. Total liabilities decreased to RMB 506 million, and net assets were RMB 454 million. Cash and cash equivalents significantly dropped from RMB 137 million to RMB 47.37 million Condensed Consolidated Statement of Financial Position Key Items (RMB thousands) | Item | 2024 June 30 (Unaudited) | 2023 December 31 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 555,698 | 579,355 | | Current Assets | 403,620 | 504,224 | | Of which: Cash and Cash Equivalents | 47,366 | 137,318 | | Total Assets | 959,318 | 1,083,579 | | Current Liabilities | 397,588 | 485,356 | | Non-current Liabilities | 107,993 | 94,791 | | Total Liabilities | 505,581 | 580,147 | | Net Assets | 453,737 | 503,432 | Management Discussion and Analysis CEO's Report The CEO's report highlights the company's stable operations despite a challenging external environment, achieved through strengthened cooperation with key clients like China Oil & Gas Piping Network Corporation, active market expansion, optimized production layout, and enhanced management efficiency. The company achieved significant results in quality management and technological innovation, maintaining confidence in the future development of the domestic oil and gas industry, and will continue to focus on its core business and explore new ventures to create shareholder value Operational Review During the review period, the company made progress in market, production, management, quality, and technology. Market efforts solidified cooperation with key clients and expanded to new social customers. Production efficiently completed national pipeline supply tasks. Management optimized labor and incentive systems. Quality and technology achieved API certifications, carbon footprint verification, and advanced equipment upgrades with new patents - Strengthened cooperation with China Oil & Gas Piping Network Corporation and "Three Barrels of Oil" (Sinopec, PetroChina, CNOOC) key clients, achieving excellent results in PetroChina and Sinopec tenders[56] - Actively expanded into the social market, successfully developed 5 new customers, and increased processing orders, optimizing order structure and profitability[57] - Successfully completed steel pipe production and anti-corrosion tasks for multiple large-scale projects, including the China Oil & Gas Piping Network Corporation's Hulin-Changchun natural gas pipeline[58] - Passed API 5L and API Spec Q1 annual audits, and obtained carbon footprint and Type III environmental declaration certifications for spiral submerged arc welded pipes and anti-corrosion steel pipes[61] - Steadily advanced 8 key equipment technology upgrades and obtained 1 invention patent and 1 utility model patent authorization[63] Future Outlook Looking ahead, with global economic resilience and China's economy expected to meet growth targets, the company sees opportunities in the domestic oil and gas industry. Despite challenges from new energy alternatives, national support policies for oil and gas exploration provide positive signals. The company will leverage its advantage as a key supplier to China Oil & Gas Piping Network Corporation, deepening strategic adjustments, technological innovation, and market expansion for stable and sustainable growth - Global oil demand growth is expected to slow, but domestic crude oil and natural gas production will grow steadily, supporting industry development[64] - The company will continue to leverage its capacity and technological advantages as a key supplier to China Oil & Gas Piping Network Corporation, striving for more project orders and actively planning for the second half's framework agreement tenders[65] - The company's strategy will focus on deepening cooperation with core clients, promoting technological upgrades, and pursuing long-term development by expanding into new businesses to create shareholder value[65] Financial Review During the review period, the Group's total revenue increased by 3.5% to RMB 334 million, primarily driven by strong growth in anti-corrosion treatment and new trading business revenue, offsetting a slight decline in welded pipe sales. Gross profit and gross profit margin both increased significantly, mainly due to a higher proportion of high-margin national pipeline and anti-corrosion businesses. Administrative expenses were effectively controlled, but sales costs increased due to higher transportation fees. Ultimately, total comprehensive loss for the period narrowed to RMB 49.70 million Revenue Composition Analysis (RMB thousands) | Business Segment | 2024 H1 | 2023 H1 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | SAWH Welded Pipe Sales | 293,963 | 305,226 | -3.7% | | Anti-corrosion Treatment | 28,947 | 16,973 | +70.5% | | Trading Business | 10,694 | 0 | - | | Total Revenue | 333,604 | 322,269 | +3.5% | - Gross profit increased by 169.0% to RMB 36.794 million, and gross profit margin improved from 4.2% to 11.0%, mainly due to a significant increase in the proportion of high-margin national pipeline and anti-corrosion treatment businesses[74] - Sales and distribution costs increased due to higher transportation fees, while administrative expenses decreased due to cost control[76][77] - Due to the reclassification of the investment in Xinfeng Energy as a financial asset designated at fair value through other comprehensive income, a fair value change loss of RMB 25.589 million was recognized[82] Capital & Risk Management As of June 30, 2024, the Group's total borrowings were approximately RMB 325 million, slightly lower than the end of 2023. The gearing ratio increased from 46.0% to 50.1%, mainly due to a decrease in equity. The Group's business is primarily denominated in RMB, with limited foreign exchange risk and no hedging activities. Some bank loans are secured by property, plant, equipment, and right-of-use assets Borrowing Situation (RMB thousands) | Borrowing Type | 2024 June 30 | 2023 December 31 | | :--- | :--- | :--- | | Bank Loans - Secured | 276,250 | 280,800 | | Other Loans - Unsecured | 48,767 | 48,767 | | Total | 325,017 | 329,567 | - The gearing ratio increased from 46.0% at the end of 2023 to 50.1% as of June 30, 2024[93] - The Group pledged property, plant and equipment of approximately RMB 119 million and right-of-use assets of approximately RMB 69.08 million as collateral for bank loans of RMB 276 million[96] - The Group's business is primarily transacted and settled in RMB, with minimal foreign exchange risk, and no hedging instruments are used[98] Notes to the Financial Statements Segment and Customer Information The Group's business is divided into two reportable segments: welded pipe business and trading business. The welded pipe business is the absolute dominant segment in terms of revenue and assets, contributing the vast majority of revenue. During the review period, trading business revenue was RMB 10.694 million, compared to zero in the prior period. The Group's revenue is almost entirely from the Chinese market, and there is a significant concentration risk with major customers, where customer A's revenue accounts for over 75% of total revenue Segment Revenue and Results (RMB thousands) | For the six months ended June 30, 2024 | Welded Pipe Business | Trading Business | Total | | :--- | :--- | :--- | :--- | | Segment Revenue | 322,910 | 10,694 | 333,604 | | Segment Results | (10,699) | (1,652) | (12,351) | - Revenue from major customer A was RMB 250,151,000, accounting for 75% of the Group's total revenue[20] Key Balance Sheet Items Analysis Among key balance sheet items, financial assets designated at fair value through other comprehensive income (investment in Xinfeng Energy) recorded a fair value decrease of RMB 25.589 million. Total trade receivables remained stable, with the aging structure showing most due within one year. Total borrowings slightly decreased to RMB 325 million, with secured bank loans accounting for the majority - The fair value of financial assets designated at fair value through other comprehensive income (unlisted equity investment in Xinfeng Energy) decreased from RMB 97.264 million to RMB 71.675 million, resulting in a fair value change loss of RMB 25.589 million[34][35] Trade Receivables Aging Analysis (Net, RMB thousands) | Aging | 2024 June 30 | 2023 December 31 | | :--- | :--- | :--- | | Within 3 months | 45,534 | 39,894 | | 3 to 6 months | 44 | 5,152 | | 6 months to 1 year | 11,003 | 10,673 | | 1 to 2 years | 1,459 | 381 | | Total | 58,040 | 56,100 | - As of June 30, 2024, the Group's total borrowings were RMB 325 million, of which RMB 276 million were secured bank loans and RMB 48.77 million were unsecured other loans. Approximately RMB 219 million of borrowings are repayable within one year[47] Other Corporate Information Dividends and Corporate Governance The Board did not recommend any interim dividend for the review period. The company complied with the Corporate Governance Code under the Listing Rules and maintained sufficient public float. The Audit Committee reviewed the unaudited financial statements for the period - The Board did not recommend the declaration of any interim dividend for the six months ended June 30, 2024[100] - The company complied with all code provisions of the Corporate Governance Code during the review period[102] - The Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited financial statements, risk management, and internal control systems[107]