Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,337,234 thousand, a decrease of 17.4% compared to RMB 1,619,754 thousand for the same period in 2023[2] - Gross profit increased to RMB 143,427 thousand, up 15.3% from RMB 124,413 thousand in the previous year[2] - Profit before tax rose to RMB 125,439 thousand, representing a 25.0% increase from RMB 100,335 thousand in the prior year[2] - Net profit for the period was RMB 89,795 thousand, an increase of 20.5% compared to RMB 74,457 thousand in the same period last year[2] - Basic earnings per share increased to RMB 14.5, up from RMB 11.4, reflecting a growth of 27.2%[2] Assets and Liabilities - Total non-current assets amounted to RMB 1,006,197 thousand, an increase from RMB 985,424 thousand as of December 31, 2023[3] - Current assets decreased to RMB 1,033,404 thousand from RMB 1,115,787 thousand at the end of 2023, a decline of 7.4%[3] - Current liabilities decreased significantly to RMB 183,318 thousand from RMB 294,146 thousand, a reduction of 37.7%[4] - Total equity attributable to owners of the company increased to RMB 1,809,498 thousand from RMB 1,758,498 thousand, reflecting a growth of 2.9%[4] Sales and Revenue Breakdown - Urea sales contributed RMB 1,159,211,000, down from RMB 1,372,940,000, reflecting a decline of 15.5% year-over-year[10] - The revenue from automotive urea solution products dropped from approximately RMB 104 million to approximately RMB 54.5 million, a decrease of about RMB 49.5 million or 47.6%[35] - The revenue from methanol decreased from approximately RMB 72.6 million to approximately RMB 66.5 million, a decline of about RMB 6.1 million or 8.4%[36] - The revenue from other products decreased from approximately RMB 70.2 million to approximately RMB 57.1 million, a decline of about RMB 13.1 million or 18.7%[38] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2024, was RMB 1,193,807,000, down from RMB 1,495,341,000, indicating a decrease of 20.2%[15] - Employee benefits expenses, including salaries and wages, rose to RMB 49,640,000 from RMB 46,333,000, an increase of 5.0%[15] - Administrative expenses decreased by approximately RMB 3.1 million or 12.6% to about RMB 21.5 million, mainly due to reduced maintenance and repair costs[42] Other Income and Losses - Other losses for the six months ended June 30, 2024, totaled RMB (7,837,000), compared to RMB (6,571,000) for the same period in 2023[12] - Bank interest income increased to RMB 9,488,000 from RMB 3,355,000, marking a significant increase of 182.5% year-over-year[10] - Other income rose by approximately RMB 4.7 million or 48.0% to about RMB 14.5 million, mainly due to increased bank interest income[41] - Net other losses increased by approximately RMB 1.2 million or 18.2% to about RMB 7.8 million, primarily due to investment losses recognized at fair value[42] Tax and Dividends - The company's income tax expense for the six months ended June 30, 2024, was RMB 35,644,000, an increase of 37.8% compared to RMB 25,878,000 for the same period in 2023[16] - The company approved a final dividend of HKD 0.08 per share, totaling approximately HKD 49,675,520 (equivalent to about RMB 45,181,000) for the year ended December 31, 2023[18] - The board decided not to declare an interim dividend for the reporting period[56] Employment and Governance - As of June 30, 2024, the group employed 1,302 employees, an increase from 1,292 employees as of December 31, 2023[54] - Total employee costs, including director remuneration, amounted to RMB 64.0 million for the reporting period, compared to RMB 61.2 million for the six months ended June 30, 2023[54] - The company has adopted a code of corporate governance and confirmed compliance throughout the reporting period[58] - All directors confirmed adherence to the standards of the code governing securities transactions during the reporting period[59] Market Outlook and Strategy - The outlook for the Chinese urea market indicates challenges and opportunities, with demand from the agricultural sector expected to remain a key support[48] - The company plans to improve production processes, reduce costs, and enhance product quality in line with industry trends towards green and low-carbon products[49] - The company implemented several technical innovation projects, including energy-saving and carbon-reduction upgrades to urea production equipment, enhancing its market competitiveness and customer loyalty[32] Audit and Compliance - The audit committee reviewed the interim performance and found no discrepancies in the accounting treatments and principles adopted by the group[57] - The interim results announcement is available on the Hong Kong Stock Exchange and the company's website[60]
东光化工(01702) - 2024 - 中期业绩