Financial Performance - Revenue for the six months ended June 30, 2024, increased by 13.8% to RMB 6,165.7 million compared to RMB 5,418.1 million in the same period of 2023[2] - Gross profit rose by 17.7% to RMB 1,208.7 million, with a gross margin of 19.6%, up from 19.0% in the previous year[2] - EBITDA for the period was RMB 871.3 million, reflecting a growth of 7.3% from RMB 811.9 million in the prior year[2] - Basic earnings per share (EPS) remained stable at RMB 10.31, while diluted EPS decreased by 10.9% to RMB 10.24[5] - Total comprehensive income attributable to owners of the company was RMB 173.9 million, down from RMB 193.6 million in the same period last year[5] - The net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 192,159,000, slightly up from RMB 192,042,000 in the same period of 2023[24] Cash Flow and Investments - For the six months ended June 30, 2024, the net cash generated from operating activities was RMB 371,683,000, a decrease of 72% compared to RMB 1,324,360,000 for the same period in 2023[8] - The net cash used in investing activities was RMB (402,288,000), a decrease of 43% compared to RMB (700,466,000) in the same period of 2023[8] - The net cash generated from financing activities was RMB 557,919,000, compared to a net cash used of RMB (302,577,000) in the same period of 2023[8] - Cash and cash equivalents increased by RMB 524,800,000 or 91.9% to RMB 1,095,600,000, driven by cash generated from financing activities of RMB 557,900,000[51] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 10,095.2 million, up from RMB 9,132.0 million at the end of 2023[6] - Current assets increased to RMB 1,325.1 million, compared to RMB 903.6 million at the end of 2023[6] - Total liabilities increased to RMB 11,749.3 million from RMB 11,568.2 million at the end of 2023[7] - The company's net asset value rose to RMB 8,536.9 million, compared to RMB 8,298.9 million at the end of 2023[7] - The current ratio remained stable at 1.0 times, with current assets increasing by RMB 627,200,000 or 5.4% to RMB 12,215,000,000[51] - The debt-to-asset ratio was 32.6% as of June 30, 2024, compared to 32.0% as of December 31, 2023[51] Research and Development - Research and development expenses increased significantly to RMB 154.1 million, compared to RMB 91.2 million in the previous year[4] - The company developed 19 new types of radial tire steel cord and 24 new types of tire bead wire and other steel wires during the review period[37] Sales and Market Performance - The sales of truck radial tire steel cord increased to RMB 2,935,628,000, up 8% from RMB 2,712,444,000 year-over-year[13] - The sales of passenger car radial tire steel cord surged to RMB 2,336,419,000, a significant increase of 21% from RMB 1,931,631,000 in the previous year[13] - Total sales volume increased by 22.0% year-on-year to 724,900 tons in the first half of 2024, with sales of radial tire steel cord rising by 22.7% to 578,600 tons, accounting for 79.8% of total sales[33] - The sales volume of truck radial tire steel cord rose by 20.9% to 332,600 tons, driven by stable economic growth and increased logistics activities in China[34] - The revenue from external customers in China was RMB 4,220,613,000, an increase of 17% from RMB 3,591,968,000 in the previous year[16] Expenses and Costs - The company's employee costs, including salaries and benefits, increased to RMB 603,654,000 for the six months ended June 30, 2024, up from RMB 492,213,000 in the same period of 2023, representing a rise of 22.6%[22] - Distribution and selling expenses increased by RMB 136.9 million or 37.3% to RMB 504.4 million, primarily due to rising shipping costs[43] - Financing costs decreased by RMB 21,200,000 or 17.0% to RMB 103,400,000, primarily due to a decline in the effective interest rate on floating-rate borrowings[48] - Income tax expenses increased by RMB 26,700,000 or 40.0% to RMB 93,400,000, with an effective tax rate of 24.8%[49] Corporate Governance and Compliance - The company emphasizes the importance of corporate governance and is committed to maintaining high standards of transparency and accountability[64] - The company is actively seeking suitable candidates to fill vacancies on the board to comply with listing rules regarding independent non-executive directors[65] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors for the six months ending June 30, 2024[66] - The audit committee, along with external auditors and management, reviewed the accounting principles and practices for the interim results for the six months ending June 30, 2024[67] Future Outlook - The company plans to maintain a cautious outlook on the sales volume of all-steel radial tire steel cord for the second half of 2024 due to increased inventory levels and a slight decline in domestic logistics market activity[63] - The company will focus on enhancing domestic demand and promoting consumption, particularly in the advantageous industries such as new energy vehicles, which are expected to drive demand for radial tire steel cord[63] - The company anticipates continued growth in the tire industry driven by favorable government policies and increasing demand for new energy vehicles[31]
兴达国际(01899) - 2024 - 中期业绩