Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 22,800,874, a decrease of 7.0% compared to RMB 24,504,930 in the same period of 2023[1] - Total comprehensive income for the period was RMB 9,424, a decline of 19.0% from RMB 11,628 in the previous year[2] - Operating profit for the period was RMB 136,390, slightly down from RMB 137,645 in the previous year[2] - Basic and diluted earnings per share for the period were both RMB 0.35, down from RMB 0.57 in the previous year[2] - The net profit for the six months ended June 30, 2024, was RMB 9,424, compared to RMB 11,628 for the same period in 2023, reflecting a decrease of about 18.9%[20] - Profit for the period decreased from approximately RMB 116.0 million for the six months ended June 30, 2023, to approximately RMB 9.4 million for the six months ending June 30, 2024[54] Sales Volume and Processing - Stainless steel sales volume increased by 0.9% to 965,145 tons, while processing volume decreased by 1.5% to 1,524,910 tons[1] - Carbon steel sales volume rose by 7.1% to 2,382,729 tons, with processing volume declining by 1.8% to 2,292,416 tons[1] - Stainless steel processing sales volume increased from approximately 957,000 tons for the six months ending June 30, 2023, to approximately 965,000 tons for the same period in 2024, representing a growth of about 0.9%[37] - Carbon steel processing sales volume rose from approximately 2,226,000 tons for the six months ending June 30, 2023, to approximately 2,383,000 tons for the same period in 2024, reflecting an increase of about 7.1%[37] Financial Position - Total assets as of June 30, 2024, amounted to RMB 16,329,723, an increase from RMB 13,188,882 at the end of 2023[3] - Total liabilities increased to RMB 13,039,051 from RMB 9,907,634 at the end of 2023[4] - As of June 30, 2024, the company's current liabilities exceeded current assets by approximately RMB 499,276 thousand, raising concerns about liquidity[10] - The company reported a net current liability of approximately RMB 499 million as of June 30, 2024[56] - As of June 30, 2024, the company's total borrowings amounted to approximately RMB 10.26 billion, with a debt-to-equity ratio of 75.15%, up from 68.37% as of December 31, 2023[56] Cash Flow and Financing - For the six months ended June 30, 2024, the company's operating cash flow was RMB (46,620) thousand, a significant decrease from RMB (392,600) thousand in the same period of 2023, indicating a decline of approximately 88.1%[7] - The net cash used in operating activities for the first half of 2024 was RMB (179,584) thousand, compared to RMB (555,773) thousand in the prior year, reflecting a reduction of about 67.7%[7] - The financing activities generated a net cash inflow of RMB 514,536 thousand for the first half of 2024, compared to RMB 768,642 thousand in the previous year, indicating a decrease of approximately 33.1%[7] - The company has confidence in its ability to refinance its bank loans and credit lines based on its past experience and good credit standing, which supports its going concern assumption[10] Expenses and Costs - The cost of raw materials consumed was RMB 21,515,055 for the six months ended June 30, 2024, compared to RMB 23,263,492 in the same period of 2023, showing a decrease of about 7.5%[21] - The company reported a significant increase in employee benefits expenses, which rose to RMB 512,020 for the six months ended June 30, 2024, from RMB 479,615 in the same period of 2023, an increase of approximately 6.8%[21] - The depreciation and amortization expense for the six months ended June 30, 2024, was RMB 223,093, compared to RMB 211,130 for the same period in 2023, reflecting an increase of about 5.7%[21] - Distribution costs increased from approximately RMB 225.4 million for the six months ended June 30, 2023, to approximately RMB 228.3 million for the six months ending June 30, 2024, primarily due to increased employee benefits expenses[50] - Administrative expenses rose from approximately RMB 140.6 million for the six months ended June 30, 2023, to approximately RMB 176.4 million for the six months ending June 30, 2024, mainly driven by higher employee benefits expenses[51] - Financing costs increased from approximately RMB 119.3 million for the six months ended June 30, 2023, to approximately RMB 122.3 million for the six months ending June 30, 2024, primarily due to a decrease in interest income[52] Dividends and Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[28] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[59] Operational Developments - The company has established ten processing centers and one manufacturing base, serving over 70,000 customers across various industries[31] - The global apparent consumption of steel in 2023 reached 1.763 billion tons, with China accounting for nearly 896 million tons, providing a solid market foundation for the company’s services[32] - The company is enhancing its operational efficiency and service quality through investments in advanced processing equipment and technology[32] - The successful delivery of significant projects, such as the CE-certified cooling kiln to Finland, demonstrates the company's growing capabilities in high-end equipment manufacturing[33] Compliance and Reporting - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and regulations[61] - The interim report for the six months ended June 30, 2024, will be sent to shareholders and made available on the Hong Kong Stock Exchange website and the company's website[62]
大明国际(01090) - 2024 - 中期业绩