Financial Performance - China Graphite Group Limited announced its interim results for the six months ending June 30, 2024[1]. - The company reported a significant increase in revenue, with a year-on-year growth of 25%[2]. - For the first half of 2024, the group's total revenue was approximately RMB 36.4 million, a year-on-year decrease of 22.8%[16]. - The group recorded a net loss of approximately RMB 16.2 million, compared to a net loss of RMB 3.3 million in the same period last year[16]. - The net loss after tax for the first half of 2024 was approximately RMB 16.2 million, compared to RMB 3.3 million in the same period of 2023, attributed to intensified market competition and export restrictions[43]. - The company reported revenue of RMB 36,437,000 for the six months ending June 30, 2024, compared to RMB 33,514,000 for the same period in 2023, representing an increase of approximately 9%[85]. - The gross profit for the period was RMB 2,923,000, with a gross margin of approximately 8%[85]. - The net loss for the period was RMB 16,218,000, compared to a net loss of RMB 11,129,000 in the previous year, indicating a deterioration in performance[85]. - Basic and diluted loss per share was RMB 1.01, compared to RMB 0.21 in the prior year[85]. Revenue Breakdown - Sales revenue from spherical graphite and its by-products was approximately RMB 10.2 million, down from RMB 34.9 million in the same period last year[16]. - Revenue from the sale of spherical graphite and its by-products decreased to approximately RMB 10.23 million in the first half of 2024, down from RMB 34.87 million in the same period of 2023, representing a decline of about 70.7%[31]. - Total revenue from graphite product sales fell to approximately RMB 35.3 million in the first half of 2024, a decrease of about 24.6% from RMB 46.8 million in the first half of 2023[32]. - Revenue from the sale of flake graphite concentrate accounted for approximately 68.9% of total revenue in the first half of 2024, compared to 25.3% in the same period of 2023[30]. - For the six months ended June 30, 2024, the total revenue from the sale of flake graphite was RMB 28,484,000 (with inter-segment revenue of RMB 3,377,000), while the revenue from the sale of spherical graphite and its by-products was RMB 16,480,000 (with inter-segment revenue of RMB 5,150,000), totaling RMB 44,964,000 (with inter-segment revenue of RMB 8,527,000)[103]. Cost and Expenses - Sales cost in the first half of 2024 rose to approximately RMB 33.5 million, a 10.6% increase from RMB 30.3 million in the first half of 2023, primarily due to increased depreciation and maintenance expenses[34]. - The gross profit margin for spherical graphite sales was 21.2%, down from 33.0% in the same period last year[17]. - The gross profit from the sale of flake graphite decreased from approximately RMB 5.3 million and a gross margin of 44.6% in the first half of 2023 to approximately RMB 5.0 million and a gross margin of 20.1% in the first half of 2024[36]. - The company incurred capital expenditures of RMB 138,136,000 during the period, primarily for the purchase of property, plant, and equipment[91]. - The total expenses amounted to RMB 52,377,000, with significant costs in raw materials and production[116]. Market and Strategic Outlook - The company provided a positive outlook, projecting a revenue growth of 20% for the next fiscal year[2]. - New product development includes the launch of a high-purity graphite line, expected to contribute an additional 10% to revenue[2]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[2]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance production capacity by 40%[2]. - The company remains optimistic about the long-term development of the graphite industry despite current adjustments[19]. - The Chinese government's supportive policies for the new energy vehicle industry are expected to drive future growth[24]. Operational Efficiency and Investments - The company is investing in new technologies to improve production efficiency, aiming for a 15% reduction in operational costs[2]. - The group plans to increase the graphite extraction volume at the Beishan mine to over 500,000 tons per year to ensure stable supply[18]. - The company has shifted its strategic focus from "production-oriented" to "production cost optimization" to enhance operational efficiency[46]. - The company has implemented a prudent cash management policy to ensure sufficient liquidity for operational needs and business expansion[51]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes, except for the specific provision C.2.1 regarding the separation of the roles of Chairman and CEO[75]. - The Audit Committee has reviewed the interim financial results for the first half of 2024 and confirmed that the unaudited interim consolidated financial statements comply with applicable accounting standards and listing rules[84]. - The company has established various committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Compliance Committee, to ensure effective governance and oversight[78][80][82][83]. - There were no significant violations of applicable laws and regulations during the first half of 2024[74]. - The company is committed to maintaining a high level of corporate governance to protect shareholder interests and enhance shareholder value[75]. Employee and Management Information - As of June 30, 2024, the group had a total of 199 employees, a decrease from 288 employees as of December 31, 2023, primarily due to cost control measures in response to intense competition in the graphite industry[59]. - For the six months ended June 30, 2024, the total remuneration for key management personnel was RMB 2,428,000, an increase from RMB 2,368,000 in the same period of 2023, reflecting a growth of approximately 2.5%[186]. - Employee benefits expenses for Zhao Changshan, Zhao Changhai, and Zhang Yuqin amounted to RMB 360,000, consistent with the previous year, while Sun Yao's expenses remained at RMB 378,000[184]. Financial Position and Liquidity - The company's total borrowings increased to approximately RMB 126.7 million as of June 30, 2024, compared to RMB 66.4 million at the end of 2023[48]. - The current ratio decreased to 1.5 as of June 30, 2024, down from 2.9 at the end of 2023, primarily due to a decline in trade receivables[49][50]. - The company maintains a strong cash position with cash and cash equivalents of approximately RMB 94.9 million as of June 30, 2024[48]. - The company faces financial risks including interest rate risk, credit risk, and liquidity risk, but currently does not have significant exposure to these risks[53][54][56]. - The company's cash and cash equivalents were RMB 94,933,000 as of June 30, 2024, a decrease from RMB 111,918,000 at the end of 2023, indicating tighter liquidity conditions[156]. Acquisitions and Investments - The group successfully acquired industrial land in Weihai, Shandong Province, for future downstream development[19]. - The group acquired equity and land rights of Shandong Ruisheng Carbon Material Technology Co., Ltd. for RMB 55,888,422, with RMB 27,944,211 paid as of the announcement date[63]. - The group obtained formal approval for the acquisition of land use rights in Heilongjiang for RMB 86,922, aimed at increasing graphite extraction capacity to over 500,000 tons annually[64]. Risk Management - The overall risk management plan aims to minimize potential adverse effects on the group's financial performance due to unpredictable financial market conditions[98]. - The company has a maximum credit risk exposure of RMB 94,931,000 as of June 30, 2024, down from RMB 111,917,000 at the end of 2023, indicating a reduction in financial risk[155].
中国石墨(02237) - 2024 - 中期业绩