Financial Performance - Revenue increased by 6.7% to approximately RMB 8,349.8 million (H1 2023: RMB 7,826.7 million) [2] - Profit attributable to owners increased by 45.2% to approximately RMB 378.4 million (H1 2023: RMB 260.6 million) [2] - Earnings per share was RMB 0.90 (H1 2023: RMB 0.62) [2] - Total comprehensive income for the period was RMB 379.0 million (H1 2023: RMB 261.1 million) [5] - The reported profit from external customers for the six months ended June 30, 2024, was RMB 749,735,000, a decrease of 13.5% from RMB 866,854,000 in the same period of 2023 [20] - The pre-tax consolidated profit for the six months ended June 30, 2024, was RMB 409,728,000, up 52.4% from RMB 268,692,000 in the previous year [20] - The company's attributable profit increased by 45.2% to approximately RMB 378.4 million, with a net profit margin of 4.5% [53] Sales and Revenue Breakdown - Sales volume rose by 3.1% to approximately 362,049 tons (H1 2023: 351,101 tons) [2] - Revenue from aluminum sales reached RMB 8,083,355 thousand, up from RMB 7,642,596 thousand, representing an increase of approximately 5.8% [16] - In the first half of 2024, sales revenue from construction aluminum profiles reached RMB 6,694.9 million, a year-on-year increase of 4.7% compared to RMB 6,396.9 million in the same period of 2023 [39] - Sales revenue from industrial aluminum profiles was RMB 1,388.5 million in the first half of 2024, representing an 11.5% year-on-year growth from RMB 1,245.7 million in the first half of 2023 [40] - The construction aluminum profiles accounted for 80.2% of total revenue, while industrial aluminum profiles made up 16.6% [41] Cash Flow and Liquidity - For the six months ended June 30, 2024, the operating cash flow before changes in working capital was RMB 724,016 thousand, compared to RMB 758,040 thousand for the same period in 2023, reflecting a decrease of approximately 4.5% [10] - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 680,595 thousand, significantly up from RMB 196,692 thousand in the previous year, indicating an increase of approximately 246.5% [10] - Cash and cash equivalents as of June 30, 2024, amounted to RMB 2,875,829 thousand, compared to RMB 2,793,247 thousand at the end of June 30, 2023, showing an increase of approximately 2.9% [10] - The current ratio improved to 1.59 from 1.28, while the quick ratio increased to 1.80 from 1.52 [54] - The debt ratio slightly decreased to 23.3% from 24.5%, attributed to a combination of increased bank borrowings and higher current asset amounts [55] Assets and Liabilities - Non-current assets amounted to RMB 4,393.4 million as of June 30, 2024 [7] - Current assets totaled RMB 9,838.0 million as of June 30, 2024 [7] - Current liabilities were RMB 6,185.5 million as of June 30, 2024 [9] - Total equity attributable to owners was RMB 5,453.1 million as of June 30, 2024 [8] - The company's financial liabilities measured at amortized cost amounted to RMB 4,817,529,000 as of June 30, 2024, compared to RMB 3,784,158,000 as of December 31, 2023 [34] Operational Efficiency - The gross profit for the total operations was RMB 749,735 thousand for the six months ended June 30, 2024, down from RMB 866,854 thousand in the previous year, reflecting a decrease of about 13.5% [19] - Distribution costs rose by 17.2% to approximately RMB 179.0 million, accounting for 2.1% of revenue [51] - Inventory turnover period improved to 39 days from 42 days, indicating better inventory management [57] - Accounts receivable collection period decreased to 91 days from 99 days, reflecting improved efficiency in receivables management [57] Research and Development - Research and development costs for the six months ended June 30, 2024, amounted to RMB 395,236,000, an increase from RMB 371,676,000 in the same period of 2023 [26] - The company expects to benefit from additional tax deductions related to R&D expenses, which reduced income tax by RMB 32,799,000 for the six months ended June 30, 2024 [24] Market Strategy and Outlook - The company continues to focus on expanding its market presence in the Asia-Pacific region, with revenue from this area increasing to RMB 233,665 thousand from RMB 64,745 thousand in the previous year, marking a substantial growth [16] - The company is actively expanding its retail business and enhancing its home window and door product line to increase market penetration and brand influence [39] - The outlook for the aluminum profile industry remains cautiously optimistic, with expected stable growth driven by the recovery of the global economy and increasing demand in sectors like renewable energy and aerospace [44] Corporate Governance - The board did not recommend any interim dividend for H1 2024 (H1 2023: none) [2] - The group did not recommend an interim dividend for the first half of 2024, compared to no dividend in the first half of 2023 [66] - The company has actively adjusted its business strategy to deepen cooperation with financially stable real estate developers to mitigate market risks [36]
兴发铝业(00098) - 2024 - 中期业绩