Financial Performance - Revenue for the first half of 2024 was approximately $32.1 million, a decrease of about 26.5% compared to $43.7 million in the first half of 2023[2]. - Gross loss for the first half of 2024 was approximately $8.1 million, compared to a gross profit of $5.3 million in the first half of 2023, reflecting a gross margin of (25.3)%[2][3]. - The company recorded a loss attributable to shareholders of approximately $14.4 million in the first half of 2024, up from a loss of about $4.2 million in the first half of 2023[2][5]. - Revenue decreased from approximately $43.7 million in H1 2023 to about $32.1 million in H1 2024, primarily due to the average selling price of graphite anodes dropping from approximately $4,549 per ton to about $3,316 per ton[8]. - Sales cost increased from approximately $38.4 million in H1 2023 to about $40.2 million in H1 2024, with the average sales cost rising from approximately $3,997 per ton to about $4,154 per ton[9]. - Gross loss increased from approximately $5.3 million in H1 2023 to about $8.1 million in H1 2024, resulting in a gross loss margin of approximately 25.3%[10]. - Administrative expenses rose to approximately $5.8 million in H1 2024, an increase of about 8.9% compared to H1 2023, mainly due to ongoing development projects for graphite anode materials[11]. - The company reported a total loss attributable to shareholders increasing from approximately $4.2 million in H1 2023 to about $14.4 million in H1 2024, primarily due to gross loss and increased administrative expenses[14]. Inventory and Cash Flow Management - Inventory levels decreased by over 20%, from approximately $57.0 million as of December 31, 2023, to about $44.1 million as of June 30, 2024[4]. - The company aims to improve cash flow by reducing inventory and enhancing operational flexibility to adapt to customer demand and market changes[4]. - In the first half of 2024, the group's net cash from operating activities was approximately $5.4 million, compared to $4.7 million in the first half of 2023[15]. - The group's total cash and cash equivalents as of June 30, 2024, were approximately $22.3 million, down from $29.6 million as of December 31, 2023[15]. - The group's total interest-bearing bank and other borrowings amounted to approximately $28.4 million as of June 30, 2024, compared to $38.7 million as of December 31, 2023[15]. - The group's debt-to-equity ratio decreased from approximately 26.1% as of December 31, 2023, to approximately 21.6% as of June 30, 2024[17]. Market Conditions and Strategic Focus - The management highlighted the ongoing impact of global economic uncertainty on demand for graphite anodes, particularly in North America and Europe[3]. - The company anticipates a challenging market environment in H2 2024, with weak downstream steel demand, but remains optimistic about future business prospects[6]. - The company is focusing on operational cost measures to maintain competitiveness in the graphite anode business despite ongoing challenges in the market[4][5]. - The company plans to implement a comprehensive response strategy to protect operational resources and minimize inventory risks in a challenging market environment[5]. - The company is diversifying its investment strategy in graphite negative materials to capture opportunities in the European new energy market[4]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled $116,994,000, a decrease from $118,638,000 as of December 31, 2023, representing a decline of 1.39%[25]. - Current assets decreased to $90,911,000 from $107,416,000, reflecting a significant drop of 15.34%[25]. - Trade receivables increased to $14,375,000 from $12,950,000, marking an increase of 10.98%[25]. - Cash and cash equivalents decreased to $22,279,000 from $29,620,000, a decline of 24.87%[25]. - Current liabilities rose to $63,722,000 from $62,571,000, indicating an increase of 1.83%[25]. - Net current assets decreased to $27,189,000 from $44,845,000, a significant reduction of 39.66%[25]. - Total assets less current liabilities decreased to $144,183,000 from $163,483,000, a decline of 11.79%[25]. Taxation and Financial Management - The estimated taxable profits in Hong Kong were subject to a tax rate of 16.5%, with a subsidiary qualifying for a lower rate of 8.25% on the first HKD 2,000,000 of taxable profits[43]. - The company received a tax benefit of approximately $4,610,000 due to the carryforward of net operating losses in the U.S. under the CARES Act[44]. - The deferred tax assets recognized included a tax benefit of $2,271,000 for the six months ended June 30, 2024, compared to $4,839,000 for the same period in 2023[45]. Shareholder Information - The company did not declare any dividends to its shareholders for the six months ended June 30, 2024, and June 30, 2023[46]. - The weighted average number of ordinary shares used to calculate basic and diluted loss per share was 984,760,221 for the six months ended June 30, 2023, and 1,000,000,000 for the same period in 2024[47]. - The company has not issued any potential dilutive ordinary shares as of June 30, 2024[46]. Strategic Initiatives and Future Outlook - The company plans to diversify investments in graphite anode materials as a natural business expansion, with a production facility in Italy set to commence in H1 2024[6]. - The company aims to leverage opportunities in the European new energy market supported by favorable policies such as the Key Raw Materials Act and EU Carbon Tax[6]. - The company is advancing the Narny silicon negative electrode material project to seize opportunities in the European new energy market, necessitating the reallocation of unutilized funds[63]. - The company has allocated approximately HKD 15 million to continue the development and expansion of the silicon negative electrode material business, including capital expenditures, operating costs, and R&D expenses[63]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and compliance[68]. - The board confirmed that the strategic direction remains consistent with the disclosures in the annual report for the fiscal year 2023, with no significant changes in the nature of the group's business[64].
昇能集团(02459) - 2024 - 中期业绩