Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,539.5 million, a decrease of 26.2% from RMB 2,087.3 million in the same period of 2023[2] - Gross profit for the same period was RMB 124.5 million, down 56.0% from RMB 283.1 million year-on-year[2] - Operating loss for the six months was RMB (35.7) million, compared to an operating profit of RMB 108.2 million in the prior year, representing a decline of 133.0%[2] - Loss before tax was RMB (77.2) million, a significant increase from a profit of RMB 65.1 million in the previous year, marking a 218.6% change[2] - Net loss attributable to equity shareholders for the period was RMB (69.7) million, compared to a profit of RMB 56.8 million in the same period last year, reflecting a 222.7% increase in losses[2] - Adjusted net loss margin was (4.5%) for the current period, compared to a margin of 2.8% in the previous year[2] - Basic and diluted loss per share for the period was RMB (0.05), compared to earnings of RMB 0.04 per share in the same period of 2023[2] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,534.9 million, an increase from RMB 2,348.7 million as of December 31, 2023[6] - Current liabilities increased to RMB 2,651.8 million from RMB 2,046.5 million at the end of 2023[6] - Net assets attributable to equity shareholders decreased to RMB 1,341.2 million from RMB 1,461.1 million at the end of 2023[6] - As of June 30, 2024, the group's net current liabilities amounted to RMB 116,892,000, including bank and other borrowings of RMB 1,651,376,000, which are due within the next twelve months[9] Revenue Breakdown - The group reported revenue of RMB 1,004,396,000 from the sale of oil and gas pipes, a significant contribution to the total revenue of RMB 2,087,283,000 for the six months ended June 30, 2024[13] - Revenue from the sale of new energy pipes and special seamless steel pipes was RMB 535,058,000, showing a decrease from RMB 691,746,000 in the same period last year[13] - Revenue from mainland China for the six months ended June 30, 2024, was RMB 1,227,931,000, a decrease of 18.2% from RMB 1,501,348,000 in 2023[18] - Domestic sales revenue decreased by 18.2% to RMB 1,228.0 million, compared to RMB 1,501.4 million in the same period of 2023[47] - International sales revenue decreased significantly by 46.8% to RMB 311.5 million, down from RMB 585.9 million in the same period of 2023[47] Cost and Expenses - Total sales cost for the period was RMB 1,415.0 million, a decrease of 21.6% from RMB 1,804.1 million in the same period of 2023, mainly due to reduced sales volume and lower raw material prices[49] - Selling expenses were RMB 79.2 million, a decrease of approximately 8.7% from RMB 86.7 million in the same period of 2023, primarily due to reduced sales[52] - Administrative expenses increased by 16.6% to RMB 108.3 million from RMB 92.9 million in the same period of 2023, mainly due to increased labor costs and share-based payment expenses[53] - Financial costs decreased by 3.8% to RMB 41.5 million from RMB 43.2 million in the same period of 2023, mainly due to optimized financing structure and lower loan interest rates[54] Strategic Initiatives - The group is implementing various strategies to expand into new markets while maintaining stable relationships with existing major customers to generate additional cash flow[10] - The group plans to establish production facilities in the Middle East to better serve local customers and enhance international brand development[43] - The group aims to focus on oil and gas pipes, new energy pipes, and special seamless steel pipes to meet and lead customer demand[42] - The group emphasizes "intelligent, green, and differentiated" business concepts to drive the development of specialized products[42] - The group is committed to enhancing core competitiveness and optimizing the structure of market product users[42] Research and Development - Research and development costs for the six months ended June 30, 2024, were RMB 16,547,000, down 26.9% from RMB 22,645,000 in the same period of 2023[20] - The group has collaborated with domestic universities to develop high-corrosion-resistant materials and high-precision mechanical processing techniques, achieving notable results in technology advancement[36] - The group has developed an economic special coupling product that has completed testing and is now in mass supply, showcasing its commitment to innovation[36] Corporate Governance and Future Outlook - The board considers the preparation of the condensed consolidated financial statements on a going concern basis to be appropriate[10] - The group has implemented corporate governance practices in accordance with the relevant guidelines[68] - There were no significant events occurring after the reporting period up to the date of this announcement[68] - The company adopted a share reward plan for directors and senior management on May 31, 2022, which was revised on December 19, 2022[71]
达力普控股(01921) - 2024 - 中期业绩