首钢资源(00639) - 2024 - 中期财报

FINANCIAL HIGHLIGHTS H1 2024 Performance Overview H1 2024 saw significant year-on-year declines in key financial metrics, including a 27% revenue drop to HKD 2.5 billion and a 32% decrease in profit attributable to owners to HKD 840 million, with a reduced interim dividend Financial Highlights | Metric | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (HKD '000) | 2,497,844 | 3,442,305 | -27% | | Gross Profit (HKD '000) | 1,406,230 | 2,232,651 | -37% | | Gross Profit Margin | 56% | 65% | -9pp | | Profit for the Period (HKD '000) | 982,542 | 1,519,093 | -35% | | Profit Attributable to Owners (HKD '000) | 837,351 | 1,232,644 | -32% | | EBITDA (HKD '000) | 1,666,070 | 2,372,560 | -30% | | Basic Earnings Per Share (HK cents) | 17.00 | 24.40 | -30% | | Interim Dividend Per Share (HK cents) | 9.00 | 10.00 | -10% | Financial Position Highlights | Metric | As of June 30, 2024 | As of Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Assets (HKD '000) | 23,140,351 | 22,491,544 | +3% | | Cash and Deposits (HKD '000) | 9,220,290 | 7,944,731 | +16% | | Total Liabilities (HKD '000) | 4,698,733 | 4,021,026 | +17% | | Total Equity (HKD '000) | 18,441,618 | 18,470,518 | - | | Current Ratio (times) | 3.44 | 3.97 | -13% | | Gearing Ratio | – | – | – | Condensed Consolidated Financial Statements CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME In H1 2024, revenue decreased 27% to HKD 2.5 billion, gross profit fell 37% to HKD 1.41 billion, and profit attributable to owners declined 32% to HKD 840 million Income Statement | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 2,497,844 | 3,442,305 | | Cost of Sales | (1,091,614) | (1,209,654) | | Gross Profit | 1,406,230 | 2,232,651 | | Profit Before Income Tax | 1,393,872 | 2,121,154 | | Income Tax Expense | (411,330) | (602,061) | | Profit for the Period | 982,542 | 1,519,093 | | Profit Attributable to Owners of the Company | 837,351 | 1,232,644 | | Profit Attributable to Non-controlling Interests | 145,191 | 286,449 | CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of June 30, 2024, total assets increased 3% to HKD 23.14 billion, total liabilities rose 17% to HKD 4.7 billion, and cash and deposits reached HKD 9.22 billion, maintaining a robust financial position with a 3.44x current ratio and zero gearing Assets | Assets (HKD '000) | As of June 30, 2024 (Unaudited) | As of Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 12,161,507 | 12,467,529 | | Total Current Assets | 10,978,844 | 10,024,015 | | Of which: Cash and Cash Equivalents | 6,758,308 | 6,552,242 | | Of which: Time Deposits | 2,461,982 | 1,392,489 | | Total Assets | 23,140,351 | 22,491,544 | Liabilities and Equity | Liabilities and Equity (HKD '000) | As of June 30, 2024 (Unaudited) | As of Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Current Liabilities | 3,188,759 | 2,522,589 | | Of which: Dividends Payable | 886,831 | – | | Total Non-current Liabilities | 1,509,974 | 1,498,437 | | Total Liabilities | 4,698,733 | 4,021,026 | | Total Equity | 18,441,618 | 18,470,518 | | Equity Attributable to Owners | 16,109,542 | 16,281,846 | CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS In H1 2024, net cash inflow from operating activities significantly decreased to HKD 1.18 billion, primarily due to lower profit before tax, while net cash outflow from investing activities was HKD 900 million, and cash and cash equivalents increased to HKD 6.76 billion at period-end Cash Flow Statement | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,180,302 | 2,720,518 | | Net Cash Outflow from Investing Activities | (900,997) | (1,329,616) | | Net Cash Outflow from Financing Activities | (64,735) | (125,061) | | Net Increase in Cash and Cash Equivalents | 214,570 | 1,265,841 | | Cash and Cash Equivalents at End of Period | 6,758,308 | 5,027,222 | MANAGEMENT DISCUSSION AND ANALYSIS Business Review In H1 2024, raw coking coal and clean coking coal production decreased by 15% and 31% respectively due to temporary suspension at Xingwu Coal Mine, with clean coking coal sales down 25%, while average selling price only slightly decreased by 2% to RMB 1,938 per tonne Operational Data | Operational Data | Unit | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | | Raw Coking Coal Production | Million tonnes | 2.25 | 2.66 | -15% | | Clean Coking Coal Production | Million tonnes | 1.29 | 1.86 | -31% | | Clean Coking Coal Sales | Million tonnes | 1.34 | 1.79 | -25% | | Clean Coking Coal Average Selling Price (incl. tax) | RMB per tonne | 1,938 | 1,973 | -2% | - The primary reason for the production decline was the temporary suspension at Xingwu Coal Mine in H1 2024 due to production layer replacement, with normal operations resuming in mid-July[164] Financial Review The financial review details the performance decline, with revenue down 27% due to lower sales and prices, gross profit margin compressing from 65% to 56% due to increased unit production costs, and net profit decreasing 35%, while maintaining a robust financial position with no borrowings and ample cash reserves Revenue and Customers H1 2024 revenue decreased 27% to HKD 2.5 billion, primarily due to a 25% drop in clean coking coal sales and a 2% decline in average selling price, with the top five customers accounting for 73% of revenue, and Shougang Group's share increasing to 51% - Revenue decreased by 27% year-on-year to HKD 2.498 billion, primarily due to a 25% decline in clean coking coal sales volume and a 2% decrease in average selling price[168] - The top five customers accounted for 73% of total revenue, with the largest customer, Shougang Group and its subsidiaries, contributing 51% of revenue and 48% of sales volume[168] Cost and Gross Profit Cost of sales decreased 10% to HKD 1.09 billion, but raw coking coal unit production cost rose 13% to RMB 453 per tonne due to lower output, leading to a 37% decline in gross profit to HKD 1.41 billion and a gross profit margin compression from 65% to 56% Unit Production Cost | Unit Production Cost (RMB per tonne) | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Raw Coking Coal Production Cost | 453 | 400 | +13% | | Less: Depreciation and Amortization | (96) | (74) | +30% | | Cash Raw Coking Coal Production Cost | 357 | 326 | +10% | | Clean Coking Coal Processing Fee | 50 | 40 | +25% | - Gross profit margin decreased from 65% in the prior period to 56%, primarily due to lower average realized selling prices and reduced recovery rates[172][186] - Raw coking coal unit production cost increased by 13% year-on-year, mainly due to a 15% decrease in raw coking coal production volume[183] Expenses and Profitability Sales and distribution expenses significantly decreased by 56% year-on-year due to lower sales volume and cost control, while profit attributable to owners was HKD 837 million, down 32%, with basic earnings per share at HKD 0.17 - Sales and distribution expenses significantly decreased by 56% year-on-year to HKD 58 million, primarily due to a 25% decline in clean coking coal sales volume and a lower proportion of rail transportation sales[192] - Profit attributable to owners of the company was approximately HKD 837 million, a 32% year-on-year decrease; basic earnings per share were HKD 0.17, compared to HKD 0.244 in the prior period[201][174] Capital Structure and Liquidity As of June 30, 2024, the company had no borrowings, a 0% gearing ratio, a current ratio of 3.44 times, and approximately HKD 9.22 billion in free cash and bank deposits, indicating a highly robust financial position - The company has no borrowings, resulting in a 0% gearing ratio[210] - The current ratio is 3.44 times, with approximately HKD 9.221 billion in available free funds, indicating ample liquidity[214] Future Prospects Looking ahead, management anticipates weak domestic real estate demand offset by infrastructure and manufacturing, with coking coal supply constrained by enhanced safety regulations supporting prices; Xingwu Coal Mine resumed production in July, expecting output recovery in H2, while the company focuses on intelligent construction and cost control for efficiency - Regarding downstream demand, steel demand from real estate remains sluggish, but infrastructure investment and steel exports continue to provide support[221] - On the supply side, strengthened coal mine safety regulations limit coking coal production, providing some price support, though rapid growth in overseas coking coal imports, especially from Mongolia, partially offsets domestic output declines[224][225] - The company's Xingwu Coal Mine completed its production layer replacement and resumed operations in July, with output expected to gradually recover and return to normal in the second half of the year[231] Dividends and Shareholder Information INTERIM DIVIDEND The Board declared an interim dividend of HKD 0.09 per ordinary share for the six months ended June 30, 2024, a decrease from HKD 0.10 per share in the prior period - The Board has declared an interim dividend of HKD 0.09 per ordinary share for the six months ended June 30, 2024 (H1 2023: HKD 0.10 per share)[157] DISCLOSURE OF INTERESTS As of June 30, 2024, major shareholders included Fude Life Insurance (28.38% stake), Shougang Group (17.52% stake), and Shoucheng Holdings (15.72% stake) Major Shareholders | Shareholder Name | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | | Fude Life Insurance | 1,398,284,000 | 28.38% | | Shougang Group | 863,358,000 | 17.52% | | Shoucheng Holdings | 774,743,327 | 15.72% | CORPORATE GOVERNANCE AND OTHER INFORMATION Corporate Governance and Compliance During the reporting period, the company complied with the Listing Rules' Corporate Governance Code and the Model Code for Securities Transactions by Directors, with the Audit Committee reviewing the interim report and unaudited interim financial information - The company complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2024[244] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024, and this interim report[256]