Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 6,165.7 million, an increase of 13.8% compared to RMB 5,418.1 million in the same period of 2023[15]. - Gross profit rose by 17.7% to RMB 1,208.7 million, with a gross margin of 19.6%, up from 19.0% in the previous year[15]. - EBITDA for the period was RMB 871.3 million, reflecting a growth of 7.3% from RMB 811.9 million in the prior year[15]. - The net profit attributable to the company's owners was RMB 192.2 million, a slight increase of 0.1% from RMB 192.0 million in the same period last year[15]. - Basic earnings per share decreased to RMB 10.31 from RMB 11.57, representing a decline of 10.9%[15]. - The group's net profit decreased by RMB 12.2 million or 4.1% to RMB 283.3 million for the six months ended June 30, 2024[31]. - The company reported a net profit of RMB 283,310 for the six months ended June 30, 2024, compared to RMB 295,500 for the same period in 2023, reflecting a decrease of 4.1%[96]. Assets and Liabilities - Total assets increased by 7.7% to RMB 22,310.2 million, while total liabilities rose by 10.9% to RMB 13,773.3 million[15]. - The company's net asset value grew by 2.9% to RMB 8,536.9 million, with equity attributable to owners increasing by 4.2% to RMB 6,359.1 million[15]. - Cash and cash equivalents increased by RMB 524.8 million or 91.9% to RMB 1,095.6 million, primarily due to cash generated from financing activities[33]. - The group's borrowings increased by RMB 635.4 million or 9.6% to RMB 7,265.5 million, with fixed interest rates ranging from 1.60% to 3.90%[33]. - The total number of issued shares increased to 1,920,125,000 as of June 30, 2024, from 1,662,445,000 as of December 31, 2023, reflecting a growth of 15.5%[152]. Market and Sales Performance - In the first half of 2024, total sales volume increased by 22.0% to 724,900 tons, with sales of radial tire steel cord rising by 22.7% to 578,600 tons, accounting for 79.8% of total sales[19]. - The sales volume of truck radial tire steel cord increased by 20.9% to 332,600 tons, driven by stable economic growth and increased logistics activities in China[20]. - Revenue for radial tire steel cord reached RMB 5,272.0 million, reflecting a 13.5% increase compared to RMB 4,644.1 million in the previous year[23]. - The sales volume of passenger car radial tire steel cord rose by 25.3% to 246,000 tons, driven by increased demand in both domestic and export markets[20]. - Revenue from China, the operating country, was RMB 4,220,613, up 17.5% from RMB 3,591,968 in 2023[117]. Research and Development - Research and development expenses rose by RMB 62.9 million or 69.0% to RMB 154.1 million, attributed to an increase in the number of new product development projects[28]. - The company developed 19 new types of radial tire steel cord and 24 new types of tire bead wire and other steel wires during the reporting period[21]. Employee and Management - The total employee cost, including directors' remuneration, was RMB 603,700,000 for the six months ended June 30, 2024, compared to RMB 492,200,000 for the same period in 2023[42]. - The company employed approximately 9,200 full-time employees as of June 30, 2024, an increase from approximately 8,700 employees as of December 31, 2023[42]. - The total short-term benefits for key management personnel increased to RMB 22,077 for the six months ended June 30, 2024, compared to RMB 15,201 in 2023, marking an increase of about 45.5%[159]. Corporate Governance - The company has established an executive committee to oversee daily management and resource allocation, following the resignation of a board member in April 2024[71]. - The company has committed to maintaining high standards of corporate governance, including transparency and accountability, despite some deviations from the corporate governance code[71]. - The board currently consists of six executive directors and two independent non-executive directors, with a recent appointment made to comply with listing rules[71]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024[16]. - The board of directors does not recommend the distribution of an interim dividend for the six months ending June 30, 2024[49]. - The company declared dividends amounting to RMB 226,207 thousand during the reporting period[100]. Economic Outlook - The Chinese economy showed stable growth with a GDP increase of 5.0%, and logistics demand is recovering steadily, with a 5.8% year-on-year growth in total social logistics[16]. - The company anticipates positive growth in the tire industry driven by government policies aimed at upgrading manufacturing technology and reducing logistics costs[16]. - In the first half of 2024, the company anticipates challenges due to the complexity of the international environment, but the Chinese economy is expected to show strong resilience, particularly in the development of advantageous industries like new energy vehicles, which may drive demand for semi-steel radial tire steel cord[46]. Financial Management - Financing costs decreased by RMB 21.2 million or 17.0% to RMB 103.4 million, mainly due to a decline in the effective interest rate on floating-rate borrowings[29]. - The company reported a net cash outflow from investing activities of RMB 402,288,000 for the six months ended June 30, 2024, compared to RMB 700,466,000 in the same period of 2023[104]. - New borrowings amounted to RMB 5,328,977,000, an increase from RMB 3,314,417,000 in the previous year, indicating a strategy to enhance liquidity[104]. Risk Management - The group has implemented financial risk management policies to ensure all payables are settled within the credit period[145]. - The average credit period allowed to trade customers is 120 days, which may impact cash flow management[138].
兴达国际(01899) - 2024 - 中期财报