Financial Performance - The group's revenue for the reporting period was RMB 110.8 million, a decrease of 26.9% compared to RMB 151.5 million in the same period of 2023 [9]. - Sales of aggregate products and others amounted to RMB 88.02 million, down 17.2% from RMB 106.34 million year-on-year, with sales volume decreasing by 4.8% [9]. - The revenue from ready-mixed concrete sales was RMB 22.38 million, a decline of 38.94% from RMB 36.65 million in the previous year, with sales volume dropping by 28.32% [10]. - The group's gross profit was RMB 40.4 million, down RMB 27.5 million from RMB 67.9 million in the same period last year, resulting in a gross margin of 36.5%, down 8.3 percentage points [12]. - Other income decreased by approximately 57.3% to RMB 4.7 million from RMB 11.0 million in the previous year, primarily due to a reduction in government subsidies and foreign exchange gains [13]. - The group recorded a net loss of approximately RMB 11.1 million, a decline of about 146.8% compared to a net profit of RMB 23.7 million in the same period of 2023 [18]. - The group's total revenue for the first half of 2024 was RMB 110,752,000, representing a decline of 27.0% from RMB 151,538,000 in the first half of 2023 [61]. - Gross profit for the same period was RMB 40,403,000, down 40.5% from RMB 67,912,000 year-on-year [50]. - The net loss attributable to equity shareholders for the period was RMB 7,678,000, compared to a profit of RMB 16,429,000 in the prior year [50]. - The company's total comprehensive loss for the period was RMB 11,147,000, reflecting a decline from the previous year's profit [53]. Market Dynamics and Future Outlook - The company reported a significant decline in the prices of aggregate and concrete products due to economic downturn, impacting overall performance [4]. - The company anticipates a potential recovery in the real estate market in 2024, supported by ongoing infrastructure projects and favorable government policies [5]. - The construction materials industry is expected to benefit from future growth in the real estate market in Huaibei and nearby cities [5]. - The company is closely monitoring market dynamics to adjust procurement plans in response to potential market fluctuations [5]. - The company aims to enhance product quality and expand sales channels to mitigate risks and challenges in the current economic environment [4]. - The group plans to increase production capacity to achieve an annual output of 6 million tons, with gradual increases planned for 2025, in response to anticipated demand from infrastructure projects in the Huai Bei area [33]. Financial Position and Assets - The group's cash and cash equivalents increased from RMB 73.7 million as of December 31, 2023, to RMB 566.7 million as of June 30, 2024, representing an increase of RMB 493.0 million, primarily due to net cash from operating activities of RMB 56.1 million and net cash from financing activities of RMB 437.9 million [20]. - Total equity decreased from RMB 666.3 million as of December 31, 2023, to RMB 647.8 million as of June 30, 2024, mainly due to losses incurred in 2024 [21]. - The group's total assets increased from RMB 2,383.0 million as of December 31, 2023, to RMB 2,576.9 million as of June 30, 2024, primarily due to increased borrowings [21]. - The group's debt-to-asset ratio increased to 74.9% as of June 30, 2024, from 72.0% as of December 31, 2023, an increase of 2.9 percentage points, primarily due to increased borrowings and operating losses [25]. - The company's net assets decreased to RMB 647,808 thousand from RMB 666,347 thousand year-on-year [52]. - Current assets increased to RMB 621,811 thousand from RMB 400,005 thousand at the end of 2023, primarily due to an increase in cash and bank deposits [51]. - Total liabilities decreased significantly from RMB 1,172,094 thousand to RMB 467,126 thousand, indicating improved financial stability [52]. Operational Highlights - The second production line of Tongming Mining has been put into operation, producing three types of fine aggregates and four types of common aggregates for infrastructure projects [4]. - The company remains a major producer of construction aggregates in Huaibei and surrounding cities, maintaining a stable market share despite challenges [3]. - The company has signed key sales agreements for aggregate products, committing to sell at least 1.2 million tons within a year [4]. - The company is committed to improving its risk management capabilities to navigate the current economic challenges [4]. Shareholder and Corporate Governance - The company announced a capital increase of RMB 83,999,600 for Tongming Mining, resulting in ownership stakes of 60.1255%, 29.6141%, and 10.2604% for the company, Leiming Blasting, and Leiming Chemical respectively [38]. - The company maintained sufficient public float as per the main board listing rules throughout the reporting period [44]. - There were no share buyback programs or stock option plans in place during the reporting period [36][37]. - As of June 30, 2024, major shareholder Huai Bei City Construction Investment Group held 99% of the domestic shares, equating to 196,020,000 shares [41]. - The company did not hold any treasury shares as of June 30, 2024 [36]. - The company has adopted corporate governance codes and has complied with relevant regulations during the reporting period [49]. Capital Expenditure and Investments - The group's capital expenditure during the reporting period was approximately RMB 0.9 million, a decrease of about 98.1% compared to RMB 48.5 million in the same period of 2023, as the second phase of construction was nearly completed [23]. - The company utilized approximately 90% of the net proceeds from the global offering for the purchase of mining rights in the Gao Lou Shan mining area, amounting to HKD 70.7 million [35]. - The remaining 10% of the net proceeds, totaling HKD 7.9 million, was allocated for working capital and general corporate purposes [35]. - The company issued shares through an initial public offering, raising RMB 67,926,000 during the reporting period [53]. Employee and Operational Costs - The total employee cost was approximately RMB 11.9 million, a decrease of about 20.0% compared to RMB 14.9 million in the same period of 2023 [32]. - The group's administrative expenses were RMB 15.6 million, remaining relatively stable compared to the previous year [14]. - The company incurred a total of RMB 7,392,000 in dividends during the reporting period [53]. Related Party Transactions - Sales to the ultimate holding company and its affiliates decreased to RMB 31,065,000 in the six months ended June 30, 2024, down 39.6% from RMB 51,613,000 in the same period of 2023 [88]. - Services received from non-controlling interests of subsidiaries amounted to RMB 7,093,000, a decrease of 62.7% compared to RMB 18,963,000 in the prior year [88]. - The company provided guarantees for borrowings totaling RMB 210,000,000, which are set to expire in November 2023 [89].
淮北绿金股份(02450) - 2024 - 中期财报