Financial Performance - For the six months ended June 30, 2024, the company reported revenue of 865.2 million MYR, a significant increase of approximately 50.5% compared to 574.8 million MYR for the same period in 2023[14]. - The company achieved a net profit of 10.1 million MYR for the first half of 2024, a substantial increase of about 312% compared to 2.5 million MYR in the first half of 2023[16]. - The gross profit increased from 29.6 million MYR in the first half of 2023 to 61.8 million MYR in the first half of 2024, marking a growth of approximately 109.1%, with the gross margin improving from 5.1% to 7.1%[22]. - Operating profit rose to 18,897 thousand MYR, up from 5,843 thousand MYR, marking an increase of 223.5%[55]. - Net profit for the period was 10,114 thousand MYR, compared to 2,452 thousand MYR in 2023, reflecting a growth of 312.5%[55]. - Basic and diluted earnings per share increased to 1.15 sen from 0.25 sen, representing a growth of 360%[55]. Sales and Revenue - The sales volume of black scrap metal reached 471,580 tons in the first half of 2024, representing an increase of about 52.7% from 308,891 tons in the first half of 2023[19]. - In the first half of 2024, the company sold 471,580 tons of black scrap metal, generating revenue of 787,399 thousand MYR, compared to 308,891 tons and 538,630 thousand MYR in the same period of 2023, representing an increase of approximately 52.6% in sales volume and 46.2% in revenue[20][21]. Assets and Equity - Total assets increased to 408.7 million MYR as of June 30, 2024, compared to 382.1 million MYR in the previous year[15]. - The company's equity attributable to owners rose to 224.8 million MYR, up from 213.3 million MYR in the previous year[15]. - As of June 30, 2024, the total equity attributable to owners was 224.7 million MYR, up from 213.3 million MYR as of December 31, 2023, including retained earnings of 140.7 million MYR[31]. Expenses - Distribution and selling expenses surged by approximately 130.9% to 26 million MYR in the first half of 2024, up from 11.3 million MYR in the same period of 2023, primarily due to increased transportation costs related to higher scrap metal sales and new iron ore trading activities[23]. - Administrative expenses rose by 24.8% to 16.7 million MYR in the first half of 2024, compared to 13.4 million MYR in the first half of 2023, mainly due to an increase in office and operational staff and salary adjustments[24]. - The total costs for sales, distribution, and administrative expenses reached 864,191 thousand MYR, up from 569,944 thousand MYR, reflecting a 51.6% increase year-over-year[72]. Liabilities and Borrowings - The company's total borrowings increased to 108.6 million MYR as of June 30, 2024, from 98.4 million MYR as of December 31, 2023, primarily used for the procurement of black scrap metal and capital expenditures[31]. - The asset-to-liability ratio as of June 30, 2024, was 0.50, compared to 0.48 as of December 31, 2023[31]. - Total liabilities rose to 186,041 thousand MYR from 169,516 thousand MYR, an increase of 9.7%[57]. Market Conditions and Challenges - The company anticipates challenges in the global steel industry due to ongoing supply-demand imbalances and geopolitical tensions affecting market conditions[16]. - The Malaysian steel industry continues to face structural challenges, including overcapacity and weak local demand, prompting the establishment of an independent committee to assess the industry's outlook[16]. - The company remains committed to enhancing operational efficiency and maintaining a strong market position despite current market volatility[16]. - The company is focused on strategic initiatives to drive sustainable growth and create value for stakeholders[16]. Employee and Shareholder Information - The total employee cost and related expenses for the six months ended June 30, 2024, amounted to 16.7 million MYR, a 51.8% increase from 11.0 million MYR in the same period last year[47]. - The company employed 374 staff as of June 30, 2024, up from 227 staff a year earlier[47]. - Directors and senior executives collectively hold 681,680,000 shares, representing approximately 68.17% of the company[39]. Cash Flow and Investments - Operating cash flow generated net cash of 25,996 thousand MYR for the six months ended June 30, 2024, compared to a net cash used of (3,525) thousand MYR in the same period of 2023[60]. - The net cash used in investing activities was (5,584) thousand MYR for the six months ended June 30, 2024, compared to (3,273) thousand MYR in the prior year[60]. - The group has committed capital expenditures of 28,576 thousand MYR for the purchase of two adjacent vacant land plots as of June 30, 2024, up from 11,757 thousand MYR as of December 31, 2023, reflecting an increase of approximately 143.5%[106].
兴合控股(01891) - 2024 - 中期财报