Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of RMB 454,200,000, a decrease of 6.9% compared to RMB 487,992,000 for the same period in 2023[2]. - The gross loss for the period was RMB 33,792,000, compared to a gross loss of RMB 18,277,000 in the previous year, indicating a significant decline in profitability[2]. - The company recorded a net loss attributable to owners of RMB 221,735,000 for the six months ended June 30, 2024, compared to a net loss of RMB 496,374,000 for the same period in 2023, showing an improvement in loss[2]. - The company reported a basic and diluted loss per share of RMB (0.05) for the six months ended June 30, 2024, compared to RMB (0.11) for the same period in 2023, indicating a reduction in loss per share[2]. - The company reported a pre-tax loss of RMB (221,660) thousand for the six months ended June 30, 2024, compared to a loss of RMB (496,374) thousand for the same period in 2023[17]. - The loss for the six months ended June 30, 2024, decreased from approximately RMB 496.4 million in 2023 to approximately RMB 221.7 million[37]. Assets and Liabilities - Total non-current assets decreased to RMB 566,167,000 as of June 30, 2024, down from RMB 584,739,000 as of December 31, 2023[3]. - Current assets decreased to RMB 739,672,000 as of June 30, 2024, compared to RMB 797,580,000 as of December 31, 2023, reflecting a decline in liquidity[3]. - The company's total liabilities increased to RMB 5,038,354,000 as of June 30, 2024, compared to RMB 4,887,735,000 as of December 31, 2023, indicating rising financial obligations[3]. - The net current liabilities stood at RMB (4,298,682,000) as of June 30, 2024, compared to RMB (4,090,155,000) as of December 31, 2023, suggesting a worsening financial position[3]. - As of June 30, 2024, the company's net current liabilities were approximately RMB 4,298,682,000, and net debt was about RMB 3,734,017,000[9]. - The company had cash and cash equivalents of approximately RMB 21,632,000 as of June 30, 2024, with debts due within one year amounting to approximately RMB 1,660,722,000[9]. Debt Restructuring - The company is undergoing debt restructuring for its subsidiaries, including Mianyang Tongxin Copper Industry Co., Ltd. and Mianyang Jinxun Environmental Metal Materials Co., Ltd., under the Chinese Bankruptcy Law[9]. - The first creditors' meeting for the debt restructuring was held on March 28, 2023[9]. - Mianyang Baohua Taiyue Communication Cable Co., Ltd. is also undergoing debt restructuring, with its application submitted on May 18, 2023[10]. - The court accepted the bankruptcy restructuring application for Taiyue on May 24, 2023[10]. - The company is actively seeking new financing arrangements, including issuing convertible bonds worth RMB 400 million, subject to certain conditions[11]. - The company is focused on successfully completing the bankruptcy restructuring of its subsidiary, despite potential short-term operational and financial impacts[41]. Operational Performance - The company continues to focus on the production and trading of copper, aluminum, and related products as its main business operations[6]. - The company operates through three business segments: recycled copper products, power cables, and communication cables[15]. - The sales of recycled copper products for the six months ended June 30, 2024, were RMB 445,883 thousand, a substantial increase from RMB 124,221 thousand in the same period of 2023[20]. - The group sold 7,004 tons of recycled copper products, generating revenue of RMB 445.9 million for the six months ending June 30, 2024[38]. - The company anticipates the recovery of its communication cable and power distribution cable businesses once sufficient operating capital is obtained, as most products have already been sold[38]. Government Support and Economic Outlook - The government has announced a series of policies to support the weak economy, including a 20 basis point cut in the seven-day reverse repo rate and a 50 basis point reduction in the reserve requirement ratio[40]. - China's GDP growth rate for 2023 is projected at 5.2%, driven by government measures to stabilize the economy and the real estate market[39]. - The outlook for the copper industry remains optimistic, particularly in light of the 14th Five-Year Plan (2021-2025) and the emphasis on sustainable economic transformation[39]. - The company believes it has advantages to benefit from the anticipated growth in copper demand[41]. Corporate Governance - The company has adhered to corporate governance principles and all relevant rules as of June 30, 2024[66]. - The company has implemented a set of guidelines for directors' securities trading, confirming compliance with the relevant standards as of June 30, 2024[67]. - The board consists of four executive directors and three independent non-executive directors[74]. - The chairman of the board is Mr. Yu Jianqiu[74]. - The company emphasizes the importance of its board structure for governance[74]. Legal and Compliance Issues - The company is involved in multiple legal litigations related to bank loans and trade payables, which may result in the freezing of certain bank accounts and seizure of assets[63]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates as of June 30, 2024[60]. - The company's shares have been suspended from trading since April 3, 2023, pending compliance with the resumption guidelines[71].
中国金属利用(01636) - 2024 - 中期业绩