Financial Performance - For the six months ended June 30, 2023, the company reported a net loss of approximately RMB 496.4 million, a significant decrease in revenue of 87.4% compared to the same period in 2022[6]. - The company's revenue for the six months ended June 30, 2023, was RMB 141.5 million, a decrease of 87.4% compared to RMB 1,119.2 million for the same period in 2022[19]. - Revenue from copper products was RMB 124.2 million, down 88.8% from RMB 1,108.0 million year-on-year, reflecting a volume drop from 17,174 tons to 1,864 tons, a decline of 89.1%[20]. - The loss for the six months ended June 30, 2023, was RMB 496.4 million, a slight improvement from a loss of RMB 523.6 million in the same period of 2022[21]. - The loss per share for the first half of 2023 was RMB 0.11, compared to RMB 0.12 in the same period of 2022[6]. - The company reported a pre-tax loss of RMB 496,374 thousand, slightly better than the pre-tax loss of RMB 520,617 thousand in the previous year[72]. - For the six months ended June 30, 2023, the group reported a pre-tax loss of RMB 496,374,000, compared to a loss of RMB 523,585,000 for the same period in 2022, reflecting a decrease of approximately 5% in losses year-over-year[104]. Assets and Liabilities - Total assets decreased by 17.20% to RMB 1,985.7 million as of June 30, 2023, compared to RMB 2,398.1 million at the end of 2022[4]. - Total current assets decreased to RMB 1,382,604 thousand as of June 30, 2023, down from RMB 1,778,498 thousand at the end of 2022, reflecting a decline of approximately 22.3%[73]. - Total current liabilities increased to RMB 5,183,213 thousand, compared to RMB 5,097,225 thousand at the end of 2022, indicating an increase of about 1.7%[73]. - Net current liabilities were reported at RMB (3,800,609) thousand, worsening from RMB (3,318,727) thousand at the end of 2022[73]. - The total interest-bearing borrowings as of June 30, 2023, amounted to RMB 1,600.9 million, a slight increase from RMB 1,595.9 million at the end of 2022[28]. - The net debt as of June 30, 2023, was approximately RMB 3,199.7 million, an increase from RMB 2,702.0 million as of December 31, 2022, primarily due to a loss of approximately RMB 496.4 million during the period[31]. Cash Flow and Financing - Cash and cash equivalents increased by 413.89% to RMB 12.3 million as of June 30, 2023, from RMB 2.4 million at the end of 2022[4]. - Operating cash flow for the six months ended June 30, 2023, was RMB (187,965) thousand, compared to RMB 150,595 thousand in the same period of 2022[77]. - The company is actively seeking new financing arrangements, including issuing convertible bonds amounting to RMB 400 million, subject to certain conditions[86]. - The company entered into a subscription agreement on September 27, 2024, for the issuance of convertible bonds amounting to RMB 400 million, subject to certain conditions[42]. Debt Restructuring - The company is undergoing bankruptcy restructuring for some subsidiaries to reduce debt and unlock the value of quality assets[6]. - The company has initiated debt restructuring for its subsidiaries, including Mianyang Tongxin Copper Industry Co., Ltd. and Mianyang Jinxun Metal Materials Co., Ltd., under the Chinese Bankruptcy Law[82]. - Mianyang Baohengtai Communication Cable Co., Ltd. has also submitted a voluntary bankruptcy restructuring application on May 18, 2023, which was accepted by the court[83]. - A civil ruling involving a debt of approximately RMB 11.9 million against a subsidiary was dismissed, allowing the subsidiary to proceed with its bankruptcy restructuring application[13]. Market Outlook - The company anticipates a recovery in its downstream businesses, particularly in communication cables and power distribution, as the real estate market stabilizes[7]. - The company expects increased demand for copper driven by advancements in electric vehicles, renewable energy systems, and 5G technology deployment[8]. - The company is facing challenges in the copper industry, including strict environmental regulations, resource shortages, and geopolitical tensions that may impact supply chains and productivity[9]. - The company anticipates continued challenges in the market, impacting future performance and revenue growth[90]. Employee and Management - As of June 30, 2023, the group had 340 employees, down from 507 as of December 31, 2022, with employee costs amounting to approximately RMB 13.8 million for the six months ended June 30, 2023[17]. - The total remuneration for key management personnel reached RMB 6,893,000 for the period ending June 30, 2023, compared to RMB 3,155,000 in 2022, reflecting a significant increase[137]. - The company’s chairman and CEO roles are held by the same individual, Yu Jianqiu, due to his extensive experience in operations and management[63]. Shareholder Information - The board has proposed not to distribute an interim dividend for the six months ended June 30, 2023[18]. - The company reported no interim dividend for the six months ended June 30, 2023, consistent with the previous year[118]. - The total number of issued ordinary shares as of June 30, 2023, is 4,481,557,261[50]. - The company’s total issued and paid-up share capital remained at 4,481,557,261 shares as of June 30, 2023, unchanged from previous periods[117]. Compliance and Governance - The company’s mid-term report for the six months ending June 30, 2023, has been reviewed by the audit committee[66]. - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the standards set forth in the listing rules[64]. - The company’s shares have been suspended from trading since April 3, 2023, pending compliance with resumption guidelines[69]. - The company must correct issues leading to the trading suspension and comply with listing rules by October 2, 2024, or risk delisting[70].
中国金属利用(01636) - 2024 - 中期财报