Financial Performance - The company reported a revenue of HK$1.2 billion for the last quarter, representing a year-over-year increase of 15%[12]. - The company expects revenue guidance for the next quarter to be between HK$1.3 billion and HK$1.5 billion, indicating a potential growth of 8% to 25%[12]. - The Group achieved total revenue of RMB 1,693.6 million during the Reporting Period, representing a 10.0% increase from RMB 1,539.5 million in the corresponding period of 2024[80]. - The Group recorded an increase of 7.4% in revenue from oil and gas pipes to RMB1,078.7 million, compared to RMB1,004.4 million in the corresponding period of 2024[82]. - Revenue from new energy pipes and special seamless steel pipes increased by 14.9% to RMB614.9 million, up from RMB535.1 million in the same period last year[82]. - Domestic sales revenue grew by 20.2% to RMB1,475.5 million, compared to RMB1,228.0 million in the corresponding period of 2024, attributed to competitive advantages in sales and services[87]. - Overseas sales decreased by 30.0% to RMB218.1 million, down from RMB311.5 million in the same period last year, due to geopolitical tensions and economic policy shifts[89]. - The Group's total gross profit was RMB152.7 million, an increase of RMB28.2 million from RMB124.5 million for the corresponding period of 2024, with a gross profit margin of 9.0%[93]. - The Group's loss narrowed significantly by 78.5% to RMB15.0 million, compared to a loss of RMB69.7 million for the corresponding period of 2024[105]. - The Group reported an adjusted net loss of RMB (8.9) million for the six months ended 30 June 2025, a significant improvement from RMB (55.1) million for the same period in 2024, resulting in an adjusted net loss margin of (0.5%) compared to (3.6%) in 2024[111]. Market Expansion and Strategy - User data showed a growth in active users to 2.5 million, up 20% compared to the previous quarter[12]. - New product launches are anticipated to contribute an additional HK$300 million in revenue over the next fiscal year[12]. - Market expansion plans include entering two new regions in Southeast Asia by Q3 2024, projected to increase market share by 10%[12]. - The Group's strategy aligns with the National Energy Administration's target of producing 10 million tons of hydrogen by 2025, driving demand for special pipes[64]. - The establishment of the Dammam production base in Saudi Arabia is expected to enhance international market penetration and strengthen global brand influence[71]. - The Group is focusing on deepening market expansion in domestic shale gas blocks and offshore oil and gas markets while ensuring timely operations at the Dammam base[71]. Research and Development - The company is investing HK$50 million in R&D for new technologies aimed at enhancing product efficiency[12]. - The Group is committed to developing new products such as economical coal pipes and hydrogen transportation pipes, establishing long-term cooperation with premium domestic and international customers[21]. - The Group's technology R&D has led to breakthroughs in hydrogen/carbon dioxide corrosion-resistant pipes and hydrogen transmission line pipes[69]. - The industry intensified R&D efforts on pipes characterized by high strength, high toughness, long service life, and high precision for energy and material savings[38]. Operational Efficiency and Cost Management - The company has set a target to reduce operational costs by 5% through efficiency improvements in the next fiscal year[12]. - The average profit margin of the industry remained relatively low, pressured by intensified homogeneous competition in low-end products and fluctuations in raw material prices[29]. - The Group's operational efficiency optimization initiative will focus on process innovation and labor efficiency improvement to achieve profitability for conventional products[72]. - The new intelligent tubing production line increased production efficiency by 35% and reduced required manpower by 30%[60]. Environmental and Sustainability Initiatives - The Group received an "A" ESG rating from China Securities Index (CSI) and Wind, ranking 14th within the energy sector, indicating strengthened core competitiveness in green development[49]. - Key energy-saving projects during the reporting period included hydraulic station retrofits and photovoltaic design retrofits, effectively reducing electricity consumption and CO2 emissions[52]. - The Group is committed to reducing unit product carbon emissions to meet EU Carbon Border Adjustment Mechanism requirements through green power substitution technologies[75]. - The Group's focus on energy-saving renovations has not only lowered operating costs but also strengthened its environmental performance[55]. Shareholder and Corporate Governance - The board has approved a dividend payout of HK$0.10 per share, reflecting a commitment to returning value to shareholders[12]. - The Board does not recommend the payment of interim dividends for the reporting period[129]. - The company has complied with all code provisions set out in part 2 of the Corporate Governance Code during the reporting period[137]. - The total number of issued Shares as of June 30, 2025, is 1,505,868,000[3]. Employee and Talent Development - The Group had a total of 1,934 employees as of 30 June 2025, with total staff costs amounting to RMB 131.5 million, compared to RMB 119.1 million in the same period of 2024[120]. - The Group is enhancing talent development through practical training linked to new production line projects, improving the skills of frontline operators[53]. Financial Position and Capital Expenditure - Capital expenditure during the reporting period was RMB 505.8 million, a substantial increase from RMB 158.4 million in the corresponding period of 2024, primarily due to the Phase Two Expansion[112]. - As of 30 June 2025, the Group's cash at bank and on hand amounted to RMB 355.5 million, down from RMB 412.1 million as of 31 December 2024[114]. - The Group's interest-bearing borrowings increased to RMB 2,522.9 million as of 30 June 2025, up from RMB 2,212.6 million at the end of 2024, with long-term borrowings rising to RMB 1,395.6 million[117]. - The gearing ratio increased to 166.1% as of 30 June 2025, up 29.2 percentage points from 136.9% at the end of 2024, attributed to increased borrowings and decreased equity due to losses[118]. - The current ratio improved from 1.02 as of 31 December 2024 to 1.15 as of 30 June 2025, indicating better short-term financial health[119].
达力普控股(01921) - 2025 - 中期财报