Revenue and Profitability - Revenue from coal business for the six months ended June 30, 2023, was RMB 1,905,924,000, a decrease from RMB 2,056,954,000 in the same period of 2022[18]. - For the six months ended June 30, 2023, the Group reported revenue of RMB 1,905,924,000, a decrease of 7.3% compared to RMB 2,056,954,000 in the same period of 2022[126]. - Gross profit for the six months ended June 30, 2023, was RMB 390.1 million, down 44.6% from RMB 703.6 million in the same period of 2022, resulting in a gross profit margin of 20.5% compared to 34.2% in 2022[24]. - Operating profit decreased by 57.9% to RMB 259.3 million for the six months ended June 30, 2023, from RMB 615.9 million in the same period of 2022[29]. - Profit after taxation for the six months ended June 30, 2023, was RMB 140.1 million, a decrease of 62.3% from RMB 371.2 million in the same period of 2022[30]. - Profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 130.8 million, down 60% from RMB 327.4 million in the same period of 2022[31]. - Total comprehensive income for the period was RMB 124,695,000, down 66.7% from RMB 374,399,000 in the same period of 2022[126]. - Profit for the period attributable to equity shareholders decreased to RMB 130,798,000 in 2023 from RMB 327,374,000 in 2022, representing a decline of 60%[129]. - Basic earnings per share attributable to equity shareholders decreased to RMB 5.14 cents in 2023 from RMB 13.03 cents in 2022, a decrease of 60.5%[129]. Coal Production and Sales - Coal handling and trading volume increased to 2,702,000 tonnes for the six months ended June 30, 2023, compared to 2,575,000 tonnes in the same period of 2022[18]. - Average coal selling prices decreased, ranging from RMB 557 to RMB 941 per tonne in the first half of 2023, compared to RMB 528 to RMB 1,295 per tonne in the same period of 2022[18]. - Average coal selling price for the six months ended June 30, 2023, was RMB 705 per tonne, a decrease of 11.8% from RMB 799 per tonne in the same period of 2022[23]. - Raw coal production volume for the six months ended June 30, 2023, was 3,724,000 tonnes, a decrease of 2.1% from 3,805,000 tonnes in 2022[61]. - Commercial coal production volume for the same period was 2,415,000 tonnes, down 2.3% from 2,473,000 tonnes in 2022[63]. - The production of raw coal in China for the first half of 2023 was 2,300 million tonnes, an increase of 4.4% year-on-year, while imported coal volume was 220 million tonnes, up 93.0% year-on-year[32]. Financial Position and Liabilities - As of June 30, 2023, net current liabilities were RMB 3,822.6 million, down from RMB 4,155.8 million as of December 31, 2022[68]. - The current ratio improved to 0.38 as of June 30, 2023, compared to 0.33 as of December 31, 2022[68]. - Total banking facilities as of June 30, 2023, were RMB 3,568.3 million, unchanged from December 31, 2022[80]. - The gearing ratio improved to 25.8% as of June 30, 2023, down from 32.1% as of December 31, 2022[82]. - The Group's debt-to-asset ratio improved to 25.8% as of June 30, 2023, compared to 32.1% as of December 31, 2022, due to an increase in cash and cash equivalents[85]. - Borrowings due for immediate payment amounted to approximately RMB 1,302,136,000, down from RMB 1,330,634,000 as of December 31, 2022[154]. - Short-term bank borrowings were RMB 562,492,000, compared to RMB 590,990,000 as of December 31, 2022, indicating a reduction in short-term debt[154]. Investments and Capital Expenditure - Capital expenditure for the six months ended June 30, 2023, was RMB 361.1 million, an increase of 36.4% from RMB 264.7 million in 2022[69]. - Total exploration, mining, and development expenses amounted to RMB 881.4 million in 2023, a decrease of 4.9% from RMB 927.2 million in 2022[67]. - The Group entered into a procurement contract for equipment worth approximately RMB 156 million for the SDE coal mine, including key machinery for coal extraction[40]. Safety and Environmental Practices - The Group emphasizes production safety and invests in innovative technology and digitization to enhance safety management culture in coal mines[44]. - The Group has implemented safety measures and emergency drills to enhance safety awareness among employees during the National "Safe Production Month" in June 2023[48]. - The Group is actively promoting ecological civilization and green energy development, aligning with the Chinese government's policies[49]. Strategic Focus and Future Outlook - The Group continued to focus on its coal business activities in China while expanding its integrated coal supply chain overseas during the reporting period[16]. - The Group's strategic focus includes enhancing operational efficiency and expanding market reach in both domestic and international markets[16]. - The management remains optimistic about future growth prospects despite the challenges in coal pricing[16]. - The Group plans to accelerate coal production in currently operating mines and apply for the renewal of expired coal mining rights to enhance internally generated funds and operating cash inflows[170]. Legal and Compliance Matters - The Group recognized other borrowings with carrying amounts of RMB 2,524,154,000 as of June 30, 2023, down from RMB 2,607,894,000 as of December 31, 2022[157]. - There are ongoing litigations against the Group primarily related to settling long outstanding payables with interest[158]. - The conditions indicate a material uncertainty regarding the Group's ability to continue as a going concern[159]. - The financial statements are unaudited and should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2022[150]. - The Company has complied with the applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2023[106].
中国秦发(00866) - 2023 - 中期财报