Financial Performance - For the first half of 2022, the company's revenue was RMB 5,321.0 million, a decrease of approximately RMB 411.8 million or 7.2% compared to the same period in 2021[11]. - Gross profit for the first half of 2022 was RMB 1,448.998 million, down 17.4% from RMB 1,753.881 million in the same period last year[9]. - Net profit attributable to the company's owners was RMB 456.536 million, a decline of approximately RMB 295.1 million or 39.3% year-on-year[9]. - The company sold approximately 13.4 million tons of cement, a decrease of about 4.1 million tons or 23.4% compared to approximately 17.5 million tons in the same period of 2021[11]. - The average selling price of cement increased to RMB 322.7 per ton, an increase of RMB 32.3 or 11.1% year-on-year[11]. - The company's revenue for the first half of 2022 was approximately RMB 4,340.8 million, a decrease of RMB 67.8 million or 1.5% compared to RMB 4,408.6 million in the same period last year[16]. - The company's gross profit for the first half of 2022 was approximately RMB 1,449.0 million, down RMB 304.9 million or 17.4% from RMB 1,753.9 million in the previous year[18]. - The gross margin decreased to 27.2% in the first half of 2022 from 30.6% in the same period last year, primarily due to rising unit costs of cement[18]. - The profit attributable to the owners of the company for the first half of 2022 was approximately RMB 456.5 million, a decrease of RMB 295.1 million or 39.3% compared to RMB 751.6 million in the same period of 2021, with a net profit margin of 8.6%, down 4.5 percentage points year-on-year[27]. - The company reported a profit attributable to owners of RMB 456,536,000, down from RMB 751,571,000 in the same period last year[91]. Assets and Liabilities - The company recorded a total asset value of RMB 33,003.220 million as of June 30, 2022, reflecting a 1.1% increase from RMB 32,658.235 million at the end of 2021[9]. - The company's total liabilities decreased by 0.9% to RMB 16,439.190 million from RMB 16,589.957 million at the end of 2021[9]. - Trade and other receivables decreased from RMB 8,351.3 million as of December 31, 2021, to RMB 8,106.8 million as of June 30, 2022, mainly due to the collection of cash from matured receivables[28]. - Inventory increased from RMB 850.7 million as of December 31, 2021, to RMB 1,283.9 million as of June 30, 2022, primarily due to an increase in both quantity and unit cost[29]. - As of June 30, 2022, the company's total borrowings and bonds amounted to approximately RMB 10,265.8 million, a decrease of about RMB 398.9 million from RMB 10,664.7 million as of December 31, 2021[34]. - The company's debt-to-asset ratio as of June 30, 2022, was 49.8%, down 1.0 percentage point from 50.8% as of December 31, 2021, due to an increase in equity[36]. - The net debt-to-equity ratio as of June 30, 2022, was 16.3%, a decrease of 8.5 percentage points from 24.8% as of December 31, 2021[37]. - The company had pledged assets with a book value of approximately RMB 5,441.9 million as of June 30, 2022, compared to RMB 4,259.1 million as of December 31, 2021[40]. Operational Highlights - The company has a clinker production capacity of 28.4 million tons and a cement production capacity of 56.4 million tons[11]. - The company sold approximately 1.4 million tons of clinker, an increase of 0.7 million tons compared to 0.7 million tons in the same period of 2021[11]. - In the first half of 2022, China's cement production reached 977 million tons, a year-on-year decrease of 15% compared to a 14.1% increase in the same period last year[14]. - The average national cement price in the first half of 2022 was RMB 499 per ton, down 10.6% from the end of last year, primarily due to weak macroeconomic conditions and reduced demand from the real estate sector[14]. Expenses and Income - Other income for the first half of 2022 was approximately RMB 391.4 million, an increase of RMB 56.0 million or 16.7% compared to RMB 335.4 million in the same period last year[19]. - The company's sales and distribution expenses were approximately RMB 158.1 million, a decrease of RMB 42.3 million or 21.1% from RMB 200.4 million in the previous year[20]. - Administrative expenses increased to approximately RMB 462.7 million, up RMB 37.5 million or 8.8% from RMB 425.2 million in the same period last year[21]. - The company recorded a foreign exchange loss of RMB 102 million in the reporting period, compared to a gain of RMB 21 million in the same period last year[24]. - For the first half of 2022, the company's profit before tax was approximately RMB 610.0 million, a decrease of about RMB 377.8 million or 38.2% compared to RMB 987.8 million in the same period of 2021[25]. - The income tax expense for the first half of 2022 was approximately RMB 114.3 million, down RMB 78.5 million or 40.7% from RMB 192.8 million in the same period of 2021, primarily due to the decrease in profit before tax[26]. Shareholder Information - As of June 30, 2022, the total shares held by Yu Kuo amounted to 2,044,484,822, representing 69.58% of the company's equity[54]. - China Tianrui Group Cement Co., Ltd. has a significant shareholder structure, with major shareholders controlling 69.58% of the shares[54]. - China Huarong Asset Management Co., Ltd. holds 470,000,000 shares, which is 16.00% of the total equity[54]. - The major shareholders include Best Ego Limited with 300,000,000 shares (10.21%) and China Cinda Asset Management Co., Ltd. with 260,000,000 shares (8.85%)[56]. Corporate Governance - The company continues to maintain high standards of corporate governance and has not appointed a new CEO since December 1, 2015, while an executive committee manages daily operations[63]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing shares or bonds of the company during the six months ending June 30, 2022[56]. - No significant contracts were disclosed that would give directors a substantial interest related to the company's business during the reporting period[59]. - The company has not filed any interest disclosure forms during the six months ending June 30, 2022[55]. Future Outlook - The group anticipates that cement demand will remain stable or see slight growth in the second half of 2022, despite weak new construction in the real estate sector[45]. - The group plans to actively align with national policies to expand investment and stabilize the economy, enhancing operational efficiency and market order[48]. - The group aims to increase industry concentration and optimize market layout while integrating mining resources for future development[48]. - The group is committed to transitioning towards "green" and "intelligent" development to enhance its core competitiveness[48].
中国天瑞水泥(01252) - 2022 - 中期财报