Financial Performance - In the first half of 2022, the company recorded a revenue of approximately RMB 8,473.3 million, a decrease of 14.3% compared to RMB 9,890.8 million in the same period of 2021[16]. - The company experienced a gross loss of approximately RMB 24.2 million, compared to a gross profit of RMB 645.0 million in the previous period[8]. - The net loss for the period was approximately RMB 294.1 million, compared to a net profit of RMB 191.7 million in the previous period[8]. - The gross loss for the same period was RMB 24,192,000, compared to a gross profit of RMB 645,008,000 in 2021[74]. - The company reported a net cash outflow from operating activities of RMB (161,814,000) for the six months ended June 30, 2022, compared to a net inflow of RMB 768,353,000 in the same period of 2021[85]. - The company incurred a total comprehensive loss of RMB (300,349,000) for the period, compared to a total comprehensive income of RMB 184,269,000 in the previous year[83]. Sales and Pricing - The average selling price of ordinary steel products decreased from RMB 4,293 per ton to RMB 4,033 per ton, reflecting a decline of approximately 6.1%[9]. - The sales volume of special steel products decreased by 23.7% compared to the previous period, resulting in a gross loss of approximately RMB 14.1 million[13]. - The demand for rebar decreased by 18% due to a significant reduction in the real estate sector and insufficient infrastructure construction progress[9]. - Sales volume of ordinary steel products was 950,082 tons, accounting for 70% of total sales, while special steel sales volume was 401,132 tons, accounting for 30%[19]. - The company's total sales to external customers in the six months ended June 30, 2022, were RMB 8,473,283 thousand, down from RMB 9,890,828 thousand in the same period of 2021[107]. Cost and Expenses - The average unit cost of ordinary and special steel products increased by 6.2% during the period[9]. - The cost of sales for the period was approximately RMB 8,497.5 million, down from RMB 9,245.8 million in the first half of 2021, primarily due to reduced sales volume and trading activities[20]. - Administrative expenses increased to approximately RMB 66.2 million from RMB 48.8 million in the first half of 2021, attributed to higher intangible asset amortization and salary increases[26][27]. - Financing costs decreased to RMB 87,698,000 from RMB 146,511,000 in the previous year, indicating a reduction of 40%[74]. Assets and Liabilities - As of June 30, 2022, the total assets of the group were approximately RMB 16,094.5 million, a slight decrease from RMB 16,168.9 million as of December 31, 2021[31]. - The company’s total liabilities as of June 30, 2022, were RMB 3,628,267,000, compared to RMB 3,574,659,000 as of December 31, 2021, showing a slight increase[136]. - The group had capital commitments of approximately RMB 582.2 million as of June 30, 2022, compared to RMB 577.2 million as of December 31, 2021[41]. - The group had pledged assets totaling RMB 4,841.3 million, down from RMB 5,011.5 million as of December 31, 2021[36]. Employee and Management - The group employed 3,571 employees as of June 30, 2022, a decrease from 3,712 employees as of June 30, 2021[46]. - Employee costs for the period were approximately RMB 152.1 million, compared to RMB 149.1 million in the first half of 2021[46]. - The total compensation paid to key management personnel increased to RMB 5,995,000 in 2022 from RMB 3,624,000 in 2021[153]. Market Conditions and Future Outlook - The company anticipates continued challenges in the second half of 2022, with profit levels expected to remain weak due to increased downward pressure on costs and overall economic conditions[47]. - The real estate sector, a major consumer of steel, shows signs of bottoming out, but market confidence remains low, impacting the company's revenue[49]. - The overall demand for steel materials is not expected to return to the levels seen in the first half of the previous year in the short term[49]. Research and Development - Research and development expenses remained stable at approximately RMB 224.0 million, compared to RMB 223.7 million in the same period of 2021[28]. - The company has established a Special Steel New Materials Technology Innovation Center in Shandong, focusing on key technology research and development[50]. - The company aims to address "bottleneck" technology challenges in the specialty steel sector to meet high-end equipment material demands[50]. Shareholder Information - Major shareholder, Xiwang Investment, holds approximately 36.64% of the company's shares as of June 30, 2022[55]. - No interim dividend was declared for the period, consistent with the previous year[52]. Financial Instruments and Fair Value - The company’s financial instruments' carrying values are assessed to be similar to their fair values, with no significant changes in fair value due to credit risk[154]. - The fair value sensitivity analysis indicates that a 5% increase or decrease in the valuation multiple could lead to a change in fair value of RMB 2,582,000 for 2022, down from RMB 3,268,000 in 2021[158].
西王特钢(01266) - 2022 - 中期财报