Financial Performance - The company reported a revenue of RMB 1,119,215,000 for the first half of 2022, a decrease of 66.3% compared to RMB 3,355,148,000 in the same period of 2021[8]. - The net loss for the first half of 2022 was approximately RMB 523,600,000, compared to a net loss of RMB 72,063,000 in the first half of 2021[8][16]. - For the six months ended June 30, 2022, the company's revenue was RMB 1,119,215,000, a decrease of 66.6% compared to RMB 3,355,148,000 for the same period in 2021[25]. - The company reported a loss of RMB 523,600,000 for the six months ended June 30, 2022, compared to a loss of RMB 72,100,000 for the same period in 2021, indicating a significant increase in losses[30]. - The gross loss for the period was RMB 40,610 thousand, compared to a gross profit of RMB 35,250 thousand in the previous year[152]. - The company incurred a pre-tax loss of RMB 520,617 thousand, significantly higher than the pre-tax loss of RMB 53,132 thousand in the prior year, indicating a substantial decline in financial performance[152]. - The net loss attributable to the owners of the company was RMB 523,586 thousand, compared to a net loss of RMB 72,063 thousand in the same period last year[152]. - Basic loss per share was RMB 0.12, compared to RMB 0.02 in the previous year, reflecting a worsening financial position[152]. - The financial costs increased to RMB 125,834 thousand from RMB 78,658 thousand, highlighting rising expenses impacting profitability[152]. Assets and Liabilities - Cash and cash equivalents decreased by 41.23% to RMB 7,025,000 from RMB 11,953,000 as of December 31, 2021[8]. - Total assets slightly decreased by 0.44% to RMB 6,704,053,000 from RMB 6,733,999,000 as of December 31, 2021[8]. - Total liabilities increased by 1.60% to RMB 5,105,159,000 from RMB 5,024,602,000 as of December 31, 2021[8]. - The total interest-bearing borrowings as of June 30, 2022, amounted to RMB 1,442,294,000, a decrease from RMB 1,799,964,000 as of December 31, 2021[32]. - The debt-to-equity ratio improved from 105.3% to 90.2% as of June 30, 2022, primarily due to the issuance of ordinary shares to settle convertible bonds[81][82]. - As of June 30, 2022, the net value of assets pledged for bank loans and other financing was RMB 2,185.2 million, compared to RMB 2,024.8 million as of December 31, 2021[83]. - The total equity of the company was RMB 1,598,894 thousand, reflecting a decline in reserves and retained earnings[164]. Inventory and Receivables - Inventory increased by RMB 645,800,000 to RMB 835,300,000 as of June 30, 2022, compared to RMB 189,500,000 as of December 31, 2021[78]. - Inventory turnover days increased to 80.0 days for the six months ended June 30, 2022, compared to 12.2 days for the year ended December 31, 2021[78]. - Trade receivables and notes receivable decreased by RMB 842,700,000 to RMB 1,468,800,000 as of June 30, 2022, down from RMB 2,311,500,000 as of December 31, 2021[79]. - Accounts receivable turnover days increased to 305.7 days for the six months ended June 30, 2022, compared to 105.0 days for the year ended December 31, 2021[79]. - As of June 30, 2022, trade payables and notes payable increased by RMB 495 million to RMB 1,838.7 million, compared to RMB 1,343.7 million as of December 31, 2021, with accounts payable turnover days rising from 58.2 days to 248.3 days[80]. Business Strategy and Future Outlook - The company plans to undergo a debt restructuring process to address its current debt issues, which was initiated by a voluntary bankruptcy reorganization application submitted to the court[16][17]. - Future business prospects will depend on the speed of recovery of the Chinese economy, influenced by the COVID-19 pandemic and the recovery of the construction and real estate sectors[18]. - The company aims to maintain employee welfare and contribute to the local community as part of its social responsibility during the restructuring process[17]. - The company is committed to creating value for its shareholders despite the challenging environment[19]. - The company plans to focus on the sales of recycled copper products, leading to a complete cessation of sales in electrolytic copper trading[26]. Shareholder Structure and Governance - The company has a significant shareholder structure, with major stakeholders holding substantial percentages of shares, including 11.89% by Mr. Yu Jianqiu and 6.92% by Mr. Huang Weiping[100][112]. - The largest single shareholder is Mianyang Fule Investment Co., Ltd., holding 16.02% of the shares, followed by Hengfu Investment Co., Ltd. with 12.44%[112][117]. - The company has established a stock option plan, with options granted to directors, including 3,000,000 shares to Ms. Zhu Yufen[105][106]. - The company is actively seeking suitable candidates to fill the vacancies of independent non-executive directors to comply with listing rules[145]. - The audit committee currently consists of only two members, which is below the minimum requirement set by the listing rules[145]. - The company has acknowledged the need to improve its governance structure following the resignation of two independent non-executive directors[145]. Cash Flow and Investment Activities - The company recorded a net cash flow from operating activities of RMB 150,595 thousand, a significant improvement from a net outflow of RMB (313,313) thousand in the prior year[179]. - The company’s investment activities resulted in a net cash outflow of RMB (181,483) thousand, indicating significant capital expenditures[179]. - The company’s financing activities generated RMB 17,800 thousand from bank loans and other borrowings[179]. Other Financial Information - The company reported other income and gains of RMB 63,700 thousand, down from RMB 126,579 thousand in the same period of 2021, indicating a decline in additional revenue sources[152]. - The company recognized government grants and subsidies amounting to RMB 119,241 thousand[197]. - The company reported a foreign exchange loss of RMB 23.9 million due to the conversion of liabilities from HKD to RMB[87].
中国金属利用(01636) - 2022 - 中期财报