Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 5,539.6 million, an increase of 5.0% compared to RMB 5,275.2 million in the same period last year[8]. - Gross profit rose by 8.2% to RMB 1,159.8 million, with a gross margin of 20.9%, up from 20.3% year-on-year[8]. - The company's profit attributable to owners decreased by 23.0% to RMB 164.8 million, with basic earnings per share of RMB 9.93, down 25.7% from RMB 13.37[8]. - The group's net profit for the six months ended June 30, 2022, decreased by RMB 40,700,000 or 13.6% to RMB 258,500,000 compared to RMB 299,200,000 in the same period of 2021[37]. - The company reported a basic earnings per share of RMB 9.93 for the six months ended June 30, 2022, down from RMB 13.37 in the same period of 2021[100]. - The net profit for the six months ended June 30, 2022, was RMB 258,505 thousand, a decrease of 14% from RMB 299,205 thousand in the previous year[100]. Sales and Production - The company experienced a total sales volume decline of 4.8% to 527,400 tons, with sales of radial tire steel cord down 6.0% to 413,000 tons, accounting for 78.3% of total sales[15]. - The domestic production of radial tires in China decreased by 8.6% to approximately 22.3 million units in the first half of 2022[13]. - The sales volume of truck radial tire steel cord decreased by 9.6% year-on-year to 241,100 tons, primarily due to the impact of the pandemic on China's economy and logistics activities[16]. - Revenue from sales of radial tire steel cord for truck use was RMB 2,752,236,000, a decrease of 2.3% from RMB 2,817,554,000 in the prior year[120]. - Revenue from sales of radial tire steel cord for passenger cars increased by 17.7% to RMB 1,948,748,000 from RMB 1,655,959,000[120]. Assets and Liabilities - Total assets increased by 7.2% to RMB 21,224.2 million, while total liabilities rose by 11.8% to RMB 13,634.2 million[8]. - Current assets increased by RMB 327,300,000 or 2.7% to RMB 12,648,800,000 as of June 30, 2022, while current liabilities rose by RMB 482,300,000 or 4.3% to RMB 11,637,000,000[40]. - The group's borrowings increased by RMB 506,200,000 or 9.1% to RMB 6,055,700,000 as of June 30, 2022, compared to RMB 5,549,500,000 on December 31, 2021[39]. - The group's debt-to-asset ratio was 28.5% as of June 30, 2022, compared to 28.0% on December 31, 2021[40]. Cash Flow and Investments - The net cash generated from operating activities was RMB 599,619,000, a significant improvement from a cash outflow of RMB 230,152,000 in the previous year[111]. - The net cash used in investing activities was RMB 601,621,000, a slight improvement from RMB 629,336,000 in the previous year[111]. - The group invested approximately RMB 847,432,000 in building production facilities in Thailand and China, an increase from RMB 591,950,000 in the same period last year, to enhance production capacity in China[148]. Expenses and Costs - Distribution and selling expenses rose by RMB 132.3 million or 33.0% to RMB 533.4 million, mainly due to increased export volumes and transportation costs[29]. - Research and development expenses increased by RMB 35.9 million or 63.5% to RMB 92.4 million, reflecting more investment in new product development[33]. - Employee costs, including directors' remuneration, amounted to RMB 451,100,000 for the first half of 2022, compared to RMB 423,900,000 in the same period of 2021, reflecting a year-on-year increase of approximately 6.5%[53]. Shareholder Information - As of June 30, 2022, the major shareholder Hang Youming held 758,132,457 shares, representing 45.60% of the company's issued share capital[70]. - The total number of shares held by the directors and major executives reflects significant ownership concentration within the company[15]. - The company has adopted a share incentive plan to retain outstanding employees and align their interests with those of shareholders[55]. Future Outlook - The company anticipates a recovery in the economy and tire production following the easing of pandemic-related restrictions in June 2022[12]. - The company is positioned to benefit from the long-term growth of the radial tire replacement market, supported by an increasing number of vehicles in China, which reached 310 million by June 2022[13]. - The company plans to enhance product quality and develop more diversified high-end products to contribute to the transformation and high-quality development of the rubber industry during the 14th Five-Year Plan period[61].
兴达国际(01899) - 2022 - 中期财报