Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 5,418.1 million, a decrease of 2.2% compared to RMB 5,539.6 million in the same period of 2022[6]. - Gross profit for the same period was RMB 1,027.3 million, down 11.4% from RMB 1,159.8 million, resulting in a gross margin of 19.0%, a decline of 1.9 percentage points year-on-year[6][7]. - EBITDA increased by 12.6% to RMB 811.9 million, compared to RMB 721.1 million in the previous year[6]. - Profit attributable to the company's owners rose by 16.5% to RMB 192.0 million, up from RMB 164.8 million in the prior year[6][7]. - Basic earnings per share increased to RMB 11.57, a rise of 16.5% from RMB 9.93 in the same period last year[6]. - The group's net profit for the six months ended June 30, 2023, increased by RMB 37,000,000 or 14.3% to RMB 295,500,000 compared to RMB 258,500,000 in the same period of 2022[24]. - The company reported a total comprehensive income of RMB 256,424 thousand for the six months ended June 30, 2023, compared to RMB 297,978 thousand for the same period in 2022, indicating a decrease of 13.9%[73]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 21,331.9 million, reflecting a 1.5% increase from RMB 21,010.0 million at the end of 2022[6]. - Total liabilities increased by 2.3% to RMB 13,381.8 million from RMB 13,086.2 million[6]. - The group's current assets rose by RMB 864,800,000 or 7.4% to RMB 12,508,800,000 as of June 30, 2023, while current liabilities increased by RMB 865,400,000 or 7.4% to RMB 12,489,600,000[25]. - The group's asset-liability ratio was 32.2% as of June 30, 2023, compared to 32.8% on December 31, 2022[25]. - The group's borrowings as of June 30, 2023, amounted to RMB 6,876,000,000, a slight decrease of RMB 15,800,000 or 0.2% from RMB 6,891,800,000 on December 31, 2022[25]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 1,324,360,000, compared to RMB 599,619,000 for the same period in 2022, representing a significant increase[77]. - The net cash used in investing activities was RMB 700,466,000 for the first half of 2023, compared to RMB 601,621,000 in the prior year, indicating increased investment outflows[77]. - New borrowings amounted to RMB 3,314,417,000 in the first half of 2023, while repayments totaled RMB 3,331,892,000, reflecting a net cash outflow from financing activities of RMB 302,577,000[77]. - The company reported a government grant related to assets of RMB 22,917,000 for the first half of 2023, compared to RMB 34,991,000 in the same period last year[77]. Production and Sales - The domestic production of radial tires in China reached approximately 312 million units in the first half of 2023, representing a growth of 14.7% year-on-year[7]. - Total sales volume increased by 12.7% year-on-year to 594,300 tons, with sales of radial tire steel cord rising by 14.2% to 471,600 tons, accounting for 79.3% of total sales[8]. - Sales of truck radial tire steel cord rose by 14.1% to 275,200 tons, while sales of passenger car radial tire steel cord increased by 14.3% to 196,400 tons[9]. - The company's annual production capacity for radial tire steel cord grew to 999,000 tons, with a utilization rate of 93.3%, up from 84.8% in the same period last year[10]. Expenses and Costs - Other income decreased by RMB 42 million or 37.0% to RMB 71.6 million, mainly due to a lack of income from the sale of other materials[14]. - Distribution and selling expenses decreased by RMB 165.9 million or 31.1% to RMB 367.5 million, primarily due to lower shipping costs[17]. - Research and development expenses decreased by RMB 1.2 million or 1.3% to RMB 91.2 million, as fewer resources were allocated to new product development[21]. - Financing costs increased by RMB 7.7 million or 6.6% to RMB 124.6 million, mainly due to a rise in average bank loan balances[22]. - The total employee costs increased to RMB 463,082,000, compared to RMB 451,075,000 in the previous year, marking a 2.3% rise[100]. Shareholder Information - As of June 30, 2023, the company’s directors and key executives held a total of 851,582,457 shares, representing 51.22% of the issued share capital[36]. - The total number of issued shares of the company as of June 30, 2023, is 1,662,445,199 shares[40]. - The company has established a consensus voting agreement among key shareholders to ensure unified voting on matters presented at shareholder meetings[37]. - The company has not declared an interim dividend for the six months ended June 30, 2023[35]. Corporate Governance - The company has adopted corporate governance practices in line with the listing rules, except for the separation of the roles of chairman and CEO[52]. - All directors have confirmed compliance with the standard code of conduct for securities trading as of June 30, 2023[53]. - The company has committed to maintaining high standards of corporate governance, including transparency and accountability[52]. Future Outlook and Strategy - 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[34]. - The company aims to leverage the recovery in the automotive market to boost demand for radial tire steel cord[34]. - The company will closely monitor national policies and global economic developments to adjust strategic deployments in response to pandemic changes, ensuring stable growth in production and sales for the year[34].
兴达国际(01899) - 2023 - 中期财报