Financial Performance - Revenue for the six months ended June 30, 2022 was approximately RMB22,530.1 million, representing an increase of approximately 21.1% compared to the corresponding period in 2021[12]. - Profit attributable to owners of the Company for the six months ended June 30, 2022 was approximately RMB1,737.0 million, representing an increase of approximately 0.8% compared to the corresponding period in 2021[12]. - Basic earnings per share for the six months ended June 30, 2022 was RMB39.14 cents, representing a decrease of approximately 5.9% compared to the corresponding period in 2021[12]. - Total revenue for the six months ended June 30, 2022, increased to RMB22,530.1 million, up from RMB18,599.6 million for the same period in 2021, representing a growth of 10.4%[56]. - The Group recorded a net profit of RMB1,736.0 million for the six months ended June 30, 2022, representing an increase of RMB38.6 million or 2.3% compared to RMB1,697.4 million for the same period in 2021[76]. - Profit before taxation decreased by RMB17.4 million or 0.8% from RMB2,103.8 million for the six months ended June 30, 2021 to RMB2,086.4 million for the six months ended June 30, 2022[74]. - The Company reported finance costs of RMB 477,960 for the period, an increase from RMB 393,449 in the same period of 2021, representing a rise of about 21.5%[152]. - The gross profit margin decreased to 13.4% in 2022 from 17.3% in 2021, while the net profit margin fell to 7.7% from 9.1%[51]. Dividends and Shareholder Returns - The Directors declared interim dividends of RMB12.30 cents per share for the six months ended June 30, 2022, with a total dividend amount of RMB545,874,000[13]. - An interim dividend of RMB12.30 cents per share was declared, totaling RMB545,874,000 for the reporting period[19][22]. - The company recognized dividends for distribution totaling (279,153), reflecting shareholder returns[161]. Production Capacity and Expansion - The Group maintained its position as the world's largest independent producer and supplier of coke by volume in 2021 according to Frost & Sullivan[15]. - The Group is the world's largest independent producer and supplier of coke, and the largest producer of industrial-naphthalene-based phthalic anhydride and coke-oven-gas-based methanol in China as of 2021[16][17]. - As of January 1, 2022, the Group's annual production capacity of coke was approximately 11.05 million tons, with expansions in Huhhot and Sulawesi Production Bases ongoing[25]. - The trial run of the first phase of the coke production facility in Huhhot, with an annual capacity of 1,500,000 tons, was completed, and the remaining capacity is expected to be completed by Q1 2023[25]. - The Group aims to achieve an annual production capacity of 750,000 tons of caprolactam (CPL) by the end of 2022, positioning itself as one of the leading producers globally[26]. - The expansion plans in the Sulawesi Production Base are expected to be completed in different phases by mid-2023 and early 2024[25]. - The Group's annual coke production capacity was approximately 11.05 million tons as of January 1, 2022, with ongoing expansions in Hohhot and Sulawesi expected to complete by mid-2023 and early 2024 respectively[27]. - The Group's caprolactam production capacity is projected to reach 750,000 tons by the end of 2022, positioning it among the world's leading producers[27]. Financial Position and Liquidity - As of June 30, 2022, the Group's bank deposits and cash amounted to approximately RMB4.5 billion, an increase of 28% from RMB3.5 billion as of December 31, 2021[46]. - The Group's gearing ratio increased to 1.6x as of June 30, 2022, compared to 1.5x at the end of 2021[49]. - Cash and cash equivalents at the end of the period were RMB2,125.9 million as of June 30, 2022, down from RMB3,950.1 million at the end of the same period in 2021[86]. - The Group's liquidity is primarily supported by cash flows from operating activities, bank loans, and proceeds from previous offerings[78]. - Total borrowings increased by approximately RMB6.4 billion, or 46.8%, to approximately RMB19.9 billion as of June 30, 2022, from RMB13.6 billion as of December 31, 2021, primarily due to an increase in bank loans[93][94]. Cost and Revenue Analysis - Cost of sales for the six months ended June 30, 2022, increased to RMB19,517.0 million, up from RMB15,387.8 million in 2021, reflecting a rise of 27.6%[61]. - Revenue from coke and coking chemicals manufacturing rose by RMB1,556.3 million or 20.2%, from RMB7,706.4 million in 2021 to RMB9,262.7 million in 2022, driven by an increase in average selling price from RMB2,342.1 per ton to RMB3,218.7 per ton[56]. - Revenue from refined chemical manufacturing increased by RMB1,142.4 million or 18.7%, from RMB6,103.5 million in 2021 to RMB7,245.9 million in 2022, due to higher average selling prices and sales volumes of key products[57]. - Cost of sales from coke and coking chemical manufacturing increased by RMB1,623.9 million or 29.5%, from RMB5,509.3 million in 2021 to RMB7,133.2 million in 2022, primarily due to rising market prices for coking coal[61]. - Cost of sales from refined chemical manufacturing rose by RMB1,299.2 million or 23.7%, from RMB5,471.1 million in 2021 to RMB6,770.3 million in 2022, driven by increased purchase prices of raw materials[61]. Strategic Initiatives and Partnerships - The Group entered into a new operation management agreement for integrated sales and marketing services with an independent third party in Henan Province during the reporting period[20][23]. - The Group's growth strategy includes the provision of operation management services and the formation and acquisition of entities in both China and overseas[18]. - The Group expanded its geographical layout to Indonesia by establishing three joint ventures, with production expected to commence gradually from mid-2023[32]. - On March 24, 2022, the company entered into a partnership agreement to establish Wuhu Changyu Investment Centre, focusing on investment activities in the coal industry, including equity investment, debt investment, mergers and acquisitions, and restructuring[103]. - An investment agreement was signed on July 27, 2022, for an additional capital injection of RMB600 million to Hebei Risun Energy, enhancing strategic cooperation and competitiveness[105][106]. Environmental Commitment - The Group is committed to carbon neutrality, implementing measures to reduce carbon emissions and promote green practices in the coke and chemical industry[35]. - The Group is actively participating in hydrogen industrialization plans in various cities, aiming to become a clean and low-carbon hydrogen energy supplier[44]. Employee and Governance - As of June 30, 2022, the company had 7,644 full-time employees, an increase from 6,972 employees as of June 30, 2021[116]. - The remuneration policy for employees is based on merit, qualifications, and competence, with directors' emoluments set by the Remuneration Committee[116]. - The company has complied with the Corporate Governance Code throughout the reporting period, except for the separation of the roles of chairman and CEO[134]. - Mr. Yang Xuegang serves as both chairman and CEO, overseeing overall management and business development since the company's establishment in 1995[135].
中国旭阳集团(01907) - 2022 - 中期财报