Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,991.9 million, a decrease of 11.1% compared to RMB 2,240.7 million in 2021[4] - Gross loss was RMB (5.4) million, with a gross margin of (0.3%) compared to a gross profit of RMB 131.4 million and a gross margin of 5.9% in 2021[4] - The net loss attributable to owners of the company was RMB (58.9) million, resulting in a net loss margin of (3.0%) compared to a profit of RMB 54.8 million and a net profit margin of 2.4% in 2021[4] - Sales volume decreased by 6.5% to 358,200 tons from 383,230 tons in the previous year[4] - The company reported a pre-tax loss of RMB 81,339 thousand for the six months ended June 30, 2022, compared to a profit of RMB 69,703 thousand for the same period in 2021[23] - The company reported a total comprehensive loss of RMB (58,938,000) for the six months ended June 30, 2022, compared to a profit of RMB 54,826,000 for the same period in 2021, indicating a substantial decline in performance[48] Assets and Liabilities - Net asset value as of June 30, 2022, was RMB 530.0 million, a decrease of 9.7% from RMB 587.0 million at the end of 2021[4] - Total borrowings increased by 25.1% to RMB 1,537.8 million from RMB 1,229.6 million at the end of 2021[4] - The debt-to-equity ratio rose to 290.1% from 209.5% in the previous year[4] - As of June 30, 2022, total assets amounted to RMB 1,604,135 thousand, an increase from RMB 1,185,374 thousand as of December 31, 2021, representing a growth of approximately 35.4%[16] - Trade receivables and other receivables increased significantly to RMB 1,211,423 thousand from RMB 870,814 thousand, marking an increase of about 39.1%[16] - Non-current liabilities increased slightly to RMB 406,753 thousand from RMB 402,639 thousand, reflecting a marginal rise of 1.1%[18] Cash Flow and Financing - Operating cash flow for the period was negative at RMB 246,732 thousand, worsening from a negative RMB 160,452 thousand in the previous year[23] - The net cash inflow for the six months ended June 30, 2022, was RMB 37,762,000, a decrease from RMB 152,417,000 in the same period of 2021, representing a decline of approximately 75.7%[25] - The company’s cash and cash equivalents increased to RMB 60,306 thousand from RMB 22,547 thousand, representing a significant increase of approximately 167.5%[16] - The company’s net current liabilities were approximately RMB 338.4 million, compared to RMB 229.6 million as of December 31, 2021[106] - The net cash generated from financing activities was RMB 369,134,000, slightly down from RMB 396,941,000 in the same period of 2021[25] Sales and Revenue Breakdown - Sales of cold-rolled steel products amounted to RMB 1,302,960,000, a decrease of 17.0% compared to RMB 1,569,980,000 in the previous year[38] - The company reported a significant increase in sales of galvanized steel products, reaching RMB 463,653,000, up 28.5% from RMB 361,033,000 in the same period of 2021[38] - The average selling price of processed steel products decreased from RMB 5,207 per ton in the first half of 2021 to RMB 5,192 per ton in the first half of 2022[111] - The average selling price of galvanized steel products decreased from RMB 5,728 per ton in the first half of 2021 to RMB 5,443 per ton in the first half of 2022[111] Expenses and Costs - Employee benefits expenses totaled RMB 58,286,000 for the six months ended June 30, 2022, up from RMB 43,039,000 in the same period of 2021, marking a 35.5% increase[46] - Selling expenses decreased to approximately RMB 9.2 million, down RMB 8.1 million or 46.8% from RMB 17.3 million in the first half of 2021, mainly due to reduced shipping costs[126] - Administrative expenses increased to approximately RMB 30.5 million, up RMB 9.1 million or 42.5% from RMB 21.4 million in the first half of 2021, primarily due to increased salaries and business-related expenses[127] - The total sales cost decreased to approximately RMB 1,997.3 million, down RMB 112.0 million or 5.3% from RMB 2,109.3 million in the first half of 2021[115] Shareholder Information - The company declared a special interim dividend of HKD 0.098 per share, totaling HKD 58,800,000 (approximately RMB 49,022,000) on January 21, 2021[50] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[184] - The total issued share capital of the company as of June 30, 2022, is 600,000,000 shares[165] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and complied with applicable provisions during the reporting period[186] - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[192] - The chairman expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[193]
华津国际控股(02738) - 2022 - 中期财报