Sales Performance - In the first half of 2023, the total sales volume of cold-rolled and galvanized steel products reached 655,828 tons, an increase of 297,628 tons or 83.1% compared to 358,200 tons in the same period of 2022[5] - Revenue for the six months ended June 30, 2023, was RMB 2,976.8 million, an increase of 49.4% compared to RMB 1,991.9 million in the same period of 2022[90] - Revenue from cold-rolled steel products sales reached RMB 1,572,966,000 for the six months ended June 30, 2023, compared to RMB 1,302,960,000 for the same period in 2022, representing an increase of approximately 20.7%[126] - Revenue from galvanized steel products sales was RMB 1,178,601,000 for the six months ended June 30, 2023, significantly up from RMB 463,653,000 in the same period of 2022, indicating a growth of approximately 154.0%[126] - Total revenue generated from customers in China (including Hong Kong) was RMB 2,972,129,000 for the six months ended June 30, 2023, compared to RMB 1,974,402,000 in the same period of 2022, reflecting an increase of approximately 50.6%[128] Financial Performance - Gross profit for the first half of 2023 was approximately RMB 139.3 million, a significant recovery from a gross loss of RMB 5.4 million in the same period of 2022[17] - The company reported a profit attributable to owners of approximately RMB 39.4 million in the first half of 2023, compared to a loss of RMB 58.9 million in the same period of 2022[23] - The net profit margin for the first half of 2023 was approximately 1.3%, improving from a net loss margin of 3.0% in the first half of 2022[24] - Basic earnings per share improved to RMB 6.57 from a loss of RMB 9.82 in the previous year[90] - For the six months ended June 30, 2023, the company reported a profit before tax of RMB 48,277,000, a significant improvement from a loss of RMB 81,339,000 in the same period of 2022[108] Cost and Expenses - The cost of sales increased to approximately RMB 2,837.4 million, up by RMB 840.1 million or 42.1% from RMB 1,997.3 million in the first half of 2022[10] - Direct materials accounted for over 91.5% of the cost of sales in the first half of 2023, up from 90.2% in the same period of 2022[13] - The total employee cost for the first half of 2023 was approximately RMB 60.4 million, compared to RMB 58.3 million in the first half of 2022[40] - Utility expenses increased to approximately RMB 106.8 million in the first half of 2023, up RMB 30.3 million or 39.6% from RMB 76.5 million in the same period of 2022[200] Cash Flow and Liquidity - Cash and cash equivalents increased by RMB 31.5 million or 195.7% to approximately RMB 47.6 million as of June 30, 2023, compared to RMB 16.1 million at the end of 2022[25] - The company generated a net cash inflow of RMB 31,472,000 for the six months ended June 30, 2023, compared to RMB 37,762,000 in the same period of 2022[113] - The company’s operating cash flow for the six months ended June 30, 2023, was RMB 1,132,000, a recovery from a negative cash flow of RMB 246,732,000 in the same period of 2022[110] - The company believes it has sufficient working capital to meet its current liabilities and anticipated business expansion needs[193] Debt and Liabilities - The total borrowings of the group as of June 30, 2023, were approximately RMB 1,410.5 million, a decrease from RMB 1,516.1 million as of December 31, 2022[27] - The group's current liabilities net amount was approximately RMB 268.0 million, down from RMB 452.1 million as of December 31, 2022[27] - The debt-to-equity ratio as of June 30, 2023, was approximately 3.02 times, down from 3.56 times as of December 31, 2022[27] - The company’s total liabilities decreased from RMB 1,516,105,000 as of December 31, 2022, to RMB 1,410,503,000 as of June 30, 2023, reflecting a decrease of 7%[165] Shareholder Information - As of June 30, 2023, the company had a total issued share capital of 600,000,000 shares, with major shareholder Haiyi Limited holding 391,500,000 shares, representing 65.25% of the issued capital[51] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[7] - The company did not exercise any share options during the six months ended June 30, 2023, with a total of 25,272,720 options remaining unexercised[56] Operational Strategy - The group plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, providing stable revenue sources[41] - The management is considering new business opportunities to enhance revenue diversity and shareholder value[41] - The company continues to focus on business development and expansion strategies to support long-term growth[62] Asset Management - Total assets as of June 30, 2023, amounted to RMB 2,905,736 thousand, an increase from RMB 2,796,767 thousand as of December 31, 2022[102] - The company's asset-to-liability ratio decreased to 301.5% from 356.5%[90] - The total equity attributable to the owners of the company increased to RMB 465,669 thousand from RMB 425,338 thousand, indicating a strengthening of the company's financial position[104] Market Conditions - The average selling price of cold-rolled steel products decreased from RMB 5,192 per ton in the first half of 2022 to RMB 4,249 per ton in the first half of 2023[197] - The average selling price of galvanized steel products also fell from RMB 5,443 per ton in the first half of 2022 to RMB 4,329 per ton in the first half of 2023[197]
华津国际控股(02738) - 2023 - 中期财报